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The Guardian - UK
The Guardian - UK
Business
Anna Tims

How has my fixed-rate Co-op energy bill spiralled to £2,000?

Colored flames of gas stove
The Co-operative failed to inform a reader about an energy bill getting out of control. Photograph: Getty Images

I signed up to Co-operative Energy in June 2012 and was led to believe that I was agreeing to a fixed-price contract for dual fuel, currently standing at £111.38 per month. Recently, I tried to transfer to First Utility, but this was blocked by Co-operative who claim I owe £1996.25. This is like a restaurant advertising an all-you-can-eat buffet for £5 and then presenting you with a bill for £300. At no point did they warn me than I was accruing a debt.

When I complained I was asked to provide electricity meter readings and photographs of my meter, but I have since never heard back. Firstly, if I am indeed not on a fixed tariff why didn’t my direct debit payments reflect that over the past years, since contractors have been taking down regular readings of our electricity and gas meters. And secondly, when exactly was Co-operative Energy planning to tell me that I was accruing an enormous debt? ER, London

A new billing system introduced last summer elevated the Co-op to the most complained about energy company in 2015, according to Ombudsman Services. However, your problems clearly predate that and the company admits to me that it failed to carry out its standard annual review on your payments. If you hadn’t tried to transfer your supply there is no knowing how much debt would have accrued.

The good news is that customers are only liable for the previous 12 months of energy if they have not been billed for it, and so, following The Observer’s intervention, £1,720 of the bill has been written off. The Co-op has apologised and set up an adjusted direct debit and you have decided to remain a customer for the time being. Do make sure you read the terms of a contract through next time, so you know exactly what you are committing to.

If you need help email Anna Tims at your.problems@observer.co.uk or write to Your Problems, The Observer, Kings Place, 90 York Way, London N1 9GU. Include an address and phone number.

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