Estimate at Time of Price Hike E-on

nomorebrass

I wondered if anyone had any views on the way the estimate is calculated at the time of the price hike and whether you have any come back on the amount.

An example of this is
14 January Actual reading took place 60290
8 February an estimate 60713

So thats 423 kWh used for the lower rate. £42.99

8th February price rate hike starts 60713
31 March actual reading 61593

So thats 880 kWh at the higher rate. £100.20


What if I was on holiday from the 8th Feb to the 31st March, what gives them the ability to decide how much electricity I used at the lower rate and the higher rate in this manner. Surely they shouldn't be able to charge at a higher rate until they do a proper reading?

Can I do anything about it or do I just have to accept it?

mute_posting

It is common practice to apportion the usage up between the 2 ACTUAL readings.

e.g. say over 90 days you used 300 units (between actual readings) and on day 31, there was a price change. They would bill 100 units (1/3 of period of time) at the old rate, and 200 at the new.

Have you spoken to them?

It may be worth calling and saying that you "read your meter" before you "went on holiday" on 7th Feb and it was xxxxxx units - can you please re-calculate the bill?

You have got two chances ;-)

HTH

MP

nomorebrass

I think I might have blown that by having a massive rant down the phone asking them how they came to that conclusion....The Gas was worse!

Cardew

It is standard practice to estimate on the date of a price rise.

If they couldn't raise prices untill they read the meter(as you suggest) nobody would ever let them read the meter - or delay it as long as possible!

If you dispute the estimated reading - for the reasons you gave - then they would probably concede to your reading/estimate; for the sake of the few pounds it wouldn't be worth their while to contest the issue.

SwanJon

mute_posting wrote: »

It is common practice to apportion the usage up between the 2 ACTUAL readings.
e.g. say over 90 days you used 300 units (between actual readings) and on day 31, there was a price change. They would bill 100 units (1/3 of period of time) at the old rate, and 200 at the new.

Just in case this doesn't balance in your case (not done the maths), remember that they take into account the season, and expect you to use more in winter than in summer, and so their estimate will reflect this.

mute_posting

Looks like no seasonal weighting was applied to estimates - both come out just shy of 17 units per day.

I'd assume they would do it this way for transparency - i.e. if the seasonal weighting was applied there would be to complex a "fiddle factor" to try and explain to customers.

MP

Cardew

SwanJon wrote: »

Just in case this doesn't balance in your case (not done the maths), remember that they take into account the season, and expect you to use more in winter than in summer, and so their estimate will reflect this.

This is electricity(not gas) and not used for heating(I assume from the low consumption) so seasonal factors are not really a major issue in period jan-Mar.

Certainly with gas for heating, there would be a marked weighting.

SwanJon

Not only not done the maths, not read the post properly!

Cardew

mute_posting wrote: »

Looks like no seasonal weighting was applied to estimates - both come out just shy of 17 units per day.

I'd assume they would do it this way for transparency - i.e. if the seasonal weighting was applied there would be to complex a "fiddle factor" to try and explain to customers.

MP

Fiddle factor!!!!

It is a complex algorithim; that takes into account weather from the Met Office etc.

In fact the guy who wrote it used to post on this board a couple of years ago.

There has been considerable discussion on MSE if in fact it did 'fiddle' accounts, apportioning too many units to the post price rise period. A claim that IMO has little merit.

Actually 'fiddle factor sums it up nicely!

mute_posting

LOL

I didn't mean that the suppliers were / are literally trying to fiddle the accounts (although, clearly some do with gas), just a term we use at work to describe any manipulation required to balance the system.

MP