Avro Energy: Warning

Ninjabel

I just switched to these guys from British Gas through MSE's Energy Club, and I wanted to make sure that people know how they work before they sign up with them. I certainly wouldn't have switched if I'd known about their policy.

I am due to terminate my connection with British Gas on the 28th of November, but I discovered this week that Avro Energy have removed £85 from my account on the 18th, 10 days BEFORE they are due to supply me with gas/electricity.

Apparently this is their standard practice, and while I confess that I should have read the 'Welcome Pack' more closely before the money came out, it certainly wasn't make clear before I signed up with them that they would be taking money before they've supplied me with a service.

So, £85 of my money will sit in their bank account for 10 days, while I'm already paying British Gas for my utilities this month. So I'm paying twice. I have NEVER heard of this from any other energy company. They tell me that their other customers don't have a problem with it and that the information is available on their website when you sign up. I would argue that it is not clear enough. They tell me that it all works out over the course of the year, but that's really not the point. They have worked an automatic over-payment into their system.

I wonder how much money a year in interest they make off this kind of policy? How many thousands of pounds are they creaming from their customers?

Anyway, I'll be switching again as soon as I can, and I just wanted to let you guys know, so that you are better informed than I was.

Robin9

Taking a DD in this way is very common - Daligas and GB Energy did this when I switched.

System

A lot of the smaller companies have to manage their cost flow in this way (GBEnergy and Iresa come to mind). It is only money held on account; there is no possibility of you having to pay for the same energy twice. With interest rates so low, the loss of interest is pence to you and, with less debt, the supplier can offer energy to you at a cheaper price than if it had to borrow from the market.

If a supplier goes bust, your supply and credit are now protected by recent OFGEM changes.

jamesperrett

When the time comes to switch to a supplier that bills in arrears you'll have a nice payment holiday - it will all work out fine in the end.

boatman

Phone companies bill line rental in advance, its not unusual.

WhoIsThat

Ninjabel wrote: »

I just switched to these guys from British Gas through MSE's Energy Club, and I wanted to make sure that people know how they work before they sign up with them. I certainly wouldn't have switched if I'd known about their policy.

I am due to terminate my connection with British Gas on the 28th of November, but I discovered this week that Avro Energy have removed £85 from my account on the 18th, 10 days BEFORE they are due to supply me with gas/electricity.

Apparently this is their standard practice, and while I confess that I should have read the 'Welcome Pack' more closely before the money came out, it certainly wasn't make clear before I signed up with them that they would be taking money before they've supplied me with a service.

So, £85 of my money will sit in their bank account for 10 days, while I'm already paying British Gas for my utilities this month. So I'm paying twice. I have NEVER heard of this from any other energy company. They tell me that their other customers don't have a problem with it and that the information is available on their website when you sign up. I would argue that it is not clear enough. They tell me that it all works out over the course of the year, but that's really not the point. They have worked an automatic over-payment into their system.

I wonder how much money a year in interest they make off this kind of policy? How many thousands of pounds are they creaming from their customers?

Anyway, I'll be switching again as soon as I can, and I just wanted to let you guys know, so that you are better informed than I was.

With the current BoE rate at 0.25 %, resulting in most banks not paying their customers any interest, particularly business banking customers, I suspect they are not making a penny from this kind of policy

GingerBob_3

The customer is a soft touch, so they borrow from him rather than the banks.

cranford

I hve been with AVRO since April 2016 nd knew they were going to take the DD in advance, they tell you.
But even today they seem to be the best deal for me and I have had no billing problems and they have even sent meter readers round.
but at the end of the billing year when they tlly up the year's usage and payments made I am sure if I have paid to much then next years payments will be reduced.
So if they are making money on my £90 up front at .25% then I have saved more than £100 by being with them.

poppellerant

This is quite normal for most companies who supply you with services, I don't really see the issue if your finances are in good standing.

I would imagine they take it just before they supply you to minimise the risks of your account falling into debt, especially during the winter period. You will probably get another surprise soon when they temporarily increase your direct debit until just after summer, to ensure your account doesn't fall more than a month's worth into debt. You can stop this by topping up your balance.

victor2

Ninjabel wrote: »

I just switched to these guys from British Gas through MSE's Energy Club, and I wanted to make sure that people know how they work before they sign up with them. I certainly wouldn't have switched if I'd known about their policy.

I am due to terminate my connection with British Gas on the 28th of November, but I discovered this week that Avro Energy have removed £85 from my account on the 18th, 10 days BEFORE they are due to supply me with gas/electricity.

Apparently this is their standard practice, and while I confess that I should have read the 'Welcome Pack' more closely before the money came out, it certainly wasn't make clear before I signed up with them that they would be taking money before they've supplied me with a service.

So, £85 of my money will sit in their bank account for 10 days, while I'm already paying British Gas for my utilities this month. So I'm paying twice. I have NEVER heard of this from any other energy company. They tell me that their other customers don't have a problem with it and that the information is available on their website when you sign up. I would argue that it is not clear enough. They tell me that it all works out over the course of the year, but that's really not the point. They have worked an automatic over-payment into their system.

I wonder how much money a year in interest they make off this kind of policy? How many thousands of pounds are they creaming from their customers?

Anyway, I'll be switching again as soon as I can, and I just wanted to let you guys know, so that you are better informed than I was.

You were informed, it is common practice with the "smaller" companies. You took the trouble to switch suppliers through MSE, but didn't read much else about the company you were switching to it seems. If you switch back to a company that takes the DD effectively in arrears, then you'll get a payment holiday for a month.
The lesson is don't take supposed "savings" quoted by switching sites at face value. They are rarely realistic.

RitaC

I too am having problems with Avro. I am with them currently but my contract is due to end on 1st November. I switched to their Simple & MSE Collective 18 month fixed rate deal this month and have just had two emails, one after the other, telling me in the first I am now on variable rate and the second fixed rate. I have just tried to call them to clarify only to find at 4.15 p.m. that their lines are closed, even though they then go on to tell me their lines are open till 5.30 M-T. Another annoying aspect to their service is that no matter how many meter readings I send them, at the end of the month as requested, my bills are STILL ESTIMATED! I emailed them about this as well but after 3 working days still no response (so much for a reply within 24 hours). Not impressed with Avro, even if they do offer good rates.