Ombudsman Services energy case summaries

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1 Ombudsman Services energy case summaries Guide to case summaries The table included in this document includes a selection of recent complaints. These are complaints, from consumers (household and small businesses) about energy companies. We do not name the complainant or the company involved. We publish these anonymous summaries so that we can share more practical information on how we resolved real cases and help to manage expectations around the level of financial awards we make. We publish more data in our annual reports. These summaries explain the type of complaint and the nature of the problem. We summarise what we found out and what, if anything, we required the company to do, to put things right. We use the following headings: Complaint type This is the type of complaint we looked at. Almost all of the complaints that we are asked to resolve are about problems with energy bills. Detail This includes any relevant background to the complaint and the complainant s view of their problem. Before we accept any complaint we must give the company a reasonable opportunity to resolve it. They have up to eight weeks to do this*. *The only exception is that SSE has up to six weeks to do this. Review When we look into the complaint, to find out what went wrong, we will take into account: both sides of the story; regulatory rules, guidance and standards, codes of practice, relevant law and regulations; and what is accepted as good industry practice. Where we find that something has gone wrong, we aim to find quick, informal and realistic resolutions to the complaint which both parties agree on.

2 Resolution It is not our role to punish energy companies when deciding what resolution to provide. Our awards are proportionate and take into account the facts in the complaint. An award might include any of the following: a or a practical action; an apology; an explanation of what has happened; a financial award (this will be an amount that we consider appropriate to the individual complaint)*. *We can award up to 10,000 but the average award is much less, about 100. These are financial awards required by the ombudsman in addition to any financial goodwill that the company may have already offered during its earlier attempts to resolve the complaint.

3 Qtr Complaint type Detail Review Resolution Billing The customer is being charged for a payment despite stating they renewed their contract on the condition monthly payments where reduced, which was agreed on the basis of the customer having smart meters but only the electric one was changed and monthly payments have not covered monthly usage. We concluded there was a shortfall in customer. We required the company to : provide a letter of apology; and refund bank charges; and provide a financial award; and allow the customer to leave once a payment plan is in place. Transfer The customer stated an erroneous transfer. The customer started to receive bills from the new company and debt collectors came due to the outstanding bill. We concluded there had been an erroneous transfer. provide a letter of apology for inconvenience caused; and provide a financial award. Meter readings The customer states the company has failed to invoice them in a timely manner and, because of this, the customer has failed to renew their accounts quickly. There has also not been kept clear and accurate information about the customer s accounts. The company states there were delays due to the change in supplier. There was a shortfall in the customer. We require the company to: offer a payment plan; and confirm in writing that the customer can move energy supplier; and send a letter of apology; and provide a financial award.

4 Meter The customer moved into the The company is now working to confirm We require the company to: property and realised they that there is no gas meter or supply in the provide a financial award; and were being charged gas but property. issue an accurate bill; and there was no gas meter on send a letter of apology. the property. Duel payments The customer received bills from two separate companies and so called the national grid to find out which supplier they were d from. There was a shortfall in customer. refund for the cheque payment; and provide a goodwill payment for shortfall in customer ; and issue a letter of apology.

5 Service The customer decided to move provider and get a smart meter. They were quoted a price for moving the meter by the supplier but the builder would do the work. The customer then decided to not change supplier and stay as the other company kept trying to sell her other s and it all became very stressful. We identified a shortfall in customer. provide a financial award; and issue a letter of apology; and return the overpayment. Payments The customer has been receiving estimated gas bills since their meter changed, on monthly billing, and states the company only took the meter reading twice a year. The company has agreed on receipt of the actual readings that they will amend the bill and send a receipt with the correct readings on. We require the company to: send a letter of apology; and confirm the meter exchange has been updated; and provide a receipt for actual readings; and provide a statement of the account; and provide a financial award.

