Massive electrical debt

Oreos_Mum

I'm with British Gas, they claim to check your direct debit every months to make sure you're not going into debt. The didn't do that with me, they've suddenly told me I'm over £800 in debt and want me to pay it immediately. I live alone in a one bed flat, I work full time and so I'm out of the house between 8-6pm. I'm shocked that I'm in this much debt, or even using that much electric. Anyone had a similar thing happen? How did you handle it? 

Robin9

First is your bill based on estimated readings ?  If yes read the meter and give that to BG  -  that will generate a bill - then you will the true amount you owe.

A one bed flat can easily cost £100 a month during the heating season.  What DD have you been paying ?

littlemissbossy

First thing to check, are they using estimates or actual readings?

elsien

Have you looked at any of the bills they have been sending you?
Do you have a smart meter? When was the last time you sent in a reading or checked the accuracy of the readings? 

Oreos_Mum

So I have a smart meter, that was fitted in April 2023. Before that I moved in August 2022. They estimated I would spend £50 pm so that was my direct debit. It didn't change after the smart meter and nobody told me that I was using more than they estimated. 
I have also noticed on the app, that there are a bunch of readings missing on some day, as well as no usage readings from April - September. I have asked them for the readings and they have not been able to give them to me. 
The app says during December to February I was using £170 of electric a month. (I was at my parents for a week over Xmas) too. 

Scot_39

The most common scenario I've come across in family - and in posts here - for such a large one off bill - is after a prolonged series - months / years - of estimated bills - them finally receiving / using a new set of actual measurements.

So some basic checks - given you dont mention meter type or billing accuracy.

Is the bill real - i.e. based on actual meter readings

- is the current bill for the £700 based on an actual reading submitted by you or taken by a meter reader visit (if not smart) - not an estimate ?

- when was the last time before that you or a meter reader submitted (if not smart) AND (and I mean AND (*)) got an actual bill based on an actual reading - prior to current bill - that might explain the sudden shock bill

( Note *I only add the AND and ask as they - well SG subsidiary - ignored 4 sets of 6m readings on my mum's account about a decade ago - and she ended up with a bill for well over £700 initially - and again presented for immediate payment - but in reality they know most wont or cannot )

AND importantly given some reported issues with B GAS internal accounting system changes - have you been moved onto their new accounts system.  

And if so did you check bills carefully before and after.  As some posters here have reportedly not had credit / debit not transferred or direct debit payments / so account credits - moved correctly over to the new account on new system.  So owed several months of DD payment.

If you have copies of historic bills go back and check - not sure what might be available on line after the change from before though ( I lost historic bills at one supplier just by changing email address on same account - so keep my own copies).

If you suspect a problem - that will have to be challanged direct with BG.

However If the bill is real - you need to contact them and discuss / consider payment options - if able - or get help doing so.

In the end in mum's case we paid most of the money (we alaways agreed we did owe) to SG - over 12m interest free - by them adding just over £50 to DD for it for next 12 months - in part as their fault (and were credited just over £100 as compensation) - and in part as they said any longer needed a debt plan / credit file marked).  

But seen a few posts since where suppliers allowed folk 24 months on DD plan.

And of course if you struggle to undersrtand - or will struggle to deal with them to negotiate a solution - seek help from say citizens advice or an  energy / debt charity - your council might have a local list.

If you really cannot afford it - you might end up on a debt repayment plan - which you can offer what you - or an adivsor at one of the above - assesses you might be able to afford.  There are online advice and template letters  / forms to estimate to do so if need be.

And even for those with larger debts - in some cases debt repayment plans - could be in the order of £s per week - one person posting here said their plan repayment was scheduled over 7 years - as that was all the assessment said they could reasonably afford.

But first you need to make sure the debt is real.  And then cross the debt hurdle once you know for sure.

Oreos_Mum

Scot_39 said:

The most common scenario I've come across in family - and in posts here - for such a large one off bill - is after a prolonged series - months / years - of estimated bills - them finally receiving / using a new set of actual measurements.

So some basic checks - given you dont mention meter type or billing accuracy.

Is the bill real - i.e. based on actual meter readings

- is the current bill for the £700 based on an actual reading submitted by you or taken by a meter reader visit (if not smart) - not an estimate ?

