Energy debt

weesooz

Hi, just wondered if any one can help me. My electricity and gas meters haven't been communicating with scottish power since I joined them a couple of years ago resulting in them estimating my bills. Long story short ive sent meter readings and now have a debt of nearly £1000. I am a single parent, and dont work as I look after my 2 youngest children, one who has ADHD and autism, and am struggling as it is. I was paying £160 a month to them and offered to pay £200 but they refused this as they said it won't cover my bills and won't pay off my debt. I have really tried to cut back on my energy usage, I went through the winter with my heating only on for an hour a day, have stopped using my tumble dryer and have limited the kids time in the shower too. My bills seem to be high compared to other people in the same situation as me but scottish power said id have to get an independent engineer to check if there's any problems with my usage. What can I do?

Robin9

When you moved in how did you manage to give SP your readings ?    or were the meters both blank at that time ?

Have you put any money aside for your anticipated bills over the last two years ?

Brie

I would suggest you get an energy review done by an organisation such as LEAP.  They can check our your property and make suggestions about what might be done to improve your energy use.  If they identify a problem and if you are renting you can use this information to prompt your landlord to take action and fix things.

LEAP - The Energy Advice & Money Saving Service

I also saw on line that they might provide grants but I don't know what that all entails.  But if you are in significant debt with Scottish Power then this is worth asking about.  Grants might also be available from other connections in your life - lots of organisations will assist people who worked in their industry (building, military, banking) or have a religious or family connection.  

The other thing you should do is get yourself on SP's vulnerable register and ensure that you are on a social tariff with them.  Request that this be back dated as well.  

Let me know if you have any questions about the above.

weesooz

Robin9 I gave them readings when I move in and they were the ones who set my direct debit up for the amount they calculated going on my details. I didn't set any money aside because as I was kes to believe the meters would send the info to scottish power and I didn't have to do anything as they were smart meters and would calculate my usage automatically. Brie I will contact leap and see if they can help. I rent from my local council so I will ask them also to come and inspect my boiler as I think this isn't working properly either so that might help. I am on Scottish Powers vulnerable register  - well they said they'd put me on it - and I will ask them about the social tariff. Thanks both of you

mac.d

Do you have a note of your readings from when you moved in, and your latest readings? 

Have you been paying the £160 a month the whole time or have you just recently started paying that?

Because if you've paid £160 a month from when they first set up your direct debit, you'd have to be using a lot of energy to still run up a debt of £1000 in that time. 

WiserMiser

If the meters aren't inside your flat, do the Meter Sanity Test to make sure you're not paying for usage by a neighbour.

EssexHebridean

One very constructive thing you can do is to set yourself a reminder for once a month to read the meters and submit those readings - unless and until you can see that the meters are sending readings again - but even then, you should still take and record regular readings for your own records. 

It could be worth asking for the meters to be changed on the basis that they aren't sending  readings, assuming that your neighbours don't have any issues with theirs? You may be at the back of a long queue currently though. 

Scot_39

Firstly - do not feel in any way ashamed to ask for help - from multiple sources.

Millions now find themselves in debt on their energy.  Working families, let alone single parents struggling on benefits.

Records

Gather what energy bill records you have for the last 2+ years.

From initial readings etc to current latest demand. 

If you havent got past bills, by paper or say by email or in past downloaded from their portal - you might want to try and get them as well as the latest revision together.

[However there is a risk the originals may have been superceded online by the revised.]

As firstly need to check that SP are billing you properly - and applying the rules on long term billing errors properly.  

Its possible that they may need to be applying something callled backbilling  - Ofgem had stern words with suppliers who werent always doing so properly earlier this year. That might reduce the demand.  

Have SP mentioned it or applied any corrections to the new demand for use more than 12 months ago ?

Did the £1000 demand bill come with a whole series of corrections to previous bills / statements over the last 2+ years.  Or just a simple (xxxx kWh short x rate ) per fuel type demand for a short period.  

Talk to debt / energy debt charities - or your local citizens advice or council (some have staff advisers to help tennants) - to help you understand exactly what is going on with your bills - and to check all rules are being applied.

Regarding the debt / demand

And if you cannot afford to repay it quickly - say under normal DD annualised plan - you might need to enter a formal debt payment plan.

[My mum had 2+ years of estimated bills (despite SG having readings that they ignored) - and got a demand - a simple xxx units x current rate - for 7 day period - to cover over 2 years - and demanding instant payment).  In end after some compensation - she repaid at £50/pm over her actual usage - and no formal debt repayment plan needed)]

From 

https://www.ofgem.gov.uk/publications/debt-and-arrears-indicators

There are per supplier stats for those on PPM but not on credit meters - and via them repaying debt plans - average for SP around £6-7 pw per fuel - over an average of roughly 3 years - SP one of the less but not least genrous. (The average more like 4.5-5 years and £5 per fuel)

Again as above a debt charity or citizens advice will help you do a formal agreed (between energy companies and debt charities) template affordability calculation.  (There are templates on line on some debt charity sites to follow yourself if you prefer to get an idea - but there not the simplest of things to fill in).  They will need estimates of income and other essential spending (other bills, food etc)

Grants / Direct Help

But I'd also try your local council to see if they offer a hardship fund you could seek grant help from.  Or recommend any local or national orgs that could help.

