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Debtors Hit By Incorrect Energy Bills
Energy industry watchdog, energywatch has confirmed that Britain’s households are routinely overcharged for their gas and electricity, putting yet more pressure on people doing their best to clear debt.
As energy companies rely more heavily on estimated meter readings, research by online comparison service, uSwitch has found that a third of households regularly receive an incorrect bill.
The study revealed that nearly 50 per cent of Britain’s 26 million bill-paying households had been overcharged at least once and accused the industry of using "outdated meter technology”.
It also found that only 26 per cent of bills actually matched the amount of energy used, while 25 per cent of households were left owing significant sums. An incredible 40 per cent of households found themselves owed money by their provider – money which could go some way toward help with debt management.
Of those households that were in debt, the average sum owed was £137, although 10 per cent owed from £201 to £500.
An energywatch spokeswoman was unsurprised by the findings, and said: "'Billing is the single most common issue for consumers to contact energywatch, and this accounts for 60 per cent of all cases we receive."
She stressed that the watchdog had called for smart meters, which are more accurate and provide remote meter readings, to be implemented across the country, “but the government has failed to deliver a metering programme”.
She said that this was down to concerns over cost - estimated at £4 billion - which had led ministers to refuse to commit to a firm roll-out date. energywatch believes that it will be around 10 years before the new meters are online.
Overcharging for household bills has become a particular concern due to the sharp increase in the price of utilities, groceries, council tax and housing - all of which are outstripping salary increases.
The cost of heating and lighting a home has already risen by around 15 per cent since January, while the price of food and water have both risen faster than the 5 per cent headline rate of inflation, as have mortgages and council tax payments.
The average salary has only risen by 4 per cent during this time.
Debt Management News posted on 12 June 2008
