Please can anyone who has gas through Iresa help with a query?

katies_mum

Hi,

I have just submitted my first meter reading with Iresa and am confused with regards to the kwh for my gas.

When I signed up the rate was kwh 2.379.

Since being with them I have used 118 units of gas so my reckoning would be 2.379 x 118 = 28.07. However they have charged me £32.20 (I appreciate this is not a huge difference but over the year it will add up) Usually I have found the rate you are quoted is what you pay.

I contacted them and and have received this reply to which I do not understand and was wondering if anyone else has had this happen to them and if anyone knows what it means?

Apologies for the misunderstanding. Your correct your gas usage was 118 m3. However 1 m3 is not equivalent to 1 kwh. On our website you can see the equation process in creating your consumption charge.
'Suppliers are required to maintain a calorific value between a legal limit of 38MJ/m3 to 41MJ/m3 (see https://www.gov.uk/guidance/gas-meter-readings-and-bill-calculation). We use a calorific value of 40.3841MJ/m3

Correction Factor for Temperature and Pressure = 1.02264
Divisor Factor for KWh Conversion = 3.6

Conversion from from M3 to KWH

Multiplier = 40.3841 * 1.02264 /3.6 = 11.47177'

Many thanks

superbigal36

Your maths to start with are wrong. 118 x 0.02379 would equal £2.807 and not £28.07

The maths is 118units x 11.47177conversion factor x 0.02379unit rate equals £32.20

Putting it simply for every 1 unit on your meter you are billed 11.47177 kw

notbritishgas

Well firstly 2.379 x 118 equals £2.80.

Yes quite clear, gas meters do not register in kWh but in your case cubic metres. Your working out gives one cubic metre to equal 11.47177 kWh. So the bill is 118 x 11.47177 which equals £32.20.

Doh, beaten by superbigal, and rechecked my maths.

katies_mum

Thank you both for taking the time, I appreciate I got the dot in the wrong place.

So the rate Iresa quote when you originally join them and the one they use to work out your direct debit etc is nothing to do with the rate you actually pay? this is so confusing. Do all other suppliers also do this as I don`t thing I have come across this before?

molerat

1 metric "unit" of gas is around 11.2 kWh. 118 x 11.2 = 1322 x .02379 = £31.45, roughly correct.

Now you need to raise a complaint about their failure to adhere to their licence conditions with regard to the calorific value of gas used for billing. They have used a fixed figure, not an average of the daily value supplied by NG, and have billed to more than one decimal place, neither of which they are allowed to do. I like the way they quote a .gov page and fail to adhere to the regulations it links to.

katies_mum

Thank you molerat, as I have mentioned I don`t seem to have come across this before.

Should I be replying to them along the lines of your posting? its all a bit over my head, but suppose this must be affecting most of their customers not just me.

molerat

katies_mum wrote: »

Thank you both for taking the time, I appreciate I got the dot in the wrong place.

So the rate Iresa quote when you originally join them and the one they use to work out your direct debit etc is nothing to do with the rate you actually pay? this is so confusing. Do all other suppliers also do this as I don`t thing I have come across this before?

All suppliers do the same calculations (except they are using some incorrect figures as mentioned in my post above) and they are charging you the price they quoted.

katies_mum wrote: »

Thank you molerat, as I have mentioned I don`t seem to have come across this before.

Should I be replying to them along the lines of your posting? its all a bit over my head, but suppose this must be affecting most of their customers not just me.

It will be affecting all their gas customers, I very much doubt that the front line staff will understand either, that is the problem. It needs addressing at management level.

katies_mum

Thank you molerat, I have queried it with them and will post their reply when I get it.

System

katies_mum wrote: »

Thank you molerat, I have queried it with them and will post their reply when I get it.

Any update or do I conclude that Iresa is trying to ignore the problem? I raised the matter with them yesterday and they have gone very silent.

It might help if you e-mailed consumeraffairs@ofgem.gov.uk

Tell them that you believe that Iresa is using an industry standard fixed calorific value on bills which is higher than the daily average calorific value for your region in breach of Ofgem regulations.

Raxiel

Hengus wrote: »

Any update or do I conclude that Iresa is trying to ignore the problem? I raised the matter with them yesterday and they have gone very silent.

It might help if you e-mailed [EMAIL="consumeraffairs@ofgem.gov.uk"]consumeraffairs@ofgem.gov.uk[/EMAIL]

Tell them that you believe that Iresa is using an industry standard fixed calorific value on bills which is higher than the daily average calorific value for your region in breach of Ofgem regulations.

Its easy for me to say, since I've not paid them any money yet, but I'd be inclined to put it down to Hanlon's Razor. You've pointed out a mistake to them that will knock 2% off their income from gas usage charges (projected and collected) and depending how thin their margins are (and at their prices I'd guess they're pretty thin) it could represent a significant loss for them. I'm not surprised they're taking their time preparing a response.

It's not going to go away, but I wouldn't be surprised if a new 'V5' tariff with a 2-3% increase on the gas unit rate is released around the same time the CV is '[STRIKE]fixed[/STRIKE]' 'Corrected'.

System

Raxiel wrote: »

It's not going to go away, but I wouldn't be surprised if a new 'V5' tariff with a 2-3% increase on the gas unit rate is released around the same time the CV is 'fixed'.

They are using a 'fixed'' CV which is the cause of their problems - but I take your point. They would be wise, imho, to address this issue ASAP before the Ofgem compliance team knock at their door. Ofgem does make it clear that enforcement action can, and will, be taken for serious breaches of this policy as suppliers have been accused of overcharging in the past.

That said, I suspect that this is nothing more than a failure to take note of an important change in the Regulations.