Energy customers 'overcharged'

ENERGY companies' handling of consumer bills is to come under the spotlight amid concerns customers are being overcharged and confused by technical jargon.

Consumer watchdog Energywatch has filed a 'super-complaint' with the regulator Ofgem requesting it investigate how suppliers' handle bills.

The organisation claims companies are failing to send out bills for months at a time, regularly miscalculating bills, over-relying on estimates rather than meter readings and preventing consumers from switching to cheaper suppliers if there is a debt of more than £1.

Nearly 10% of consumers said estimated bills had pushed them into debt with their supplier, with a quarter of that number claiming the debt was impossible to pay off.

Energywatch also accused suppliers of wrapping up bills in technical language to make it difficult for customers to check their accuracy.

Chief executive Allan Asher said: 'Billing is the single biggest problem consumers have with energy suppliers. Industry has consistently resisted any reform which is why we hope Ofgem will force through a radical overhaul of the process.'

More than 40,000 consumers called Energywatch last year to complain about their bills, totalling 61.5% of all complaints. The figure represented a 26% increase on 2002 numbers.

Ofgem will investigate the complaint over a 90-day period before deciding whether to take action against suppliers. If it finds in favour of Energywatch, it could force through a reform of how bills are processed and presented.

Environment minister Michael Meacher said: 'Without accurate energy bills consumers have no idea if they are being energy efficient. For this and many other reasons I welcome the super-complaint by Energywatch and trust Ofgem will take their obligation to protect consumer interests seriously.'

The Energy Retail Association said it was 'baffled' by Energywatch's claims, particularly as it launched an initiative to improve billing last month. Russell Hamblin-Boone, head of communications and policy, said: 'You have to put the numbers in perspective. Only one in 17,000 queries to electricity companies is a billing complaint. It's really quite a small number.'