6 The customer joined the company for dual fuel for which the company has failed to issue any gas bills. They then tried to contact the company to update their bank details and asked for a breakdown of their bill as lack of bill prevented them from being able to monitor their gas usage. They did not hear back from the company. We have seen that there have been shortfalls in customer. We require the company to: provide a written apology; and provide a statement for the account; and provide a financial award. The customer states that there is no gas supply or gas meter on the property. Although a bill was sent for an outstanding balance. The company agrees that there is evidence to show that there was no gas usage while the customer has been at the property for which they are prepared to remove the charges from the bill for the gas usage. Because the customer disconnected the gas supply and did not use it, there is evidence to state that they did not enter into a contract with the company. Therefore there has been a shortfall in customer. We require the company to: remove the outstanding balance; and provide a written apology for the shortfall in customer. Transfer The customer switched supplier but the company failed to take over the gas supply. When transferring, the wrong apartment was switched. When they tried again, the same error was made a second time. We consider the time taken to resolve this issue means there was a shortfall in customer. We require the company to: credit the account with a financial award; and provide a written apology.

7 Qtr Complaint type Detail Review Resolution Disputed charges The customer complained that the company had failed to recognise payments. We concluded that the customer did in fact make the payments and therefore there are no outstanding bills. enable a fresh account; and reinstate the two accounts for gas and electric / close the account in order for the customer to move to a new provider. Billing The customer said they were due to receive credit from their supplier which they did not receive. We reviewed the evidence and concluded that there had been no payments made into the customers accounts from the company and that cheques were not received. refund the credit on the account. The customer states that they informed their supplier that they were switching provider. The transfer was blocked and the customer kept receiving monthly bills, at an increasing amount. We concluded that the customer had received poor customer. transfer the energy supply, as requested; and clear any outstanding amount owed.

8 Transfer The customer switched provider but kept receiving billing from the first supplier. When leaving provider, the customer s account should have been in credit. We concluded that the meter reading was not taken into account and that the customer was charged incorrectly. provide a breakdown of account payments and credit balance; refund any credit on the account; issue a written apology; and provide a financial award. The customer had a fixed contract which they wanted to check for any better tariffs and was unable to access their account. The customer was unclear as to the amount they owed. The company then increased their monthly amount and the customer cancelled the direct debit. We concluded that the customer received poor customer. The supplier should not have increased the amount without authorisation. clarify what the customer owed and why; and clear any outstanding balance from the account.

9 Billing Meter The customer received a letter stating they were being charged higher due to lack of a meter reading, for which they complained and offered to pay a certain amount. The company sent out a letter acknowledging their complaint, with which the customer was not satisfied. The company then rejected the transfer due to debt and sent a letter of deadlock. The customer reported a gas leak from their meter. The meter was changed and set to 0 but the customer received a bill which they disputed as they did not build credit due to the leak. They were told the gas usage would need to be paid, despite the meter fault. The customer was offered a financial award but this was declined. We agreed that there was a shortfall in customer. The company acknowledged that there was a problem with the meter and that the customer should not have to pay for this. cancel the bill in full OR recalculate the bill using actual meter readings; and allow the customer to pay the arrears over a 12 month period; and offer an apology; and offer a financial award. produce a bill based on usage before the leak; and provide a financial award.

10 Transfer The customer was aware that We concluded that neither company they had transferred. They still received letters from the old took responsibility for not telling the customer their gas could not be reimburse for loss of duel fuel discount; and supplier for payments and were transferred. The customer followed then advised that their gas had the right complaint procedures and provide a financial award. not been switched, unbeknown to them. For a time period, the customer then paid for dual fuel showed proof of being issued the deadlock letter. There was also proof of the duel fuel payments. with an amount they agreed. They then received a deadlock letter from their new supplier. The customer states that smart metres were installed in their property but did not receive a bill despite regular meter readings. We concluded that the company should have billed the customer when they installed the new smart meters. We require the company to: provide a correct up to date bill; and refund the credit on the account; and provide a financial award. The customer arranged for a meter to be fitted and when the technician arrived they did not have the correct equipment so the visit was rearranged for the next day, which the technician did not turn up for. The customer then called the company and rearranged the appointment, for which again nobody came. This happened numerous times. When they eventually came, it was too late and they were turned away. We recognised a shortfall in customer. provide a financial award.

