Estimated bills
Estimated bills are a common way to accrue arrears. Many bills are based on estimated meter readings. Under their licence conditions, suppliers are only required to obtain actual meter readings once every two years. If the estimated reading is different to the actual reading, the client should read the meter themself and ask for this reading to be used to avoid either an overpayment or an underpayment which could lead to arrears.
If the bill is estimated and the estimated reading is higher than the actual reading, it is possible to reduce the amount owing. The bill will explain (often by means of an ‘E’ next to a reading) whether an estimated reading has been given. Clients can read their own meters and provide the supplier with their reading, and so should never be disconnected on the basis of an estimated bill. You should ask the client to read the meter and request an amended bill. The roll-out of smart meters should, in theory, see the end of estimated billing as the meter sends consumption information to the supplier and allows accurate bills to be produced regularly.
When a client pays by direct debit, suppliers estimate future usage (eg, over the winter) when setting the amount of a direct debit. Suppliers should estimate based on the best and most current information available. You should, therefore, advise clients who pay by direct debit to regularly check their usage and provide accurate and up-to-date readings to suppliers where it appears a direct debit may have been set at an unreasonably high level.