MSE News: GB Energy goes bust, 160,000 customers affected

SwanJon

My thoughts (and that's all they are) is that we need to think of GBE as two things - the license to supply energy and the company that owned that licence. Although the company has gone bust, the licence still exists.
When a company goes bust, the assets are sold off - and 160k customers is an asset. How much of an asset is probably the negotiating point.
So the SoLR will take over the licence and tariffs will remain as GBE's (especially where fixed) until SoLR can communicate with their new customers.
Suppliers already hold more than once licence following mergers, and from when this happened before (someone earlier mentioned SSE & Atlantic)

hollie.weimeraner

My last bill showed me £87 in credit with new bill due shortly so I have cancelled my DD which is due 7th of each month.

I reckon they owe me about £55 so will just sit tight and see what happens Ho Hum

MCGONIS

KGriff wrote: »

As a GBEnergy customer, I have to say I feel sorry for those young people who work for them, who may have lost their jobs in the run up to Christmas.

I can only imagine how they all must be feeling and whether or not they can find new jobs quickly and be able to pay their own bills. I just hope everyone lands on their feet and gets another job soon, particularly those people with young families.

I think the majority of the staff were employed by a 3rd party - DDC Outsourcing Solutions. Hopefully they will be moved onto alternative work within DDC.

Former_MSE_Imogen

Hi Forumites,

We're aware that lots of you have questions on what to do now if you're with GB Energy. We've written a news story with all the information we have on it so far and will be updating it regularly with updates, it should answer the majority of your questions so far:

http://www.moneysavingexpert.com/news/energy/2016/11/gb-energy-goes-bust-160000-customers-affected-heres-what-you-need-to-know

The key things to remember are:

- You'll be switched to a different supplier automatically, the decision on which supplier this will be should be made by Ofgem soon.
- If you're in credit with GBE you won't lose your money and will be paid back by the new supplier. We're currently asking for more details on this.
- Cancelling your direct debit may complicate things as you'll need it for the new supplier, but this is unconfirmed.

Most importantly, the new deal you'll be put on to will almost certainly be expensive, so check this via Energy Club and switch once you've got it if so.

Once again we'll be updating the news story regularly so keep an eye out there for more info.

I hope this helps!

System

SwanJon wrote: »

So the SoLR will take over the licence and tariffs will remain as GBE's (especially where fixed) until SoLR can communicate with their new customers.

Can you quote 'chapter and verse' for your assertion that fixed tariffs will remain? My very limited understanding is that an agreed Deemed Tariff will apply from the day that the SoLR takes over. If not, then why are MSE et al advising people to check the 'higher' SoLR tariff and then switch.

I agree that prior to the SoLR taking over, the GB tariff that the customer is on should apply. Logically, though, to ensure no break in supply such that the industry gets its dues (which seems very high on Ofgem's agenda) any SoLR will be back-dated to day of the business failure. I could well be wrong.

richardsonjones

I've just called up GB Energy and - amazingly - after a recorded message and a single ring, the call was answered. Quickest I've got through since I switched to them back in September!!

Unfortunately the person that I spoke to was of little help, I explained I was on paperless billing and couldn't access my last bill because the website had been closed down and asked whether they could send a pdf or similar via email - apparently that's too great an ask.

Seemingly we *should* be getting copies of a bill in the next few days ... lets wait and see ... They wouldn't / couldn't advise on whether to cancel the DD and merely said we should follow Ofgem's advice ...

tomthered

Just a cautious note. Your Direct Debit is authorised to be taken by GBenergy alone, so any other company does not have your permission to extract such payment. therefore it is immaterial whether you stop your DD, as the new company needs your permission under the terms of the DD guarantee. Myself I always downloaded their bills and know where I am up to. I intend stopping the DD as do not want a company that has ceased trading from having further access. I must say that in my dealing with GBenergy over last two months have been excellent.


Unfortunately that comparison sites show me having to pay £4 per month more, but hopefully that may change in the future.

Scotlands_Lite

As I posted previously, they certainly need to inform you of any material change to the DD mandate (normally just as an FYI, but at that point you could equally reject such a change).


Whether in credit or debit, the whole DD issue re. GBE remains unclear - I always understood that it was the responsibility of the two individual banks involved - customer & supplier - to ensure the sound financial standing of the parties to a DD so that being the case, and knowing what they do I'm not sure why DDs from GBE would still be processed now or if they were, would not be covered by the DD Guarantee Scheme.


My reading on the likely agreed Deemed Tariff is the same as Hengus...no matter what deal you're currently on with GBE, there'll be one single (and likely expensive) agreed Deemed Tariff to cover all customers for a maximum of 6 months during which time you'll be free to switch or (I think?) then default to the SoLRs standard tariff.

spook

Quick question about Direct Debits in general.

I'm awaiting a refund (I was told it was processed on Thursday so I'm still holding onto the possibility that my money could have left GBES before they went bust...)

Would cancelling the DD prevent me from receiving the refund, or is it done via a different route anyway?

SwanJon

SwanJon wrote: »

My thoughts (and that's all they are)

Hengus wrote: »

Can you quote 'chapter and verse' for your assertion that fixed tariffs will remain?

I did say until the SoLR can communicate with their new customers. I think that customers won't be 'switched' to the new supplier (an extra 160k switching on the same day?). I think the new supplier will take over GBE's licence and from therecontact the customers to advise of what happens next (rather than backdate any changes).

Hengus wrote: »

why are MSE et al advising people to check the 'higher' SoLR tariff and then switch.

MSE_Imogen wrote: »

Most importantly, the new deal you'll be put on to will almost certainly be expensive, so check this via Energy Club and switch once you've got it if so.

MSE doesn't say the 'deemed tariff' will be higher, just that they believe it will, and even then they only say to switch if it is.


[STRIKE]And why a company that makes money by switching customers would encourage customers to switch - I couldn't say[/STRIKE].