New Supplier assumed energy consumption.

bellevueace

Hi
As im new to this changing suppliers i have one question, when doing my comparison i used the kwh figures for gas and electric used for the past 12 months according to my bills to get the right figure. I have now been contacted by my new supplier and looking at the figures given as a reference on the new contract about to be drawn up they give a annual assumed consumption quite a bit more than I actually use and their figures for the year are based on this. Now that would obviously cost me more than I'm paying now. As you only pay for what you use does that mean the prices quoted will be far less than their assumed figure? And how can they come to such an assumed figure when I submitted exactly what I had used for the past 12 months?
Thanks.

molerat

The industry hold figures for property energy consumption, it is not just the past 12 months, we have had a couple of mild winters. Your monthly DD may be slightly higher at first due to this but once a review is carried out that should reduce. You will only actually pay for what you use.

t0rt0ise

Sounds like they are trying it on. Tell them their estimate is far too high and you want to pay x per month instead. I've just changed supplier and they took my own usage figures to work out the direct debit so yours doesn't have to choose their own estimate.

SpotlandRules

That happened with me and Zog. I gave them my last 12 month usage and added 10% on, in case it was a cold winter. Submitted a usage of 5200.

They emailed me back saying that their records showed just under 9000. Sent them a screenshot of my spreadsheet and they reverted me back to 5200.

bellevueace

Thanks, when I received the contract and details of the monthly payment to be taken it was exactly as per the quote given when doing my comparison, which was quoted on my usage figures, its a bit confusing at times this changing lark .

System

bellevueace wrote: »

Thanks, when I received the contract and details of the monthly payment to be taken it was exactly as per the quote given when doing my comparison, which was quoted on my usage figures, its a bit confusing at times this changing lark .

When your new supplier takes over your supply, it is given the Estimated Annual Consumption (EAC) for electricity and Annual Quantity (AQ) for gas for your property by the Data Collectors. In some cases, this is based on 70 years of data. One could argue that when a consumer provides estimated figures below the EAC and AQ that some form of discussion should take place. Some suppliers also make it clear in their ts and cs that the EAC and AQ will be used for setting the initial monthly DD.

There are often allegations on this and other forums of mis-selling when a supplier agrees a low monthly payment 'to secure or retain a customer'. The implication in the OP's post is that he will be over-charged. In truth, neither statement is 100% true as the actual annual cost will be based on usage times the agreed tariff. Monthly payments are nothing more than money paid on account. With some suppliers it is actually a profitable exercise to overpay as they offer monthly interest on any credit balance above what any Bank is paying.

spiro

Hengus wrote: »

When your new supplier takes over your supply, it is given the Estimated Annual Consumption (EAC) for electricity and Annual Quantity (AQ) for gas for your property by the Data Collectors. In some cases, this is based on 70 years of data. One could argue that when a consumer provides estimated figures below the EAC and AQ that some form of discussion should take place.

The EAC is recalculated every time a meter reading is submitted to the DC so I don't know where you get the 70 year idea from. The gas AQ process is now changing to follow a similar line.

System

spiro wrote: »

The EAC is recalculated every time a meter reading is submitted to the DC so I don't know where you get the 70 year idea from. The gas AQ process is now changing to follow a similar line.

I could have worded it better. Usage has been recorded in this way for 70 years. I am not suggesting that it is an average of 70 years' consumption. According to Ovo:

When you join OVO, we check your details on a central database that includes a list of energy records for every address in the UK. This database provides your Estimated Annual Consumption (EAC) for your electricity and Annual Quantity (AQ) for your gas.

It’s based on all the readings from your home over the past two years, so it gives us an accurate picture of how much energy you’re likely to use in a year.

You may be better informed.