Signed up to Iresa, slight discrepancy in gas bill

MusicMaker

I signed up to Iresa because they were the cheapest for me. Transfer seemed to go well and the online account system is straight forward and easy to use.

Just a couple of issues:
- Gas and elec accounts didn't start on the same day - only a minor annoyance.
- On the first bill, we used 45 units of gas, which multiplied by 11.1 (the multiplier shown on my bill) gives 499.5kWh. However, they have charged for 511.32. Not a huge difference, but still incorrect in my eyes.

There may be a valid explanation, so I've asked them for one. The difference is too large to be due to rounding.

Anyone else noticed this issue?

---

12 May2017 UPDATE

I reported the issue to Ofgem as advised, and received the response below. I've been considering switching again and notice that Iresa no longer feature in the list of suppliers. I'm going to switch away from Iresa today even if it costs more for my energy.

Thank you for your email.

I am concerned to read of the problems you have experienced with Iresa Ltd. I would urge you to draw this matter to their attention and would expect the company to respond in accordance with the complaints handling standards.

You may be aware that Ofgem does not have a direct role in investigating or resolving individual consumer complaints. Energy companies are subject to strict complaints handling standards which are backed up by an independent Ombudsman (Ombudsman Services – Energy). If your complaint is not resolved within eight weeks, or sooner if Iresa Ltd says it can do no more, you can ask the Ombudsman to investigate your complaint. The Ombudsman has a range of remedies at its disposal including the award of compensation, its decisions are binding on the company but not on the customer.

Should you require advice, you may wish to contact Citizens Advice consumer service. The Citizens Advice consumer service provides free, confidential and impartial advice on consumer issues. For further information please visit their website or call the Citizens Advice consumer helpline on 03454 040506. You can write to them at the following address: Citizens Advice consumer service, Second floor, Fairfax House, Merrion Street, Leeds LS2 8JU.

Suppliers must treat all their customers fairly. We became aware that Iresa’s customers were struggling to get hold of customer service representatives to discuss any questions or issues they had with their supply. We told Iresa they needed to resolve this problem and have asked them to explain to us how they will ensure that it is easy for their customers to contact them and provide them with a level of customer service they are entitled to.

Whilst Ofgem does not have a direct role in handling individual disputes, we do have a role in enforcing consumer protection legislation. I have therefore retained a copy of your email for our files for market monitoring purposes.

Regards

Consumer Affairs Manager
Communications
9 Millbank
London
SW1P 3GE

Raxiel

It looks like everyone is getting the 11.1 on their bills, it doesn't seem to actually represent the value used for the calculation.Your numbers suggest a Calorific value of 40, which seems to be what they are using for everyone else, regardless of the value national grid reported for the gas that was supplied.

System

MusicMaker wrote: »

I signed up to Iresa because they were the cheapest for me. Transfer seemed to go well and the online account system is straight forward and easy to use.

Just a couple of issues:
- Gas and elec accounts didn't start on the same day - only a minor annoyance.
- On the first bill, we used 45 units of gas, which multiplied by 11.1 (the multiplier shown on my bill) gives 499.5kWh. However, they have charged for 511.32. Not a huge difference, but still incorrect in my eyes.

There may be a valid explanation, so I've asked them for one. The difference is too large to be due to rounding.

Anyone else noticed this issue?

Please make a complaint. Suppliers are required to use the average daily calorific value for your region, obtained from the National Grid, truncated to 1 decimal point; i.e. 39.67 should read 39.6 not 39.7 or any other value. The use of a fixed multiplier is patently wrong as the CV of gas varies by region and by season. The correct conversion which I believe should be shown on every bill is C3Ms used times the CV (e.g. 39.6) x 1.02264/3.6 equals kWhs.

It is also worth sending a copy of your bill to consumeraffairs@ofgem.gov.uk pointing out that you believe that Iresa may be breaching the terms of its Supply Licence. The more of us that complain to Ofgem the sooner this matter will be resolved.

From my last Zog Bill:

1. Units Used 25
2. x Metric Conversion 1.00
3. x Calorific Value 39.3000
4. x Volume Correction 1.02264
5. ÷ Volume Conversion Factor 3.6
6. = kWh 279

System

Thinking about this. Could someone who has actually got a gas bill calculate the volume to kWh conversion using the stated CV without referring to the multiplier. That is, is the calculation correct for billing purposes? Could the multiplier just be a hangover from Iresa's previous use of a fixed multiplier?

youravinalarrrf

The problem is that there is no CV stated on the bill only the multiplier of 11.1 to go on and just to complicate matters even further the bill quotes the unit cost as being 2.47p/kWh when in fact the actual cost according to my contract is in fact 2.472p/kWh.

