How to switch supplier, while in debt?

dude89

Vonnie257 wrote: »

I had set it up to change from British Gas to Southern Electric for my gas supply [already have electricity with the company] The S.E. has been brilliant about how I can budget for my electric and I pay by a standing order every week. I am a pensioner and sick and disabled and need to budget my money but B.G wont listen to me, they say they want a direct debit or pay point card to be used for payment. Please note they are receiving £50 a month off me by standing order and are NOT disputing that, but if I don't change my payment method they will "break in with a warrant" and fit a prepayment meter. They send me threatening letters all the time stating I owe the full amount and don't take off any payments they have received, in fact on their website they have blocked me from seeing how much I have paid so I have to check with my online banking!This has been ongoing for a year now and despite writing to H.O. they do nothing. The stress of it all is making my depression much worse. Now they are objecting to me changing to S.E, despite the fact that only £48 [less than one months payment] is now owed, if you add on the amount since my last reading and its a total of £84. So I am stuck. I have asked them for a final bill as I want to leave them, but they want payment over the phone with a credit or debit card? Its all about what THEY want, not what is suitable for me. Please help, all this is making me ill. PS I dont possess a credit card and don't want one!

When I used to work for bg about 5 years ago it was always the amount of time the balance had been outstanding for that caused an objection to be raised. If I remember correctly it was 28 days.

This was only an issue if balances were not included on a payment plan. Any balances included on a payment plan would not cause an objection.

In this instance if the last bill was over 28days ago and it has not been paid in full then that is why they have objected. Though why don't you just try again after your next payment?

ethan123

Vonnie257 wrote: »

... but if I don't change my payment method they will "break in with a warrant" and fit a prepayment meter. ...

I heard back from Ofgem, and what they said was very interesting.
I explained to them that I had a phone conversation with NPower, where they went thru my weekly expenditure.

When I had this conv. with NPower... at the end they realized that my current balance left very little to make payments (despite the fact that I am paying them £7 / w via S.O.).
... As a result of this, they gave me a choice of just 2 options:
• Find a way to pay off the whole amount in one go
• Or, accept that they will fit a PPMeter - by force if necessary.

I explained this to Ofgem, and the lady I spoke with said that this didn't sound right. She said that NPower were not fulfilling their obligation to something called "License Condition: 2"

She gave me the impression that they are at fault by trying to get a PPM installed in my property, while I am making payments via S.Order.

She has advised me to contact NPower and raise a complaint about this, and then get back to her. So, this is what I'm gonna do.
... I will keep you posted.

Vonnie257, I suggest you contact Ofgem a.s.a.p.
Here are some contact details I found online:

Ofgem, Consumer Affairs team
phone: 020 7901 7295
email: consumeraffairs@ofgem.gov.uk

Nada666 wrote: »

If £48 is 'only' £48 then what is stopping you altering the standing order to pay off the account? Or using an online payment?

Or why do you not want to use a debit card?

Once again, you have demonstrated the power of your "blinkers". Some people actually cannot afford to make certain payments. because they only have a certain amount of money to live on per week.

keith1950

A debt of £450 would normally be paid off over 12 months at a rate of £40-£50/month on top of your normal payment / usage.

Until you reduce this debt to less than £200 I don't think you have any hope of switching and will have to accept that prepayment meters are going to be fitted.

Joyful

Ethan 123

You say you are paying £7 pw but how much are you using? Npower would also not be doing their duty if they continued to allow your balance to get higher. If you have over £450 debt then this £7 pw would take 64 weeks minimum with no payment for ongoing usage. Surely you can see this is unsustainable for any energy company.

If you are on benefits there is the option of fuel direct but they would take whatever your weekly usage is and add £3.60 per week towards the debt.

If you cannot pay this the only solution is to get a pp meter fitted and use no gas but pay the weekly amount agreed for arrears. If you are struggling can I suggest a visit to CAB although they will tell you that Housing then energy bills take priority over any other bills.

macman

Given your high level of debt right at the start of winter (when your account should now be in maximum credit), I don't understand your objection to PPM's, since you clearly aren't able to budget on credit meters?

Nada666

ethan123 wrote: »

Once again, you have demonstrated the power of your "blinkers". Some people actually cannot afford to make certain payments. because they only have a certain amount of money to live on per week.

It wasn't me who described £48 as a sum worthy of the adjective 'only'. You're the one not seeing fully what has been written.

And you (that is only Ethan, not Vonnie) have no right to spend money on credit you have little hope of paying back. If you have only a certain amount of money and can not afford to use the energy then you should not consume it in the first place.

You can resist claim for prepayment meter if you up the standing order to cover ongoing usage based on historical usage plus £3.60 per week for interest free debt recovery. I do not see why you think you are allowed to continue to grow your debt ad infinitum.

chanz4

No one has a given right to credit

ethan123

keith1950 wrote: »

A debt of £450 would normally be paid off over 12 months at a rate of £40-£50/month on top of your normal payment / usage.

Until you reduce this debt to less than £200 I don't think you have any hope of switching and will have to accept that prepayment meters are going to be fitted.

Hi Keith, I think you're right about not being able to switch supplier. Fortunately I now consume hardy any electr. so I should start to find my way out of the woods.

Joyful wrote: »

Ethan 123

You say you are paying £7 pw but how much are you using? Npower would also not be doing their duty if they continued to allow your balance to get higher. If you have over £450 debt then this £7 pw would take 64 weeks minimum with no payment for ongoing usage. Surely you can see this is unsustainable for any energy company.

If you are on benefits there is the option of fuel direct but they would take whatever your weekly usage is and add £3.60 per week towards the debt.

If you cannot pay this the only solution is to get a pp meter fitted and use no gas but pay the weekly amount agreed for arrears. If you are struggling can I suggest a visit to CAB although they will tell you that Housing then energy bills take priority over any other bills.

My consumption is (fortunately) now tiny. I understand your point about the £7 / w.
I'm not on benefits, but I appreciate that I will have to increase my weekly payments to an amount that is more realistic. The number 7 will soon have to bumped up

As for the matter of fitting a PPM, I have just been informed by Ofgem that an energy company is not allowed to fit a PPM if a customer is making regular payments within their ability to pay. This is because of a set of rules that energy companies must abide by... See:

Standard License Condition
https://epr.ofgem.gov.uk//document/Download/25773
--> 27.6 (a) (ii)

... notice the words "other than"

chanz4

ethan123 wrote: »

Hi Keith, I think you're right about not being able to switch supplier. Fortunately I now consume hardy any electr. so I should start to find my way out of the woods.





My consumption is (fortunately) now tiny. I understand your point about the £7 / w.
I'm not on benefits, but I appreciate that I will have to increase my weekly payments to an amount that is more realistic. The number 7 will soon have to bumped up

As for the matter of fitting a PPM, I have just been informed by Ofgem that an energy company is not allowed to fit a PPM if a customer is making regular payments within their ability to pay. This is because of a set of rules that energy companies must abide by... See:

Standard License Condition
https://epr.ofgem.gov.uk//document/Download/25773
--> 27.6 (a) (ii)

... notice the words "other than"

you need to read the whole document , as other parts counter act when debt is involved.

ethan123

chanz4 wrote: »

you need to read the whole document , as other parts counter act when debt is involved.

Hi, if you know it, please can you specify page number etc? ... it's rather a big doc. Thanks