Back billing - but in credit so Energy Ombudsman found in favour of supplier

chezzam_2

https://forums.moneysavingexpert.com/discussion/comment/81879858#Comment_81879858

We didn't have a missing bill. It was just incorrect, which we have found out 2.5 years on.

Back in 2023, we didn't spot that they used a random meter reading for the opening bill on the next bill, given they had used the correct meter reading in the end for the closing period for the previous bill and the correct meter reading for the next bill period for the closing period.

The bill in question, was day, night units, gas and over a period of changes to bill charges / tariffs etc. So not just three entries.

Going forward, we will ensure that we don't build up a credit, don't trust a supplier and will have a spreadsheet in place to make sure that the bill concurs with our energy usage. We will ignore advice to build up a credit with the supplier to cover us over the year and winter months and will save this money separately in our own bank account.

chezzam_2

https://forums.moneysavingexpert.com/discussion/comment/81877994#Comment_81877994

I concur with you.

MWT

https://forums.moneysavingexpert.com/discussion/comment/81879882#Comment_81879882

Going forward, we will ensure that we don't build up a credit, don't trust a supplier and will have a spreadsheet in place to make sure that the bill concurs with our energy usage. We will ignore advice to build up a credit with the supplier to cover us over the year and winter months and will save this money separately in our own bank account.

I would suggest that you change to paying by monthly variable direct debit as that will take away the pressure to build up a balance and ensure you use whatever balance you may already have there.

I'd do that sooner rather than later as increasingly suppliers are removing that option as they are under a lot of pressure from Ofgem to maintain relatively high liquidity per customer and that is only practical with the vast majority of customers being on a normal DD payment method.

EssexHebridean

Just ensure that your budgeting is absolutely nailed-on if using MVDD - and remember to readjust the average amount you set aside monthly for the bills if prices increase and if your tariff changes too - I know it sounds obvious, but you'd be far from the first person to get caught out.

Ildhund

@MWT wrote:

… change to paying by monthly variable direct debit as that will take away the pressure to build up a balance …

This is obviously a popular choice for those who trust themselves not to run out of cash around Christmas. At the moment, it provides an interest-free loan to the customer for a couple of weeks or more. I wonder just how long this will persist, when others paying in arrears have to swallow a premium (currently ~8%, £11.40 a month for the typical customer) to avoid the monthly constant Direct Debit. Can anyone estimate how much harm this is doing to Octopus' questionable liquidity level, as an example?

MWT

https://forums.moneysavingexpert.com/discussion/comment/81879933#Comment_81879933

I don't disagree, and it is definitely in the category of 'use it while it is still an option', but while it is still an option it is the best choice for someone committed to not building up a balance.

There are other ways, but they are not generally an option for everyone, and may also vanish under liquidity pressure from Ofgem. My normal DD account is never more than my monthly payment + £10 in credit, but I've had an account for many years now.

Scot_39

https://forums.moneysavingexpert.com/discussion/comment/81879895#Comment_81879895

Of course if the op was on mvdd when £400 corrected - wouldn't they then have taken it all that month to zero balance ?

Rather than averaging out on annualised dd correction.

Swipe

Pretty sure the OP would have gone through the £400 bill with a fine tooth comb if they were on VMDD and had it put on hold before any money was taken if there were any discrepancies. I know I do with my bills.

MattMattMattUK

https://forums.moneysavingexpert.com/discussion/comment/81879933#Comment_81879933

The main issue with "on receipt of bill" vs MVDD is that the default rate on the former is higher, so there are increased debt collection costs and unrecoverable costs vs MVDD.

Octopus's liquidity is not really questionable in the overall sense, it just does not quite meet the Ofgem rules, but those rules do not really make sense in the first place. Liquidity rules sort of make sense, but when they completely ignore hedged energy purchases, tariffs in place, etc. then they are a very blunt and not particularly useful tool. Forcing suppliers to sit on cash just increases bills rather than offering any overall benefit.

Scot_39

https://forums.moneysavingexpert.com/discussion/comment/81880157#Comment_81880157

https://forums.moneysavingexpert.com/discussion/comment/81880157#Comment_81880157

I didn't think the op was denying / claiming not liable for the £400 extra - only challenging the delayed timing.