Many suppliers - including SP run schemes - see

https://www.scottishpower.co.uk/support-centre/help-paying-your-bill/hardship-fund

Again energy / debt charities / citizen advice - might have ideas too - but as a miniumum can help you negotiate with SP on debt e.g. 

https://www.citizensadvice.org.uk/consumer/energy/energy-supply/get-help-paying-your-bills/grants-and-benefits-to-help-you-pay-your-energy-bills/

It was following the CA link I found the SP hardship site link above.

Bills vs your comments on heating use etc.

Something doesnt chime with the level of debt after couple - how much over 2 years exactly - over and above your stated £160 pm paid + your comments on low heating at least last winter if not before etc

As if youve built up a £1000 in c2 years - so thats around say as much as £40 per month - suggesting your true use has been closer to £200 pm - assuming £160 has been a long standing DD payment - so thats £2400pa.

Even worse - if backbilling rules already followed to set the £1000.

So from SP perspective - its perhaps true - your £200 offer doesnt appear to cover your average use if just over 2 years (your couple years isnt very accurate) and any significant debt repayment.

SP would of course like more including the debt repayment - but there are standard procedures for setting debt repayment plan payments.

If c£200 estimate use above is near correct - for a dual fuel home £200 per month - £2400 pa - is now higher than the current median TDCV Ofgem DF DD Cap.

Which has been sub £2000 for most of the last two years - and just above that in Jul - Sep 23.  But well above - subject to a govt subsidy to limit to £2500 (the EPG cap) in the Oct 22 - Jun 23 period - depending on exactly when you first moved to SP and they set your initial DD.  The £160 possibly assuming higher than current rates

The cap is now (since late 2023) based on 11,500 kWh gas and 2700 kWh electric.  Or c960 / 225 kWh per month.

The current cap £1720 pm - which is £143pm - as a comparison to your £160 DD (sorry assumed DD - monthly payment ) or £200 pm offer.

Implying that past usage could be notably higher than median TDCV

So your efforts - at least last winter - to make low use - dont seem to chime with £1000 demand.

Hot water can be quite a large demand - washing / washing clothes etc for 3 

- you mention cutting back on kids shower time, so how is the hot water het in general - and specifically for shower - gas or electric ?  (my electric shower uses 1.5 kWh every 10 mins for instance - 40p at current ave SR)

and not using tumble dryer

and 

only heating - gas central heating ? for 1 hr this winter

[but others have turned down gas off or cut use then relied on electrical plug in fires - say in kids bedrooms in your case - or just living room etc  - to make up shortfall - which can alarmingly end up being even more expensive etc  (as electricity around 4 the price per raw unit of energy / heat).]

You also mentioned suspect boiler - gas ?  What do you think is wrong with it ?

Did you have any real reading bills at all with SP or took readings anytime in the last 2+ years - that hadn't been sent to SP or applied to your bills.  Was there a specific reason to cut back last winter vs earlier use - or was it just a general nagging concern over say media reports of debt etc that triggered that you need to make cuts ?

Meter Sanity

As above link - if the meters arent in your flat - could you have used the wrong one(s) for readings.

A working smart meter would have helped narrow down periods of high use during the day by usig an app to view 1/2 hrly data - but without working comms to DCC - not available.  Can you look at meter comms hub normally top of electric meter - wan status led / light and if flashing its rate - 5 sec flash means healthy and might be worth trying an app or site - as it might be SP who have failed to connect properly. Or not tried to since networks improved in area say.

Actual Consumption

When SP rejected your £200 offer - did they tell you what your monthly consumption is  / your realistic monthly bill now needs to be (without past debt included) ?  and then an expected total payment including to reduce debt (or by what date they ideally expected you to clear it) ?

(My mum was offered 12 months split added onto annual dd in the end the max they would allow without a formal debt repayment plan)

Or can you provide date and move in readings - and the date / readings the £1000 demand is based on ?

Or even just an estimate of annual or monthly average usage levels - from the differences and total time period - to see how they compare with those Ofgem cap levels.

Again an energy charity or citizens advice might be better placed to be able to advise giving access to your bill details.  They will also generally help you deal with SP - to try to come to a suitable arrangement - based on your affordability.

For more advice on bills here

You could post the fully redacted here revised actual bill for £1000 (so no name, address, MPAN / supply number or meter serial numbers remaiing visible ) final bill - if it has your day 1 readings on it great - if not - can you give.

But for now as a start - as above - would you be willing to post here  - your actual (from readings) monthly consumptions - or simply the start readings and date and final readings and date for the £1000 demand.  And confirm the £160 pm DD applied for the full period.

Edit ps sorry for tge length of post and any duplication Tiers lots of facets and options to resolve for current demand and future consumption/ billing.

Scot_39

Just one thing I cut out, but again it's worth checking since you make a point of having lowered gas, check your being billed using correct unit conversion.

Afaik all modern smart meters work in units of  cubic metres, but older meters used to work in cubic feet, most commonly 1 = 100 cu ft.  Some have been misbilled on old scaling, nearly triple price.

1 = 1m3 = c 11kWh
1 = 100 ft3 = c32 kWh

Edit 23:57 there is a thread here about B Gas doing just that to other customers.

https://forums.moneysavingexpert.com/discussion/6607195/over-charged-kwh-by-british-gas#latest