You may feel powerless against the price hikes, and you may view a higher utility bill as a fact of life, yet there are some factors contributing to the cost that aren’t well documented.
Of course, the rise in wholesale prices has increased charges by 60% along with green levies at 9% but there are other, individual aspects that could be affecting businesses across the UK.
Here are a few mistakes that have been made, impacting on the price of electricity and gas over the past twelve months.
Just Where Did I Put That Decimal Point?
Decimal Points can change figures dramatically depending on where they are placed. Many gas companies feigned ignorance when they made this exact mistake.
Ofgem has been campaigning for utility companies to cut their prices for some time. They’ve been offering solutions and bringing in legislation that should slow increases within the utility company’s control. One such enforcement was to round down the price of gas to a single decimal place, rather than two, three or four the energy giants were using.
Gas prices are based on the calorific value, basically the longer it takes to burn, the higher value it is. This varies across the country.
Now if the calorific value is 685.2497 you would be charged (under the new rule) for 685.2 calories. Yet the giants forget to do this, claiming they’d misinterpreted the rule which left them rounding up to 3 decimal places instead.
It may not sound like a lot, but it has cost bill payers over 2 million pounds! Do you know the calorific value of your gas?
Another factor that has an incredible effect on the price of energy for the individual and business is human error. Early this year it was reported that the average bill payer pays an extra £200 on their gas and electricity per year through admin errors alone.
As energy prices rise, these admin errors are going unnoticed as many expect the increasing costs and so pay the bills without question. It would be foolish though, in light of this news, to simply pay up. Make sure you understand your utility bills, learn how to read them and always check that your calculations and theirs add up. Who know what you could save?