Gas bills too high for years in meter reading mix-up

Charges confused cubic feet and cubic metres

THOUSANDS of families may have been overcharged for their gas after suppliers made a basic mistake reading their meters.

Some meters measuring gas usage in cubic metres were mixed up with those measuring in cubic feet, with customers charged the wrong amount.

The mistake – the latest in a string of scandals in the energy industry – appears to have been running for up to 15 years, with some customers overcharged by as much as 183 per cent.

Industry experts called the mixup ‘outrageous’ and one estimated customers may have been overcharged by a total of several million pounds. Energy giants are now under pressure to hand out refunds and compensation.

The mix-up meant some customers had metric meters that were read as if they were imperial – and they were then undercharged. Other customers who had imperial meters that were read as if they were metric ones have been charged too much.

So far German energy firm E.ON has admitted the problem – but it could be industry-wide.

Regulator Ofgem has told other energy giants, including British Gas, SSE, Npower, EDF and Scottish Power, to check if they have made the same mistake.

It indicated the total number of households affected is likely to be less than 10,000. Mark Todd, cofounder of comparison website Energy Helpline, said the mix-up was ‘outrageous’ and estimated that across the industry the total customers were overcharged ‘is likely to be in the millions’.

He added: ‘Refunds are imperative as a first step but customers must also be compensated. This is yet another head in hands moment for an industry beset by billing mistakes.’

The industry has long faced allegations of rip-offs and poor service. A recent investigation by the Competition and Markets Authority found customers of the ‘Big Six’ energy giants were paying £1.7billion a year more than they should because of the suppliers’ high tariffs.

E.ON apologised and confirmed 600 homes and businesses were affected. Some 350 were overcharged – including one affected for 15 years – and they will be refunded and compensated, while the 250 charged too little will not have to pay any money back.

All customers affected will be contacted by their supplier and those overcharged will get refunds.