A small bar in Melbourne got an unpleasant shock recently when they received a gas bill for $8000 when their actual usage was just enough to cost $80.
The huge bill was just one of several massively-inflated estimated bills Radio bar, which is located in the inner-city suburb of Fitzroy, has received in the last 22 months.
In that two year period the bars gas bill slowly increased, with others as high as almost $7,000. ‘
For a small venue, with space for only 50 people and no kitchen, it was clear to owner Paul Thompson that he was being overcharged, The Age reported.
Paul Thompson, the owner of Radio Bar, knew something was wrong when he received a highly inflated bill
The bill, for just over $8000 was based on an estimated reading not an actual reading. In reality he owed just $80
Mr Thompson was not paying the huge prices without a fight, so he spent months calling the energy provider and querying the amounts, trying to work out what was going on.
A contributing factor to the high bill was that being a bar, the opening hours seemed to be outside the times when meter readers could come.
The Australian Gas Networks sends out meter readers to properties and then relays the data usage information back to AGL. When this happens users can get an accurate bill based on their own usage.
Mr Thompson said he attempted to schedule in times with AGN that they could come in the day, but he was told they don’t make appointments.
With each following phone call Mr Thompson was repeatedly wedged between AGL, who swore they couldn’t make meter reading appointments and AGN who eventually admitted that they could send someone out.
Within the two year period Mr Thompson was sent one bill for $6644, this time he provided his own reading and the bill was brought down to $200.
After Fairfax contacted AGL to ask why the $8000 bill had been so high, they dropped the price to $80.
He questioned how, considering his property used hardly any gas, the bill could be so large.
The bar, which is situated in Fitzroy in Melbourne is surrounded by larger restaurants which would use more gas
Mr Thompson decided to fight the bills that came over a 22 month period and eventually won
Another bill he received for almost $6000 was recharged at only $200. Mr Thompson is not the first person to be massively overcharged through estimated bills
‘We got a quote from the service provider, and they basically do an estimation based on the other business in that area,’ he said.
‘We’re near Cutler & Co, Marion and Charcoal Lane, they use a lot of gas and they’re much bigger.
‘There’s no comparison. Who actually puts together these bills?’
Mr Thompson is just the latest person to be overcharged through companies working out bill costs based on estimation rather then an accurate reading.
‘Estimated bills are based on our estimate of your energy usage (rather than an actual read of your meter). There are a number of reasons why this may happen,’ the AGL website says.
The reasons why are stated as being either because the meter is apparently inaccessible or consumers have chosen to be billed monthly.
In some cases the companies will charge consumers for an actual reading, the AGL website notes.
Last year in Sydney, residents of an apartment building won an $83,000 refund from AGL after they discovered their gas bill had been estimated and they had been charged more than 15,000 per cent of their actual usage.
‘You can tell if your bill is based on an estimate or an actual meter reading by looking at the ‘Reading Type’ or ‘Current Reading’ section on the back page of your bill,’ the AGL website says.