A fifth of households billed wrongly by energy suppliers
Energy suppliers have once again been named by consumers as one of the biggest culprits for getting bills wrong, according to new research from uSwitch.com, the independent price comparison and switching service. For the 8th year running, the energy industry has been left trailing behind banks, council tax departments, mortgage companies and other utilities – only HMRC trumps it for getting bills wrong.
Two in ten households (19%) have been billed incorrectly by their energy company within the last two years – over one in ten (11%) have had this happen more than once. But while this is an improvement on last year when a quarter of households (25%) had been billed incorrectly, there are other worrying signs that suppliers are letting consumers down.
The number of households that have suddenly ended up owing money to their energy supplier following a discrepancy between an estimated bill and a ‘real’ bill, has increased from just over 9.6 million (37%) last year to over 10 million (39%) this year. The average amount owed is now £146, although over one in ten (14%) have unexpectedly ended up owing £200 - £400, while 7% have ended up owing over £400.
Consumers now also have to wait longer for billing issues to be resolved. Last year suppliers were taking just over a month to sort out billing concerns. This year this has leapt to almost two months, even though the number of issues has fallen. Disappointingly, less are now being resolved within a week - 39% compared to 42% last year – and even fewer are being resolved within 24 hours – 11% compared to a healthier 16% last year.
However, more consumers are looking to take control of their bills by providing their own meter readings rather than relying on estimates. Eight in ten households (80%) have provided their energy supplier with a meter reading in the last six months – a 3% increase on last year and 16% more than in 2009. Just over six in ten (64%) have done so within the last three months – perfect given that quarterly meter readings are the best way to ensure an accurate bill.
Ann Robinson, Director of Consumer Policy at uSwitch.com, says: “Consumers are typically paying over £100 a month for gas and electric, so the fact that they cannot rely on the accuracy of their bills is simply unacceptable. With energy bills accounting for the largest chunk of household expenditure after rent and mortgage payments, billing blunders can leave consumers feeling frustrated, susceptible and out of pocket.
“There is a toxic link between estimated bills, inaccuracy and debt, which has to be broken. Estimated bills should come with a health warning and with a very simple message and advice about them. If a bill is estimated then the customer should be encouraged to get in touch with a correct reading so that an updated and accurate bill can be sent.
“The move to smart meters will eventually put an end to estimated bills and ensure that consumers enjoy up-to-date bills based on their actual usage. But in the meantime it’s important that we all continue to provide our suppliers with regular meter readings – just one reading every three months could do wonders for the accuracy of our bills.”