quick question about switching suppliers - payment to supplier you are leaving?

latecomer

I've just signed up online to switch to Eon from scottish power but I've got a quick question.

As of our reading last week we are £40 in debt (currently overpaying by about £50 a month over usage to make up for a deficit over the winter). We pay a fixed monthly amount by direct debit. I noticed that they say that if you owe your supplier money they can slow the switch or block it but as most bills are paid in arrears surely most people will owe money to their current supplier at any given time?

I was presuming that there would be a final bill generated and that this would clear the balance for the switch to take place. Can anyone confirm exactly what happens and what if anything we need to do.

Cardew

Provided you do not have a big debt, they won't block your switch(£40 is not big!)

You will get a final bill from SP and they will take that amount by Direct Debit.

latecomer

thanks for the confirmation - thats exactly what I hoped would happen

SwanJon

Cardew wrote: »

Provided you do not have a big debt, they won't block your switch(£40 is not big!)

More important than the size of the debt is the age. As far as I am aware, they can only object if the balance has been outstanding for more than 28 days and technically they can object for anything over £1, but it's not worth it.
If you are on a payment plan, the balance is often not seen as outstanding anyway, and in OP's case the £40 is less than 1 month's payment, so it's less than 28 days old.

undaunted

The rules just seem a mess to me -

If you are on a pre payment meter & owe upto £200 they can't stop you switching (with debt transferred to new supplier, though that same mechanism isn't there for DDI or cash / cheque customers)

If not on a pre payment meter the ombudsman may use this £200 as a guide (I have seen that happen)

If not on PPM debt can be as big as you like but if you haven't owed the money for 28 days you can still switch

If you owe less but for more than 28 days & don't go the ombudsman the company may well just do as it likes

If you're in debt but then get out of debt within 30 days and had been told of a price increase causing you to want to switch you can now avoid that increase

If it's the suppliers fault you are in debt you can still transfer (but only if the supplier admits it's their fault I suspect!)

If you are a business consumer rather than a domestic consumer different rules again.

Makes me wonder whether anyone at Ofgem really knows what they are doing? :rotfl: