Changing supplier with debt

spiro

mclellans10 wrote: »

You can switch whilst in arrears providing the new supplier agrees to accept you as a customer.

mclellans10 wrote: »

EON state on their website that if you're £500 or below you can transfer your balance to another supplier. I have learnt that since posting this as you can see above that I can't transfer with a £700 balance.

The £500 switch only applies if you are currently (with your current supplier) repaying the debt via a prepayment meter, it does not apply to credit meter customers.

System

Bearing in mind that some of smaller energy companies require new account holders to pay their first DD payment on the date of supply (i.e.; switch), and have ts and cs which indicate that they may raise the DD to ensure that credit is maintained over the winter months, I cannot really see them wanting to accept a large debt on transfer in. That said, I have always thought it unfair that those who might benefit most from a cheaper tariff can end up paying the most for their energy.

As E.oN is pretty competitive with its tariffs, I would have thought that the best solution (i.e.; cheapest solution) would be to negotiate a fixed tariff payment plus debt repayment monthly DD. If that is too much in terms of a monthly payment, then a PPM is the only option.