switchin with arrears on account

waltersdnl

Hi, this is the first time I posted so I apologise if this is a daft question or if its been answered many times before, I have looked but I can find my answer.

I am currently with npower and am looking to switch suppliers.

I currently pay £135 per month for gas and electricity!! and haven't switched for 10 years + according to uswitcjh I can save £350 per year by oing with eon. I am on a direct debit which is fixed over the year.

my question is i have enquired with npower and they say I am £200 in arrears on my account based on the latest reading, which was a shock! as its the summer time and I havne;t had the heatin on for 6 months! I think Im bein riped off, its a 3 bed terraced with DG insulation etc...

I don;t have the extra cash to settle with npower so what happens if I switch to the arrears?? as it stands I am looking at £200 to npower + the monthly payment of £135 and the new paymet to EON, best part of £450 which will cripple me next month. how is this best jugled? I am sure im not the first person to switch with a arrrears on account.

thanks for reading and I look forward to your advice.

waltersdnl

jalexa

waltersdnl wrote: »

I am currently with npower and am looking to switch suppliers.

my question is i have enquired with npower and they say I am £200 in arrears on my account based on the latest reading, which was a shock! as its the summer time and I havne;t had the heatin on for 6 months! I think Im bein riped off, its a 3 bed terraced with DG insulation etc...

First of all you are not in "arrears" (or debt) by virtue of an account debit balance just as long as you are maintaining the agreed direct debit schedule. I hope that is the situation you are describing because an account debit balance at the end of the summer is "bad news" (your payment is not high enough) and very unlike NPower to have allowed to occur.

There is another approach you might take. The biggest savings are not (only) by changing supplier but by being on the most cost effective tariff. Go to a Consumer Focus accredited comparison website, enter your actual annual consumption and the *exact* name of your current NPower tariff and look for a cheaper NPower tariff. Almost certainly there will be one but be aware the annual discount may be something you already benefit from (assumimg you stay long enough to earn it).

Post again if you have other questions.

Premier_2

waltersdnl wrote: »

Hi, this is the first time I posted so I apologise if this is a daft question or if its been answered many times before, I have looked but I can find my answer.

I am currently with npower and am looking to switch suppliers.

I currently pay £135 per month for gas and electricity!! and haven't switched for 10 years + according to uswitcjh I can save £350 per year by oing with eon. I am on a direct debit which is fixed over the year.

my question is i have enquired with npower and they say I am £200 in arrears on my account based on the latest reading, which was a shock! as its the summer time and I havne;t had the heatin on for 6 months! I think Im bein riped off, its a 3 bed terraced with DG insulation etc...

I don;t have the extra cash to settle with npower so what happens if I switch to the arrears?? as it stands I am looking at £200 to npower + the monthly payment of £135 and the new paymet to EON, best part of £450 which will cripple me next month. how is this best jugled? I am sure im not the first person to switch with a arrrears on account.

thanks for reading and I look forward to your advice.

waltersdnl

Arrears at this time of the year is, as you say, bad news.

But all is not lost .
I don't believe you are actually in debt (but you may owe the supplier for energy you have consumed). A supplier can only refuse a switch away if you are in debt to them.

Now the important bit:
A debt is not a debt until at least 28 days after it has been formally demanded

i.e. billed.
So unless you have already been billed saying they want the £200 from you, then you are not in debt. So switch away and save yourself £350 a year

However, soon after switching switching, you will be presented with a final bill from the outgoing supplier, and that appears to indicate you will owe them £200. They will normally want paying this without delay ... but you may be able to negotiate a repayment plan over a few months if really need to.

jalexa

Premier wrote: »

So unless you have already been billed saying they want the £200 from you, then you are not in debt. So switch away and save yourself £350 a year

Yes, but I don't believe Eon will save £350 over what the OP could save on a more cost effective NPower tariff, avoiding the one-off £200 hit (and potentially losing an existing bonus). The OP states to have been with NPower for 10 years. I fear on a standard tariff.

chanz4

have a look at their online tarrifs, they normaly object at random but belive most is £100 buffer