Energy billing problems

Energy supplier British Gas has been criticised by Energywatch after 45,000 customers were told that their direct debits were mistakenly cancelled in February.

Households affected will now pay for the extra four months worth of energy over the coming year.

Karen Darby, founder of the price comparison service, SimplySwitch.com, commented: “British Gas implemented a new billing system last year, updating technology that dated back to 1985. While this will eventually lead to more accurate billing, some customers had their direct debit payments mistakenly cancelled in February. Households affected will have to make up the shortfall, estimated to be an average of £300, over the coming 12 months.

“The vast majority of suppliers are pushing customers to pay by direct debit, with many offering additional discounts and offers for doing so. While any benefits are welcome, suppliers need to ensure that bills are accurate and up-to-date. Consumers also need to be vigilant and keep an eye on bills and bank statements for any unexpected additions or missed payments.

“Many suppliers have competitive online tariffs. We always advise customers with Internet access to switch to an online tariff as they are usually the suppliers’ cheapest deals and, because customers take their own readings, the bills are more accurate. While an online tariff wouldn’t protect against missed direct debit payments, it does mean that customers can avoid the problem of over-estimated bills.

“A third of all customer complaints concern billing issues. From a consumer’s point of view, all a supplier has to do is bill them and many have been left wondering why they can’t get that right.”