- when was the last time before that you or a meter reader submitted (if not smart) AND (and I mean AND (*)) got an actual bill based on an actual reading - prior to current bill - that might explain the sudden shock bill

( Note *I only add the AND and ask as they - well SG subsidiary - ignored 4 sets of 6m readings on my mum's account about a decade ago - and she ended up with a bill for well over £700 initially - and again presented for immediate payment - but in reality they know most wont or cannot )

AND importantly given some reported issues with B GAS internal accounting system changes - have you been moved onto their new accounts system.  

And if so did you check bills carefully before and after.  As some posters here have reportedly not had credit / debit not transferred or direct debit payments / so account credits - moved correctly over to the new account on new system.  So owed several months of DD payment.

If you have copies of historic bills go back and check - not sure what might be available on line after the change from before though ( I lost historic bills at one supplier just by changing email address on same account - so keep my own copies).

If you suspect a problem - that will have to be challanged direct with BG.

However If the bill is real - you need to contact them and discuss / consider payment options - if able - or get help doing so.

In the end in mum's case we paid most of the money (we alaways agreed we did owe) to SG - over 12m interest free - by them adding just over £50 to DD for it for next 12 months - in part as their fault (and were credited just over £100 as compensation) - and in part as they said any longer needed a debt plan / credit file marked).  

But seen a few posts since where suppliers allowed folk 24 months on DD plan.

And of course if you struggle to undersrtand - or will struggle to deal with them to negotiate a solution - seek help from say citizens advice or an  energy / debt charity - your council might have a local list.

If you really cannot afford it - you might end up on a debt repayment plan - which you can offer what you - or an adivsor at one of the above - assesses you might be able to afford.  There are online advice and template letters  / forms to estimate to do so if need be.

And even for those with larger debts - in some cases debt repayment plans - could be in the order of £s per week - one person posting here said their plan repayment was scheduled over 7 years - as that was all the assessment said they could reasonably afford.

But first you need to make sure the debt is real.  And then cross the debt hurdle once you know for sure.

Thank you. This info is really helpful. 
I have a smart meter but Im thinking there's some issues somewhere. Ive set up a direct debit fort £100 and I can pay more on the app if I have anything spare. Hoping the energy ombudsman can help in some way. They're calling me on Monday. 

BarelySentientAI

Oreos_Mum said:

So I have a smart meter, that was fitted in April 2023. Before that I moved in August 2022. They estimated I would spend £50 pm so that was my direct debit. It didn't change after the smart meter and nobody told me that I was using more than they estimated. 
I have also noticed on the app, that there are a bunch of readings missing on some day, as well as no usage readings from April - September. I have asked them for the readings and they have not been able to give them to me. 

Estimates mean nothing.  Sometimes smart meter communications go wrong and there is data missing - they are not going to give you readings that they didn't get.

Nobody is supposed to tell you that you use more than estimated.  You are supposed to keep aware of your own energy bills and, if needed, give actual readings so that things are up to date.

If this is what we suspect, that you have not paid enough because of estimated readings and now it's an actual reading, you are liable to pay although they might accept a payment plan (they often do).

You need to look at (or tell us) readings from your bills, actual where possible and estimated when they used them, actual balances on the bills, actual payments you have made...  Also check that the serial number on your meter is the same as the one on your bill so that we know you are paying for the right meter.

Robin9

You may have a Smart meter but it may not be communicating in Smart mode..

Can you read your meter please - take modern meters can be difficult to read - look for the decimal point.

Electric heating -  are you on E7 with conventional bigish radiators or have you a very slim meter or even a water filled heater with a great big boiler.

Reed_Richards

Can I just add that if it turns out you really do have a large debt, it should be possible to negotiate a payment plan where you pay off this debt month by month over a period of time.

Scot_39

Oreos_Mum said:

So I have a smart meter, that was fitted in April 2023. Before that I moved in August 2022. They estimated I would spend £50 pm so that was my direct debit. It didn't change after the smart meter and nobody told me that I was using more than they estimated. 
I have also noticed on the app, that there are a bunch of readings missing on some day, as well as no usage readings from April - September. I have asked them for the readings and they have not been able to give them to me. 
The app says during December to February I was using £170 of electric a month. (I was at my parents for a week over Xmas) too. 

