Avro Energy reviews: Give your feedback

Cecily40815

Hi All

I've been told that Avro are still taking monthly payments from customers, even after they went bust last week. How can this be possible or allowed?!!

I have enough credit to cover my usage with Avro till 22 September but I am unsure what to do about my direct debit. I'm happy to keep the dd in place if my credit balance stays as it was on 22 September, but absolutely NOT if they are still taking payments!

I've looked at Martin's guidance and also at Ofgem but neither of them have commented on whether Avro can or should still be taking monthly payments from customers.

Does anyone else know the answer to this?

Thanks

victor2

youravinalarrrf said:

...

I would have thought you should eventually be billed by the SOLR at your contracted Avro's rates for the energy you use from the 22nd September up until whenever the SOLR offically takes over, requests meter readings and the new SOLR account is setup. The new SOLR rates should be be charged from the date they officially take over and set up your account.

At the moment we are in limbo and don't have an agreed contract with whoever the SOLR will be and even when we finally get a contract it will be a deemed contract.

Who would you think should pay for the loss making tariff that the customers were on that took the supplier under? The SoLR, OFGEM, or all the other domestic consumers? Unfortunate for the customers of the failed supplier, but that's business. We're all taking hits because of rising energy costs, just like we do with petrol costs, it's just that some are getting hit sooner than they expected.

From OFGEM's SoLR guidance (https://www.ofgem.gov.uk/publications/supplier-last-resort-revised-guidance-2016):

4.4. It is for the SoLR (and its shipper), in conjunction with other industry parties
(e.g. network operators), to decide the best way to transfer customers to its
portfolio. Nevertheless, the SoLR has a deemed contract with each of the failed
suppliers customers and is therefore able to charge them for the gas or electricity
they use prior to actual transfer to the SoLR.

victor2

Cecily40815 said:

Hi All

I've been told that Avro are still taking monthly payments from customers, even after they went bust last week. How can this be possible or allowed?!!

I have enough credit to cover my usage with Avro till 22 September but I am unsure what to do about my direct debit. I'm happy to keep the dd in place if my credit balance stays as it was on 22 September, but absolutely NOT if they are still taking payments!

I've looked at Martin's guidance and also at Ofgem but neither of them have commented on whether Avro can or should still be taking monthly payments from customers.

Does anyone else know the answer to this?

Thanks

The experience of QrizB was nicely explained several pages back:

https://forums.moneysavingexpert.com/discussion/comment/78630312/#Comment_78630312

youravinalarrrf

Happy to be corrected but no doubt it will all come out in the wash in the fullness of time. Unfortunately common sense is rarely applied by Ofgem.

I personally hold Ofgem responsible for Avro's demise in this instance because they refuse to carry out proper due diligence on any prospective Operator License applicants.

victor2

OFGEM have consistently shown themselves to be as useful as the proverbial chocolate teapot, but that's for another discussion.

Consumerist

From the Standard Licence Conditions (for gas suppliers):

8.2 The Last Resort Supply Direction will:
(a) have effect on and from the date on which and the time at which the other supplier’s Gas Supply Licence is revoked;

oliverbrown

Cecily40815 said:

I've been told that Avro are still taking monthly payments from customers, even after they went bust last week. How can this be possible or allowed?!!

At this point those payments are accruing credit for the new SoLR account. I see no point in stopping those payments.

Consumerist

My thinking (perhaps, perverse) is that the SoLR will be more keen to set up a new account for a customer who has cancelled their direct debit than one who has not. They will, presumably, want money coming in as soon as possible.

oliverbrown

Consumerist said:

My thinking (perhaps, perverse) is that the SoLR will be more keen to set up a new account for a customer who has cancelled their direct debit than one who has not.

It matters not, they don't decide on an individual account basis who to take on.

Consumerist

But the SoLR may decide on an individual account basis whose accounts to set up first.

I'd rather pay money to a company who is going to provide my service than Avro's administrator whose primary concern is the company for whom it acts.