Ovo estimated usage gross overcharging

KanalVictor

Ovo have told me that they had a "technical error" in their billing system last winter which resulted in much lower estimates for winter months when I did not give any readings. They told me that the fault will apply to "A small number of our customer ".

They then made a huge correction in usage in June 2017 [Gas went from 1300 to 8500 kwh, electric from 470 to 1000 kwh].

They claim that it is coincidental that these estimated usage increases were billed for the same month that the unit price increased by 26 to 31% and at present are refusing to re-bill units at the cheap 2016 fixed price which would have applied if their system did not have an error.

If anyone else had a period of estimated readings through the winter and then an adjustment in estimated use by Ovo, please could you post here?

Would be helpful to know:
..what your adjustment was in comparison to previous months,
..which month Ovo applied the adjustment
.. which month your previous cheaper fixed unit prices ended.

KanalVictor

So, I'm guessing you all give readings more often than once or twice a year and/or don't use Ovo who are far from the cheapest. [Was aware of that before I renewed but couldn't be bothered to change this year].

Will try some other questions .....

Ovo's customer support first response to my complaint included the following text.
"A small number of our customer that had not provided meter readings for a long period of time were affected by a technical error on our billing system. Our billing system did not account for winter uplift and continued to calculate your bills as if it were summer time. This meant that you bills were most likely underestimated. We fixed the error in June and then to combat it we produced a higher bill to account for the winter underestimation, meaning you were generated one large bill in June."

IOW an admission they made a mistake and have charged all forgotton units at hugely higher rates than those that would have applied when their computer error failed to bill them. In my case the difference was around 100 quid.

Despite that, both the same email and two subsequent ones which again admit their error go on a bit [a lot] that it's [also] my fault for not providing readings more often.

So more general questions:
How often do you take meter readings to give the supplier?
Are suppliers obliged by ofgen to have an estimated readings system in place which does not suffer "technical errors" that happen to be hugely to the detriment of the customer?

Part of my complaint/demand to them is that since they are admitting this fault has affected other customers, they fix it for everybody without waiting for customers to contact them. They are making it clear they have no intention to rectify even when contacted by that customer so I don't see them doing that. Even if they told me they were going to I'm not sure I'd believe them given responses so far.

I intend to complete the complaint to deadlock letter stage and send to the ombudsman asking them to look at it.
Just wonder if there's a better route to get this fixed for other people. Media? Ask Martin from this site to take it up? Suggestions?

matelodave

Everyone advises giving monthly readings to their supplier and keeping your own record - if you dont keep track of your use and check your bills then this is what happens.

It becomes extremely difficult to sort out if it goes awry.

KanalVictor

Ovo have now admitted thousands of customers are affected. My next problem is that I'd like to force them to sort it for everyone, Reading the general stuff as I put the complaint in, ombudsman seem to be limited to telling them to sort it for me. I have asked that they consider referring it / getting a review for all customers.

Ovo stated in their deadlock letter
"OVO Energy have explained that thousands of accounts who have not given readings in
a few months have been affected by the Winter uplift."

Winter uplift seems to be Ovo's name for: our computer lowered you readings in winter 2016-17 when you/many were on a low tarrif and because we noticed the estimates were too low, put a load of extra units on the bill in June at a rate 30% or more higher than if we had charged them in the winter.
I would have thought winter uplift usually means the estimates are increased by some % in the winter months. Does it have an official meaning?

And actually they had previously told me "A small number of our customer" as quoted above. "thousands of accounts" makes it more worthwhile to pursue but suspect I wiill need help.

My only big problem with this is objection to being ripped off. Anyway ombudsman complaint is sent, I'm curious to see what else can be done. Maybe they'll all surprise me and correct it.

Andy_WSM

KanalVictor wrote: »

So, I'm guessing you all give readings more often than once or twice a year

Nearly every billing query on here is caused by the customer not providing regular / monthly readings. Unless you have a smart meter, what chance has your supplier got? The meter is on your premises, not theirs. It's but a few steps away from you at any time, you probably walk past it several times a day. How hard is it to take a reading and submit it online?

KanalVictor

Andy_WSM wrote: »

Nearly every billing query on here is caused by the customer not providing regular / monthly readings. Unless you have a smart meter, what chance has your supplier got? The meter is on your premises, not theirs. It's but a few steps away from you at any time, you probably walk past it several times a day. How hard is it to take a reading and submit it online?

In the case of Ovo and this problem, that is not the cause of the overcharging.

Ovo have told me that they had a "technical error" in their billing system last winter.

In fact I would only have to submit readings once a year just before a fixed tarrif ended and will maybe do that in future [because I no longer trust UK energycos]. Doesn't mean that I don't expect Ovo to correct an error in their system in a way that customers don't pay more.

I have had estimated bills on multiple accounts in different countries for 35 years. Never had this problem before and other companies, UK and foreign have billed something reasonable even after several years of no readings. IMO this is completely unreasonable from Ovo. All I expect is that when a company makes an error, they do not do so by charging client extra.

If my situation is anywhere near average, they have overcharged at least a few 100k to the affected customers in total. Due to their computer error according to what they have told me. Is that OK with you?

Here are the numbers, do you think this is reasonable?

Estimated usage per month [All readings estimated from Nov 2016 to Aug 2017]

gas kwh:
Jul 532
Jun 8588
May 1316
Apr 2288
Mar 2570
Feb 877
Jan 814
Dec 846

electric kwh:
Jul 440
Jun 1004
May 469
Apr 537
Mar 531
Feb 490
Jan 474
Dec 489

Kwh charged in June 2017 due to error in Ovo billing system which should have been charged during the winter - my est. at least Gas 7000, elec 500

Unit rates per kwh ex VAT
to 24 May 2017 0.1026 elec, 0.0255 gas
June 2017 0.1346 elec, 0.0348 gas

A rough calculation of minimum overcharged amount is: 0.032x500 = 16, 0.0093 x 7000 = 65 plus VAT. Total 85 pounds. Winter uplift increases this further.

[The rough calculation is an underestimate]

By the way the only reason they have told me there was a billing error is that my first assumption was that this correction in estimated use was deliberately applied in the month my price per unit went up by so much. Ovo are very keen to insist that this is coincidence. I have not argued with their explanation of a computer error but asked the ombudsman that this be verified. Pretty sure they don't have that power.

If you have a computer error in the billing system, you correct customer's bills so they do not pay extra [IMO]. Surely people expect that at a minimum?

trickytree1963

Have you taken a meter reading when Ovo dropped this on you?

KanalVictor

I took readings in August which were not hugely different to the August estimated readings they would have had. The extra estimated usage [and payments taken over the winter] in June brought readings at end June to a reasonable amount / not far off correct, the only problem is that those units should have been billed during the winter months when my unit prices were 30% or so lower.

I'm surprised they didn't already just fix it on the first complaint since they immediately volunteered the info they had a computer system error. I'd also be very surprised if the ombudsman doesn't tell them to fix it. Since they pushed it this far I am now motivated to get some justice for everyone affected. Rather than just get my bill fixed and then ignore it all as I would no doubt have done if they had just fixed it when first notified.

oldfella

usually in situations like this the rule that applies is you should be in the same position as you would have been if the situation had not happened

it is unfair that you should be charged at a higher rate for the units than the charge that applied at the time

you do bear some responsibility for this, but I see no reason for the supplier to gain

I would stick on the arguement that why do you want me to pay more for the units than the price that applied at the time of consumption. It is not that difficult to track back and project the probable consumption for each month.