Wednesday, June 25, 2008

Do you pay too much?


Last week three clients overcharged by their utility providers hit the news. The first was a North London woman whose water bill for her one bedroom flat was £6,600; the second was a pub owner who was charged £37,000 for his water use; and the unbeatable record belongs to a Cambridge woman who was charged £90m for her electricity bill.

Nobody takes such huge numbers seriously. We all know that errors do happen and cannot be avoided completely. However, if utility billing systems cannot detect such errors, it is very likely that they don’t detect smaller errors as well. That is, all of us are likely to be overcharged regularly.

Will you know if your electricity bill, water charge, or bank fees are off by 20 pounds? I would not even be surprised to discover that some companies deliberately add a few pounds to every bill they send. How would we be able to tell?

These huge errors, as ridiculous as they may be, highlight a fundamental problem we all have. Utility companies and service providers can charge whatever they want, and we, customers, at their mercy, will never know.

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