Are Energy Companies still allowed to refer customers to Debt Collection Agencies?

JohnB47

As the title says. I moved away from BG a couple of months ago. I'm waiting (over hopefully perhaps) for a revised bill from them. My current bill is £19 more than it should be 'cos they used a high estimated 'end' reading for electricity and they've sent me a reminder warning that if I don't pay, they'll refer to a Debt Collection Agency. I'm trying to decide whether to just 'suck it up' and pay the bill or wait, 'cos they won't refer people in the current crisis situation.
I'm inclined to pay the bill, just to avoid any hassle. I can easily afford it.
Any thoughts?

matelodave

I'd suggest that being passed to a debt collection agency and having your credit references trashed for £19 is probably not a good idea.

However, if you are sure you have a solid and provable case - is the end reading with BG the same as the reading with your new supplier - invoke the correct complaints process (write an e-mail and send a copy by snail mail (recorded deliver) marked very clearly complaint and tell them to call off the dogs until this is resolved or they send you a deadlock letter. You can then go to the ombudsman.

JohnB47

matelodave said:

I'd suggest that being passed to a debt collection agency and having your credit references trashed for £19 is probably not a good idea.

However, if you are sure you have a solid and provable case - is the end reading with BG the same as the reading with your new supplier - invoke the correct complaints process (write an e-mail and send a copy by snail mail (recorded deliver) marked very clearly complaint and tell them to call off the dogs until this is resolved or they send you a deadlock letter. You can then go to the ombudsman.

Yes, you're probably right - the hassle isn't worth £19. I have sent an email to their complaints dept. giving them my own 'end' reading which is the same one I gave Avro, my current supplier, as the 'start' reading for them. Problem is, I can't seem to get Avro to give me my first bill, which I could then send to BG. Perhaps Avro send it to them?
It's so difficult to get in touch with any company now, or to receive any response from them.
I have until 3rd April to pay. I'll have a think but I'm edging toward paying, just to get rid.
Thanks.

Essmum

Pay it and then when you get the bill from Avro send it to BG and ask for the overpayment to be refunded to you  
It's not worth trashing your credit over £19.

Cardew

BG along with all other suppliers use a sophisticated, and audited, computer algorithm to estimate meter readings.

When a customer switches supplier there is an Ofgem approved procedure if the losing company's estimated reading differs from that given by the customer. Unfortunately it appears that some customers 'fudge' the reading they give to their company to gain on the switch; we have had several posts over the years where posters openly advocate giving incorrect meter readings as a form of 'money saving'!! not appreciating it is fraud.

Provided the new supplier(Avro) uses the same meter readings as BG, you won't be £19 out of pocket. If Avro are ,say, 10% cheaper you will have lost £1.90.

Gerry1

Whether someone is out of pocket by £1.90, £19 or £190 completely misses the point.  If the 'sophisticated, and audited, computer algorithm' thinks the reading is incorrect, it should ask the customer 'Are You Sure?'.  If the customer confirms that the reading is correct, then the matter should be settled by sending out a meter reader.

It's completely wrong that a computer can call a customer a liar and penalise them for telling the truth.  There are all sorts of reasons why the actual reading may vary from what the computer expects, especially now that so many people are suddenly working at home.

JohnB47

Well, I've gone ahead and paid the bill. I'll see about claiming the extra back from BG when I get my first Avro bill.
Cheers all.

Cardew

Gerry1 said:

Whether someone is out of pocket by £1.90, £19 or £190 completely misses the point.  If the 'sophisticated, and audited, computer algorithm' thinks the reading is incorrect, it should ask the customer 'Are You Sure?'.  If the customer confirms that the reading is correct, then the matter should be settled by sending out a meter reader.

It's completely wrong that a computer can call a customer a liar and penalise them for telling the truth.  There are all sorts of reasons why the actual reading may vary from what the computer expects, especially now that so many people are suddenly working at home.

Whoa - don't shoot the messenger! I am merely explaining the practice adopted - with Ofgems approval.

Incidentally there are a couple of posters who are meter readers. They will confirm that in many cases it takes months, if not years, for a meter reader to gain access to a property where they suspect meter tampering.

As you say there are many reasons why any estimated reading could be inaccurate.

Gerry1

Agreed, I'm not blaming you, yet again Ofgem are the culprits by tolerating such a crazy system, in particular that you can't challenge the fake reading if it's within 250kWh (electricity) or about 1300kWh (gas).

matelodave

Gerry1 said:

Whether someone is out of pocket by £1.90, £19 or £190 completely misses the point.  If the 'sophisticated, and audited, computer algorithm' thinks the reading is incorrect, it should ask the customer 'Are You Sure?'.  If the customer confirms that the reading is correct, then the matter should be settled by sending out a meter reader.

It's completely wrong that a computer can call a customer a liar and penalise them for telling the truth.  There are all sorts of reasons why the actual reading may vary from what the computer expects, especially now that so many people are suddenly working at home.

Not sure that we've missed the point, no one should be out of pocket and these situations should be easily resolved by the gaining and losing supplier communicating with each other rather than using the customer as a middleman and if necessary sending a meter reader if they cant agree. 

However if you've reached an impasse with a supplier then in my view you should give up keep phoning and start the complaints process - the earlier the better to avoid getting to threatening you with bailiffs, DCAs or rubbishing your credit rating.

I give them one phonecall to try and sort it out (and I tell them that they've got ten days to sort it out or I'll start the formal complaint process). If they miss the deadline they get a formal complaint (by both e-mail and recorded delivery letter) requesting that they resolve the problem within ten days or send me a deadlock letter so I can go to the ombudsman.
  
Only two have had the letter (Scottish Power & Utilita) - both for late final bills and hanging onto my credit. They both managed to sort it out remarkably quickly and without me resorting to the ombudsman.

To aid this process I keep all of my bills & statements (downloaded every month) and I keep records of all the monthly readings that I send into my supplier (I also save them for the requisite six years, just in case they decide to query any of it in the future)

This has ensured that even with the three energy companies that have folded I still have my own data which makes it so much easier to challenge any anomalies, delays or recovering credit.

Cardew

The problem is that by the time the customer discovers that the energy companies have used estimated meter readings, and not those given to them by the customer, several weeks have usually elapsed, elec/gas has been consumed and so it is pointless to send a meter reader .

I suppose the introduction of smart meters should solve that type of dispute.