Energy suppliers are at it again!

by Money Doctor Monday 16 April, 2007

What is about energy firms? Are they all out to stitch us up?

Yes once again, energy firms are under the Money Hospital microscope!

Gas firms have stockpiled hundreds of millions of pounds of our money, according to a survey.

Suppliers have built up a £490 million pound cash float, as consumers' direct debit payments have failed to drop in line with gas prices, says impartial price comparison service moneysupermarket.com.

However, British Gas (Britain's largest domestic energy supplier and more than likely the company that has kept most of our money...) rejected the findings as "spurious".

The moneysupermarket poll of over 2,000 British adults found that almost 9 million households are in credit to the tune of an average £56 pounds. One in eight of those in credit have overpaid their gas supplier by more than £100.

Some 61% of us currently pay our gas bill by monthly direct debit. These have risen steeply along with higher domestic gas prices throughout last year, but have yet to fall in the wake of subsequent price drops, said moneysupermarket.

The survey showed that Powergen's customers had the highest amount of cash held on float at an average £78 and the largest proportion of customers in credit by over £100 pounds (26%) compared to the national average of 12%. Customers of npower and Scottish Power had also overpaid more than the country-wide average; at £67 and £58 pounds.

British Gas and Scottish & Southern Energy had stockpiled customers' cash to an average £55, it said, while London Energy/ EDF were sitting on a typical £46 per customer.

Paul Schofield, head of utilities at moneysupermarket, said most suppliers reassess the level of customers' direct debit payments every 6 months, but urged consumers to prevent companies building up larger reservoirs of unspent money by asking for an immediate review.

"Households have been taking the strain of higher gas prices for far too long, and with an energy price war finally gathering pace, it is vital customers reap the rewards as soon as possible," said Schofield. "You only need ask yourself the simple question: who needs my money most?" (we think the answer to that is fairly simple don't you?)

However, British Gas (who has 10 million gas customers and nearly 6 million electricity accounts) said that, far from sitting on overpayments, its average direct debit customer had a £60-pound debit on their account (hmm do we believe them?)

"This is normal because we would expect customers' accounts to run into debit during winter and credit during the summer; winter consumption is around three times higher," a spokesman said. "However, over a year the direct debit level is set so it balances out. We think moneysupermarket's findings are spurious."

He added that British Gas reassessed its customers' direct debit payments every three months, meaning that its customers were already seeing the benefits of recent price cuts.

So, fellow energy consumers, do we believe the energy companies that they haven't stockpiled big fat wad of our cash, or do we think they might not be sharing the entire truth with us?

If you are unsure, here are some useful contact details for your energy suppliers just in case you need to ask them yourself!

British Gas

Powergen

Southern Energy

London Energy/EDF Energy

npower

Scottish Power

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Comments

Michelle says:

Tuesday 17 April, 2007 / 13:04

IANAL - does anyone know if you can call up Scottish Power and ask them to send you a cheque for your overpayments. During the winter months I have managed to get myself £90 in credit and it is only going to get bigger in the summer months?

Caroline says:

Tuesday 17 April, 2007 / 13:04

Npower are the worst i've ever been with! I was getting charged £70 a month for electric in my one bedroom house. Complained several times and ended up moving to British Gas, my electric is now £29.50 a month, how can they justify that?

Paula Pell says:

Tuesday 17 April, 2007 / 13:04

Michelle: I understood that if you were over so much in credit and phoned them up they would send you a cheque or pay the money into your bank account. I can't remember how much it is but I know that I've done this before.
Lynda: To be honest if I were you and struggling I'd cancel my direct debit. OK probably this may upset them but they can take what you owe for a month or two out of your money that they already have then set up a new direct debit. It may also get their attention enough for them to sort out reimbursing your money. It's almost theft isn't it. Disgusting.

Dee says:

Tuesday 17 April, 2007 / 13:04

Yes I've had a couple of refunds from Scottish Power - just ring and ask and they'll send you a cheque. (took a few weeks though!)

Lynda Wright says:

Tuesday 17 April, 2007 / 13:04

British Gas have over £200 which belongs to me. My Gas is in credit to the tune of £160 and the electricity is at least another £60. I have asked them to reduce my direct debit but have been told that I have to wait until the 'window opens' in May. They will review my direct debit payments at that time!!! I am struggling to manage.

