First Utility & Back Billing

Cardew

Hengus wrote: »

So- if I am understanding correctly what is being said here - if I pay £50 per month for, say, 18 months but should have been paying £45 per month then any claim for Back Billing will result in absolutely nothing despite the fact that I have been e-mailing them every month requesting a bill.

Conversely, if I was underpaying by £5 per month, then the supplier couldn't ask me for the £60 under-payment for the first 12 months of the 18 month period.

One has to ask if this true - and most money sites interpret the Code to a simple write off of the bill from the 12 month point backwards - then why is The Ombudsman proposing this as a remedy? It would be fairer if compensation was given for poor service without the Code coming into play. One has to wonder why FU allowed this case to go to The Ombudsman?

With the 'Big 6' companies there have been several posts on this subject i.e. periods in excess of 12 months without a bill but regular payment of a DD had been made for the whole period.


iirc the interpretation in all cases has been that any credit is 'used up' first. So the example in your first paragraph is correct. i.e. 18 payments of £50 = £900. The total bill is 18 x £45 = £810 so the first 6 months is not written off. Presumably on the grounds that there was no 'bill shock'.


Obviously if you were paying on receipt of a bill, you would only be liable for £540(12 x £45) i.e. the cost of the preceding 12 months.

matelodave

The big problem with not keeping an eye on your consumption is that if you've used say 24,000 kwh over 24 months then it's relatively easy to apportion 12,000 of them to the first 12 months and 12,000 to the second.

However, with a bit of creative accounting, the energy company could apportion a higher proportion to the second year (the one you've got to pay for) especially if there were more winter months than summer ones in the time span most people use 60-70% of their annual energy in the five winter months and 30-35% of it in the seven summer ones.

As Cardew point outs, you've been paying something towards what you've used - if they'd determined that you'd overpaid during the so called back billing period then one assumes that any overpayment would be credited to this year. However if you'd under paid then they can't ask for the difference - you'd only end up with it written off if you hadn't paid anything, say they'd not billed you and they'd not collected the DD either.

immy

And it seems they have done just that by allocating usage on a pro rata uniform basis across all months rather than being weighted per winter/summer months usage.

Another point I need to go back to them on.

matelodave

immy wrote: »

And it seems they have done just that by allocating usage on a pro rata uniform basis across all months rather than being weighted per winter/summer months usage.

Another point I need to go back to them on.

It will be dead easy if you've kept records, your word against theirs if you haven't.

You could ask them for the monthly meter readings that you sent them in the hope that they are lurking in their system somewhere but I suspect that the only one they've got is your starting reading. You have got a record of that haven't you, and have you checked that it's the same as the leaving reading from your previous supplier?

immy

I have them written down somewhere....

Lady321986

Back billing is only there to protect both parties and not to result in being better off at the end of it.

If your issue as been ongoing for 15 months then you have to pay what you've used in the last 12 months, regardless of time spent etc. Which means the back billing period is the months 12-15.

If no payments are made for the months 12-15 then the allowance is added to zero the account. Then a full 12 months bill is produced and is payable.

If however, prior to the 12 months you're in credit, then no back billing is applied. However, if you're in debit then that amount is added to zero the account at that 12 month mark.

The only credit you'd carry forward then is what you've paid in the last 12 months.

For example:

Balance after billing 12 months ago including payments made over 12 months ago - £ 500 debit
Payments made in last 12 months - £500 credit

Then at this point to zero the account £500 is added to clear the debit and you'd carry £500 credit forward. You'd then be billed for a full 12 months, deducting your payments in last 12 months. End balance is to be credited back or payable.

Hope this helps.

footyguy

As I understand your post, you raised a complaint with FU that eventually you asked the ombudsman to rule upon.

Having considered your complaint, the ombudsman provided a suggested remedy.

I presume you formally accepted that proposed remedy as full and final settlement of the complaint.

If you feel the supplier has not conformed with the remedy agreed (as they would be obligated to do in such circumstances) then you should be referring the matter back to the ombudsman - you should have the contact details of the individual (case handler) at the ombudsman that provided you with the remedy.