Six million homes risk inaccurate energy bills this winter
More than a fifth of households (21%) don’t submit regular energy meter readings, exposing them to inaccurate estimated bills
On average, while two thirds of energy customers (67%) found themselves owed £161 by their supplier once they provided a reading, one in five (21%) ended up in debt by £163
After big six price rises this year, over a quarter of households (28%) say they would have to ration their energy use if they received a higher-than-expected demand for payment, while almost a fifth (17%) say they would struggle to pay it at all
Uswitch.com urges consumers to submit meter readings at least every quarter to find out if they’re owed money and avoid unexpectedly large bills.
5.6 million households are heading for an energy bill shock by not submitting regular meter readings according to new research from Uswitch.com,the price comparison and switching service.
53% of energy customers have previously received a bill they weren’t expecting when they gave a meter reading following a period of estimated bills. 21% of these households suddenly found they owed their supplier an average of £163 although 67% discovered they were due to get £161 back on average – enough to cover 14% of the average annual energy bill .
The research reveals a worrying lack of awareness about the importance of providing regular meter readings. A quarter (25%) of those who don’t think suppliers should read the meter for them, more than a fifth (22%) didn’t know they were meant to send readings more often, and 18% don’t think it will have any effect on the amount they’ll have to pay. In addition, almost three in 10 (29%) say they have never received a reminder from their energy supplier to check their meter, and a further 16% say that if they do receive a reminder they either ignore it or forget.
After a spate of price rises from the big six suppliers means millions of customers will already be paying more, getting a larger bill than expected would be a double blow to many households already grappling with an increasing cost of living and an uncertain economy. Only 30% say they could “easily” afford to pay a bill that was significantly steeper than expected. More than a quarter (28%) say they would be forced to ration their energy use, 17% would have to dip into their savings, and a further 17% would struggle to pay the bill at all.
Uswitch.com is urging consumers to provide regular meter readings to their supplier. Many energy companies provide a telephone and online service to allow their customers to easily give a reading, with some even making the facility available through a smart phone app.
Smart meter technology is bringing an end to the uncertainty of estimated bills. Almost a fifth of bill payers (19%) now have one installed, with a further 44% interested in getting one so that they receive more accurate bills. Over half (56%) of those with smart meters say they have made their bills more accurate, although a third (33%) say they haven’t noticed any difference.
Claire Osborne, energy expert at Uswitch.com, comments: “With so many households already worrying about being able to afford to keep warm this coming winter, it’s vital that energy customers provide regular meter readings and avoid a nasty shock when their next bill arrives.
“If you do find you’re in debt you’ll have time to discuss the problem with your supplier. But the good news is that you could even be in for a surprise windfall of £160 on average. Either way, it makes sense to provide regular meter readings so you can keep your energy spending under control.
“At the same time, check your tariff and see whether you could save money by switching to a cheaper fixed deal, which could be up to £618 less than you currently pay. Combined with any money you’re owed by your supplier, it could all add up to a very lucrative reward for just a few minutes of your time.”
Find out how you could save over £1,000 a year with Uswitchhere.
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Tim Dunford
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Notes to editors
Research was conducted by Opinium between 15th and 18th August 2017, among 2,006 adults in the UK responsible for paying energy bills.
When asked ‘How often do you provide an energy meter reading to your energy supplier (either you or your supplier reading the meter)?, 9% answered once every six months, 3% said once a year, 2% said they have never submitted a meter reading and 7% said they couldn’t remember, making 21%. There are 27.1 million households in the UK (ONS). Therefore 21% of 27.1 million = 5,691,000 households
When asked ‘Have you ever unexpectedly owed your energy supplier or been owed money from your energy supplier(s) after they received your meter reading?’, 53% of respondents said yes. 53% of 27.1 million = 14,363,000 households. When asked ‘You said that you have previously unexpectedly owed money to your energy supplier or been owed money from your energy supplier after a meter reading. Thinking of the last time this happened, what was the discrepancy? (i.e. What was the amount you owed your supplier or the amount you were owed by your supplier?), 21% of respondents were in debt, with an average amount of debt owed of £162.80 (21% of 14.363m = 3,016,230 households). 67% of respondents were in credit, with a mean amount of credit owed of £160.60 (67% of 363m = 9,623,210 households)
When asked ‘If your energy bills this winter are significantly more expensive than you’re expecting, which of the following statements would apply to you?’, 30% said their household would afford them easily (30% of 27.1m = 8,130,000 households), 28% said their household would ration energy use (28% of 27.1m = 7,588,000 households), 17% said they would have to dip into their savings (17% of 27.1 million = 4,607,000 households) and 17% said they would struggle to pay them (17% of 27.1 million = 4,607,000 households)
The average annual energy bill in 2016 was £1123 [source: Ofgem Retail Market Indicators August 2017]. £160.60 is 14.3% of £1,123.
When those who provide meter readings less frequently than once a quarter were asked ‘Why do you not send a meter reading to your supplier more often?’, 25% said their supplier should read the meter for them, 22% said they didn’t know they were meant to send them more often, and 18% said they don’t think it will affect the amount they pay
When asked ‘Thinking about reminders from your energy supplier to check your meter, which of the following statements best applies to you?’, 29% said they have never received a reminder, 11% said if they receive a reminder they intend to submit a reading but often forget, and 5% said if they receive a reminder, they often ignore it
When asked ‘Would you consider installing a smart meter (a new type of meter which can send readings directly to your supplier automatically), if it meant more accurate bills?’, 19% said they already have a smart meter, 44% said yes and 28% said no
When those with smart meters were asked ‘Do you think having a smart meter has made your bills more accurate?’, 56% said yes, 11% said no and 33% said they haven’t noticed a difference
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