IANAL says:

Tuesday 17 April, 2007 / 13:04

IANAL, but surely you can force it out of them - payment received for services not rendered?

Dunno what the legal standpoint on that is. Jump up and down and shout a bit. You never know, might help!

gary says:

Tuesday 17 April, 2007 / 14:04

I recently had built up huge credits on a property I manage where we pay the bills. I finally got the electric company to re-credit me but the gas is still around £360 in credit which they have said they will use to balance out further direct debits that may be higher! It is nothing short of robbery and there needs to be more control exercised over this kind of theft by these huge monopolies. Why can't we revert to the old days where we simply paid for what we use? (in arrears...!!)

Glain says:

Tuesday 17 April, 2007 / 14:04

I was totally fed up with Powergen. They never read my meters or updated my accounts after sending readings myself and I had to contact energywatch (Tel No. on back of bill) to get my refund. They helped & a cheque arrived a couple of weeks later.I had a prepayment meter that wasn't updated when tarrifs increased,someone called to put a new meter in and he informed me I owed £50. I was so embarrased & spent 20 mins trying to ring them.
I changed to SWALEC 4 weeks ago & Powergen still haven't sent my credit.

lucy says:

Tuesday 17 April, 2007 / 18:04

Yesterday I had a letter from British Gas who I get both gas and electricity from, saying my direct debit would increase from £40 per month to £132 immediately. I rang them and said that I wanted to pay a one-off payment of £100 and keep the direct debit at £40, so the operator cancelled my dd, then took the £100 from my debit card, then went to reset the dd - he said the system stated I had to pay £78 per month, I refused and told him I would change suppliers as my last bill received last week was £154 usage over the last 3 months (winter period), so even £78 would be well-overpaying, I told him I was prepared to increase to £45 but no more. He said they can't override the system (they used to be able to), so I would now get a letter with my balance owing and would have to pay it. I came off the phone and checked my account online, to find that now I have paid the £100 I owe £22 - so where have they got the £132 or the £78 per month from! What a load of robbers! I told him I was not prepared for them to have interest on my money, I want it myself! Incidentally my gas was in credit by £68 in January and they refunded that, but DID NOT reduce my direct debit which I am obviously overpaying on, I wonder why!!!!!! I am going to look into changing suppliers for both, as I don't agree with their new policy of reviewing direct debits every 3 months - you may as well just pay the quarterly bills as you did before if it's going to change so often, the idea was (I thought) to spread the cost of annual usage evenly over the 12 months!

martin brain says:

Tuesday 17 April, 2007 / 19:04

British gas is a bad word in our house , 6 months a go i decided to change my metre from pre payment to bill , this was done but no information was put on to british gases computers , this ment i got no bill for 6 months , i did try phoning them on many ocasions and it took energywatch to get involved before i got any thing done , since then i have recieved 7 bills , all at diferent amounts , ranging from £76 , to £679 , plus a letter telling me they would take leagle action if i didnt pay at once , i think i no what i have to pay now and they offerd me £50 as a good will gesture , but only gave me £30 , i have a funny feeling the staff need to go on a maths course .

anthony says:

Tuesday 17 April, 2007 / 22:04

Hi i have been a pre-pay elec customer with powergen for 4 half years i changed to british gas in dec 06 then powergen sent me a bill for £530 and legal action i rang and said "i have prepayment meter why do i need to pay" they said "no one has been to update your meter when price changes have come in each year" but they want it back but its there fault not mine i dont see why i should pay what can i do cheers from anthony.

derek says:

Wednesday 18 April, 2007 / 04:04

scottish power kept increasing my dd so in jan i cancelled and started quarterly payment at the time i was £44 in credit in the last two week i have recieved 5 bills all of them way over the mark so i got in touch with energy watch no low and behold the bill has been sorted they have been billing me incorrectly for the last year eventhough i have been giving them accurate readings my latest bill has been reduced from £269 to £98 why dont they get their act together and read the meters regularly

David Rook says:

