Switched to ISupply Energy - and they've taken £70 UP-FRONT! What are my rights?

GeorgeRob

Hi,

I just used Uswitch to switch to ISupply Energy as they had the cheapest tariff. I just gave my opening meter read today, and checked my bank account as I do every day, and they've taken £70 up-front, before I've even used a single KW!

After reading through their FAQ, at the very bottom they say you "may" be liable for a "booking fee" to help them buy their energy "more efficiently". In other words, they take a load of capital upfront off everyone.

So this month, not only do I have to pay for my elec bill for my current company, but also the same again to iSupply! I'm trying to save for a short break in september and this has ruined the chances of that.

The thing is, this was not mentioned at any point in the switching process, either by them or by USwitch. So I tried calling them - was put on hold for 20 min, told I was "position 1" in the que, and then abruptly went to an answerphone message. I left a complaint. I want to abort the switch process and get my £70 back - and I know there is a 14 day cooling off period with switching - but does this begin from the day I started the process or from the day of my first meter reading?

Also, what does anyone think are the chances of getting my £70 back ASAP?

Has anyone else dealt with iSupply?

MillicentBystander

One of the problems of going with one of the real minnows, I guess. This is why it is very important that you read ALL the small print plus I do think it should be incumbent on switching sites to make it clear if there are any 'unusual' quirks of the company you are potentially signing up to. But at the end of the day they are all in it o make money so don't hold yer breath...

GeorgeRob

Thanks for the reply. Yes I agree, I would've known about this from reading the small print. But as you say, they should make it very clear that they're taking your entire first month's bill upfront - it's quite a large issue, and if I had been made aware of that when using USwitch to compare then I *Definitely* would not have chosen them in the first place. Also, just read in my welcome email from iSupply that their cooling off period is only 7 days, and it appears that starts from the day of that email.. 3 weeks ago. Ridiculous, as why would there be anything at that point to make you change your mind?

Nada666

I think you are making a ridiculous amount of fuss about very little. Switching suppliers usually does involve a double payment and paying off the balance from your previous supplier. You receive a quote and apply to switch you should expect to be debited within days. Sometimes it takes weeks but there really should not be any surprise if it does not take as long.

The cooling off period is from when the two parties agree to the contract - as you applied to them it is from when they replied and accepted. Why is this "Ridiculous, as why would there be anything at that point to make you change your mind"? You have seven days to read the contract. If you choose not to bother then why complain?

macman

Since you submitted a meter reading, you are presumably now on supply with the new company, so way beyond the cooling off period, which commences when you sign up, not when you switch.
I don't think this payment is a 'booking fee' (never heard of that one)-it's your first month's DD. Is £70pm what was agreed with them when you signed up?
Many utilities require payment a month ahead. All telcoms, pay TV, etc.
The difference with power utilities is that they usually offer you a choice of dates in the month when your DD is taken. Did not yours? If so, what was the date agreed?

Nada666

Also, afaics, they only offer a fixed tariff with an early leaving fee of £30. However their prices do seem reasonable.

Wywth

GeorgeRob wrote: »

Hi,

I just used Uswitch to switch to ISupply Energy as they had the cheapest tariff. I just gave my opening meter read today, and checked my bank account as I do every day, and they've taken £70 up-front, before I've even used a single KW!

After reading through their FAQ, at the very bottom they say you "may" be liable for a "booking fee" to help them buy their energy "more efficiently". In other words, they take a load of capital upfront off everyone.

So this month, not only do I have to pay for my elec bill for my current company, but also the same again to iSupply! I'm trying to save for a short break in september and this has ruined the chances of that.

The thing is, this was not mentioned at any point in the switching process, either by them or by USwitch. So I tried calling them - was put on hold for 20 min, told I was "position 1" in the que, and then abruptly went to an answerphone message. I left a complaint. I want to abort the switch process and get my £70 back - and I know there is a 14 day cooling off period with switching - but does this begin from the day I started the process or from the day of my first meter reading?

Also, what does anyone think are the chances of getting my £70 back ASAP?

Has anyone else dealt with iSupply?

You have the right to switch supplier if you don't like the way the supplier you chose operates.
(An early exit fee may apply)

Some small suppliers do charge monthly in advance. (it keeps their costs down)
However, you are required to be provided with advance notice of the amount and date of any collection by DD. If they failed to provide you that, you are fully covered by the terms of the DD guarantee. Any claim under that guarantee should be made direct to your bank, whgich will result in an immediate refund by your bank.

What the term actually says is:

5.4 Depending on the energy product you purchase from us, a booking fee may be payable and in certain instances may be non-refundable. Please check your Product Specific Conditions carefully.

http://www.isupplyenergy.co.uk/GeneralConditions.aspx?

So it's definitely not everyone that you imply. Did it say anything in your Product Specific Conditions about a booking fee?

Edit: Further explanation here:

2.e What is a booking fee / why am I being asked for a booking fee?

