15/03/2012

Bord Gáis Lose €3.3m In Billing Error

Bord Gáis have confirmed a billing mistake made by an employee last autumn will cost the company €3.3 million.

Over the winter months almost 60,000 customers were undercharged by an average of €60 each. Bord Gáis have said they will absorb the costs resulting from the mistake.

Bord Gáis Energy is the only company to have its gas prices controlled by the Commission for Energy Regulation.

The company applied for a price increase of 28 per cent last year but was only given the green light for an increase of just 21.7 per cent. The increase came into effect at the beginning of October 2011.

The increase pushed the average domestic gas bill of €720 a year to almost €900.

As the company’s computer systems were being updated an increase of less than half the sanctioned amount was applied to the accounts of 57,000 pay-as-you-go customers.

“Unfortunately, human errors were made in the price update instruction process, which have led to the undercharging,” a spokesman told the Irish Times.

The extent of the mistake only came to light some five months later when a review was carried out by the company’s revenue department after it saw an unexpected shortfall in income.

“In view of the fact that the fault for the error lies entirely with Bord Gáis, the company will not be asking PAYG customers to pay for the undercharge to their accounts and will absorb the full costs. The correct prices will be applied from March 15th, 2012,” the spokesman said.

The review also revealed a number of customers who had been overcharged by an average of €51. Those customers will be reimbursded.

(H)


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