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Gas meter blunder leaves thousands of consumers out of pocket Gas meter blunder leaves thousands of consumers out of pocket
(8 days later)
Thousands of people have been overcharged, possibly by thousands of pounds, following a billing blunder that saw energy companies confuse old-style imperial gas meters with newer metric ones.Thousands of people have been overcharged, possibly by thousands of pounds, following a billing blunder that saw energy companies confuse old-style imperial gas meters with newer metric ones.
E.ON, one of the companies involved, admitted that some customers have been paying nearly three times too much for their gas, and that in some cases the overcharging has been going on for 15 years.E.ON, one of the companies involved, admitted that some customers have been paying nearly three times too much for their gas, and that in some cases the overcharging has been going on for 15 years.
It is thought that many, if not all, of the big-name suppliers have fallen foul of the problem, and energy regulator Ofgem believes the number of people affected is likely to run into the thousands. One commentator suggested the total bill for refunds and compensation could reach several million pounds.It is thought that many, if not all, of the big-name suppliers have fallen foul of the problem, and energy regulator Ofgem believes the number of people affected is likely to run into the thousands. One commentator suggested the total bill for refunds and compensation could reach several million pounds.
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However, at the same time some customers have been significantly undercharged – though it is highly unlikely that any of the companies will attempt to claw back this money.However, at the same time some customers have been significantly undercharged – though it is highly unlikely that any of the companies will attempt to claw back this money.
Energy regulator Ofgem said it had been notified by E.ON that a “very small number” of its customers had been incorrectly charged for their gas, and that other suppliers may be affected by the same issue. Ofgem said all the other energy firms had promised to identify any customers who had been overcharged or undercharged by Friday 19 August.Energy regulator Ofgem said it had been notified by E.ON that a “very small number” of its customers had been incorrectly charged for their gas, and that other suppliers may be affected by the same issue. Ofgem said all the other energy firms had promised to identify any customers who had been overcharged or undercharged by Friday 19 August.
The companies have been confusing older imperial gas meters, which are still present in many homes and measure usage in cubic feet, with newer metric ones, which measure gas in cubic metres. It is thought the confusion arises when an imperial meter is replaced by a metric one. If a company’s records are not properly updated, for example, it may continue to assume that the household has an old-style meter.The companies have been confusing older imperial gas meters, which are still present in many homes and measure usage in cubic feet, with newer metric ones, which measure gas in cubic metres. It is thought the confusion arises when an imperial meter is replaced by a metric one. If a company’s records are not properly updated, for example, it may continue to assume that the household has an old-style meter.
E.ON apologised to its customers, saying that 600 residential and small business businesses had been affected by what it said was “a potentially industry-wide meter set-up issue”. Around 350 had been overcharged, with the remainder being undercharged.E.ON apologised to its customers, saying that 600 residential and small business businesses had been affected by what it said was “a potentially industry-wide meter set-up issue”. Around 350 had been overcharged, with the remainder being undercharged.
It said those customers with a newer metric meter who had been incorrectly recorded as having an imperial meter had been overcharged by 183% for the gas they had used. Those with an imperial meter where the company had incorrectly assumed they had a metric one have been undercharged by 65%.It said those customers with a newer metric meter who had been incorrectly recorded as having an imperial meter had been overcharged by 183% for the gas they had used. Those with an imperial meter where the company had incorrectly assumed they had a metric one have been undercharged by 65%.
This is yet another head-in-hands moment for an industry beset by billing mistakesThis is yet another head-in-hands moment for an industry beset by billing mistakes
“In some cases this issue goes back a significant amount of time, around 15 years; however the majority were affected for much less than this,” a company spokeswoman said. “Each case will be dealt with on an individual basis.”“In some cases this issue goes back a significant amount of time, around 15 years; however the majority were affected for much less than this,” a company spokeswoman said. “Each case will be dealt with on an individual basis.”
Mark Todd, co-founder of the website energyhelpline, called the meter-reading mix-up outrageous. He added: “Thousands of UK consumers have potentially lost thousands of pounds due to needless overspending … This is yet another head-in-hands moment for an industry beset by billing mistakes. We can only wait to see how much customers have been overcharged over the whole industry, a figure that is likely to be in the millions.”Mark Todd, co-founder of the website energyhelpline, called the meter-reading mix-up outrageous. He added: “Thousands of UK consumers have potentially lost thousands of pounds due to needless overspending … This is yet another head-in-hands moment for an industry beset by billing mistakes. We can only wait to see how much customers have been overcharged over the whole industry, a figure that is likely to be in the millions.”
In June this year the Competition and Markets Authority issued a report on energy market reforms in which it put the scale of overcharging by the big six suppliers at an estimated £1.4bn annually.In June this year the Competition and Markets Authority issued a report on energy market reforms in which it put the scale of overcharging by the big six suppliers at an estimated £1.4bn annually.
Ofgem said E.ON had done the right thing in coming forward, and added: “We’re ensuring that suppliers take immediate and decisive action to identify affected customers.”Ofgem said E.ON had done the right thing in coming forward, and added: “We’re ensuring that suppliers take immediate and decisive action to identify affected customers.”
It said the cause of the issue had yet to be fully determined, “but we understand that human error and poor data flows between industry participants upon meter installation, exchange and change of supplier are factors”.It said the cause of the issue had yet to be fully determined, “but we understand that human error and poor data flows between industry participants upon meter installation, exchange and change of supplier are factors”.
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Ofgem said it was working with suppliers to ensure consumers did not lose out, and would be setting out a timetable for putting things right. “Customers do not need to do anything. The very few affected will be contacted by their supplier.”Ofgem said it was working with suppliers to ensure consumers did not lose out, and would be setting out a timetable for putting things right. “Customers do not need to do anything. The very few affected will be contacted by their supplier.”
It looks likely that anyone who has been overcharged will receive a refund with interest, plus a compensation payment to reflect “the detriment caused”. In the case of those who have been undercharged, the companies are unlikely to seek repayment, and where necessary “an appropriate cushion will be provided” to ease the transition to accurate bills.It looks likely that anyone who has been overcharged will receive a refund with interest, plus a compensation payment to reflect “the detriment caused”. In the case of those who have been undercharged, the companies are unlikely to seek repayment, and where necessary “an appropriate cushion will be provided” to ease the transition to accurate bills.