Add your feedback on energy supplier Iresa

System

youravinalarrrf wrote: »

It appears that Iresa are basing their CV calculation on out of date information dated June 2014 https://www.gov.uk/guidance/gas-meter-readings-and-bill-calculation

I believe this was replaced by updated guidance from Ofgem issued to all domestic suppliers in August 2014 https://www.ofgem.gov.uk/publications-and-updates/guidance-all-domestic-gas-suppliers-how-calculate-calorific-value-used-domestic-consumer-billing

I have emailed Iresa to inform them of this error on their website FAQ's and asked them what they're doing about it but have had no response as yet which is pretty much what I expected.

It maybe a case of head in the sand and hope it goes away or that their super doopa "Unique Technology" MS Excel and MS Access software just can't cope with it.

I would suggest that others also contact them to point this out.

I spoke to Iresa today and I was told that my complaint about their use of what was known as an 'industry standard' calorific value had been escalated, and I would have a response by 3pm today. Guess what?

I would also urge Iresa gas customers to check their bills. If a fixed calorific value has been used, then there is the potential for overcharging.

youravinalarrrf

Hengus wrote: »

I spoke to Iresa today and I was told that my complaint about their use of what was known as an 'industry standard' calorific value had been escalated, and I would have a response by 3pm today. Guess what?

I don't really need to do I?

Hengus wrote: »

If a fixed calorific value has been used, then there is the potential for overcharging.

Slight correction. They've almost certainly been overcharging the vast majority of their customers since they began operating. Granted it's not been by much but pennies make pounds and lots of pounds make them richer and us their customers poorer.

I had exactly the same argument with Extra Energy before they eventually gave in and admitted they were wrong.

I'm about to inform Mr. Oladeji the Director responsible that Ofgem have also been informed of this.

It might just help him to focus his mind and update his spreadsheets a bit quicker. LMFAO

System

youravinalarrrf wrote: »

I don't really need to do I?



Slight correction. They've almost certainly been overcharging the vast majority of their customers since they began operating. Granted it's not been by much but pennies make pounds and lots of pounds make them richer and us their customers poorer.

I had exactly the same argument with Extra Energy before they eventually gave in and admitted they were wrong.

I'm about to inform Mr. Oladeji the Director responsible that Ofgem have also been informed of this.

It might just help him to focus his mind and update his spreadsheets a bit quicker. LMFAO

I tend to make a written complaint when a supplier just ignores me: it also starts the clock ticking. The response this morning is that they have a big backlog that they are trying to deal with!

I said 'potential' as I haven't had the time to check all the regional daily calorific values.

youravinalarrrf

youravinalarrrf wrote: »

I'm about to inform Mr. Oladeji the Director responsible that Ofgem have also been informed of this.

It might just help him to focus his mind and update his spreadsheets a bit quicker. LMFAO

Amazingly I've had a reply.

Let's just say he's now on the case.

Maxwell007

So am i right to understand they are over charging people knowingly ? !

And if my quoted annual cost is £750 what would be the real figure I should have paid ? !

youravinalarrrf

Maxwell007 wrote: »

So am i right to understand they are over charging people knowingly ? !

And if my quoted annual cost is £750 what would be the real figure I should have paid ? !

No I wouldn't say they've done it either deliberately or knowingly but ignorance is no excuse.

They've been issued with an Operators License which allows them to sell gas to the British public so it's Iresa's job to know what the rules and regulations governing that are.

The main problem is that most of these new startup companies are designing their systems on the back of a fag packet in the kitchen at home with very little real knowledge of what's actually required.

To compound that problem Ofgem seem to be issuing Operators Licenses like confetti without any rigorous checking of systems being done.

The calorific value of gas varies with each region of the country and the time of year. The calorific value can and often does change daily.

Please ignore my crap calculation below - it's wrong. My recalculation has been posted further down.

[STRIKE]I've just done a quick calculation for my own relatively high gas use using the real actual annual average calorific value of 39.5 for my location in the conversion calculation instead of the blanket 40.3841 Iresa currently use and I would have been overcharged by around 392 kWh over a 12 month period which equates to about £75 over the year.

So being generous let's guesstimate it at a £50 overcharge per customer per year. If they have 10000 customers that's £500,000 in their back pocket which is a very nice little earner!

If they have 50000 customers, very unlikely I know, but that would be £2,500,000 in their back pocket so you can soon begin to see how big a deal this really is and why it needs stamping on very hard.[/STRIKE]

fredandwilma

youravinalarrrf wrote: »

So being generous let's guesstimate it at a £50 overcharge per customer per year. If they have 10000 customers that's £500,000 in their back pocket which is a very nice little earner!

If they have 50000 customers, very unlikely I know, but that would be £2,500,000 in their back pocket so you can soon begin to see how big a deal this really is and why it needs stamping on very hard.

I doubt it is an earner or in their back pocket?

As it says, you, the customer, are funding the working capital to run the business? They had negative assets of (£89,167) to the year end 31 December 2015. The accounts for 2016 are yet to be submitted. I watch with interest.

Firstly, they are too enthusiastic in taking money from the customer's account. Your first direct debit is taken from your account 3 days after the cooling off period. This is at least 10-12 days before the supply of energy even starts to your home. This means that you, the customer, are basically funding the working capital to run the business.

Secondly, the company has minimal financial backing. It has equity capital of just £1 (one British pound). While it appears to have built up some trading revenue and assets in its first year of operations, those financial assets have subsequently been depleted. To year-end 31 December 2015, the company reported negative net assets of (£89,167). It is not unusual for a start up to incur losses; most do in the start up phase. However, with equity capital insufficient to cover these losses, it means that, should Iresa Energy get into financial difficulties, then customers who have paid in advance, as unsecured creditors, risk losing those payments.

(although as we have seen with GB Energy, customers had their credit balances refunded.)

System

Maxwell007 wrote: »

So am i right to understand they are over charging people knowingly ? !

And if my quoted annual cost is £750 what would be the real figure I should have paid ? !

Read the explanation provided and send a complaint to:

complaints@iresa.co.uk

Assert in your complaint that Iresa has been using a fixed calorific value gas volume to kWh conversion contrary to the guidance in the Regulations. Ask for your bills to be recalculated using the correct calorific values as provided by the National Grid for your region.

Also, e-mail:

cionsumeraffairs@ofgem.gov.uk

Ask them to investigate why Iresa Energy is using a fixed calorific value to convert gas volume to kWhs for billing purposes contrary to the Regulations.

Maxwell007

Im in se18 how do i know my annual average calorific value for my location and if I feel I am overcharged will they refund me easly or will I have another EE fight on my hands lool, should I now be put off from joining even tho it can save £150 plus per year on my current provider eon ...

molerat

youravinalarrrf wrote: »

I've just done a quick calculation for my own relatively high gas use using the real actual annual average calorific value of 39.5 for my location in the conversion calculation instead of the blanket 40.3841 Iresa currently use and I would have been overcharged by around 392 kWh over a 12 month period which equates to about £75 over the year.

I would change supplier, 19p / kWh for gas is extortionate. 392 kWh would cost me around £8 extra per year (maybe your sums are wrong)