Should energy providers explain more clearly about actual vs estimated annual usage and monthly DDs?

Verdigris

They put an "E" next to the meter reading to show the bill is estimated. I don't think the consumers who get into trouble ever bother to read/try to understand the bills. Banners won't be seen by them.

Universal fitting of smart meters would go some way to preventing accounts getting out of control. Suppliers could act sooner, before the debt becomes insurmaountable, to get the account back in order.

Brie

I was surprised at how much helpful information is actually on the bills.  And how difficult it was to match the company's calculations.  And I'm a bright individual with a love of excel and a very good ability with numbers even without the IT help. 

So just think how it is for someone who is not good with numbers, never succeeded with advanced calculus or even basic arithmetic!  Add to that the fact that people are being sold a switch based on a low DD and then get caught out that the selling low estimate doesn't match their actual use.  And add the extra bonus of energy companies wanting/insisting that we be at least 2 months in credit at all points of the year!  

Still room for improvement!!

MWT

Brie said:

Still room for improvement!!

I am hopeful that the current price rises will provide the, albeit unwelcome, wake-up call for people to at least try to learn more about their energy use and their bills.

There is a mountain of help and advice available here on the net and elsewhere locally, if people would just start to pay a little more attention.  

Marvel1

I'm new to this as my meters are prepayment, but I have seen a lot of DD rates going up by almost double, when suppliers have bust people are in credit and trying to get it back.

The solution I can give is provide monthly readings online, or rather a bit much or weekly.

Switch from DD fixed payment and pay what you used have actually over the past month or is quarterly what they call it.

Astria

Phlik said:

Astria said:

I don't see how they can explain more, I think it's mostly to blame on comparison and switching sites - Mr Blogs enters their details and gets told "We can do £55/month, £15/month cheaper than you are paying now", signs up and believes that's the last of it. They rarely know the actual rates they are being charged until they find out they are in debt 6 months later. The switching company doesn't care as they have their referral fee.

I'd disagree, I've used the switching and comparison site many times and all the information is there on the screen covering ppkwh standing charge etc. People choose not to read it.

Which comparison site did you use? I've just looked on Uswitch, and the first thing I noticed was this:

"You’re on a standard variable plan. The rates you pay will increase by 54% from April 1st 2022."

It seems like even they don't know what they are doing.

I then get the following as an option:

Next 1 year v8 Fixed rate contract 12 Months
Early exit fee None Monthly cost £208.55
Bronze Standard - Green Tariff
Additional annual cost + £1,619.09 What will I pay?

To get the actual unit costs I have to click "What will I pay?", and then "See all tariff information", then scroll down to the bottom of the page and finally click on "View rates". It's like they are trying to hide them from you, no one is going to do that for every provider.

Saying that though, I did show me this surprising provider:

Help Beat Cancer Green Fixed SR May 2024 DM3

Gas Unit rate 18.934p per kWh
Standing charge 28.864p per day
Exit fees £100.00
Ouch!

Thrugelmir

Marvel1 said:

Switch from DD fixed payment and pay what you used have actually over the past month or is quarterly what they call it.

That's how it once was. Then people struggled with large bill during periods of seasonal weather. Companies required a administration staff to chase in unpaid debts. Adding yet more cost to peoples bills. Monthly direct debit enabled people to budget better. Providing proper readings is all that's required.  Seems the more technology we have the less capable people are becoming to look after themselves. 

[Deleted User]

There is an awful lot wrong with some suppliers’ estimate calculations - particular after a switch. As luck would have it, my gas contract was moved to a SoLR almost a year to the day from when my replacement SMETS2 meter was installed. On request, I provided the SoLR with an annual estimate of 7771kWh. 

I switched to a new supplier 6 weeks later and my Final Bill came with an estimated annual consumption figure of 11400kWh. I gently pointed out to the supplier that they had the ability to pull 12 months of smart meter gas data so there was really no reason for estimates that were so widely out in the supplier’s failure. Their response was that my smart meters were not working!!

The first bill from my new supplier shows smart meter readings and an annual estimated consumption of 7800kWh.

[Deleted User]

Dolor said:

There is an awful lot wrong with some suppliers’ estimate calculations

I agree.  Having been with Eon Next since October 1st, I've now had 5 monthly statements (after giving them monthly reads on the due date) and already know that my annual annual consumption (EAC) for the house I now live in is going to be less than what it was at my former abode.  Possibly due to a concerted effort to cut energy usage more than the different type of dwelling.

When I signed up with them I basically used the numbers from my old house as an initial guide - so I think I used 9800kWh for Gas and I think something like 2600kWh for electric.  Having got into a 'heating' routine I can now be confidant that my annual consumption for Gas is looking like it may be lower @ 8500kWh/yr or even lower depending on my gas consumption for the remaining 7 months. 

Eon state on my statements that 'Your energy usage is calculated from your gas consumption using a standard industry formula'.  So this yearly anticipated gas usage on my last 5 statements have been as follows:

March 1st 15277 kWh
Feb 1st 15277 kWh
Jan 1st 11068 kWh
Dec 1st 10987 kWh
Nov 1st 12130 kWh

Is it any wonder that companies can pull the wool over the eyes of customers who don't have a good idea of their EAC for the year ahead i.e. by requesting an over-inflated DD figure?

I'd be curious to know exactly what the standard industry formula is.  I'm sure that they use historical figures but in my situation it makes little sense as the house was not lived in for about 5 months before I moved in with zero gas used.  The gas in particular is grossly over-estimated especially as my usage figures have tumbled since the turn of the year.  It makes no odds for me personally as Eon Next are getting a variable DD so the balance is always £0.00 after each DD taken. 

Ultrasonic

My main thought is that this sort of thing should be taught in schools. It may be now I suppose but it certainly wasn't when I was young.

Mobtr

alicef said:

Whilst I appreciate it is down to a customer to be mindful I can't see that it is so hard for a utility company to put up a banner on a bill (monthly/quarterly whatever) to remind a customer that their bill is an estimate, that their actual consumption may be more, to provide an actual meter read, etc. 

Think you’ll find they already do. Company I used to work for used to have in big letters & in bold ‘your bill is based on estimated readings’ it would also say ‘contact us with your own readings for a more accurate bill’ It also had estimate written on the billing paper across the middle of each page. It’s not as if companies try to hide it