11 Qtr3 2015/16 Complaint type Detail Review Resolution Maintenance The customer is a leaseholder The company explained the issues the and repair at a new development and customer had raised were issues for the confirm when it expects the fire raised maintenance issues developer. The company had no control risk assessment to be completed. that the firm had not over when the developer would complete addressed. The customer these works. The company advised that a stated that a fire risk fire risk assessment had been instructed. assessment had yet to be completed.

12 Disputed charges The customer complained that there was a delay in the final bill being produced. When they received the final bill, prepayment meter payments were also missing from the bill. We concluded that the company did provide incorrect bills and that there was also a shortfall in customer. provide an average award. send a letter of apology. The customer complained that there was a delay in agreeing the opening electricity meter read with the previous supplier, and considered this to be a shortfall in customer. The customer moved properties and received a final bill with a large credit balance. The complainant requested that the credit balance be refunded, but the company failed to do this. We reviewed the evidence and concluded that there had been no shortfall in customer by the company. The company had chased the previous supplier regularly and agreed the reading once it had the information. On review of the evidence, we recognised that the customer had experienced a shortfall in customer by the company in failing to refund the credit balance. The company was not required to take any action. provide a below average award for shortfall in customer. send a letter of apology. refund the credit balance.

13 The customer received We concluded that there had been a statements showing false shortfall in customer, the issue provide a below average awar credit balances. The customer could have been avoided if up to date send a letter of apology. then requested a refund but statements were provided. issue an up to date statement. not was correctly advised as to why this could not be put into place. The customer was declared bankrupt in January 2015 and notified the company by sending a copy of the bankruptcy order. The customer sent the documentation twice because the records were updated. The company continued to pursue the customer for the prebankruptcy balance via a debt collection agency and failed to bill the post-bankruptcy account. On review of the evidence we concluded that the customer had experienced a shortfall in customer as the company had continued collection activity on the pre-bankruptcy debt. We require the company to: credit the account with an above average award for the shortfalls in customer. send a letter apology. offer a payment plan for the outstanding balance. Missing payments The customer had been paying by cheque since 2011 and believed that some of her payments were not allocated to the account. The customer s meter had also been tested and was found to be faulty. We concluded that all the cheques apart from one were allocated to the account. We agreed that the customer had attempted to notify the company several times about the missing payments and they did not action the complaint, which we consider a shortfall in customer. provide an average award for shortfall in customer. send a letter of apology. replace the faulty meter.

14 Disputed charges The customer complained that they had no received any gas bills as a result of the company failing to update the meter exchange. This resulted in the customer being unable to switch provider. We concluded that the gas meter exchange, which took place shortly before the supply switched, was not updated on the company s internal records, which we consider to be a shortfall in customer. provide an average award. send a letter of apology. Disputed charges Failed remedies The customer purchased a property and the gas meter was missing. A new meter was installed and the customer was told that a debt had built up after that. These charges were disputed. The customer had complained that the company had failed to complete the binding decision we issued (from a complaint they previously brought to us) within the required timescale. We concluded that if the meter had been installed and billed sooner, then the debt may not have accrued. We considered this delay to be a shortfall in customer. On review of the evidence, we recognised that the customer had experienced a shortfall in customer as the company failed to implement our remedies within the timescale provided. We require the company to: agree an action plan for the outstanding gas and electricity. send a letter apology. provide an average award for the shortfalls in customer. provide an average award for shortfall in customer. send a letter of apology.

