Estimated Bills - Valda

HIH

I'm new to this and not sure if people can help but I'm totally at the end of my tether.
I opened a tiny craft shop in October last year. I have four light fittings, a radio and a phone charger. I don't have heating or hot water. I signed up with Valda Energy through a broker and they have been absolutely terrible. My first bill was estimated at over £600 for two weeks, in the last five months they have sent nine estimates that are 300% of my average monthly useage or more (usually way more). One bill was for 3500% of my average monthly usage. My maximum monthly useage so far is only 5% above my average usage. I'm providing meter readings fortnightly but I pay in advance so Valda say I have to pay whatever they estimate that I might use in the coming month. I don't mind paying in advance by an estimate if the estimate is reasonable but Valda's estimates are not inline with my usage. Do I have any grounds to pay less than their estimated bill? I'm thinking of just paying my maximum monthly usage plus 20% as I know this will more than cover what I use in the next month, is this breaking the law in anyway? I really dont know what to do, I get almost daily contact from them despite having paid for every unit I have ever used. I seem to have to spend four to five hours on the phone each fortnight to try and get a bill more in line with my usage, each time they pressure and bully me into paying these reletively huge bills compared to what I actually use.

To break down figures:
Average Monthly Usage £40 
Maximum Monthly Usage £42

Average Monthly Bill £220
Maximum monthly bill £1700
Lowest Monthly Bill £160

Robin9

MSE is essentially a domestic site and you are a business  on a business tariff and you are on a contract.

You do seem to have a messy billing arrangement - why this fortnightly reading .   Have you asked Valda direct on what day do they want readings ? 


PS Are you sure you are reading the meters correctly ?

MWT

The starting point would be to read the terms of the contract you agreed to, what does it say there about their estimates and the requirement to pay them in advance?

How quickly are they refunding your overpayments which result from paying against their estimates?

HIH said:

I'm thinking of just paying my maximum monthly usage plus 20% as I know this will more than cover what I use in the next month, is this breaking the law in anyway?

Not going to be 'breaking the law' but you could be in breach of contract, which may result in penalties under the contract, hence the need to read it carefully.

As a Microbusiness you can use the Energy Ombudsman service, so the starting point is to make a formal complaint to your supplier about the wildly inaccurate estimates and then if there is no resolution after 8 weeks, you can take it to the Ombudsman for adjudication.

HIH

Robin9 said:

MSE is essentially a domestic site and you are a business  on a business tariff and you are on a contract.

You do seem to have a messy billing arrangement - why this fortnightly reading .   Have you asked Valda direct on what day do they want readings ? 

Sorry, as a sole trader I didn't know where to turn for help. 
To answer the question they originally asked me for monthly meter readings but on Christmas Day sent me a bill for £1738.65 and when I queried it they said it was because I hadn't given them enough meter readings. I asked how many they wanted, they said fortnightly until the estimates level out but didnt give a prefered day. I still have photos of the meter including date stamps but this doesn't seem to help and quite often they refuse my meter readings because they are below their estimated readings.

HIH

Robin9 said:

PS Are you sure you are reading the meters correctly ?

I'd read that as 00017968 ?
Hope I've not made a pillock of myself.

MikeJXE

If as you say you moved in October what was you opening reading then compared to now over the 6 month period, taking the opening from now gives you a total kWh used plus standing charges 

You obviously know your rates so you should be able to work out the cost plus VAT

How does that compare with what you have paid 

Are you reading their terms and conditions correctly, is there a minimum etc ?

HIH

MikeJXE said:

If as you say you moved in October what was you opening reading then compared to now over the 6 month period, taking the opening from now gives you a total kWh used plus standing charges 

You obviously know your rates so you should be able to work out the cost plus VAT

How does that compare with what you have paid 

Are you reading their terms and conditions correctly, is there a minimum etc ?

In total I've used 370kWh the cost of that plus VAT plus my standing charge is 184.92, I've actually paid £240 but the total I've been billed for is £3534.06, most months they have reduced it back inline with what I've previously used after hours of debating on the phone. This month My bill started at £220, I'm six phone calls in and its down to £110 but the most I've ever actually used in one month is £42 including VAT and standing charge. They won't tell me how their estimate is created, I've asked numerous times for them to explain how they are estimating I am going to use between £160 and £1700 in a month when I've never used over £42 previously.

MikeJXE

If it was me I wouldn't pay more than what I was 100% sure it cost unless the t&c disputed that. 

I would not be interested how their estimate was created if I knew what it should be, you are banging your head against a brick wall. 

What can be the worst they can do to you ? Even if they disconnect you from what you are saying you use you could almost do that via batter power 

As has already been said, send in an official complaint then if they do nothing wait 8 weeks then go to the  Ombudsman for adjudication

Keep sending meter reading and paying what you know is the correct amount 

MWT

MikeJXE said:

What can be the worst they can do to you ?

This is a business contract, which often comes with extortionate termination and penalty clauses, so there are a lot worse things than getting cut off if you fail to live up to the terms of the contract...

This is why I said at the start, begin by reading the contract to properly understand the obligations that have been agreed on both sides...

MikeJXE

MWT said:

MikeJXE said:

What can be the worst they can do to you ?

This is a business contract, which often comes with extortionate termination and penalty clauses, so there are a lot worse things than getting cut off if you fail to live up to the terms of the contract...

This is why I said at the start, begin by reading the contract to properly understand the obligations that have been agreed on both sides...

Thats why I asked what the terms and conditions were 

Thats also why I said keep sending meter reads and paying for what you use