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

matelodave

It will be a good test of OFGEM to see if they get it sorted out quickly, cleanly and fairly

archersluck

left gb energy a week ago and moved in with family so no new supplier, had a credit balance which I'd requested back but now bit concerned we won't get this will wait and see I guess...

System

The interesting piece of this jigsaw is how Ofgem intends to use its SoLR powers to refund credit balances accrued by consumers who have already switched. Clearly, from the raft of posts on this forum, a number of customers have not got their credit balances back having left some time ago.

As I understand it, for GB customers the intention is to do a deal with A N Other supplier who adds up the cost of taking on the new customers; industry levies plus amount of credit owed, and it comes up with a Deemed Tariff price. I am not sure how this applies to customers owed money who are no longer customers?

I switched from GB to Iresa three weeks ago. I received an e-mail from Iresa this morning to say that my supply has migrated to them and goes live on the 4th December. Technically under SoLR regulations, I should migrate to A N Other supplier for a week. My credit balance should migrate to them out of which should come a week's deemed charges followed by a refund. I am not holding my breath.

Having looked in detail at Ofgem's revised SoLR consumer credit procedures, it does seem to be a fudge which enables Ofgem to keep consumer protection at arm's length. I just wonder whether this is the time for a Parliamentary Petition/Debate on energy consumer credit protection? We have the FSCS for bank deposits, and ATOL bonding for air travel so why not something similar for energy credits?

2latenow

Another gbenergy customer here!
I read the news story about an hour after it was posted, so took note of the meter reading (I try to take weekly readings anyway).

I read the advice about leaving the DD in place and decided to cancel it. For a start I was £1.60 in credit at my last bill at the start of October yet immediately after taking a first "winter" payment of £40 at the end of Oct GBE told me they were going to hike my monthly to £65, which I disagreed with completely. The next payment would have gone in a few days, so I figure I am already in credit with around £10. I don't see how a new supplier should be allowed to take on the DD without contacting me anyway. And that ensures I get to check the (likely high) tarrif they would want to put me on which will trigger me to shift - I'm already checking where to.

Mr_K

The moral of this story is never get into large credits on energy accounts, and keep your DDs on the low side. Large credit balances arent for your benefit. Ways of managing this, and sometimes you may need to be creative with Meter readings. I think my final GB energy reading will be rather high, so I'm on their cheaper rate rather than the rip off a deemed contract will be My Meter has never been read whilst with GB - the cheapskates can't even afford that.

Won't put me off smaller suppliers. always go for the cheapest. Your continued supply is protected whatever. I even benefited when Powergen took over Amerada a few years ago, they never collected a debit balance. Maybe some will benefit again.

kevrex

With 160000 people affected I really hope that MSE uses this opportunity to attempt another Group Switch. is anyone else of that opinion?

matelodave

kevrex wrote: »

With 160000 people affected I really hope that MSE uses this opportunity to attempt another Group Switch. is anyone else of that opinion?

Can any of us afford to wait that long - it'll be well into the new year before that would happen and MSE haven't been able to sort one out this winter anyway.

I confidently expect that us GB customers will be stuffed on someones Standard Variable Tariff if we do don't something ourselves (probably will even if we do do something.

I don't know what will happen if we try and initiate a switch now as the new supplier won't be able to directly take over from GB but will have to wait until the OFGEM supplier takes over first. It's a golden opportunity for suppliers and customers to try and take advantage of the situation.

System

matelodave wrote: »

Can any of us afford to wait that long - it'll be well into the new year before that would happen

I agree. Ofgem has a lot of work to do to find/appoint a Deemed Supplier (SoLR). It is unfortunate that this is happening at a time of extraordinary price rises. There is, of course, no guarantee that MSE will have any success in securing another collective switch given its recent failure.

I confess that I am not sure what happens if a switch initiated after a supplier failure. Logically, you switch today and the transfer goes through in, say, 17 days. The Deemed Supplier takes over your contract from GBEnergy and charges you for the 17 days that it was on supply less any GB credit accrued. Ofgem's focus is more on continuity of supply. It would be helpful if MSE could ask Ofgem for specific advice on whether a switch initiated today will go through?

Chris75

Joined GB on a fixed price contract Nov 2 this year so I don't have a large balance with them but they have just taken my second DD payment.

Despite the advice to sit back & wait I cannot see any reason not to try & move my supply. I do not believe that I will get a better price than I can get on the market now. My second DD money will be used by the time my transfer comes through.

My only concern is that my best quote is another small company on a 21 month fixed price deal. I hope that I am not back here in a few months.

PS the last MSE switch was fine for some but we only have electric & they offered us nothing.

dinglebert

Im in the already moved but have nearly £280 credit club. Moved as soon as I got the 30% price increase notice. First thing I have done is to ask the bank to recall this months direct debit. However, bank are saying that if they don't get their money back they will take it from me again anyway. Just have to hope ofgem can help otherwise I'll end up as a general creditor with no hope of seeing the money again.