€3.7k gas bill just one of many incidents that led to 74% rise in energy customer complaints

Wildly inflated estimates that initially are used to bill customers in many cases bear no reality to the actual meter readings that take place subsequently. File picture

Everyone was braced for heavier-than-usual energy bills this winter, but the eye-popping numbers that came through letterboxes still came as a shock to many.

Most households had taken measures to reduce their energy footprint over the winter months but when it came down to brass tacks, the sums being charged for two-month cycles are scarcely credible.

For those who haven’t had a meter reading done regularly and are on estimated billing, it has been even more of a shock. Wildly inflated estimates that initially are used to bill customers in many cases bear no reality to the actual meter readings that take place subsequently.

This reporter was one such case, with an estimated gas bill of €720 for December to February, despite the actual meter reading sent in two weeks before the bill was due to be paid calculating it as closer to €232.

The €720 was taken from my bank account and only after a back and forth with customer service was it restored by asking my bank to reverse the direct debit. Bord Gais said it was a human clerical error that was to blame for the direct debit being taken.

If my bank had not reversed the direct debit, I'd have been waiting up to 10 days for the money taken in error to be restored, Bord Gais advised. The Irish Examiner has also heard from other customers in similar situations. 

One customer received an estimated gas reading from Bord Gais that was 10 times his normal usage, with an almost €3,700 bill to accompany. He said he found it difficult to resolve the issue, only receiving a reply when highlighting his case on social media.

To be fair, companies such as Electric Ireland and Bord Gais have been vocal about customers sending in meter readings on a regular basis. This is backed up by advice from the Commission for the Regulation of Utilities (CRU).

However, the reality of meter readings when it comes to gas is not as simple as it sounds, according to the independent non-profit Consumer Association of Ireland (CAI) chief executive Dermott Jewell.

For older houses, meters can be in hard-to-reach places, requiring torches and other equipment in order to be able to take a reading. It can be a physical challenge to be able to do so for people with disabilities or older customers.

“There are a whole variety of reasons why people don’t or can’t read their meter all the time. They may be ill or infirm, for instance. This is why smart meters will ultimately resolve the problem, but for now, estimated billing is a very significant one," Mr Jewell said.

This current estimation system could be leaving people seriously out of pocket, will have a knock-on effect on the ability to pay other bills such as mortgages, and crucially, will impact credit ratings.

Smart metering for gas usage as well as electricity should now be a major drive for companies in the coming years, he added.

Social Justice Ireland (SJI) policy advisor Michelle Murphy echoed Mr Jewell's sentiments, saying estimated billing is leaving vulnerable and elderly people in an even more precarious position now that energy costs are so high.

“Many people don’t have the confidence or time or know-how to challenge companies like Bord Gais when it comes to overestimating bills. On top of energy bills, they are dealing with mortgages and rents, putting food on the table at a time of high inflation. We are going to see the knock-on effect of this for months,” she said.

There is no excuse for companies like Bord Gais or Electric Ireland not to send out text message alerts reminding people to submit a meter reading before a bill is due, she said. If they did so, estimated billing would be far less of an issue, she added.

Many energy utilities do send out text alerts advising customers with estimated bills to submit an actual reading before their due date, such as SSE Airtricity. While Electric Ireland and Bord Gais do not, both firms have publicly advised customers to take meter readings through the likes of advertising and media.

How, though, would companies manage to come up with estimates that are up to 10 times a person’s historical usage average? Firms point out that they are reliant on data supplied by Gas Networks Ireland (GNI) and ESB Networks.

According to the Commission for Regulation of Utilities (CRU), from a gas perspective, the estimation of gas bills takes place under the Forecasting, Allocation and Reconciliation (FAR) process.

Dermott Jewell, Chief Executive of the Consumers Association of Ireland, said: “There are a whole variety of reasons why people don’t or can’t read their meter all the time." Photo/RollingNews.ie

“The process is reliant on reads obtained by GNI Meter Readers or supplied by a customer (Actual Reads) to accurately calculate a customer’s meter read estimation. The FAR process uses an algorithm that uses different inputs (such as historical gas consumption) to estimate consumption and bill customers.

“Once an actual read is received for a gas point reference number (GPRN), the figures are reconciled. If an actual read has not been recorded in 1,000 days the FAR estimation process reverts to the use of house profiles, which are less accurate,” it said.

When it comes to electricity, estimated usage is based on customer usage patterns and the time of year.

GNI said it is responsible for reading gas meters and providing this consumption information to the customer’s gas supplier. “GNI provides three actual meter reads per year and three estimated reads per year for each domestic gas customer," it said.

Estimated reads are calculated using the customer’s previous meter read history and other factors such as temperature and weather patterns, it added.

That means an estimated read in the summer months will be less than an estimated read in the winter months as the weather is typically milder and temperatures typically higher in the summer.

Complaints

Estimated billing is just one of a number of issues raised by customers with the CRU over the past year, with billing overall consistently raising the ire.

The CRU said: “Overall, the number of contacts that the CRU Customer care team has received has increased substantially in the last year, for example in the third quarter of 2022, contacts were 74% higher than the same period the previous year.

“Billing and account issues with suppliers continue to be a key driver of contacts. This increase is reflective of a significant increase in contacts from customers that suppliers have also received.” Estimated meter reads has not been a significant trend regarding billing queries and contacts, it said.

According to Social Justice Ireland’s policy analyst Michelle Murphy, just because customers haven’t contacted the CRU or Competition and Consumer Protection Commission (CCPC) regarding their estimated bills, doesn’t mean it is not a significant issue for many customers.

“You have other bills to pay and you have to run your house. It’s really challenging for them to even get on the phone to a company, it takes time, you would really need to be on the ball when it comes to your direct debits and resubmitting readings and waiting for updated bills, etc.

We in SJI have queried why the Government was giving €200 towards energy bills for some people that don’t need it because they are doing fine financially, when there are others who are even wondering if they can afford to turn lights or a washing machine on some evenings.

“We have argued all along that instead of energy credits, we should have looked at increasing social welfare rates for people on a fixed income. It is income that determines your ability to pay bills, after all.” 

Bord Gais Energy said that if a customer queries a meter reading provided to it by either ESB Networks or GNI, it “will step in to support the customer to ensure their bill reflects their actual usage”. If required, a new bill is issued with any change clearly shown, a spokesperson added.

The roll-out of smart meters for gas is a matter for the CRU and GNI, it said. “As soon as this initiative commences, Bord Gáis Energy will actively engage and participate as was the case with smart electricity meters,” the spokesperson added.