Electricity company want to CLAW BACK money!!

Buddy2000uk

Ok. So I have bee in my flat for quite a few years now. But, I recently got a letter from Scottish Power to say they UNDER-CHARGED me for 3 years and ant ALL the money back. At the same time, they said, "Its entirely our fault and we accept complete responsibility" BUT they have upped my direct debit and are in the process of clawing the money back! Do they have a right to do this? I have been paying my bills every month without a problem and now this! Can anyone help me? Is this legal? Thanks. Evelyn.

Terrylw1

Hi Evelyn,

Thats a tricky one!!!

You could argue that you were aware of this and intentionally avoided advising them (I'm not saying that though). Or, you could also argue, tough they should have noticed, it doesn't take 3 years!!!

I think you need to get some advice on this from Ofgem.

The rule on Suppliers is that they should only bill back 12 months. However, many people interpret this as only where you haven't been billed at all (as seen in many posts on this forum).

However, when Ofgem brought that rule in, 1 large utility company advised their entire customer facing depts that it should be applied to ALL billing errors older than 12 months, not just where you haven't been billed.

I would suggest you check if the Ofgem billing rule will cover you. If not, you could try legal advice (try CAB first though so you don't pay anything) but if Ofgem side with the Supplier you will have little ground.

They will have to set an appropriate payment plan with you. They can't just change your DD and expect you to pay as it could be a heck of a lot. So, asking you to pay in 12 months maybe less appropriate than paying over say 3 years. Ofgem would totally back you on that!

You may also be able to lower it slightly by aiming for compensation for the worry, especially if Ofgem/Energywatch are involved. The admission of fault in the letter will help you with resolving the payment plan and compensation. They really should have asked you what you can afford before they do that.

Good luck

Buddy2000uk

Hi Terrylw1,

Thanks for the advice! I'll follow what you suggested and post the results on the Forum.
Cheers. E.