10m homes owe money to energy firms after bill errors

ENERGY companies are among the worst offenders for sending out inaccurate bills, with one in four UK homes affected, according to new research.

Only HMRC rated worse among consumers who voted energy suppliers as one of the biggest culprits for the seventh year in a row in an annual uSwitch survey of more than 2,000 people.

More than a third of households – 9.62 million – have unexpectedly found themselves owing money because of a discrepancy between an estimated and actual bill.

The average amount owed rose to £154 in 2013 – £2 more than last year, and £7 more than in 2011.

More than one in ten has unexpectedly ended up owing between £200 and £400, while 6 per cent have owed more than £500.

It is hoped that smart meters, which will be rolled out UK-wide by 2019, will bring an end to estimated bills, as meter readings will be sent to suppliers automatically Ann Robinson, director of consumer policy at uSwitch.com, said: “Consumers are paying more for their energy than ever before, so the fact that millions continue to be plagued with inaccurate bills is simply unacceptable.

“Billing blunders are not just costly, but can also take time and effort to sort out, leaving consumers both frustrated and out of pocket.

“The move to smart meters will eventually mean that households will be able to enjoy accurate, up-to-date bills based on their actual usage. The link between estimated bills, inaccuracy and debt will finally be broken.

“However, in the meantime it’s important that even more consumers join the growing ranks of those who now supply regular meter readings to their supplier.

Consumers should aim to do this once a quarter as this simple step will help to improve the accuracy of energy bills and will break the vicious circle of estimated bills that can so often lead to debt.”

The trade association for energy companies said suppliers is trying to improve their service.

Angela Knight, chief executive of Energy UK, said: “Energy companies are working hard on their relationship with their customers. They compete not just on price, but on the service they offer.

“In particular, tariffs are now simpler and easier to compare. They are much fewer in number and it is very simple to switch from one company to another.

“Regularly submitting meter readings to your supplier will help to avoid estimated bills and ensure you are paying correctly for the energy you are using.

“Switching to direct debit billing is a good way to not only get cheaper tariffs but also spread your payments evenly throughout the year.”

Clare Francis, editor-in-chief at Money Supermarket, said the best advice was to provide meter readings regularly. “These days it is so easy to submit your own meter reading to an energy company,” she added.

“You can do it online or over the phone.” – while it might not always be possible to be in when the person comes round to read the meter.”