Pricewatch

  • Red-letter day for ESB customers

    June 22, 2009 @ 10:15 am | by Conor Pope

    Lasy week I featured a story from a person who received a threatening solicitor’s letter from the ESB about his last month’s payment after he switched from the ESB to Bord Gáis Energy.

    An ESB spokeswoman said that the letter was sent out “inadvertently” as a result of a glitch in the system and she denied that such an approach was common practice.

    It turns out he was not the only one to get legal missives from the ESB, as our readers were quick to point out. A reader called Holly “was sent a similarly threatening letter demanding payment of €11.93 (for a bill which I never received)”. She says that “failure to comply within seven days would have led to a debt collector being sent to pick up the tab – and I only received the letter eight days after it was dated. I am ever so glad that ESB has finally let my account go to Bord Gáis, after three months of waiting for us to be switched over. To hell with them.”
    John Murphy said he had “the exact same experience” and when he contacted the ESB “to ask why I was treated so shabbily”, he says that the representative just “continuously repeated the mantra that the direct debit had been cancelled. If anything were needed to demonstrate that the ESB does not understand the true nature of competitive markets it is this.”

    The same thing happened to a reader called Anna, “which suggests this is not a one-time inadvertent mistake. This practice, while disrespectful, can also cause cash-flow problems for older people.

    “My mother puts the same amount of money into the account every week to cover the bills – a method which in effect is a saving mechanism for winter but also allows her to budget effectively. Receiving the bill with the solicitor’s letter meant that she felt like she had to pay the bill straight away in one lump sum.”

    Brendan Keenan had a similar experience when he switched to Airtricity. “Unusually, the solicitor’s letter had no phone number on it, nor was it listed in the phone book, nor directory enquiries. I had to ring the Law Society to get the number. I was informed by the solicitor that it was a mistake. I received an apology by phone the following day. How much did all that cost the ESB?”

    How much indeed, and just how many of these solicitor’s letters have the ESB sent out? We contacted the company again and a spokesman said that solicitor’s letters had been sent to “a good number of customers”. He said that the ESB issued some 13m bills each year and such a high-volume business required a lot of automation. He said the normal process meant that if someone went into arrears, they were sent a number of reminders and were contacted by phone. He said a solicitor’s letter would only be sent at the very end of the process and pointed out that the ESB was widely recognised as having an understanding approach to people with financial difficulties who were struggling to pay bills.

    The entrance of competitors into the domestic market had exposed a flaw in the ESB’s computerised system, which effectively meant that some people who switched with sums outstanding leapfrogged through several steps in the credit-management system. This automatically triggered the sending of a solicitor’s letter.

    He was unable to say exactly how many people had been affected but said the automated letter had now been pulled from the system and people who had received the threatening correspondence in error would all receive written apologies.

  • 9 Comments »

    1.
    June 22, 2009
    10:42 am

    I too received a threatening letter from the ESB for a closing account balance of €26 after I switched to Airtricity - the letter threatening legal action arrived only days after I got the bill in the first place! What was so annoying is that after years of paying my ESB bill on time & in full, they would resort to this. I paid as soon as it was convenient for me, still waiting for the acknowledgment (hah). Incidentally I’ve saved an average of €20 since I made the switch.

    Comment by Karen
    2.
    June 22, 2009
    11:01 am

    Hi Conor, I sent you an email on April 29th about this practice.

    The ESB issued me with a solicitors letter as far back as then! This is the story of my experience with them:

    Following the launch of the Bord Gais electricity supply, we applied to be customers. I filled out the requisite forms at the thebigswitch.ie website.

    After some time, I received our final bill from the ESB. The final bill was based on an estimated reading. Dis-satisfied that they had not come to check our meter before closing our account, we rang their freephone number, 1850 372 372, because the meter reading was inaccurate and we were being over charged. The customer services woman I spoke to informed me that if I rang in the reading, a new, accurate bill would be issued, which we could then pay and the reading would be passed to Bord Gais.

    This occurred around March 19th.

    On Monday of this week, it occurred to me that we still had not received our final bill from the ESB, despite receiving the Bord Gais welcome pack, so it was on my mind to ring the ESB to enquire as to when we could expect our final bill to be re-issued.

