Bunch Utility Bill Management... Numbers dont add up!

purplebobblehead

I wholeheartedly agree, in an ideal world this is exactly what should be happening but sadly we live in one that likes to defer the fault to someone else, and in this case a random document signing website that no doubt makes a ton of cash from unsuspecting people thinking this utility service is supported by the rental industry.

purplebobblehead

I noticed this on the TruEnergy website, that they automatically direct people to Huddle for Domestic transfers. I was thinking about reaching out to TruEnergy to ask if they are aware that they are being mis-represented by Bunch, as it clearly states that the prices my daughter is being charged is the TruEnergy tariff…

gpman

https://forums.moneysavingexpert.com/discussion/comment/81862714#Comment_81862714

As I understand things, but IANAL as I said, mis-selling is defined as:

"The negligent, reckless, or deliberate sale of products or services—most commonly financial—that are unsuitable for the customer's needs, or are misrepresented during the sale process

Specifically. it occurs when crucial information is hidden, risks are not explained, or high-pressure tactics are used to coerce a purchase, often resulting in financial loss or unfair terms."

If you wish to bring about such a claim, it will be up to you to prove your case.

I see in your post that the allegations you made here were preceded by the word "Allegedly". That would imply to me you have no evidence at present to support those allegations. Good luck in finding any.

e.g. you said they allegedly said "it wouldn't cost them anymore than they had been paying in their previous property,".

I would be amazed if any business involved in selling energy would make such claim. They would not usually know what your daughter was paying in her previous residence for energy, would not know the thermal efficiency of that previous property, would not know the details of how the new tenants planned to use this new rental property compared to the previous residency, e.g. number of previous occupants, comparison of who was at home and for how long. If they had made such a promise, the new tenants could expect an 'all-you-can-eat' agreement with no consequences. What do you really think were the chances of that?

In regards the Consumer Rights Act 2015, it would seem you already know the details of that statute better than me.

What I would say is that if you plan to contact Trading Standards in the hope of them supporting you, good luck as they don't usually take on cases anymore direct from the public - you have to go through Citizens Advice or the Consumer Helpline, who will only usually escalate the matter to Trading Standards if you can convince them you have a valid, serious enough case supported by appropriate evidence, that would justify the involvement of Trading Standards.

I fear you have a long way to go, but I wish you the very best of luck in your endeavours.

gpman

https://forums.moneysavingexpert.com/discussion/comment/81862731#Comment_81862731

I may be wrong, but as I read the details of that tariff, there is a 2,700kWh p.a. allowance included. That sounds a bit like some mobile phone contracts that include a limited call and/or data allowance.

On the basis full advantage could be taken of that included allowance, it might be a very good tariff. 2700kWh would cost about £675 without standing charges, or about £1.85 per day on average. Standing charge is usually 40-50p per day for electricity, so a total of £2.25 - £2.35 per day. Your daughter appears to be only being charged £1.3729 per day. Not sure if that includes VAT, but as the monthly payment presumably does, I suspect all rates do.

2700kWh of electricity per year for 2 people in a "small two bedroom semi" that is dual fuelled seems a lot to me, hence why they presumably can offer what would otherwise be a very good offer.

The unit cost is quoted as 25.13p/kWh. I would assume this applies to usage in excess of the allowance. You said that seemed high compared to your Octopus tariff. Accepting that rates do vary slightly dependant on supply region (and assuming you pay more than 7p/kWh a forumite said today that Octopus charged them) , it actually seems about a penny or so less than what Octopus would typically charge on their currently available fixed tariff.(but maybe around the price Octopus were offering back in November)

purplebobblehead

https://forums.moneysavingexpert.com/discussion/comment/81862942#Comment_81862942

I must admit that this did bamboozle me a little, I think I just assumed this was a cap on the electric they could use, so thank you for explaining it.

So they are in fact paying for the 2700kwh electric and 11500kwh gas yearly "Usage Allowance", divided into monthly amounts, combined and including standing charge and 5% VAT, total monthly amount £197.04 and this does correlate with their actual payments. Compared to the Octopus Fixed tariff offered today, these unit amounts per month would only be £136.59, also including standing charge and 5% VAT. So not sure if this can be seen as a great value deal, especially if you don't use that amount (225kwh electric/958kwh gas a month)?

The actual usage from meter readings over the last 3 months (97 days) and the most expensive seasonally:

ACTUAL ~ ELECTRIC 408 units (£102.53) ~ GAS - 1444 units (£105.12) ~ TOTAL £207.65
PREPAID FOR ~ ELECTRIC 717 units (£180.18) ~ GAS 2299 units (£167.37) ~ TOTAL £347.55

DIFFERENCE ~ ELECTRIC 309 units (£77.65) 43.1% ~ GAS 855 units (£62.25) 37.2%
TOTAL OVERPAYMENT ~ £139.90 40.3%

That is a huge difference, and doesn't even include the extortionate standing charge fee of £225.60 either!

The same amount of units charged by Bunch, over the same date range on the Octopus Fixed tariff would have only been £265.70 all in, including the Standing Charge AND 5% VAT.

After explaining this to the girls, neither of them knew this was what this contract meant, and I didn't find anywhere on The Bunch website that explains this either. they use terms such as "fixed" which unless you know what you are buying, you assume means the unit rate is fixed, not that you are paying for a fixed unit amount each month? Certainly not very transparent? It also transpires that the company also don't have an opening meter reading, the girls do have evidence this was sent to them when they signed up, but I guess that wouldn't be an issue as they are paying for a set amount of units each month anyway. This feels a very shady way of doing business? The only redeeming factor may be that because the algorithm didn't have the opening reading it may have just thrown some estimates in there to come up with this monthly amount, which may get corrected now they have all the meter readings they need, although I do doubt this as the Usage Allowance has remained the same since the contract was "signed" back in October, and before this recent payment rise?

The unit prices are what they are being charged, as you said, like the old style mobile pre-pay contracts, they are being charged for 225kwh electric/958kwh gas at these prices every month and whatever they don't use after the year is null and void?

Ive suggested until the cancellation is confirmed they should have their heating on 24/7 and borrow a tumble dryer/hot tub just so they get their monies worth! 🤣

I think I need some wine now after all this math…. 🍷