Does being in credit earn your fuel supplier interest which they keep?

scowlingattrees

Hi

First post and a bit nervous but I'd be grateful if someone could tell me what the policy is of fuel suppliers in general regarding the issue of being in balance credit with energy supply. I am currently in credit with my LPG supplier to the tune of nearly £120. I pay by d/debit. Is it the case that my £120 will be earning them interest which goes in their coffers?

I tried to ask this question of my supplier via e-mail (amongst many others but it was ignored). I know some energy companies like OVO claim not to do this, or to pass such earnings back to the customer.

thanks

macman

It's up to any company where they invest their surplus cash-why would they not do so in a way that earns them interest?
Surely the point is to reduce your DD if you are running a credit that is too high?

dogshome

You have accidently posted in the wrong area - There is an LPG forum alongside the Gas/Elec.

However OVO and your LPG supplier are not comparable as OVO are regulated by Ofgem - I think there is a body for LPG - do a search, but the LPG market seems to be akin to the Wild West.

Unless your supplier is offering a good discount for D/Debits, there seems little point in paying that way
If you are on bottled gas you should be ringing around for the best price when you need it - If you have a tank that is re-filled, then you're already aware that the selling policy is "Stand & Deliver"

G_M

Some companies do pay interest on credit balances - you need to look at the terms of the contract they offered and which you agreed to!

If it is not mentioned, then no. They hold the money and can do as they wish with it.

There was an example some time ago I recall of an oil supplier who offerred a monthly payment contract which included credit interest which was higher than any banks were then offering. Some punters were signing up and using it as a more profitable home for their savings than a bank savings account.....

LittleVermin

scowlingattrees wrote: »

Hi

First post and a bit nervous but I'd be grateful if someone could tell me what the policy is of fuel suppliers in general regarding the issue of being in balance credit with energy supply. I am currently in credit with my LPG supplier to the tune of nearly £120. I pay by d/debit. Is it the case that my £120 will be earning them interest which goes in their coffers?

I tried to ask this question of my supplier via e-mail (amongst many others but it was ignored). I know some energy companies like OVO claim not to do this, or to pass such earnings back to the customer.

thanks

dogshome wrote: »

You have accidently posted in the wrong area - There is an LPG forum alongside the Gas/Elec.

However OVO and your LPG supplier are not comparable as OVO are regulated by Ofgem - I think there is a body for LPG - do a search, but the LPG market seems to be akin to the Wild West.

.....

Welcome to the forum - and yes, you have posted in the right one! It's called "LPG, Heating Oil..."

There is NO comparable body to Ofgem for LPG (neither for bulk LPG nor for bottles) ...so two pieces of duff info in one post - maybe the originator needs to go into the doghouse.

I've never heard of an LPG supplier paying interest - unlike at least one heating oil supplier, as G_M mentions.

Why not post your bulk LPG experiences in the "Bulk LPG ....... " thread (here) - who your supplier is, how much you use, what area you're in, etc. Useful info for others - and maybe some useful feedback for you too! Just log in, click on "Post Reply" and write.
..

frankie

scowlingattrees wrote: »

Hi

First post and a bit nervous but I'd be grateful if someone could tell me what the policy is of fuel suppliers in general regarding the issue of being in balance credit with energy supply. I am currently in credit with my LPG supplier to the tune of nearly £120. I pay by d/debit. Is it the case that my £120 will be earning them interest which goes in their coffers?

I tried to ask this question of my supplier via e-mail (amongst many others but it was ignored). I know some energy companies like OVO claim not to do this, or to pass such earnings back to the customer.

thanks

Ditto welcome to the forum.

I went through something like this with Calor. I just told them to refund the money (approx£140), stopped paying by dd and would pay on delivery. Simply put the equivant DD amount into an interest bearing account(if you can find one!) then use that to pay for your next delivery. (I'm assuming you have bulk lpg)

As Calor gives no discount for paying by dd nor for going paperless (as on grid companies do). I get paper statements too.

Don't forget though you will have to pay out for your tank rental as well as the bill comes in.

It would be useful if you could post who your supplier is, where you live and how much you pay per litre as this will help other lpg users too. See bulk lpg sticky for much more info.

scowlingattrees

Thanks to all these initial responses and special thanks to Little Vermin and frankie. I will move to the bulk lpg thread. I have serious problems with my supplier. I am disabled. They broke the terms of my contract in September and I have consequently faced a winter with virtually no heating whilst they drag their feet over my complaint. The lack of a regulator for LPG makes it very difficult for consumers to get any protection. Sorry I will carry on in the right place.