Switching Supplier Made Easier For People In Debt To Existing Supplier.

Terrylw1

jalexa wrote: »

That is a very interesting heads-up on I assume "embargoed until this morning" news. At the time of posting the Ofgem website doesn't list the press release.:( Guess an incompetent Ofgem press office "suit" doesn't work Sundays.

Does this measure only apply to pre-payment debt? What about credit meter debt?

Does the losing supplier receive a 90% lump sum credit from the gaining supplier? That would vastly benefit their cash-flow. Surely it can't be as simple as that.

Credit meter debt is defined as Outstanding Charges. Its not transferred as it doesn't affect the balance of the meter.

Is 10% really such a loss is my question. They might spend more in managing this type of customer? Given debt collector can often be about making settlements, its probably seen in the credit portfolio as getting a smaller X is better than collecting nothing or the same X for more effort.

Terrylw1

Cardew wrote: »

Perhaps!

Can the 'new supplier' block a further move by the customer once the debt gets below £500?

Or can the customer move from company to company, especially if there are 'inducements' for switching - Do Quidco etc and Comprison websites offer cash-back for pre-pay customers?

Can a prospective new company refuse to take on a customer?

The new supplier can only object inline with SLC14, so if the PPM debt is still below the limit set in SLC14, there is nothing they can do about it.

A supplier can give notice on a customer to terminate them however this clause seems to just be in there for the sake of it otherwise it would cause "shipperless" sites...and there is no industry process that allows a supplier to even achieve this since it would cause energy to become free to customers.

davidgmmafan

I really dont understand what the point of this is. What evil is it rmto remedy? Ofgem seems pleased that disconections are down. Prepayment is an alternative to disconnection.

I also dont see why prepayment customers should be allowed to switch when owing £499 when a credit customer cannot.

If the issue is that prepayment customers arent changing suppliers i cant see how this helps. Are there thousands of posters on here wishing to change supplier but unable to due to a prepayment debt?

Perhaps this is why ofgem achieves so little. When it does act it is muddled. When it looks for problems it looks in the wrong place.

flobert1812

I don't have any debt on my pre-payment meter, it was in when I moved in and they said it would cost me circa £40 to have it changed to a monthly direct debit bill, I lose out on the discount given for paying both by direct debit, will this mean I can change without having to pay the charge to have it changed to monthly direct debit????

spiro

flobert1812 wrote: »

I don't have any debt on my pre-payment meter, it was in when I moved in and they said it would cost me circa £40 to have it changed to a monthly direct debit bill, I lose out on the discount given for paying both by direct debit, will this mean I can change without having to pay the charge to have it changed to monthly direct debit????

NO this applies to being able to change supplier not your meter, you need to find a supplier who will agree to change your meter for free.