Suppliers using algorithms to estimate billsms

Jenny555

Hi There. Does anyone know or has anybody experienced the issue I’m having with an energy company please? In short, i use MSE energy club to switch energy suppliers. I’ve been doing this each year with the help of MSE energy club. This year, i gave my old supplier my meter readings and a couple of days later gave my new provider opening readings. The readings were the same for both providers, thus, other than the final amount calculated until my closing readings, I shouldn’t have been billed for extra usage as the opening readings for the new provider were the same. I have since received my final bill with an ‘estimated’ amount for the interim period. Being that the opening readings were the same, I hadn’t used any energy. When I queried this, my old supplier said both readings from them and the new company were sent to a third party data company to provide an estimated figure. Can they do this? It used to be that when you left provider, as when you move house, the invoice is calculated according to the accurate readings. It seems that this charge, of £20 odd is punitive and made up to me. Am I wrong? Any thoughts would be appreciated. Thank you.

brewerdave

You have complicated the issue by giving your old supplier readings. The "system" expects the opening reads to be verified and passed back to the losing supplier. However, the figure used SHOULD be the same for both ,altho' not necessarily the same as your read.
On at least three occasions I have had a similar problem of reading "overlap" - overall it has worked in my favour; as I lost the will to live trying to deal with Utility Co. Customer Services, I have let small differences go.

Talldave

The closing read on supplier 1 and opening read on supplier 2 should be the same.  If it's not, you need to complain to get that rectified otherwise you could end up paying for the same energy twice.

Unfortunately, the energy industry "validates" all these readings through an organisation that's basically useless and will regularly  ingore actual readings, meter photos and even readings sent by smart meters because they have some rubbish algorithm that they think tells them what your reading should have been based on the previous history of that meter.  Sadly, they don't understand that different occupants of properties use different amounts of energy.  Unless they are massively out you're not allowed to appeal.  Of course both suppliers should still use the same wrong readings from the useless industry meter reading organisation, but what it sometimes means is that you pay a bit more to one supplier or the other for the energy that was wrongly determined to have been supplied by them.  It could also mean you gain financially of course.  Do your maths and complain to your new supplier about any loss - they are known to tweak a few quid off the bill to fix it.

Jenny555

Hi Brewerdave, thank you for your answer. I had to provide my old supplier with a monthly reading and the new supplier wanted readings around the same time so the readings would’ve been the same. It’s the principle really. Had the readings been even slightly different, I possibly wouldn’t have noticed and paid it. It just annoys me that during a time of hardship for many, If they are doing this on a regular basis with people not noticing, for instance, £20 from 1000 customers potentially, that’s a lot of money to the energy company. I don’t know why they are using a data company and not just working it out from the readings. I’m not sure another sector would get away with it. Thank you for your comment.

Jenny555

Thank you Talldave. I’ll try your advice. 

Cardew

Jenny555 said:

 If they are doing this on a regular basis with people not noticing, for instance, £20 from 1000 customers potentially, that’s a lot of money to the energy company.

As Talldave states above some customers will have gained from the third party estimated reading; So by definition no company will have gained every time - or lost every time; overall the losses and gains cancel each other out.

Do you have the actual reading you gave and the estimated reading they used? Also can you confirm that  the opening meter reading for the new company was the same as the(estimated) closing meter reading for old company?

Normally there isn't a huge difference between the kWh price of the gas/elec of the losing and gaining tariffs. With gas it is normally a fraction of a penny, and electricity one or two pence. So if estimated reading differs by, say, 100kWh that will normally be a difference of a pound or so.

As an aside I believe that the reason this, admittedly useless, algorithim was introduced was because a lot of customers 'fudged' their meter readings to their advantage when changing suppliers. Several contributors on MSE openly posted advice on how to gain by falsifying meter readings; seemingly not appreciating it is fraud.

Gerry1

Opening reading validation process

My opening reading is wrong

poppellerant

On the last day of supply with the old suppler, I try to supply them with a final meter reading.  Then the following day, at the roughly same time, I provide my new supplier with an opening meter reading.

Never had an issue doing this yet and I always get accurate final bills.