I posted on the other thread that for me the difference between using the 11.1 Multiplier which as near as damn it = a CV of 40.0 as against the actual CV for my region for the period of 39.6 results in me being overcharged for the period by 33.63 kWh amounting to £0.83 plus VAT. (Bill covers 10th Feb to 31st March).

PaschalFun

MusicMaker wrote: »

I signed up to Iresa because they were the cheapest for me. Transfer seemed to go well and the online account system is straight forward and easy to use.

Just a couple of issues:
- Gas and elec accounts didn't start on the same day - only a minor annoyance.
- On the first bill, we used 45 units of gas, which multiplied by 11.1 (the multiplier shown on my bill) gives 499.5kWh. However, they have charged for 511.32. Not a huge difference, but still incorrect in my eyes.

There may be a valid explanation, so I've asked them for one. The difference is too large to be due to rounding.

Anyone else noticed this issue?

11.1 is only an approximation - for a metric meter
The actual method they arrived at 511.32 should be shown on your bill.
The factor varies with the calorific value, but it will be the same method as every energy supplier uses.(or at least should be)

The CV can vary from bill to bill, and indeed will vary region to region

Btw. you can probably get gas cheaper than from Iresa :money:

PaschalFun

youravinalarrrf wrote: »

The problem is that there is no CV stated on the bill only the multiplier of 11.1 to go on and just to complicate matters even further the bill quotes the unit cost as being 2.47p/kWh when in fact the actual cost according to my contract is in fact 2.472p/kWh.

I posted on the other thread that for me the difference between using the 11.1 Multiplier which as near as damn it = a CV of 40.0 as against the actual CV for my region for the period of 39.6 results in me being overcharged for the period by 33.63 kWh amounting to £0.83 plus VAT. (Bill covers 10th Feb to 31st March).

The method of calculation should be indicated on the bill.

If it's not, you can work out what has been used as you have the result, and it's the only unknown

PaschalFun

This site explains the calculation

https://www.gov.uk/guidance/gas-meter-readings-and-bill-calculation

Raxiel

No need for any conjecture
Here is a suitably redacted copy of my bill so you can see exactly what information is on it
https://imgur.com/a/5jfOE

I have calculated the bill myself, and using the numbers from NG the total should be £15.97 so it's wrong. Using the figures printed on the bill, it's still wrong because I calculate that as £15.81

By simple algebra its possible to work out they are using a CV of exactly 40 even without it being listed

PaschalFun

Raxiel wrote: »

No need for any conjecture
Here is a suitably redacted copy of my bill so you can see exactly what information is on it
https://imgur.com/a/5jfOE

I have calculated the bill myself, and using the numbers from NG the total should be £15.97 so it's wrong. Using the figures printed on the bill, it's still wrong because I calculate that as £15.81

By simple algebra its possible to work out they are using a CV of exactly 40 even without it being listed

Thanks

Yes the calculation method is indeed given in the bill

Admittedly it does not make specific mention of CV in that formula, but it is the bit that refers to being in the range 38-41, but you can see it is that from the sentence above the formula. It says it varies by region (but I also know it can vary over time too, i.e. from bill to bill)

Oh look - it even gives you the link I posted earlier in this thread

System

Raxiel wrote: »

No need for any conjecture
Here is a suitably redacted copy of my bill so you can see exactly what information is on it
https://imgur.com/a/5jfOE

I have calculated the bill myself, and using the numbers from NG the total should be £15.97 so it's wrong. Using the figures printed on the bill, it's still wrong because I calculate that as £15.81

By simple algebra its possible to work out they are using a CV of exactly 40 even without it being listed

Please copy the bill to consumeraffairs@ofgem.gov.uk as it really is time that the Regulator initiated a formal investigation.

Looking at your bill, the bit that Iresa appears to be getting wrong is their understanding of the word 'truncated'. It would seem that they are rounding up to the nearest whole number: i.e., 39.6 = 40. Truncate means 'to shorten' not round up. It follows that 39.67 becomes 39.6 not 39.7 - and definitely not 40.