E·ON’s Creative Accounting.

jambutty · 05-09-2008, 16:23

For the third quarter in succession I have had to get in touch with E·ON to ask why the bill did not contain any information on how to calculate the quantity of “Primary” units for that quarter and subsequently determine the number of “Secondary” units. On the previous two occasions E·ON promised that this omission would be corrected. So much for promises!

Prior to privatisation of the energy companies, each quarter was 91 days with one quarter at 92 days. During Leap years there were two 92 days quarters, although the “Primary” units were always the same. But there were “Tertiary” units at times.

Since privatisation the energy companies have got really cute.

Previously I was able to find out that for electricity the first 900 kWh in a year are charged at the “Primary” rate and the remainder at the “Secondary” rate. So to determine how many kWh are being charged at the “Primary” rate for a specific quarter you have to divide 900 by 365 and then multiply by the number of days in the quarter. If only that information was printed on the bill then every one of E·ON’s customers would know.

For gas the figure is 2,680 kWh. It is a bit more complicated because before you can arrive at the kWh used you have to convert the Meter Units to kWh. The Volume Conversion Factor, the Calorific Value and kWh Conversion Factor. But at least the bill tells you how to use those variables to arrive at kWh used but in very tiny writing. There is tons of room on the average bill to make this information more easily readable.

I don’t know about anyone else but I calculate the number of days between two dates by ignoring the start date and including the finish date. So between the 1st August and the 29th there are 28 days. Strictly speaking though there are only 27 days between those two dates, but that would cause problems when calculating the following period.

E·ON’s energy increases took effect from the 22nd August and my meter was read on the 27th August so that is a period of 5 days. The meter reading on the 22nd August was estimated to be 15758 and the actual reading in the 27th was 15784 indicating that during that period 26 kWh were used. Applying the above formula of 900 / 365 x 5 = 12 “Primary” units leaving 14 as “Secondary” units.

My bill shows 17 kWh as “Primary” units and 9 kWh as “Secondary” units.

So how did E·ON arrive at their figures? The bill was dated the 29th August and the bill was calculated to that date making the period of 7 days. Apply the above formula to a period of 7 days you get 900 / 365 x 7 = 17 “Primary” units leaving 9 as “Secondary” units – just like the bill shows. The electric for those 7 days costs £5.07 plus vat at 5% = £5.32. For 5 days it would cost £4.40 plus vat at 5% = £4.62. Thus I am being overcharged by £0.7

The gas for those 7 days costs £3.71 plus vat at 5% = £3.90. For 5 days it would cost £3.17 plus vat at 5% = £3.33. Thus I am being overcharged by £0.57 and a total of £1.27.

I cannot see that it is only my bill that has this anomaly of the dates so as I understand it with E·ON having some 4 million customers, this bit of Creative Accounting will land E·ON an extra £5,080,000. Of course it will all rest on whether the next bill starts on the 27th August or 29th and I won’t find out until December but I will keep tabs on it.

A lengthy chat with the chap in their Complaints department confirmed my complaint to be justified and he gave me a credit off my next bill to compensate. And he promised to get something done about the details of how to calculate the “Primary” units printed on the bill.

MargaretR · 05-09-2008, 17:19

When a price rise happens, your supplier estimates/guesses how much was at the old rate and how much is at the new rate, in the quarter being billed.
The way to avoid this guesswork is to be on an online tariff, whereby you can read your meters on the day of the price increase and submit them.

(The meter reader calls occasionally, just to check that the figures you are supplying are true and not under recorded)

jambutty · 05-09-2008, 17:59

Quote:

Originally Posted by MargaretR

When a price rise happens, your supplier estimates/guesses how much was at the old rate and how much is at the new rate, in the quarter being billed.
The way to avoid this guesswork is to be on an online tariff, whereby you can read your meters on the day of the price increase and submit them.

(The meter reader calls occasionally, just to check that the figures you are supplying are true and not under recorded)

But that wasn’t the point of my post. I wasn’t against the ‘guesswork’ involved in determining how much was at the old price rate and how much was at the new rate. The energy suppliers have a special formula for working that out and in general they are not too far off.

My point was that the customer did not know how the “Primary” units was calculated and their ‘error’ in using the bill date as the final reading date instead of the actual reading date.

At the beginning of the quarter the meter reading on my bill was 15355 and at the end of the quarter it was 15784 thus 429 units were used in 86 days.

If you divide 429 by 86 and then multiple by the number of days in the first part of the quarter you get 394 units for the first part and 35 for the second part. My bill shows 403 units and 26. So E·ON’s estimate was in my favour.

hedman2003 · 05-09-2008, 18:05

duh get a life!!!!!!!!!!!!!!!!

jambutty · 05-09-2008, 18:42

Quote:

Originally Posted by hedman2003

duh get a life!!!!!!!!!!!!!!!!

I’ve got one and had one for more than 71 years.

During that time and in particularly recently I have learned that given the opportunity there will always be someone waiting to take an advantage of the unwary.

I was just passing on to the unwary what I discovered.

Now about your life. When are you going to get one?

hedman2003 · 05-09-2008, 21:45

have you appeared on grumpy old men but without the humour?

expat · 08-09-2008, 07:58

When I lived in England Twenty odd years ago, I went back to a coin meter I don't suppose they do that now, I found it easier to keep a tab on things.

jambutty · 08-09-2008, 09:39

Quote:

Originally Posted by expat

When I lived in England Twenty odd years ago, I went back to a coin meter I don't suppose they do that now, I found it easier to keep a tab on things.

No coin meters, it’s all done with a plastic card now, but the principle is the same.

It’s also the most expensive way of buying gas or electric.