Energy providers that no longer exist have no accountability for poor corporate practice?!

Graymalkin22

Upon moving into our new property, we inherited an energy account with Shell Energy. Given we are a busy family we saw no reason to change this. Over the next 18-months, Shell Energy requested meter readings which we provided. We were billed accordingly. Approximately 2 days prior to the closure of Shell Energy, the company contacted us and indicated our energy bill was in debt - £2,000. This debt was transferred to Octopus Energy. Following a protracted complaints process Octopus Energy, insist we pay this debt. Our position to the Energy Ombudsman is the bill should be amended in recognition of poor practice during the period the debt was amassed. It has been speculated that Shell Energy ignored our meter readings and estimated our bills at a low level. This was done despite the fact they are aware we are a 4-bedroom property. It’s important to note we budgeted for and paid our energy bills in a timely fashion. The £2k represents the amount outstanding that Shell neglected to inform us about. There’s no way we can pay this debt, and I really think there should be facility to adjust the debt because of the manner in which it was coordinated. The Ombudsman have instructed Octopus Energy to provide a gesture of goodwill – as their own systems of communication have been appalling. However, they indicate there is no accountability for the creation of the debt now Shell Energy no longer exists. They have said we can raise a small claims case in the County Court. However, I am concerned about the financial repercussions of a case that fails. All advice is GREATLY received.

Netexporter

Did you not check your bills against the meter readings you submitted? If you've consumed the electricity you have to pay for it.

born_again

While I understand your comments.

Did you not notice on any of the bills in that 18 months that they were showing Estimated rather than actual?

MattMattMattUK

Graymalkin22 said:

Upon moving into our new property, we inherited an energy account with Shell Energy. Given we are a busy family we saw no reason to change this. Over the next 18-months, Shell Energy requested meter readings which we provided. We were billed accordingly. Approximately 2 days prior to the closure of Shell Energy, the company contacted us and indicated our energy bill was in debt - £2,000. This debt was transferred to Octopus Energy. Following a protracted complaints process Octopus Energy, insist we pay this debt. Our position to the Energy Ombudsman is the bill should be amended in recognition of poor practice during the period the debt was amassed. It has been speculated that Shell Energy ignored our meter readings and estimated our bills at a low level. This was done despite the fact they are aware we are a 4-bedroom property. It’s important to note we budgeted for and paid our energy bills in a timely fashion. The £2k represents the amount outstanding that Shell neglected to inform us about. There’s no way we can pay this debt, and I really think there should be facility to adjust the debt because of the manner in which it was coordinated. The Ombudsman have instructed Octopus Energy to provide a gesture of goodwill – as their own systems of communication have been appalling. However, they indicate there is no accountability for the creation of the debt now Shell Energy no longer exists. They have said we can raise a small claims case in the County Court. However, I am concerned about the financial repercussions of a case that fails. All advice is GREATLY received.

Pay the bill. You used the energy, therefore you should pay for it. If you are unable to pay immediately then you need to agree a payment plan. 

elsien

So just to confirm, you are not querying that you have used the energy and so do owe the money, you are querying why your meter readings were not used and the shortfall was allowed to build up?

Have to be honest, I agree with the above. You also have a responsibility to look at your bills and make sure they are accurate. It doesn’t look as if you did this this, So even if you were still with Shell, you might get some token compensation but they wouldn’t write the debt off. 

If you can’t afford to pay it off in one go, you need to arrange a payment plan with octopus. 

Hoenir

Graymalkin22 said:

They have said we can raise a small claims case in the County Court. However, I am concerned about the financial repercussions of a case that fails. 

The money would be better spent reducing the debt owed. Whatever the in's and out's. A writeoff of the entire debt is unlikely. You knew that the billed readings were understated. 

"It’s important to note we budgeted for and paid our energy bills in a timely fashion."

Which contradicts your own statement. As the bills would have clearly used the words estimated. 

Ildhund

Graymalkin22 said:

Shell Energy requested meter readings which we provided. We were billed accordingly. 

'Accordingly'? That would suggest that you were billed according to the readings you provided. This being the case, it's not at all clear where the debt arises. As others have suggested, it sounds as if you weren't billed at all 'accordingly' after submitting readings, but this should be clear from the bills you received and paid, and from whatever evidence they provided when claiming that you owed £2000. 

MP1995

The ombudsman has ruled your only other avenue is legal action if you feel very verybstringky about this and have some money to potentially lose.

You knew the readings you were providing, you probably should have checked your bills that they were being used and performed some of your own calculations.

However, I would have expected the ombudsman to award you some sort of monetary compensation if indeed you did prove you provided actual readings but your Energy company continued to estimate.

Energy companies are all this cheap to be honest and we all need to check our bills regularly.

elsien

MP1995 said:

The ombudsman has ruled your only other avenue is legal action if you feel very verybstringky about this and have some money to potentially lose.

You knew the readings you were providing, you probably should have checked your bills that they were being used and performed some of your own calculations.

However, I would have expected the ombudsman to award you some sort of monetary compensation if indeed you did prove you provided actual readings but your Energy company continued to estimate.

Energy companies are all this cheap to be honest and we all need to check our bills regularly.

But who would you expect is liable to pay that compensation given that shell energy no longer exist?

Reed_Richards

You have built up a large debt for energy that you used but for which the monthly direct debit payments you made were woefully insufficient to cover.  Perhaps this debt build-up was reflected in your bills but both you and Shell chose to ignore it?  Or perhaps Shell did not use the readings you supplied to them?  You say:

It has been speculated that Shell Energy ignored our meter readings and estimated our bills at a low level.    

but this should not be a matter for speculation, you only have to read your old bills to find out one way or the other.  

If you cannot afford to be billed correctly for the energy you use then you need to find a more energy-efficient dwelling.  If you cannot afford to pay £2000 all at once then agree a payment plan with Octopus.