Energy customers with estimated bills could be racking up debts of hundreds of pounds without realising it, according to Citizens Advice.

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In the worst cases people have found they owed over £1,000 when they thought their direct debits were covering their energy costs.

It blamed the problem on spiralling tariffs and billing issues.

Tony Herbert, a senior policy officer with Citizens Advice, said with energy costs forecast to rise further this winter, the problem is likely to get worse.

"Families can rack up huge fuel bills without even realising it because the amount they're paying is actually based on estimated readings."

"They might have a direct debit set up; they might think they're paying their bills," he said.

"But because they're paying on estimated readings it may not reflect how much they're actually using."

'Big jump'

Richard Mann is one gas customer who has found out how inaccurate estimated bills can be.

For the last two years, all his gas bills have been estimated.

His gas supplier originally set his direct debit at £15 a month, but then reduced it when his account was in credit.

However, last month he received a bill saying he owed £238 and that his direct debit would have to rise ten fold to pay it.

"It's a big jump and we have to find that money from somewhere," he said.

"We're a family we have bills to pay so every penny counts at the moment."

Close eye

The consumer watchdog Energywatch says a third of all bills are estimated and therefore could be wrong.

"They're not based on real meter readings, they're not based on real consumption data," said Energywatch's Adam Scorer.

"You can just imagine the problems that will come out from the fact that a third of bills in Britain are by and large wrong."

However, the Energy Retail Association, which represents the gas and electricity companies, said that the majority of the 200 million bills the industry sends out each year are correct.

"It is hardly surprising that the majority of complaints or enquiries that anyone gets are going to be about billing, because that is the way that most energy companies will actually touch their customers," said Duncan Sedgwick, the association's chief executive.

With energy bills set to rise sharply in the winter, both energy companies and advice organisations are recommending that people keep a close eye on their bills and check their gas and electricity meters themselves.

More on this story can be seen on Weekend Breakfast on BBC One on Saturday, 12 July from 0600 and on the BBC News Channel at 1035.

(BBC)

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