British Gas overestimating our gas usage

Xltyxx

I have recently moved into my first property (2 months ago) and have been paying £136 pm for gas and electric with British Gas since we moved in. Our property is a small 2 bed end terrace which 2 adults live in. 

Our gas usage over the last 60 days since we have lived here is 1068kwh in total, but our annual estimated gas usage is over 21,000kwh and our bill has increased by about £70 per month as a result. Which seems like a hugely overestimated usage to me.

After speaking with British Gas, they said there is basically nothing we can do other than continue to submit meter readings and it might even itself out. But I don’t understand how the estimation is so high. They said it is based on a 12 month estimation of the property, so it seems we are paying based on the previous owners usage? As we were paying no energy bills before moving here. 

Customer service have been lovely but is there anything else we can do than what was suggested?

We are already £76 in credit based on the last 2 bills we have paid. 

Rodders53

Money is meaningless in itself.  It's the kWh that matters (and price of those kWh, gas and electric).
Both gas and electric will be used more in winter than summer...

Last week or so (15 days, 1/4 of the time in the house ) you will have started using the heating more... Winter is coming and you'll use a lot more in the next three or four months...

Do read meters monthly (on moving in date may be ideal, or any other date that suits).  Submit readings and keep the numbers in a spreadsheet.  Do the water meter, too, if you have one (it'll help you spot leaks).

Get smart meters installed asap and then the need to submit manual readings should disappear.  Doesn't stop the energy co making wild annual estimates but you will be billed accurately.  So keep monitoring the numbers in your spreadsheet.

I'd agree the BG gas use figure is higher than one would expect.  But getting accurate bills and over a longer period will be essential to prove that.  You can always ask for an excessive credit refund after each bill has been issued.

Gerry1

Switch to a friendlier supplier that offers Monthly Variable Direct Debit, such as Octopus. Higher bills in winter, lower in summer, but at least you'll be in full control of your budgeting.

Robin9

@Xltyxx Being £76 in credit is to be expected.

You haven't mentioned your electric consumptions.

Having paid £272 in DD and £76 in credit and about £50 in gas gives about £75 a month in electric. Do you by any chance have electric showers and perhaps use an immersion for hot water ?

RelievedSheff

The last two months have been relatively mild for the time of year. You will use more gas in the coming months. In fact next week is forecast to drop very cold so you will see the difference in gas use then.

British Gas have raised your direct debit to cover this increase in usage. At this time of year to avoid going into debit a direct debit account should be about 2-3 months use in credit which yours clearly isn't. 

FreeBear

Xltyxx said: Our gas usage over the last 60 days since we have lived here is 1068kwh in total, but our annual estimated gas usage is over 21,000kwh and our bill has increased by about £70 per month as a result. Which seems like a hugely overestimated usage to me.

Ofgem publish "average" consumption figures - For a medium usage household (2-3 people, 2-3 bedrooms), they say 11500kWh of gas per year. 21000kWh is excessive !

If you use a site like uswitch, and select neighbouring properties, you can get some idea of what similar houses are using. Armed with that information, you can go back to BG and try to renegotiate. But their annual estimates will be based on usage patterns of the previous occupants. You could also look at the EPC and see what it gives for estimated annual energy consumption. Another number to wave at BG.

EssexHebridean

The problem is, they don’t know you, how warm you like the house, whether you both spend 20 minutes in the shower twice a day, cook a roast dinner three times a week or what. In the time you have been there they are seeing your use, and that is probably currently translating out via their algorithms to “slightly higher than average users” - now it falls to you to prove them wrong. (Or not - time will tell!). As Gerry says, you could switch supplier and go to a variable DD - but if the extra you are being charged currently is making you feel the pinch a bit, that’s probably not a good plan for you right now, as your next few months bills are very possibly going to be higher than the fixed DD you are seeing at the moment. 

If you did decide that MVDD was for you at a later date, the spring is a good time to switch over - as you can then use the warmer (cheaper) months in the summer to set aside money ahead of the winter. Plus of course you will already have an idea of what your winter use will be! 

Remember, right now, not only do the supplier not know what your use will be, you probably don’t, either. I suspect that a switch to Octopus might provide more flexibility though. (And remember, ask around friends and family to get a referral code and both you and the referrer get £50 credit which will also reduce the costs!) Octopus are extremely good about letting you set your own DD - particularly once they see that you manage it well. Every now and again they try to increase mine but I’m able to simply go into thr app and reduce it down again which works well for me. 

