18/08/11
Energy regulator Ofgem has demanded suppliers explain how they calculate bills amid allegations that customers have been overcharged following price hikes.
Ofgem has received complaints that when a bill covers a period in which prices increase, suppliers have incorrectly calculated the number of units consumed at the higher rate.
The complaints were passed to Ofgem by The Times newspaper after readers claimed suppliers had loaded more units than expected on to the post-increase part of the bill following price rises over the winter.
In particular, there have been allegations that when customers provide a meter reading that shows they have used more units than was estimated in their bill, all the additional units have been charged at the higher rate, Ofgem said.
The regulator has written to all the UK's gas and electricity suppliers asking them to explain how they calculate bills after a hike in prices.
An Ofgem spokesman said: "We want to be confident that customers are being billed properly where there has been a price rise.
"For example, we want suppliers to explain what mechanisms they use when prices are raised to ensure that consumers only pay the higher price for units consumed following the price increase."
It has asked suppliers to explain the checks they use to ensure the bills are accurate and has asked them to help it understand "the way in which estimated and actual bills are reconciled".
