Overestimated Utility Bills

Stompa

Generally when I get an overestimated utility bill I just pay it, since the two-tier tariff system that most utility companies seem to operate means that I get that overestimated energy at the cheaper rate (with the added bonus that if the price rises you get to pay for it at the old rate).

It occurs to me though that by giving the utility company a meter reading that was even higher than their overestimate you could do even better.

Has anybody ever tried this? Is it legal? I know it's probably immoral!

Stompa

lipidicman

But do you get the overread at the same rate as the overestimate.

It could be used to beat a price rise though

Stompa

But do you get the overread at the same rate as the overestimate.

On the assumption that they're not aware that it's an overread then I'd have thought so.

British Gas somehow managed to seriously overestimate my bill before last, which meant that my last quarterly bill (where they'd actually read the meter) was just 63p. Overall this reduced my bill for the 6 month period by around 17% compared to what I would have paid if they'd read the meter on both occasions.

Stompa

lipidicman

They know the difference between an overestimate (made by them) and an overread (made by you) An overread is just like 'gas used' and should be charged accordingly

Stompa

They know the difference between an overestimate (made by them) and an overread (made by you) An overread is just like 'gas used' and should be charged accordingly

That's the whole point. You want it to be treated like 'gas used' so that you can pay for it at the lower tariff,

Stompa

lipidicman

Ok, you haven't made the terms of your tariff clear so I cant tell if we are in agreement here!

Stompa

Ok, you haven't made the terms of your tariff clear so I cant tell if we are in agreement here!

Take British Gas as an example. They charge 3.324p per kWh (inc VAT) for the first 1143kWh, and just 1.878p per kWh after that.

Imagine I use 3000kWh in qtr 1, and 3000kWh in qtr 2. The bills should then look like:

Qtr1
1143kWh @ 3.324p = £38.00
1857kWh @ 1.878p = £34.88
Total = £72.88

Qtr2
1143kWh @ 3.324p = £38.00
1857kWh @ 1.878p = £34.88
Total = £72.88

Combined Total:= £72.88 + £72.88 = £145.76

Now imagine that the first quarter reading were overestimated at say 5500kWh instead of 3000kWh. The bills (for the same amount of gas) would then look like:

Qtr1
1143kWh @ 3.324p = £38.00
4357kWh @ 1.878p = £81.83
Total = £119.83

Qtr2
500kWh @ 3.324p = £16.62
0kWh @ 1.878p = £0.00
Total = £16.62

Combined Total:= £119.83 + £16.62 = £136.45

I guess the trick would be trying to arrange the overestimate in such a way that the the entire 6 months consumption was all on the first quarter bill - which might look a bit suspicious!

When British Gas themselves got my estimate wrong I ended up with just 4kWh on the second quarter bill (a whopping 14p worth), thereby saving around £20.

Stompa

lipidicman

Ah, Ok. Its just cheaper after the first x kWh. OK, so either an overestimate or an overread would save you money.

The main problem I see could be that if you overread, then they have to do an estimate you could end up waaaay over and into a cycle of needing to overread. If the man turns up and the reading is well down you will then be in a lot of credit. Is this worth it?

Stompa

The main problem I see could be that if you overread, then they have to do an estimate you could end up waaaay over and into a cycle of needing to overread.

True enough, but I guess you could get things back on track by giving them a correct reading.

If the man turns up and the reading is well down you will then be in a lot of credit. Is this worth it?

As you suggest I'm not sure it's worth the hassle. Mind you I guess that depends on how wide the lower tariff band happens to be. The wider it is then the more you could potentially save.

If they happen to overestimate mine again I'll certainly make the calculation before deciding whether to pay up or supply a corrected reading.

Stompa

lipidicman

Stompa wrote:

If they happen to overestimate mine again I'll certainly make the calculation before deciding whether to pay up or supply a corrected reading.

Yeah, sure. What I was warning against was a dramatic overread, maybe followed in the future by a lower genuine read! Might look a little suss!