How much debt can you carry over to new supplier?

nugget2407

I'm currently switching my electric from Southern Electric to Scottish Power and have been informed by SP today that SE have 'objected' to transferring my supply. No reason given in the letter. There is some debt with SE as I was paying regularly by direct debit on a fixed amount (based on estimates over a long period!). I have not missed any monthly payments either. On asking SP if I could transfer all my debt they informed me that I could, no matter how much, but now I have this letter, which I think relates to this debt. I cannot call till Monday morning to confirm my suspicions, but was wondering if anyone knew if there was a limit on how much one can carry over to a new supplier. Just have a feeling SE are being a little awkward here as I've decided to leave them. Any advice would be most appreciated.

glasgow_DFW

you cannot transfer any outstanding balance from one energy co to another

Cardew

The losing firm(SE in this case) will normally object to a transfer if you owe them money.

I am not certain what you mean by transferring debt. You have used electricity from SE and owe them money. Why would they allow you to not pay them the money you owe them, and allow you to pay that money to SP?

SwanJon

There is (was?) a scheme that allowed the incoming supplier to buy the debt from the outgoing supplier, but as far as I was aware this was only for PP meters, the idea being that even with a balance you can still change supplier. I've not heard anything about it for acouple of years.

I'm not sure if anyone has ever succesfully managerd this though.

1carminestocky

Simple answer is none! That's why new customers should be VERY careful when accepting their new suppliers suggested DDs. Invariably, energy companies, so people have alledged , appear happy to allow new customers to run up a decent debit balance in order to preclude them from switching companies. A debit balance would inevitably cost less for the energy company to 'manage' than allowing the customer to leave..

paulonline123

you can switch supplier with any amount of debt provided that debt is not over 28 days old. If it is they can stop you moving for 5 pounds if they want although mainly they don't.

That said I have seen people move supplier with a debt of over a thousand pounds that's been owed for months.

Bit of an inexact system.

As for moving debt from one supplier to another, I know that BG don't do this and nPower didn't although its been a couple of years since I worked for them

1carminestocky

paulonline123 wrote: »

you can switch supplier with any amount of debt provided that debt is not over 28 days old. If it is they can stop you moving for 5 pounds if they want although mainly they don't.

That said I have seen people move supplier with a debt of over a thousand pounds that's been owed for months.

Bit of an inexact system.

As for moving debt from one supplier to another, I know that BG don't do this and nPower didn't although its been a couple of years since I worked for them

Sorry, have to clarify this one. Are you saying it is entirely possible to switch from one supplier to another (SUCCESSFULLY) when you owe the supplier you are leaving money and have no way of paying it in full?

brysiewysie

1carminestocky wrote: »

Sorry, have to clarify this one. Are you saying it is entirely possible to switch from one supplier to another (SUCCESSFULLY) when you owe the supplier you are leaving money and have no way of paying it in full?

I see it day in day out and I'd agree it seems hit-and-miss. I've seen terms and conditions that state debt must be under £10 and a transfer is rejected for that reason but then come accounts with hundreds of pounds debt are allowed to leave/join.

The problem for the customer is then that the whole of the 'closed' debt can be chased very quickly and repayment required over much shorter timescales that the customer could have been allowed if they had stayed wherethey were.

45XKM

You can not transfer a debt from one energy supplier to another, how ever if you owe less than £100.00 you can switch supplier providing you have made arrangements to pay the £100.00 owed to the supplier that you are leaving. This is my understanding you can check with Energy Watch. www.energywatch.org.uk

brysiewysie

45XKM wrote: »

You can not transfer a debt from one energy supplier to another, how ever if you owe less than £100.00 you can switch supplier providing you have made arrangements to pay the £100.00 owed to the supplier that you are leaving. This is my understanding you can check with Energy Watch. www.energywatch.org.uk

Some suppliers may apply those rules sometimes but it's not consistent. I see this every day at work. I agree I've never seen a case where debt is transferred even though it is supposed to be possible.

fatlad1971

brysiewysie wrote: »

Some suppliers may apply those rules sometimes but it's not consistent. I see this every day at work. I agree I've never seen a case where debt is transferred even though it is supposed to be possible.

me either

suppliers seem to be finding any excuse to object at present
many times they put the objection down to a system or process error
at present the systems just isnt working as the regulator envisaged