Wednesday 18 April, 2007 / 09:04

Hi. I am david,
I had a prepaid gas metre in my flat, each time i charge my card and slot in the gas metre is either &6.00 or &10.00 will be cut off my credit. It continue like that and I keep on complaining to them until December when the british gas finally sent a credit note of over two hundred pounds to me which I still have the letter with me till today.
And it does not stop there, they carry on doing thesame untill January 2005 and I decided to change to London Enerdy with the expectation that when my contract is finish with them what ever they are owing me will be refund back. my metre by then was showing a very huge aount of credit and I call the when my boiler was having problem if they can replace my boiler with the money they were owing me they. Which they refuse because I was on the prossess of changing to another service provider. The only option they gave was that if i can council my changing over to another service provider then my credit will be refund back to me, and at that time they themself they are still investigating how come they are owing me that big amount of money.Instead of them refunding my credit they ture back to me with threatining letter that I was owing them &2,499. Writing to threat my partner as by combining our name on their immergency claim letter. The metre is stil there up till now but I just know where to start handling them.Up till now they did not come back to me what will happen to the money their owing me or what has happen to it.
It's unbelievable story.
Recently, I get encounter with british gas again and they start thesame thing they were doing to in 2004 to 2005, and I call them and they were saing to me either my gas is on or not including when I am not away, They have to be taking &2.50 off my metre every day because we are in winter perio. I left them agin.
I will be happy if there is some one there who can stop this doobious company to stop terrorising incent people's life.
Thanks for this wonderful opportunity. Cheers

Karen Thompson says:

Wednesday 18 April, 2007 / 14:04

My gas and water supplier have both sent letters saying they are increasing my direct debits by as much as double the amount I am currently paying, because they say their computer system calculates this amount according to my current usage. My usage has not increased. I have always been in credit and even the gas price increases of approx 19% could not account for such an increase. I rang both of them and agreed a price I was prepared to pay. I have had to do this twice with the gas company and recently with my water supplier. Having agreed an amount with the water supplier, the following month they put my direct debit up even further. I have now cancelled both the direct debits and will pay for what I have used. The direct debit system was supposedly set up to help you budget your money, however the utility companies have abused this by turning it into free loans for themselves. They must have the worst computer systems out!

Andrew Brooks says:

Thursday 19 April, 2007 / 11:04

Just to let any EDF electricity customers know that, as they're supposed to be pretty uncompetitive at the moment, I gave them a call to see if they could offer a better deal as I was thinking of changing supplier and...they said yes they could!!! They've now put me on what they call their 'Price saver 2008' prices which they've launcehd in order to counter-act the other suplliers reducing their prices. It's saved me quite a lot and, having looked at comparison websites, it's not worth me switching. So, just give them a call if you're currently an EDF electricity customer.

MB says:

Thursday 19 April, 2007 / 16:04

I phoned British Gas about 4 or 5 times asking what would happen to the £71.00 I was owed as there was a credit balance on my account. Each time they told me it was being re-assessed.
Last week I phoned again and it was still being re-assessed.
This week to my surprise they wrote to me and said my future payments would be reduced and they reimbursed me with the £71.00.
Sometimes it does pay to get on their nerves.

Donna says:

Thursday 19 April, 2007 / 21:04

The energy suppliers are dead crafty, they don't even have to give you interest or extra energy units for keeping YOUR money in their fat bank accounts. Just cancel the Direct debit if they cannot adjust it to suit your useage. OR end up losing £99 overpayment like I did when ZEST4 "went into administration" While that was still going on I was having to pay the new supplier British Gas while the administrators Rubin & Co, ate up what little was left for the creditors.

Wendy Reece says:

Thursday 26 April, 2007 / 09:04

After months of letters and phone calls to British Gas about credits on my gas bill, I finally received a cheque for £125.00 instead od the £175.00 I requested. That was November last year. Iwrote agian asking for the balance and am still waitng for a reply. In the mean time I have cancelled my direct debits and gone back to quarterly bills. If we all did this 'they' would have to come up with something more suitable to everyone. As I also have issues with banks, my money goes into a jar and then Premium Bonds until ny bills are due.

Matthew says:

Tuesday 15 May, 2007 / 14:05

Hi - I'm facing similar problems to these (EDF, credit of £200, 3 attempts to get refund, no joy yet). My question is why should we accept a cheque refund (taking several weeks) when they can take our money in a fraction of a second via direct debit! I had a similar issue with Vodafone last year and I eventually persuaded to get an electronic refund directly back into the account the money came from in the first place. Needless to say it took amny phone calls and lots of arguing.

Dee says:

Saturday 09 February, 2008 / 16:02

ScottishPower have over £150 worth of credit from my Direct Debits. This could pay off part of my credit card bill, but instead I'm losing more money in interest there. I'm going to start phoning on Monday. Does anyone know the best way to get results?

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