1 in 4 households face energy bill shock from estimated meter readings
More than one in four (26%) households submit energy meter readings less than once a quarter, increasing the risk of receiving inaccurate estimated bills
When estimated bills are too low, consumers unexpectedly find themselves owing an average of £125 to their energy supplier after getting a bill based on actual use
When estimated bills are too high, customers are owed an average of £137 by their supplier – over 10% of the average annual energy spend
Two thirds (64%) of households would consider installing a smart meter to put an end to estimated bills
Uswitch.com is urging consumers to submit meter readings quarterly to ensure their bills are accurate.
Over a quarter (26%) of households – equivalent to over seven million homes – face unexpected energy bill shock by not supplying regular meter readings, according to new analysis by Uswitch.com, the independent price comparison and switching service.
The data shows that nearly half (49%) of households suddenly find themselves in credit or debt to their energy supplier after submitting a meter reading after a period of receiving bills based on estimated energy use. In cases where the estimates are too high, the average amount households are owed by suppliers is £137 – over ten per cent of the average annual energy bill. At the other end of the scale, where estimates end up being too low, consumers suddenly find themselves in debt to their supplier by an average of £125.
When a consumer receives a series of bills based on estimated usage, significant amounts of credit or debt can build up over time. In fact, five percent of households who ended up in debt after submitting a meter reading, and three percent of households who ended up in credit, found their account balance suddenly changed by a staggering £500 or more.
Although energy suppliers are required to read customers’ meters at least once a year, Ofgem advises consumers to submit their own readings quarterly to reduce the risk of inaccurate bills. Worryingly, a quarter (25%) of consumers said they weren’t aware that they should read their meters this frequently while over a fifth (21%) felt meter readings should be the sole responsibility of their supplier. In addition, less than half of all households submit readings after being prompted to by their supplier and nearly a fifth (16%) believe that sending in a reading won’t make any difference to their bill.
Smart meters will be offered to every home in Great Britain by 2020, putting an end to estimated bills which can leave consumers yo-yoing between credit and debt with energy providers. In fact, the research also revealed that two thirds (64%) would consider requesting a smart meter from their supplier to get accurate bills.
Claire Osborne, energy expert at Uswitch.com, says: “Reading meters may seem like a chore, but regularly doing so will help you keep a grip on your energy use and spend. If you haven’t submitted a reading for some time, estimated bills could be painting a very misleading picture and put you at risk of being in significant credit or debt with your supplier.
“Smart meters, once offered to every home in Great Britain by 2020, will end the curse of estimated bills but until then consumers should send their supplier a meter reading once a quarter.
“As we move into autumn it’s wise to keep your account in some credit, to help pay for heating during the colder winter months. It’s important that all consumers, particularly those who haven’t submitted a reading in the last three months, understand the true balance of their account and don’t let estimates lead to bill shock down the line.”
Claire Maugham, Director of Policy and Communications at Smart Energy GB – the voice of the smart meter rollout, says: “Smart meters will bring an end to estimated bills and provide accurate information about what we spend on gas and electricity in pounds and pence. They will help us to manage our energy use and mean we will no longer have to deal with the worry or the shock of an unknown bill.
“Sixty-nine per cent of people with smart meters said they feel more in control of their energy use and eight in ten would recommend them to others.”
FOR MORE INFORMATION
Jason Wakeford
Phone: 0203 872 5612
Email: jason.wakeford@uswitch.com
Twitter: @UswitchPR
Notes to editors
Research was conducted online by Opinium between 26th August and 1st September 2016, among 2,026 UK adults who were responsible for paying the energy bill.
When asked how often they submit meter readings to their supplier: 24% said once a month, 35% said once a quarter, 8% said once every six months, 2% said once every year, 13% said only when asked by their supplier, 3% said they never have, 11% said they have a smart meter so don’t need to, and 4% said they didn’t know. Therefore 26% submit readings less frequently than once a quarter. There are 27 million households in the UK (source: ONS). Therefore 7.02 million households (26% of 27 million) submit readings less frequently than once a quarter. Average big six standard variable energy bill is £1,064.
When asked if they have ever unexpectedly owed their energy supplier or been owed money from their energy supplier(s) after they received a meter reading, 49% of respondents said yes. Of those who have unexpectedly been owed money by their supplier, the average amount owed to them was £137.39. Of those who have unexpectedly owed their supplier money, the average amount they owed was £124.78. 5% of those who have unexpectedly owed their supplier money owed £500 or more. 3% of those who have unexpectedly been owed money by their supplier were owed £500 or more.
When asked if they would consider installing a smart meter to ensure that they receive accurate energy bills, 64% said yes.
When asked about reminders from their energy suppliers, 48% said they submit meter readings when they receive one, and 28% said they’ve never received a reminder. When those who provide meter readings less frequently than once a quarter were asked why they don’t do it more regularly, 25% said they didn’t know they were meant to send a reading more often, 21% said they think the suppliers should do it themselves, 16% said they don’t believe it will make a difference to their bill, 14% said they forget to do so, 11% said they can’t be bothered, 3% said they don’t know how and 1% said they don’t know where their meter is. 17% specified an individual other reason, and 8% said they didn’t know why.
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