Sorry missed the smart bit as came in whilst typing first reply.

Sadly around 10% of smart are in some way not operating as smart.  Some like yours will be supplier comms issues - some can be intermittent.

But again a small risk of internal BG failure on account system swap - so check meter serial numbers and readings where present on bills match your actual meter.

So sadly just like conventional - best to track readings - and check bills regularly are using live smart.  I check my monthly statements are for smart readings every time.  

If really interested Re missed data - the meter itself stores data for upto 13m - there are third party smart phone apps like bright and loop etc and sites like n3rgy that others use that can potentially recover that for you.  I just get from meter/ihd regularly - have weekly and monthly records going back years now -  and add to spreadsheets.


But the important thing for now is whether the £800 bill is real or estimated.  

Is it based on actual smart readings if they have suddenly recovered - even if intermittent - your manually submitted readings - or still estimated readings in their absence.

Many suppliers are pretty good - some arguably too good as set higher than many users think is reasonable  - at reviewing account balances and adjusting Direct Debits.

But that needs real measurements to do so.  Missing smart meter data for months wouldn't help them or you.

But then others let some customers run for months / years on estimated billing. 


I used to set my own revised DD every price Change. I used a simple rule of thumb over a 12m window - as that pre crisis was how regularly my supplier did my account review -  to aim for zero balance.

New DD =[ predicted annual cost (average annual usage last 5 years at new unit rates + standing charge x365)  - credit balance  ] /12  + 5% margin (*)

You are £800+ in debt - so that would add not subtract to required payment.  Adding nearly £70pm over 12m or £35pm over 24. Over and above real ongoing costs.

(*) Last year was mild - my annual energy use down about 10% on previous  - so if only based on last year would have upped from 5% to 10 or 15%

But if you havent got good estimates of kWh consumption over the year its messy.

EOn Next have been sending me regular price change summaries with cap changes with annual usage and peakpredicted annual costs in £s and the monthly statements include a rolling 12m energy use peak off peak kWh in my case.  Do BG give you any such clues (but be wary if basec on estimated tgey too are only estimates ) ?

I've been letting them change DDs of late - as have been reducing with credit and lower rates - but last time I checked I was looking at c£5 credit by end of 12m period on their number.

I am all electric, single occupancy most of year, and heat small 2 bed mid terrace modestly (one comparison site suggests my neighbours either side - both dual occupancy, one set retired - use twice the kWh pa),  but I do hit £150 once £200 in winter,  £60 last summer, nearer £50 this at July price lows.  Curent new DD just £65 using above maths at July lows, but predictions were for c10% cap increase, and that has £10 credit pm deduction (so £85 raw at Oct rates predicted) But if did using neighbours numbers consumption would be over double.

That's why getting a grip on your personal use and measurements is important.  The variations between households - even in similar properties - are just too large. 

I see in another post that you also say you have now upped DD - to £100 - from £50 - was that after speaking to them or just on app/ online.

The problem is £800 debt accumulated over anything upto 2 years since Aug 22 - if real-  suggests you may have been underpaying on average c£30-35pm - and your true DD needed to be £80+ - £100 isn't going to clear debt very quickly.

It's important not to simply ignore the latest bill if it is a demand for payment - rather than simply a statement of account - although in that later case I would perhaps have expected them to accompany that with notice of raising your Direct Debit.

And so you might (probably will if not already as above) still need to engage with B Gas.

So make sure you speak direct or after / via help (Citizens Advice / debt charity etc) to BG.

And at least inform them you have seen the latest statement / demand and so increased the DD by £50 to cover use and help reduce the debt on latest statement.  

But beware they might then ask for readings - do a similar calc to mine above - over their preferred period - and come back asking for a different number. 

And if £100 is really what you can afford - and they ask for more - that might trigger a debt discussion you may not be prepared for unless had a discussiin / help.

As above comments many suppliers will accept a "reasonably  affordable" in your financial circumstances - offer for debt repayment.

Have a read of 

https://www.citizensadvice.org.uk/consumer/energy/energy-supply/get-help-paying-your-bills/struggling-to-pay-your-energy-bills/