Scottish Power doubles gas DD based on basic error

brixtonia

Scottish Power recently took my meter reading and wrote to me advising that my monthly gas DD would double to £153. My own calculations based on actual readings suggested there was no need to change, so I called them up. They ran through a list of justifications which did not make sense and which I refused to accept. Eventually the call handler said they would speak to their manager about it.

It turned out that the automatic billing system had taken my 12 month usage data but averaged it over 6 months - doubling consumption. In fact, instead of an increase, my monthly DD should have gone down about 2% (which they consequently did).

It seems very worrying to me that an automated system is making such basic errors. Mine can't have been the only one. How many people have have had their DDs doubled and not challenged it? I know my old Mum would have just thought the energy company must be right and paid up. Could it be intentional?

MacMickster

brixtonia wrote: »

It turned out that the automatic billing system had taken my 12 month usage data but averaged it over 6 months - doubling consumption. In fact, instead of an increase, my monthly DD should have gone down about 2% (which they consequently did).

It seems very worrying to me that an automated system is making such basic errors. Mine can't have been the only one. How many people have have had their DDs doubled and not challenged it? I know my old Mum would have just thought the energy company must be right and paid up. Could it be intentional?

A computer only does what it is programmed to do. If they haven't always done this (and it would have been all over the press if they had) then someone has deliberately altered the program which calculates the direct debits.

brixtonia

Indeed. I don't see how it could have been a one-off error.

I have raised it as a complaint and asked for an explanation of how it happened. I'd imagine most people who get it changed back will just be relieved that their payments have not actually doubled.

backfoot

Sounds like yet another mis-specification under the new IT system.These glitches appear to affect selected customers only rather than all, but the programs must be doing it under certain circumstances or for different tariffs.

I don't think it is the same problem encountered by some customers in my thread here:

https://forums.moneysavingexpert.com/discussion/5357927

That problem did also affect the annual projection of gas units and the period on period comparison. I didn't allow it to affect my Direct Debit as I switched Supplier before anything else went wrong.

You also encountered the same fob off customer service where they initially pretend they don't know of the problem but when you persist a Supervisor/complaint handler suddenly accepts it is down to the crappy new system.

System

I had a similar issue with another of the Big 6 last year. When I asked them to justify their vastly inflated annual projection, the response was that we take your last quarter's consumption and divide by 3 and multiply by 12. They had used a Winter quarter. I complained and took it to the Ombudsman. The Ombudsman's response was that 'energy companies have an over-arching licence obligation to ensure that customers do not go into debt'. By this time, I was back with a smaller supplier who was quite content to use my annual projections to set and maintain the DD.

backfoot

Hengus wrote: »

They had used a Winter quarter. I complained and took it to the Ombudsman. The Ombudsman's response was that 'energy companies have an over-arching licence obligation to ensure that customers do not go into debt'.

Ha ha:rotfl:.

The Ombudsman doesn't have a clue.

SP do like to review their DD's a lot calling some interim reviews and others annual. Going back to the OP, it may be that the spec has used a 6 month period to the annual review date rather than projecting forward for the next twelve months.Obviously the Consultants didn't understand the business requirement.

The Ombudsman would probably say they had an overarching responsibility for getting it wrong.

brixtonia

The complaints department just called. Strangely, having earlier admitted it was their error, he spent the entire call trying to justify the higher price (which they had already agreed was an error).

Cardew

brixtonia wrote: »

It turned out that the automatic billing system had taken my 12 month usage data but averaged it over 6 months - doubling consumption. In fact, instead of an increase, my monthly DD should have gone down about 2% (which they consequently did).

Personally I don't think the explanation you were given about the '
automatic billing system had taken my 12 month usage data but averaged it over 6 months' was correct.


I believe all of the computer systems use a standard algorithm(written by an ex MSE contributor) that is pretty sophisticated and uses weather statistics from the Met office etc. This algorithm is independently audited.


However like all computer systems 'Rubbish in = rubbish out' and utility companies seem to excel at feeding in nonsense and not checking stupid outputs.

Blackbeard_of_Perranporth

Again I have no problem with SP. I update every three months, as their current fixed rate deals have been stable for a while now. Updated last on Jan 3, fixed not till Jan 2017 at £53. Customer since 1990, including a large debt when at university.

Yes SP do like to review the DD, and if you update regularly, they do this every quarter. Better to be sure, than ignorant.

Blackbeard_of_Perranporth

Malc. How much is your credit balance. Ours goes from £50 to £120 over the year. Our current payment is £56 a month, about the same as it has been the last year or so. I tarrif hop every bill, do now on Jan 17 fixed.

Be careful at the end of fixed rate, you go onto the normal tarrifs, which are higher
.

backfoot

Cardew wrote: »

Personally I don't think the explanation you were given about the '
automatic billing system had taken my 12 month usage data but averaged it over 6 months' was correct.


I believe all of the computer systems use a standard algorithm(written by an ex MSE contributor) that is pretty sophisticated and uses weather statistics from the Met office etc. This algorithm is independently audited.


However like all computer systems 'Rubbish in = rubbish out' and utility companies seem to excel at feeding in nonsense and not checking stupid outputs.

Is there a link to this algorithm or thread on the Forum ? If not how do you know about it? Who does the auditing? Presumably they audit the calculation rather than audit its validity.