A new survey shows that more than 30 per cent of households have paid the wrong amount for their gas and electricity in the past two years.

The survey was carried out by independent market researcher Yougov, for Uswitch, a price comparison site and found that in most instances, the billing mistakes result in customers owing money to their energy provider.

Are your company's bills based on estimates rather than actual readings?

Nearly 10.5 million people said that they unexpectedly found that they owed an average of £134 to their energy provider. The main reason for the billing mistakes or inaccuracies is the fact that many suppliers use estimated readings when billing customers.

By law, firms are only required to read people’s meters once every two years. While most suppliers will try to read meters more frequently, the meter readers often come round during the day when consumers are out at work. Consequently, many households’ bills are based on estimates, which may be wildly inaccurate. Often the first a customer knows about this is when they receive a letter from their provider informing them that their monthly direct debit will jump hugely in order to recoup the money that is owed. Some will find they have paid too much, in which case their monthly bills will drop.

Tim Wolfenden at uSwitch said: “Many consumers have no idea where they are up to with their energy bills and how much their gas and electricity is costing them. This hasn’t been helped by the fluctuations in energy prices. We need to get to a position where, like mobile and landline phones, consumers’ bills are based on their monthly usage.”

Suppliers have been piloting ‘smart meters’ which send usage data directly to the provider without someone having to take an onsite meter reading. However, while these will be rolled out, it will take years before every household has one. In the meantime consumers can take their own steps to ensure they are billed accurately.

Suppliers will accept meter readings that are given over the phone or online. Mr Wolfenden recommends reading your meter every quarter to ensure that you are paying the right amount. If you do discover that you have been underpaying and owe hundreds of pounds, do not panic – you will not have to repay it all in one go. Contact your energy provider and arrange a monthly payment plan.

If your business has been the recipient of inaccurate bills, incorrect tariffs or other supplier and billing related issues, see our Tariff & Billing Analysis page.

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Sources: http://business.timesonline.co.uk/

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