Households facing a shock energy bill have been urged to check they are not being overcharged by their supplier. A sudden jump in gas or electricity costs does not necessarily mean you have used more energy.
It could be the result of a wrong estimated reading, a faulty meter, a supplier error – or even being billed for the wrong meter. Citizens Advice has identified a series of checks households can make if their energy bill looks suspiciously high.
Check for Estimated Readings
One of the first things to check is whether the bill is based on an estimated meter reading. Estimates can be inaccurate, particularly if you have not supplied regular readings. For example, a supplier could base a summer bill on previous winter usage if it does not have an up-to-date reading.
If the bill states it is estimated, you should take an actual meter reading and send it to your supplier. The bill should then be recalculated using the correct figure.
Smart Meter Warning
Even households with smart meters can receive estimated bills. This can happen when a smart meter is not operating in 'smart mode' and is therefore failing to automatically send readings to the supplier. It can occur, for example, after switching energy companies. If this happens, you may need to take readings yourself and send them to your supplier.
Check Whether Your Supplier Has Hiked Prices
Another obvious reason for a bigger bill is that your supplier has increased its prices. Check recent bills and compare the unit rate and standing charge with previous bills. Customers on standard variable tariffs can see the price they pay change every three months. If you do not understand why your charges have risen, contact your supplier and ask it to explain the increase.
You Could Be Paying for the Wrong Meter
It sounds unlikely – but households are advised to check that the meter number on their bill actually matches the meter at their property. A mistake here could mean you are being charged for somebody else's energy use.
Meter Faults and 'Catch-Up' Bills
Meter faults are another possibility. They are rare, but a faulty meter should be considered if your bill suddenly shoots up despite there being no obvious change in how much gas or electricity you use.
There is another trap for households which have been receiving estimated bills. If you finally provide an accurate meter reading after a long period, the resulting bill could be considerably higher than previous ones. That does not necessarily mean the supplier has made a mistake. It could simply mean previous estimates were too low and you have been underpaying for the energy you actually used.
There is an important protection for households hit by billing errors, as suppliers usually cannot charge customers for energy used more than 12 months ago. There are also rules around increasing direct debit payments to cover energy used more than a year previously.
New Meter? Check the Measurements
People who have recently had a new gas meter installed should also be alert to measurement errors. Older gas meters can use imperial measurements, such as cubic feet, while newer meters use metric measurements, such as cubic metres. If a supplier's records contain the wrong measurement information, this can potentially result in customers being overcharged.