15 Qtr2 2015/16 Complaint type Detail Review Resolution Back The customer originally We agreed that there was a shortfall billing complained about having a in due to the amount of the Send a letter of apology faulty meter and subsequently time the check meter was installed. Apply the back billing code that the check We considered the cause of this to Offer an average award meter which should have only be the company. We did not agree Offer a payment plan for the been in place for a shirt time with the customer that the meter remaining outstanding balance was installed for over two was faulty as the readings on the Provide further information years. A large bill was then check meter were almost identical. regarding energy efficiency produced when the check However we did find significant meter was removed which shortfalls regarding billing as the Provide a list of available tariffs the customer was not happy company had underestimated usage going forward. with. and failed to bill to actual readings provided - resulting in the large bill. Transfer FIT The customer complained as the company had not set up their account correctly and they had not received a bill. The customer was worried about a potential outstanding balance. The customer advised the company on joining that they could not read the meter due to health issues. The company agreed to visit the customer quarterly to take readings. The customer stated that the company had failed to turn up on five occasions. The customer had not been billed since they joined the company, it took the company 20 months to provide a bill. The company had applied the back billing code on the day we spoke to the customer which removed a significant amount of the charges. We found that the company was at fault for not advising the customer that it was not guaranteed that it would be able to read the meter every quarter or that the customer needed to call to book the appointment. Evidence confirmed the company failed to attend four appointments, as it did not book them correctly. Send a letter of apology Review the back billing code to ensure it had been applied correctly Set up a payment plan for the outstanding balance Provide an average award Ensure the customer is on the best tariff going forwards Send a letter of apology Provide a refund Provide an average award

16 Billing The customer complained as the We agreed the company had made company had been overcharging an error in billing and had yet to Send a letter of apology for their energy. The company produce an accurate bill. The Issue an accurate bill recognised the error and customer requested an accurate bill Provide an average award. and we required the company to reversed the charges on the make an appropriate award based account but failed to produce an on the circumstances. accurate bill. Billing The customer complained that the company had caused them to go into arrears by failing to comply with the customer s request to increase their direct debit. We agreed that the company had failed to manage the customer s direct debit and the customer s bill would have been lower had the request been complied with. However, the company had already offered a suitable goodwill gesture and resolution. We considered this to be fair alongside a payment plan. We noted that although the debit balance would have been lower, the impact was small as there was only a slight difference between the actual direct debit amount and the amount that had been requested. Discuss a payment plan Send a letter of apology Provide the average award. Billing Following a meter exchange the customer was receiving bills with conflicting and incorrect information. This led to the company demanding large monthly payments. We recognised that the customer had received a shortfall in customer. We also noted that the company had acknowledged this with their offer to rebill based on accurate information. They offered an average award which we considered reasonable. Set up the account Offer a payment plan Bill to accurate reads given that day Pay a higher award to account for the shortfall in customer Send a letter of apology

17 Sales The complainant raised the On review we found that the company issue that the company failed to turn up to agreed appointments or turned up at made a number of attempts to attend the property to change the meter but was unable to gain access. However Contact the complainant to arrange a suitable appointment to replace the electricity meter the wrong times to exchange there were also occasions where the the standard meter to pre- company Provide an average award payment. Secondly, the complainant had no gas supply did not turn up or turned up at the incorrect time. The complainant over a weekend with a being left without gas was due to the 13 month old child. local authority capping the supply. Billing Billing The customer rang the company to set up their account but was told the company did not supply the property. The customer checked with the network distributor who said the company was the supplier but the company maintained it was not. The customer provided meter details but the company said they were incorrect. The customer exchanged prepayment meters for credit meters. They received estimated bills despite providing accurate reads. The customer disputes the large bill received. On review the company acknowledged that an engineer had confirmed they did supply the property and the details the customer had given them were correct. The company offered an average award. As well as a payment plan and apology. We concluded that the company should have established which tariff the customer wanted to go on during the telephone call on which the meter exchange appointment was booked. They should have used the readings provided and not estimates. They should not have underestimated the customers usage so much as this was unrealistic. They should not have taken 4 months to update the meter exchange information. Set up the account Offer a payment plan Bill to accurate reads given that day Pay a higher award to account for the shortfall in customer Send a letter of apology Contact customer to discuss the best tariff option going forward Ensure direct debit is set up correctly Offer a payment plan Join gas and electricity account into one Send a letter of apology Provide an average award.

18 Billing The customer received a The company has not acted within the letter from the company letter of its charter; it did not advise the Provide an above average award. requesting an urgent customer of the charges prior to the visit. Send a letter of apology appointment to visit. The customer called the company and made the requested appointment. The visit was made a third seal fitted. During all of this no cost was mentioned until customer noticed a charge of 60 added to bill.

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