Challenging an EAC (in relation to OFTM)

firsttimemover

Does anyone know how you find out what your "Industry Data Base" Estimated Annual Consumption figure, details of calculations used to reach it or how to challenge it if it's incorrect?

Outfox the Market are insisting that the figure they have been provided with is double (almost to the unit) my actual consumption for the last 2 years, meaning they are charging me £11.80 per month membership fee before I've even used a unit of electricity, rather than the £6.99 I signed up to. I would have never agreed to this had I known when I signed up as my monthly cost is only just over £20 per month.

I have all my monthly readings for the last 2 years, which have been provided to my previous supplier and bills to show this. I actually switched supplier in November 2016 and the figure was adjusted slightly based on the EAC provided independently, so I know it is impossible that they hold data which shows I am anything but a low user!

I've put in a request to switch away, based on their latest price increases, but if that goes through in January, it's looking likely that this error is going to cost me about £25 in the meantime, which is a month worth of electric for me, so not something I'm happy to just let go.

Before I take the next step of raising a complaint with Ofgem (although I have a few weeks to wait before I can), I thought I'd ask if anyone knows if I can find out any more about this "independent" figure used so I can see where the issue lies (it could be they're using an incorrect address or something basic like that, or have misread a digit), or if, indeed, anyone else has had any similar experience with OFTM that might help.

Thanks in advance.

System

Contact the supplier - in writing - and ask them to provide you with the Estimated Annual Consumption for electricity and Annual Quantity for gas for your property for the past 2 years. They should have been given this information by the data collectors when you switched suppliers.

That said, it is possible that you are confusing Consumption with Cost. Sadly, the industry also appears to use the abbreviation EAC as meaning Estimated Annual Cost. Ofgem, in its infinite wisdom, has relaxed the prescriptive rules on how this is estimated:

Quote: The current methodology that suppliers and Confidence Code-accredited comparison sites are required to follow is prescriptive. The methodology sets out in detail how suppliers and comparison sites should factor in standing charges, unit rates, discounts and charges for bundled products or services.
We think that consumers will be better served by enabling suppliers and comparison sites to tailor the cost estimates they provide, while remaining consistent across certain criteria. Unquote

The new policy goes on to state:

Quote: to amend the current Estimated Annual Cost definition. The change will allow suppliers and comparison sites to come up with their own methodologies for estimating a consumer’s annual costs, where they are required to provide one, as long as the estimate:

 Is personalised to the consumer, based on information that is reasonably available to the supplier or comparison site, and on reasonable assumptions where actual data is not available;

 Is based on actual historic consumption wherever this is available (and a best estimate of consumption where it is not);

 Includes non-contingent discounts and non-optional bundled charges, and excludes contingent discounts and optional bundled charges;

 Is applied consistently when used to provide the consumer with a comparison of different tariffs, such that the same assumptions, where relevant, are made for all tariffs that are being compared; and

 Is transparent, and accompanied by a description of the estimate that makes clear to the consumer what it is, what it can be used for, and any assumptions that have been made in its calculation. Unquote

https://www.ofgem.gov.uk/system/files/docs/2017/12/decision_-_estimated_annual_cost_for_domestic_consumers.pdf

Finally, as ML has pointed out on this site the rolling 12 months cost projection has been distorted by the Default Tariff Cap which comes into force on 1 Jan, and which is revised (upwards) on 1 Apr and again on 1 Oct next year.

firsttimemover

Thanks, I've already emailed them to ask for a breakdown of how this was reached, but based on the incompetence I've experienced already from this company, I wasn't going to hold my breath and wondered if there was a way of getting these figures from elsewhere.

It's definitely the Estimated Annual Consumption I need and has been referenced in their communication as what their membership fee is based on, which is calculated in units. Under 2400 kWh per year = a low user and they use the EAC to put you on the applicable tariff.

I looked into this thoroughly when I joined as I'd not experienced a "membership fee" before, and with my last 2 years readings working out on average well under 2000 units per year, I didn't think it would be possible to be put on the medium usage package let alone the high user package they currently have me on!

My monthly readings submitted to them so far are each well under 200 units so no reflection of increased usage there either and they have had photographic evidence of my meter reading recently too, so they know it's 100% accurate. What I wish I had were photographs of all my historic meter readings, but realistically, who does that, and they seem to keep coming back with a "computer says no" answer anyway to actually look into it.

Hoof_Hearted

Zebra Power recently tried to increase my DD based on industry consumption figures for electricity. I have records going back years and I knew the new annual "industry data" consumption figure was at least 30% more than I have ever used in a year.

I sent them consumption details for the last two years, including opening and closing bills for each year as evidence. Luckily, Zebra Power is a decent company and, on the basis of evidence, put my DD back down. One theory is that the previous (useless) companies had not updated the industry data.

So, I suggest challenging them with the evidence of your previous bills.

System

EAC used to be updated each time an actual meter reading was provided. AQ, I think, was once a year until Project NEXUS was rolled out last year. Putting OFTM to one side for a moment, it is true that some strange estimates have started to appear. For example, we moved into a new build in July and for 3 months used a very small amount of gas for reheating the HW cylinder. I calculated that our annual consumption would be less than 9000kWhs/year - but I set the initial DD to cover 10000kWhs/year. At the beginning of October, I got an e-mail from my Supplier to say that having received past consumption data, my gas AQ had been increased to 15500kWhs/year. I pointed out that this was impossible as the meter was only installed in March and when I legally completed the meter reading was only 00013. At this point, we had a conversation and we agreed a realistic DD.

brewerdave

Don't suppose the "industry standards" have been moved to a rolling average? If so, then its possible that the number of Winter months could be greater than Summer months - leading to a higher than expected EAC/AQ.
I've certainly had an expected gas figure some 000s of Kwh greater than I've used in the last 10 years!!

VoucherMan

firsttimemover wrote: »

Before I take the next step of raising a complaint with Ofgem (although I have a few weeks to wait before I can),

Good luck with this. If you do go as far as an official complaint I'd be interested to know the outcome (as would a few others I expect). I'm not holding my breath though I they may not be around that long if their current behaviour is anything to go by.


This is the reply I got when I questioned them on the subject

Your estimated annual consumption is **** and this is calculated by a rolling-two years supply of meter readings which are stored inside your meter in data flows. The industry have access to this and it can change at whatever time.



We do not refund the difference between monthly membership fees.

I complained (just an email, not an official complaint) back in July as they were using an estimate some 20% higher than my annual usage. Only in this last month has the estimate come down to below 2400 (2399). Possibly they had their eyes on the bigger daily charge that they tried unsuccessfully to introduce, so I'm half expecting them to put my 'estimate' back up again to get themselves a bit more cash.

firsttimemover

This is what I fear, I’m not sure they will listen to reason after all the dodgy goings on with direct debits, price rises and different usage figures quoted on every email they send! Interestingly, the latest couple of emails I have had about direct debit rates have my estimated consumption within their lower tier.

They really have shown themselves to be a shady bunch (I’ve seen them referred to as “Outfox the Customer” this morning which I think is spot on!) which although will make the fight harder, makes me more prepared to do so as I really don’t want to give them a penny more than I should!

wavelets

firsttimemover wrote: »

This is what I fear, I’m not sure they will listen to reason ...

If you have any cause for complaint, please follow the supplier's complaint procedure.

If, after you have received their final response, you are then of the opinion that the supplier has not listened to reason, ask the independent Energy Ombudsman to assist you.

If the independent Energy Ombudsman is convinced by your reasoning, and agrees the supplier has not listened to that reasoning, then the EO can order the supplier to make such changes as your reasoning supports and you have requested.