Switching Process Favours the Energy Companies

sterlingsafeguarder

I am currently helping my mother-in-law to switch supplier from SE to EDF. The electricity and gas are switched on different days. The former switch went well, and she received a final bill. She was in credit, but the money would take 2 weeks to transfer-why that long??
As regards her gas I duly sent EDF a meter reading on the switchover day (2nd Oct) and thought no more about it until I noticed a direct debit of £54 from SE debited from her account on the 15th Oct for gas. I rang up SE and was told by a customer rep that they had not received the reading from EDF and so couldn't close the account- hence the DD. I was advised to contact her new supplier. This I duly did and was informed that EDF had sent the final gas meter reading to SE on 7th Oct, and that this had been acknowledged by SE. By now,quite annoyed, I rang back SE whose CRep maintained there was no reading and they would have to follow procedures and wait for confirmation of the reading from EDF. On requesting to speak to a supervisor, matters soon resolved themselves however, and it transpired that SE had had the reading from EDF after all. She apologised and said a final gas bill would be on its way shortly. SE had no legal right to take a direct debit from her account because at the time the accounts with her new supplier were live and therefore their DD mandate was void from that point. SE owe her over £160 and wanted to wait until the end of the month to reinburse her- I insisted on a cheque sent immediately. Such are the wily ways that Energy companies try to hold onto our cash. If I hadn't been alert she'd be waiting a very long time to get her money back. Anyone had similar problems with leaving SE.

Wywth

sterlingsafeguarder wrote: »

I am currently helping my mother-in-law to switch supplier from SE to EDF. The electricity and gas are switched on different days. The former switch went well, and she received a final bill. She was in credit, but the money would take 2 weeks to transfer-why that long??
As regards her gas I duly sent EDF a meter reading on the switchover day (2nd Oct) and thought no more about it until I noticed a direct debit of £54 from SE debited from her account on the 15th Oct for gas. I rang up SE and was told by a customer rep that they had not received the reading from EDF and so couldn't close the account- hence the DD. I was advised to contact her new supplier. This I duly did and was informed that EDF had sent the final gas meter reading to SE on 7th Oct, and that this had been acknowledged by SE. By now,quite annoyed, I rang back SE whose CRep maintained there was no reading and they would have to follow procedures and wait for confirmation of the reading from EDF. On requesting to speak to a supervisor, matters soon resolved themselves however, and it transpired that SE had had the reading from EDF after all. She apologised and said a final gas bill would be on its way shortly. SE had no legal right to take a direct debit from her account because at the time the accounts with her new supplier were live and therefore their DD mandate was void from that point. SE owe her over £160 and wanted to wait until the end of the month to reinburse her- I insisted on a cheque sent immediately. Such are the wily ways that Energy companies try to hold onto our cash. If I hadn't been alert she'd be waiting a very long time to get her money back. Anyone had similar problems with leaving SE.

The DD mandates are not void simply because you were being supplied by a new supplier.

Depending on timing, it is quite usual for the final bill to include a collection by DD after the actual switching date.

You are refunded any credit after the final bill is created. The supplier doesn't know if you are in credit or debit (and hence whether they owe you money or you owe them money) until the final bill is created.

sterlingsafeguarder

Thanks for the prompt reply Wyth.
My point is that SE had the final meter reading on 7th Oct from EDF and so could go ahead to produce the final bill. They would have known my mother-in-law was in credit from that date, on her gas account and so they should not have debited her bank account on the 15th Oct, by virtue of having all the facts at hand, well before that date.

Terrylw1

Another industry grey area really.

The idea is that you would be in debt for the final bill but in reality you could already be ahead of that with your credit so they take it when they know it would be for energy purchased after the final reading.

Personally, I think they should freeze until the final bill is generated but until Ofgem add a condition about this, they will be all too happy to keep earning interest and not caring about the 2 DD's in the same month issue.