Energy company gets bill guesses wrong

Energy company gets bill guesses wrong | Business | News.com.au

By Karen Collier

Herald Sun

December 25, 2008 07:41am


gasburner316
Burnt ... customers are angry after receiving estimated gas and energy bills that are too high.

* One couple was overcharged by $1500
* Customers wait months for refunds
* Plan ahead: savings simulator

THOUSANDS are being charged too much or too little for gas and electricity because energy companies are guessing their consumption.

The practice of estimating bills is on the rise, exposing consumers to potential overcharging and undercharging, a report by Victoria's energy watchdog reveals.

Some customers have complained of being ripped off by hundreds of dollars.

Energy companies in Victoria last year replaced meter reads with estimated use for almost 1 million household and small business bills, without consent.

Industry experts say the billing method is increasing because extra security such as fences and guard dogs block access to meters.

The Victorian Energy and Water Ombudsman, Fiona McLeod, has fielded almost 800 estimated bill complaints since July. In one case, a couple were overcharged almost $1500.

Another couple did not have their meter read for two years, despite providing access to it.
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Well, if they can't access the meters, then what are they supposed to do?


The Essential Services Commission, which regulates utility companies, says estimating bills may lead to "substantial" miscalculations.

"Customers should not be faced with unexpectedly high bills when the estimated meter reads are reconciled with an actual meter read, nor should customers be placed into financial hardship after receiving an estimated bill that may be significantly different to the actual read," its report says.

"Except where customers agree to estimated accounts (reconciled by an actual meter read within a reasonable time period) . . . use should be minimised because estimations can be a relatively inaccurate method of billing."

Consumer Utility Advocacy Centre spokeswoman May Johnson said overcharging was more common than undercharging, and some customers waited months to be refunded.

The ESC report found at least 912,350 bills were estimated last year, up 9 per cent on the previous year.

Under Victoria's energy retail code, companies must use their "best endeavours" to ensure meters are read at least once a year.

Consumption is estimated without consultation if meter access cannot be gained.

Other customers agree to estimates to smooth out monthly bills, or as part of contract conditions.