Caveat Emptor - Direct Debit Credit Balances

Troff

A recent utility bill shows that I have built up a large credit balance following a 50% hike in my monthly payment. My utility company's policy - as described to me by their customer services - is not to return credit balances at annual review unless the customer rings up about it. On further investigation with the OFT it would seem that credit balances held by utility companies have no additional protection. It follows that if a utility company goes into administration (unlikely I know but remember Enron) then customers with a credit balance may get less back than they thought they would. I, for one, will be keeping a closer check on my credit balance in the future.

Premier_2

Troff wrote: »

... It follows that if a utility company goes into administration (unlikely I know but remember Enron) then customers with a credit balance may get less back than they thought they would. I, for one, will be keeping a closer check on my credit balance in the future.

No. Were they ever a licenced energy supplier within the UK?

I do remember LLoyds TSB though as you referred to in your previous post.
http://forums.moneysavingexpert.com/showpost.html?p=19633549&postcount=8

They still were trading today and I don't seem to have lost any money through them yet.


Is there a spelling error in your username? :cool:

tripled

I think Enron used to supply business customers in the UK although I can't remember the trading name they used.

Ahhh, here's something: http://www.ofgem.gov.uk/Media/PressRel/Archive/1257-r9301_4dec.pdf

Troff

Tripled - thank you. I was just suggesting that organizations once thought too large to fail are now falling like 9 pins. My point was simply that large credit balances might be lost if your energy company fails; therefore, it pays not to overpay. I would also suggest that energy companies need to provide more detail to customers at the time of annual and any subsequent DD reviews.

PS BizzEnergy also went into administration.

energyadvocate

just to clarify, if your paying by DD, thats as you say is an annual payment scheme, inwhich your paying towards your annual usage, not your quarterly. you will naturally build up credits and equally debits on the account through out the year. yeah you dont get these automatically refunded to you, but simalarly your supplier dont ask you to pay the bill when your in debit.
my suggestion would be that of you dont really like having credit on your gas or electricity account that a monthly direct debit is probably not the best option for you

Cardew

Troff wrote: »

A recent utility bill shows that I have built up a large credit balance following a 50% hike in my monthly payment. My utility company's policy - as described to me by their customer services - is not to return credit balances at annual review unless the customer rings up about it.

BG's policy used to be that credit balances of over £100 were returned at annual review; don't know if that is still their policy.