A booking fee may be applicable with some products that we provide. If the product you are buying has a booking fee then this will be clearly indicated on the Products page of our website. The amount of the booking fee will also be confirmed in the “Your Energy Plan” document that will be available as part of the registration and sign up process

The reason we are asking for a booking fee is to help us buy the electricity you use in the most efficient way possible. This in turn keeps the unit price we can offer to our customers as low as possible giving you the benefit of lower prices.

However, please do not think of the booking fee like a deposit that you get back at the end of a contract (like a rental deposit on a property). The booking fee goes towards your payment plan for the energy you use so should not be seen as a refundable deposit. It is more like an early payment that we use to secure the best prices for you.

We work out the amount of the booking fee based on the information we ask you to give us (at the start of the switching process) to estimate the amount of energy you are likely to use over the term of your contract. It would normally be about the same as the monthly fixed direct debit that we calculate for you based on the same information. It is not an extra payment but goes towards your payment plan and is taken into account when working out your monthly payment amount.

http://www.isupplyenergy.co.uk/Help.aspx#FAQ

GeorgeRob

macman wrote: »

Since you submitted a meter reading, you are presumably now on supply with the new company, so way beyond the cooling off period, which commences when you sign up, not when you switch.
I don't think this payment is a 'booking fee' (never heard of that one)-it's your first month's DD. Is £70pm what was agreed with them when you signed up?
Many utilities require payment a month ahead. All telcoms, pay TV, etc.
The difference with power utilities is that they usually offer you a choice of dates in the month when your DD is taken. Did not yours? If so, what was the date agreed?

Thanks for your reply macman. However, this is not my first month's DD - that will be taken next month. It is however, the same amount as the DD will be. They explain what it is in their FAQ, which Wywth has helpfully quoted below.

The problem is however, that they never mentioned that this would be the case. I have never had to pay an upfront fee before and I have switched energy suppliers 5 times in the past.

GeorgeRob

macman wrote: »

Since you submitted a meter reading, you are presumably now on supply with the new company, so way beyond the cooling off period, which commences when you sign up, not when you switch.
I don't think this payment is a 'booking fee' (never heard of that one)-it's your first month's DD. Is £70pm what was agreed with them when you signed up?
Many utilities require payment a month ahead. All telcoms, pay TV, etc.
The difference with power utilities is that they usually offer you a choice of dates in the month when your DD is taken. Did not yours? If so, what was the date agreed?

Nada666 wrote: »

I think you are making a ridiculous amount of fuss about very little. Switching suppliers usually does involve a double payment and paying off the balance from your previous supplier. You receive a quote and apply to switch you should expect to be debited within days. Sometimes it takes weeks but there really should not be any surprise if it does not take as long.

The cooling off period is from when the two parties agree to the contract - as you applied to them it is from when they replied and accepted. Why is this "Ridiculous, as why would there be anything at that point to make you change your mind"? You have seven days to read the contract. If you choose not to bother then why complain?

Thanks Nada, but I have switched energy supplier 5 times before, and this is the first time I have had money taken from my account before I've even used a drop of electricity. I don't think I am making a fuss - I simply wanted to be aware of their process before they took £70 off me and left me extremely skint for the rest of the month.

I hope it means I will not be paying £70 next month, but I wouldn't be surprised.

GeorgeRob

Wywth wrote: »

You have the right to switch supplier if you don't like the way the supplier you chose operates.
(An early exit fee may apply)

Some small suppliers do charge monthly in advance. (it keeps their costs down)
However, you are required to be provided with advance notice of the amount and date of any collection by DD. If they failed to provide you that, you are fully covered by the terms of the DD guarantee. Any claim under that guarantee should be made direct to your bank, whgich will result in an immediate refund by your bank.

What the term actually says is:


So it's definitely not everyone that you imply. Did it say anything in your Product Specific Conditions about a booking fee?

Edit: Further explanation here:

Thanks for such a helpful reply. No, they didn't give me any kind of advance warning about the debit. In what from would that have come, email or letter? I've received no letters from them and just one email to say welcome.

In addition I have just checked the PDF I received titled "Your Energy Plan" which clearly states: "Booking Fee: £0.00" ... So according to that they weren't even meant to take a booking fee from me!

So can I just call my bank and tell them to refund this to me, as the company never said they were going to take it?

ALSO.. I called isupply on thursday, & was in a que in which I was apparently 'number one'.. for 25 minutes!! Until it suddenly went to answerphone. So I left a message with name, account number and phone number asking someone to call me back as I wished to complain... and I have received no response. In addition, I used their contact form on their website.. Nothing! I even tweeted them.. Nothing!

So, it is obvious that to get these cheap prices per KW, they have sacrificed customer service ENTIRELY! Avoid this company people.

Nada666

How did you apply? On their website the very first page commencing an application is a focused box where the only sentences are one or two stating that a one month instalment will be taken straight away.