ovo/first utility

tightyorkie_2

These companies, new on the scene, are offering low terms to attract customers from the established oligopoly.
It seems attractive to join them to improve the competition, and probably get better service (provided they don't get overwhelmed).
I can't remember from the times when the old nationalised system was broken up: what happens to your supply if the supplier goes bust? As a small new entrant might if it gets its purchasing wrong (like Centrica did a few years ago, but just put its prices up)

Bark01

In the case of a company going bust I think the contracts get sold to whoever bids the highest for them, but presumably you would be also be free to leave.

Although the forecast is for higher prices there isn't an expectation that prices will rise steeply as a result of wholesale prices.

Paying for the Nukes, thats a different matter but Ovo et al. won't be footing the bill fo it.

Its much more likely that they will look to sell up to one of the big six at somepoint in the next 5 years and turn a tidy profit before going bust.

tightyorkie_2

Thanks, I agree with you. I will probably switch as a matter of principle, hope for the best, and perhaps risk some hassle.

Cardew

At privatisation there were dozens of companies who jumped into the market. The majority of them couldn't make it pay so just transferred their customers to one of the Big 6.

They keep some names e.g. Virgin and Sainsbury but they are not operating as a supplier, others like London Energy folded and passed their customers to the Big 6.

Haarlem

tightyorkie wrote: »

These companies, new on the scene, are offering low terms to attract customers from the established oligopoly.
It seems attractive to join them to improve the competition, and probably get better service (provided they don't get overwhelmed).
I can't remember from the times when the old nationalised system was broken up: what happens to your supply if the supplier goes bust? As a small new entrant might if it gets its purchasing wrong (like Centrica did a few years ago, but just put its prices up)

If you feel the company may go bust, consider what will happen to any credit balance you may have with them. You will be just an unsecured creditor in the queue for any payment.

A few years ago Amerada Hess were my supplier, and they went bust. For a few weeks it looked as if I had lost my credit balance with them, until Powergen took over their customers and honoured any credit balances

Doc_N

Haarlem wrote: »

If you feel the company may go bust, consider what will happen to any credit balance you may have with them. You will be just an unsecured creditor in the queue for any payment.

You make a very useful point, there - and one I hadn't considered. Was considering a switch to First Utility but poor customer service, and onerous T&C such as this:

If, once the AMR meter has been successfully installed, we are required to re-visit your premises to reposition it or install any additional equipment to it in order to re-establish the connection or signal to the meter, you will bear the reasonable costs of this work.

have persuaded me otherwise. The risk to credit balances is one more to add to the list!

Premier_2

What if there's a debit balance?

Doc_N

Premier wrote: »

What if there's a debit balance?

If there's a debit balance the administrators would chase it on behalf of the creditors.

Premier_2

Doc_N wrote: »

If there's a debit balance the administrators would chase it on behalf of the creditors.

Well if you've a credit balance, you'd be one of the creditors

..albeit perhaps one of the last in the list.