Energy Billing Blunders Leave Consumers £280 Million Out of Pocket

14th November 2014

- More than three million energy consumers have been overcharged by their supplier in the last year due to billing errors, costing a total of £280 million or £78 each.

-Of the big six suppliers, ScottishPower is the worst offender - more than one in six (16%) of its customers say they were sent an incorrect bill in the past year.
- Bills from E.ON and EDF Energy contain the least number of errors, although 8% of their customers said they had been overcharged.

- Almost half (45%) who received an incorrect bill say it was based on a different meter reading to the one supplied

- Two in five (43%) waited for more than a fortnight before the issue was resolved by the supplier, with one in ten still waiting.

Over three million energy consumers have been overcharged by their supplier through billing errors in the last year, costing a total of £280 million or £78 each, according to new research from uSwitch.com, the independent price comparison and switching service.

ScottishPower is voted the worst of the big six providers for energy bill mistakes, with more than one six (16%) customers receiving an incorrect bill in the last year[2]. E.ON and EDF Energy make the least number of errors, yet up to 8% of their customers said they had been affected.

The majority – almost half (45%)[3] – of consumers whose supplier made a mistake said that a bill had used a different meter reading to the one they had supplied. Other blunders include customers being billed for the wrong tariff or product (28%), with almost a quarter (24%) saying the Direct Debit was set at the incorrect amount by their supplier.

Not only does bad billing affect consumers' pockets, but also their time. One in five (20%) waited between two and four weeks before the issue was resolved, with one in ten (9%) waiting more than two months[4]. A staggering one in ten (10%) of consumers who were overcharged as a result of a mistake still haven't received the money back from their supplier.

Tom Lyon, energy expert at uSwitch.com, says: "It's unacceptable that customers are picking up the cost of suppliers' mistakes. Households are already facing sky-high energy bills and simply can't afford simple blunders.

“Correct bills are essential for people to stay in control of their energy and are the least customers should expect. Recent upgrades by some of the big six to billing systems have resulted in some teething problems, but the industry must do more to tackle these issues and reduce errors.

“We urge customers to always check their bills carefully, and speak immediately to their supplier if they think they have been short-changed. Consumers should also always provide up-to-date meter readings to avoid estimated bills."