Scot_39

Xltyxx said:

I have recently moved into my first property (2 months ago) and have been paying £136 pm for gas and electric with British Gas since we moved in. Our property is a small 2 bed end terrace which 2 adults live in. 

Our gas usage over the last 60 days since we have lived here is 1068kwh in total, but our annual estimated gas usage is over 21,000kwh and our bill has increased by about £70 per month as a result. Which seems like a hugely overestimated usage to me.

After speaking with British Gas, they said there is basically nothing we can do other than continue to submit meter readings and it might even itself out. But I don’t understand how the estimation is so high. They said it is based on a 12 month estimation of the property, so it seems we are paying based on the previous owners usage? As we were paying no energy bills before moving here. 

Customer service have been lovely but is there anything else we can do than what was suggested?

We are already £76 in credit based on the last 2 bills we have paid. 

Firstly make sure the first readings they used were your day 1 readings

Do keep on submitting readings monthly as advised.

The problem is you have started late in the summer winter debit / credit cycle for an annualised plan.

Most people would have been building credit since Apr / May depending on location and heating needs.

£76 credit - or more accurately - just over 1/2 of one  months annualised cost estimate  - is low for this time of year -  very - for most people - once the GCH goes on for 4-5 months your bills are likely going to at least double.

Mines even as a lowish user with expensive electrical heating can get close to treble.

Most people would probably by carrying 2-3 months of annualised plan payment in credit by now at many suppliers. You're barely over 1/2 of the old monthly payment.

However 21000 kWh for gas in a 2 bed for 2 seems very high - compared to say Ofgems median cap TDCV 11,500 for gas (notionally for 2-3 in a 2-3 bed)  and even higher than their high user dual fuel which is 17000k/wh iirc for gas for 4 / 4+bed.

I suspect they have boosted the payment to prevent account going into debt - so based on likely actual winter bills - rather than average of summer and winter.

And the 21000 just the number they to get it there - rather than a real annual consumption.  So if you want to think of it that way, more likely currently based on taking winter consumption x12 not average annual consumption x12.

And dont be surprised if it kind of sticks - until you get probably to the typical neutral point - next Apr/May - I would expect you to be dropped down to more realistic numbers - for use and DD plan as the old pre rise levels.

Suppliers - under guidance against allowing debt to accumulate - from Ofgem - seem far keener on biasing annual plans to near £0 min balance credit cycle - rather than £0 average.

Scot_39

FreeBear said:

Xltyxx said: Our gas usage over the last 60 days since we have lived here is 1068kwh in total, but our annual estimated gas usage is over 21,000kwh and our bill has increased by about £70 per month as a result. Which seems like a hugely overestimated usage to me.

Ofgem publish "average" consumption figures - For a medium usage household (2-3 people, 2-3 bedrooms), they say 11500kWh of gas per year. 21000kWh is excessive !

If you use a site like uswitch, and select neighbouring properties, you can get some idea of what similar houses are using. Armed with that information, you can go back to BG and try to renegotiate. But their annual estimates will be based on usage patterns of the previous occupants. You could also look at the EPC and see what it gives for estimated annual energy consumption. Another number to wave at BG.

Suspect the real issue is the OP has virtually no credit on account - going into winter months - only just over half his pre increase monthly payment.  And BG just adjusting to keep account healthy - i.e. in current regulatory environment that increaingly means no large debit - over winter.

Gerry1

Scot_39 said:

Xltyxx said:

I have recently moved into my first property (2 months ago) and have been paying £136 pm for gas and electric with British Gas since we moved in. Our property is a small 2 bed end terrace which 2 adults live in. 

Our gas usage over the last 60 days since we have lived here is 1068kwh in total, but our annual estimated gas usage is over 21,000kwh and our bill has increased by about £70 per month as a result. Which seems like a hugely overestimated usage to me.

After speaking with British Gas, they said there is basically nothing we can do other than continue to submit meter readings and it might even itself out. But I don’t understand how the estimation is so high. They said it is based on a 12 month estimation of the property, so it seems we are paying based on the previous owners usage? As we were paying no energy bills before moving here. 

Customer service have been lovely but is there anything else we can do than what was suggested?

We are already £76 in credit based on the last 2 bills we have paid. 

Suppliers - under guidance against allowing debt to accumulate - from Ofgem - seem far keener on biasing annual plans to near £0 min balance credit cycle - rather than £0 average.

Yet another example of how dozy Ofgem prefers to look after the interests of the suppliers rather than the consumer.