Query regarding switching process

PetePie

I annually switch my energy provider but have been a bit uncertain of a recent move to GB Energy. I switched via the MSE comparison sight three weeks ago. All seems to be following the typical procedure of receiving emails from the new provider. However, yesterday I received an email stating they had debited the first payment from my account. I am a little surprised at this which has never occurred with other suppliers, at least not until later on in the process. They haven't even asked me for a meter reading at this stage. Also, I would typically be informed of when the first payment would be due, not told after the fact. This seems a very irregular practice compared to previous experiences. What are other people's experiences?

JJ_Egan

Some utilities take a month in advance .
I know that's what i signed up to with my supplier as it was all in the terms i signed up to .

You do have current meter readings taken ??

System

PetePie wrote: »

I annually switch my energy provider but have been a bit uncertain of a recent move to GB Energy. I switched via the MSE comparison sight three weeks ago. All seems to be following the typical procedure of receiving emails from the new provider. However, yesterday I received an email stating they had debited the first payment from my account. I am a little surprised at this which has never occurred with other suppliers, at least not until later on in the process. They haven't even asked me for a meter reading at this stage. Also, I would typically be informed of when the first payment would be due, not told after the fact. This seems a very irregular practice compared to previous experiences. What are other people's experiences?

Read the terms and conditions which form part of your new Contract:

9.3 When the payment method is by Direct Debit;

9.3.1 The amount of the Direct Debit will be determined initially according to your estimated annual consumption,

9.3.2 The Direct Debit will be taken the day after the cancellation period referred to in clause 7 ends and monthly thereafter.

9.3.3 Will be adjusted to the appropriate amount following our receipt of a meter reading, supplied by you or taken by us of the actual Energy consumed at the premises

9.3.4 Advised to you following our receipt of a meter reading, supplied by you or taken by us at least 7 days prior to being collected by us.

9.3.5 We will act in accordance with the Direct Debit Guarantee.

Nada666

Some suppliers do take the first payment immediately the cancellation period is over, that is, fourteen days after application accepted rather than wait for the transfer to complete.

Not having a reading is irrelevant - they did ask for an estimated annual usage so the initial payment would be based on that. The first reading determines* the size of the final bill from your previous supplier not your starting instalment.

* actually, may influence not determine - it is agreed between them not you - another warning point for future switches - do not assume the suppliers will take your reading as read

PetePie

Thank you for the responses.

I've not yet been asked for a meter reading so was surprised money was being debited so soon, as this hasn't happened in the past. Must read the T&C more closely in future and not assume they are all the same!

Aquamania

PetePie wrote: »

I annually switch my energy provider but have been a bit uncertain of a recent move to GB Energy. I switched via the MSE comparison sight three weeks ago. All seems to be following the typical procedure of receiving emails from the new provider. However, yesterday I received an email stating they had debited the first payment from my account. I am a little surprised at this which has never occurred with other suppliers, at least not until later on in the process. They haven't even asked me for a meter reading at this stage. Also, I would typically be informed of when the first payment would be due, not told after the fact. This seems a very irregular practice compared to previous experiences. What are other people's experiences?

A vital part of the Direct Debit system is that you must be provided with advance notice of any collection.

If you were not provided with such advance notice, which must include date of intended collection and amount to be collected, you would be fully protected by the terms of the DD Guarantee.

Claims must be made direct to your bank, who should refund you immediately

Nada666

Aquamania wrote: »

A vital part of the Direct Debit system is that you must be provided with advance notice of any collection.

If you were not provided with such advance notice, which must include date of intended collection and amount to be collected, you would be fully protected by the terms of the DD Guarantee.

Claims must be made direct to your bank, who should refund you immediately

Whilst there may be a technical breach over-zealous abuse of the protection for an initial payment is silly. The customer agrees the starting instalment during the application process and should have the funds available. There is little point losing a good tariff price and being bumped onto a more expensive tariff.

System

Nada666 wrote: »

Whilst there may be a technical breach over-zealous abuse of the protection for an initial payment is silly. The customer agrees the starting instalment during the application process and should have the funds available. There is little point losing a good tariff price and being bumped onto a more expensive tariff.

I would be very surprised if the information about DD payments isn't in the Welcome Letter. Most of the smaller suppliers ask for money in advance of supply. I agree that those who keep on advising MSErs to invoke the DD guarantee fail to note that this action could immediately lead to a breach of contract and a reversion to the supplier's standard variable tariff. As Nada66 states, this issue is hardly worthy of such drastic action as the supplier appears to be within his contractual rights to collect the payment.

FWiW, I think that the OP will find that the e-mail was only their intention to collect the sum due, as it takes a few days to action the payment.

Aquamania

Nada666 wrote: »

Whilst there may be a technical breach over-zealous abuse of the protection for an initial payment is silly. The customer agrees the starting instalment during the application process and should have the funds available. There is little point losing a good tariff price and being bumped onto a more expensive tariff.

I can only advise based on the info that was given.

The OP did not make any mention that they have already agreed an amount to be collected.
If that was agreed, then it would be quite strange that no date had not been set for that collection too.
But if what you say is true then I suspect this collection did not come as such a surprise as the OP suggested.

Maybe the OP would like to comment?

Aquamania

Hengus wrote: »

I would be very surprised if the information about DD payments isn't in the Welcome Letter. Most of the smaller suppliers ask for money in advance of supply. I agree that those who keep on advising MSErs to invoke the DD guarantee fail to note that this action could immediately lead to a breach of contract and a reversion to the supplier's standard variable tariff. As Nada66 states, this issue is hardly worthy of such drastic action as the supplier appears to be within his contractual rights to collect the payment.

FWiW, I think that the OP will find that the e-mail was only their intention to collect the sum due, as it takes a few days to action the payment.

It may well be that the appropriate advance notice has been provided, and if any doubt exists, then I would adsvise the OP in the first instance to contact the supplier and ask where & when such advance notice was given.

The contents of the advance notice are specified within the rules of the DD scheme, and it is often the case such advance notice is provided as a separate document under separate cover.

This is because there are also rules in place about what may accompany an advance notice.
e.g. Advance notices must not be sent with material that may have the appearence of junk mail and thus risk being discarded before being read..

Where other info is enclosed, the advance notice must be given precedence over that other material and appear under a prominent, clear heading. It needs to include all the prescribed contents to form a valid advance.

Just as cancelling a DD mandate, or even single payment, does not cancel the underlying contract that exists, where a service provider opts to collect payment under the DD scheme they are expected to abide by the rules of that scheme with regards to payment collection or risk incurring a valid indemnity claim against them (notwithstanding whether or not the money is actually owed under the underlying contract)

System

Aquamania wrote: »

Just as cancelling a DD mandate, or even single payment, does not cancel the underlying contract that exists, where a service provider opts to collect payment under the DD scheme they are expected to abide by the rules of that scheme with regards to payment collection or risk incurring a valid indemnity claim against them (notwithstanding whether or not the money is actually owed under the underlying contract)

With respect, have a look at some of the Company's ts and cs. Most say that it is a condition of the contract that payment is made by DD. If there is a default, then a number reserve the right to switch the supply from a fixed tariff to the Company's standard variable tariff I appreciate that you are only trying to make a general point about the DD Guarantee. FWiW, GB's site does say on signing up:

Your first payment will be on the 21st day after signing up. Then by Monthly Direct Debit thereafter.
A cheap, simple online tariff.
No fixed term.
No exit fees

The OP wasn't complaining he was just expressing surprise about receiving notification of a DD payment. I confess that I am not sure what point you are trying to make about this particular issue?