    It was to great surprise today, that I opened a letter from a solicitor’s practice, warning me that the ESB requested final payment and proceedings would be issued against me were I not to pay. I was taken aback, no bill payment reminder from the ESB, no final demand notice, just straight to a solicitors letter.

    I rang the ESB immediately to ask why I had not received the new, accurate bill for which a reading had been submitted. I was informed that the final estimated reading was a reading that Bord Gais had issued to them. Unless Bord Gais have physic powers, I don’t think they would have had any idea what the final meter reading should have been, the ESB on the other hand had our bill records, which, by the way included an unblemished payment history. The ESB also told me we would recieve a new final bill, after we rang in with the accurate meter reading. Which I did - but no new bill. The ESB washed their hands of responsibility for readings taken from THEIR meters and told me that is what Bord Gais had given them, so despite the fact that I rang in a meter reading, that exercise was futile, and did not result in the issuing of a new bill.

    I asked why solicitors letters were being sent prior to reminders and was told that they (the ESB) didn’t send the letter! I read the text back to the customer services agent. I explained to her that I was extremely embarrassed to be receiving solicitor’s letters, that I had acted in good faith and was patiently awaiting the final bill, as I had been told a new one would be issued by the ESB. I mentioned to her that solicitors letters were an over-reaction given my credit history with the ESB. She did apologise, and I don’t think she was responsible for any of the correspondence we received, but someone in the ESB is responsible for the following failures:
    1) they estimated a reading to close an account
    2) they ignored a final reading given to them over the phone
    3) they did not issue a new accurate bill as they told me they would
    4) the did not issue a reminder bill

    To avoid any other threats, legal proceedings, solicitors letters and legal bills for damages and costs, I promptly paid what was outstanding.

    But to be honest, I find it completely over the top that the ESB who appear to be so bitter about losing customers, they are skipping issuing second bills for accurate readings, skipping reminder bills and skipping final notices and going straight to legal threats.

    It is completely OTT. I can’t believe so many others have experienced the same situation!

    Comment by Laura
    3.
    June 22, 2009
    11:38 am

    Me too. After switching, I got a solicitors letter for the €65 outstanding on my bill (which was already set up to be paid by internet banking over the coming week). I wonder how much the ESB paid their solicitors for these letters?

    Comment by Serial Complainer
    4.
    June 22, 2009
    11:48 am

    Not quite the opposite side of the coin here but I’ve just switched to Bord Gais and the ESB account was closed an a given date. As I had an online ESB account I could check the total due and deal with any arrears immediately. I feel it was my responsibility to close the ESB side of things as soon as possible, leaving no room for error. My accounts, my costs, my responsibility. If they were to send me such a letter or any demand for payment I will deal with that without getting all righteous.
    I have had reason in the past to call the account section of the ESB and each time I was dealt with not in a strictly professional manner but as a human - as a person who called with a concern. They were great.

    Comment by Rob
    5.
    June 22, 2009
    12:37 pm

    Typical Irish service…..dont miss the place at all…why is the last resort always agressive behaviour, threats and solicitors letters as a result of shabby business processes and bad regulation…..

    Comment by Frank
    6.
    June 22, 2009
    12:46 pm

    When I signed up to ESB last year I signed up for direct debit by internet well before the required date. A few weeks later I got a threatening letter saying they would report me to credit agencies for not paying my first bill. When I called to complain they told me it took longer for the direct debit to be processed by internet, so the billing department assumed I hadn’t organised payment. The lady on the phone told me to “disregard” the letter - which is impossible since it attacks me credit-worthiness.

    I sent a registered letter to complain and never received a reply. Very shabby.

    Comment by Steve K
    7.
    June 22, 2009
    2:12 pm

    ESB are being found out. I could reel off countless tales of their incompetence but I dont need to. Seems everyone has a story.

    Comment by Keith
    8.
    June 22, 2009
    2:27 pm

    I haven’t received a solicitors letter yet after switching. I did however get a final bill for 900 euro! I’m hoping that’s a mistake and not down to poor metering estimation up to now.

    Comment by Peter
    9.
    June 24, 2009
    11:26 pm

    Well ESB are just too expensive! Also, they apply a deposit of €400 to new accounts refundable after 14 months which is a farce. When I told them by email that I was switching, they couldn’t have been more indifferent. It must be super fantastic to work in an organisation cossetted from reality, where employees are massively paid and still get pay increases!

    Comment by Peter B

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