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Energy bills 'often inaccurate' | Energy bills 'often inaccurate' |
(3 days later) | |
Energy customers could be paying higher prices for gas and electricity used months earlier, the new watchdog Consumer Focus has warned. | Energy customers could be paying higher prices for gas and electricity used months earlier, the new watchdog Consumer Focus has warned. |
The six biggest energy suppliers have raised gas and electricity prices by up to 34% since the summer. | The six biggest energy suppliers have raised gas and electricity prices by up to 34% since the summer. |
But 16 million people could be charged a higher rate for energy used before the increase because of inaccurate estimated bills, says the group. | But 16 million people could be charged a higher rate for energy used before the increase because of inaccurate estimated bills, says the group. |
The Energy Retail Association denies the industry is profiteering. | The Energy Retail Association denies the industry is profiteering. |
Consumer Focus, which began work earlier this month, says about a third of customers will get estimated bills this quarter. | Consumer Focus, which began work earlier this month, says about a third of customers will get estimated bills this quarter. |
These bills will take into account energy used before the summer price rises and after, but they may not take into account the price rise. | These bills will take into account energy used before the summer price rises and after, but they may not take into account the price rise. |
PRICE INCREASES SINCE SUMMER 5 July - EDF EnergyGas up 22%, electricity up 17%30 July - British GasGas up 35%, electricity up 9%21 Aug - EonGas up 26%, electricity up 16%21 Aug - Scottish & SouthernGas up 29.2%, electricity up 19.2%29 Aug - Scottish PowerGas up 34%, electricity up 9%29 Aug - NpowerGas up 26%, electricity up 14% Ofgem urges more transparency in energy bills | PRICE INCREASES SINCE SUMMER 5 July - EDF EnergyGas up 22%, electricity up 17%30 July - British GasGas up 35%, electricity up 9%21 Aug - EonGas up 26%, electricity up 16%21 Aug - Scottish & SouthernGas up 29.2%, electricity up 19.2%29 Aug - Scottish PowerGas up 34%, electricity up 9%29 Aug - NpowerGas up 26%, electricity up 14% Ofgem urges more transparency in energy bills |
This could result in a huge and possibly inaccurate catch-up bill down the line once the customer's meter is read, because the supplier will not know which units of energy were used before the price rise. | This could result in a huge and possibly inaccurate catch-up bill down the line once the customer's meter is read, because the supplier will not know which units of energy were used before the price rise. |
"Consumers could be paying higher prices for gas or electricity used in the past, while for companies it results in a very nice windfall," Robert Hammond, of Consumer Focus told the BBC. | "Consumers could be paying higher prices for gas or electricity used in the past, while for companies it results in a very nice windfall," Robert Hammond, of Consumer Focus told the BBC. |
Estimated bills | Estimated bills |
A colleague at the group explained that the situation would only really change when so-called "smart" meters were rolled out across the country. | A colleague at the group explained that the situation would only really change when so-called "smart" meters were rolled out across the country. |
These devices offer a two-way communication between the energy supplier and household, offering real-time information on gas and electricity use and giving more accurate bills. | These devices offer a two-way communication between the energy supplier and household, offering real-time information on gas and electricity use and giving more accurate bills. |
They are currently being trialled by the energy regulator Ofgem. | They are currently being trialled by the energy regulator Ofgem. |
In the meantime, Consumer Focus urges customers to check their bills for the letter "E" which means that the charge is estimated. | In the meantime, Consumer Focus urges customers to check their bills for the letter "E" which means that the charge is estimated. |
And if that is the case to take a reading of their meter and contact their supplier. | And if that is the case to take a reading of their meter and contact their supplier. |
The Energy Retail Association said the industry was not profiteering from the practice but did warn customers not to rely on estimated bills. | The Energy Retail Association said the industry was not profiteering from the practice but did warn customers not to rely on estimated bills. |
"It's important to get a correct bill rather than an estimated bill," said Gary Felgate at the Energy Retail Association. | "It's important to get a correct bill rather than an estimated bill," said Gary Felgate at the Energy Retail Association. |
The best way of doing this is to take a reading of the meter on the first day of a price rise taking effect, Consumer Focus added. | The best way of doing this is to take a reading of the meter on the first day of a price rise taking effect, Consumer Focus added. |