Can we switch energy suppliers?

daveandjadea

I'm currently with NPower for my electricity - I was being billed quarterly and paying in full before it was due, which was fine until I lost my job then a large electricity bill was more of a problem.

I reduced my use and struggled with payment plans, but this saw my debt with NPower getting higher and payments were too high for me to manage while on JSA. CAB advised me my only option was to get a Debt Relief Order which put my debt with NPower on hold...but then another bill came along so I was in exactly the same situation, only now I may as well be bankrupt to boot.

I attempted to switch to a cheaper electricity supplier last year - not just to attempt to save money but because NPower's customer service has been truly terrible. However the new supplier informed me that I could not switch because I had a debt with NPower - I had thought I could have switched to the cheaper supplier, then paid NPower back with a payment plan or token payments until I was employed again.

I'm currently paying via Fuel Direct (payments coming out of JSA)

Questions;

1. Is it correct that I cannot switch to a cheaper supplier while I owe money to my current supplier?

2. Someone else is moving in with me, could we cancel my electricity account and have it in their name so we can use a cheaper supplier?

2A. While living with someone else I won't have benefits so wouldn't be to pay NPower - I'd have to get my partner to pay this for me until I'm working again, but he's on low-income so would they take that into consideration when arranging payment amounts?

3. Would it just be easier for us to stay with NPower for now?

I'll admit total ignorance as I've not had to deal with debt like this or unemployment before, all this along with the fuss of moving in with someone else and what that means for benefits etc. means I really don't know what is best for these sort of things. It's all so confusing!

daveandjadea

Please be nice, lol

Any other ideas on how to deal with electricity bill debt would be appreciated, although I doubt much else can be done but to stay with NPower and have them arrange some sort of higher payment.

keith1950

Hi I am sorry but from what I have read and understood, you will not be able to switch and also Npower will not let the debt continue to rise.


With respect to your suggestion about someone else moving in and taking over the supply, you would have to do this on the basis that npower thought you had moved out and he was the new householder so your question-

2A. While living with someone else I won't have benefits so wouldn't be to pay NPower - I'd have to get my partner to pay this for me until I'm working again, but he's on low-income so would they take that into consideration when arranging payment amounts?

-would be irrelevant, they would have to think that he was the new householder and you had left, you cannot have the best of both worlds. I very much doubt they would let him take over the supply if they knew he was your boyfriend and you were still living there and also expect them to allow him to run into arrears , they would expect him to pay for his actual useage in full.

It would appear you are in a no win situation, Npower can always block any switch as long as you are the householder and in arrears, if he takes over then as far as they are concerned it is nothing to do with you and he would have to pay the bills in full and they would chase you for your debt.

If you are going to do anything like this you have got to think it out clearly.

spiro

Questions;

1. Is it correct that I cannot switch to a cheaper supplier while I owe money to my current supplier? No you cant they will continue to legally object to any change of supplier notification.

2. Someone else is moving in with me, could we cancel my electricity account and have it in their name so we can use a cheaper supplier? They would want details of were you are moving to. They may also want to see tenacy agreement for new tenant. Suppliers are wise to this as unmarried couples used this trick you years saying 'Mr A Smith no longer lives here'.

2A. While living with someone else I won't have benefits so wouldn't be to pay NPower - I'd have to get my partner to pay this for me until I'm working again, but he's on low-income so would they take that into consideration when arranging payment amounts? Haave you worked out how much income you will loose (benefits, housing benefits, reduced council tax) against their income? As they will no longer get the money directly from your JSA it is highly like that NPower will want to install a ppm, however as you previously paid on bill the will be about the same and there is no chance of you building up more debt. There are 2 ways to end up with a ppm; forced, if they need to go to court to get a warrant all these costs will be added to you debt or voluntary, lot easier and less stressful for you. You could even ask NPower to fit one. They will take all income and reasonable outgoings into account when setting a debt recovery rate, this is included in their licence for when ppms are used to recovery date. It can be as low as a few pounds per week per fuel.

3. Would it just be easier for us to stay with NPower for now? You have no choice you have to stay with NPower.

daveandjadea

spiro wrote: »

Have you worked out how much income you will loose (benefits, housing benefits, reduced council tax) against their income?

Yes, not to hand but it's a loss and is made all the more of a loss by the fact that all my bills and debts will no longer be frozen - it's impossible for us to attempt to figure out income/outgoings until we take the leap and see what they decide to charge us.

spiro wrote: »

As they will no longer get the money directly from your JSA it is highly like that NPower will want to install a ppm, however as you previously paid on bill the will be about the same and there is no chance of you building up more debt. There are 2 ways to end up with a ppm; forced, if they need to go to court to get a warrant all these costs will be added to you debt or voluntary, lot easier and less stressful for you. You could even ask NPower to fit one.

I'm assuming by PPM you mean a Pre-Payment Meter - they can't install one, I tried to get one installed when the debt first became a problem, but as it's a flat the way it's set-up (with the meters downstairs in shared entrance) we can't have a pre-payment meter.

spiro wrote: »

You have no choice you have to stay with NPower.[/COLOR]

*sigh* Thanks for the answer, alas this is yet another way people stuck on low income are prevented from getting back on their feet

Premier_2

daveandjadea wrote: »

...I'm assuming by PPM you mean a Pre-Payment Meter - they can't install one, I tried to get one installed when the debt first became a problem, but as it's a flat the way it's set-up (with the meters downstairs in shared entrance) we can't have a pre-payment meter.

There may be techical reasons why they cannot install a PPM, but I don't think it's for the reason you give.

Around here we have some large old Victorian houses that have been converted to flats and all their meters are located together on an outside wall. I can see most of them are PPMs.

daveandjadea wrote: »

*sigh* Thanks for the answer, alas this is yet another way people stuck on low income are prevented from getting back on their feet

You owe the supplier money for energy you have used and not paid for. It is only by you remaining their customer that they can hopefully get that debt off you ... although usually that is via a PPM. If it is by a payment plan on a credit meter, at least they know it's one to watch and failure to keep to that agreed plan will result in further action. As an industry, they don't want you walking away from the debt and starting afresh with a new supplier who doesn't know you left the last one without paying. An alternative way to look at it (if the sytem were to change) would be that a new supplier may not want to extend credit/supply someone who hasn't paid their way in the past.

What you could do though is change to a lower cost tariff with your supplier as it doesn't sound like you are on the best deal. If you really want to leave the current supplier, you will need to raise the funds somehow to settle the existing debt.