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

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lstar337 wrote: »

It's fine to have plenty of small suppliers, if they don't hold on to their customers cash!

Most of these suppliers seem to be run in a way which almost forces a build up of a large credit balance. A credit balance which customers are either going to lose, or is going to be paid by everyone else.

Allowing suppliers to purposely build up these large credit balances is irresponsible.

The big 6 must be laughing now with people scrabbling for the security offered by a large supplier.

I think that it is called 'cash flow'; however, I agree that it is an area that Ofgem needs to get a handle on. Sadly, reports of suppliers holding on to credits beyond what is a reasonable amount of time when customers have left, and problems getting a credit balance refunded should taken as early indications of a potential supplier problem.

I have written to my MP suggesting that all suppliers need to undergo some form of stress test to ensure that they are able to cope in challenging markets. I doubt that this will find favour with Ofgem who seem to want to keep such matters at arm's length.

wannahouse

facade wrote: »

As I see it,

1) you will lose your credit balance. Not a biggie for me, as I've been with them 10 months, so I've forgotten paying a month before I started, and I can believe that my last DD paid for November. (I don't mean I'm so flush I can just throw it away, but I perceive it as paying for November, If I get it back - bonus)

2) If there is no current supplier to contact, will they be able to switch you. I know that if you just move into your first empty house you have no current supplier, but the property had a previous supplier. I can't really see that being a problem.

I will see what tomorrow brings, and most likely switch to Npower as the cheapest cap until Dec 2017.

How is this fair?
We had a switch already in flux before any of this came to light and got an email from IRESA on 27/11 that our switch had gone thru,and they would begin our supply from 01/12, so technically from what you are saying, the £359 we were counting on getting back from GB is gone, as our switch happened before they could appoint us a supplier!
We should get our refund just as any other customer is guaranteed!
We did nothing wrong!
Also, we cancelled our DD after we got notice of the switch as we were so far in credit, and they would no longer be needing the details.
For customers that already had switches being processed, they need to cover our balances too!

WIBBLA

I have called Bank today and as i am £300 owed to me and already swapped i doubt i will get this from GBE at an point even though they said last week it was processed.. And yesterday the lady at GBE said you "Should" get it back but when i dont know.

So i called the bank filed a DD claim as i was £300 in credit for 3 months i want my last three months refunded, Bank have agreed to look into this and will have an answer in 24hrs. I have proof i am in credit so lets see how this pans out.

We have these DD protections for a reason so people use them, Sitting waiting for Ofgem or GBE to pay out for people that have swapped and waiting for refund i feel we wont get anything.

Call your bank.

dogshome

So GB join the infamous clan of businesses that spend the customers money on running costs, before they have supplied the goods or service - Just like 1)Fare Pack and 2)Red Letter Days.

It's about time we had legislation that any business that takes in funds for some future Service or Supply of Goods, has to ring fence that cash until such time as the Service/Goods are delivered.
1) Fare Pack had in fact ring fenced the cash to supply the customers Xmas goodies at the right time, but their bank forced them to 'unfence' the money to reduce their loan - If we'd had legislation then, the bank couldn't have done it
2) Red Letter Days, knowing they were in trouble happily spent the cash that belonged to companies who provided the 'Jolly Days', leaving recipients of their vouchers with worthless pieces of paper and their suppliers with phantom bookings and no revenue

It's not vagery of fortune that causes these situations, IT'S THEFT, we need legislation.

[Deleted User]

Hengus wrote: »

and problems getting a credit balance refunded should taken as early indications of a potential supplier problem.

Sadly that includes the major suppliers. When I asked my big 6 supplier to refund £50 credit in the spring, the telephone support staff where very, very reluctant to do so as they said "OFGEM states that suppliers must not let an account go into debt". It was only my insistence (bloody mindedness) and the fact that I was able to point to many years of usage that I was able to convince them that I didn't need a credit balance that size nor did I need my DD increased once I had my money back.

wannahouse

MSE_Imogen wrote: »

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!

But no one is clarifying what happens to the customers who had a switch in flux?
We started one with IRESA at the start of this month and just recieved an email on the 27th nov stating it had gone thru and they would be commencing supply on the 1st dec, so this means CURRENTLY we are still supplied by GB, but on the 1st DEC that will be taken over by IRESA, so are we STILL a GB customer and covered by the guarantee for our large £359 credit we had, or will we be considered not covered because a company has already been appointed by us, and not by OFGEN?
I can't afford to lose that money!
We were counting on it for XMAS and have very right to be guaranteed like any other customer as we did nothing wrong!
We also cancelled our DD before knowing about it as we are so far in credit and the new company has already takeh their first payment.

wannahouse

facade wrote: »

The creative reading of your meters won't work, as they will never accept that you used 190% of normal last month at GBE rates, and only 10% this month at the higher one.

Serves us right for entering readings every month on request, we've built up a usage profile.

Haha!
I didn't enter readings every month as requested as out meter is installed really high up , in a dark disused outbuilding and i need my husband to climb a ladder to get it...
Does that mean we have some wriggleroom?
We have over £359 credit with GB, and IRESA was due to take over our supply on the 1st DEC so i am extremely worried we won;t ever get it back

sheff6107

phillw wrote: »

Why are you being offensive just because you have a difference of opinion? Cancelling the DD would normally be seen as a breach of contract and GB energy have given you written confirmation that the contracts were still being honoured, transferrable contracts can be bought from the receivers and the buyers can enforce the terms.

How is any of what I'm saying nonsense? Someone who wasn't just trying to be offensive would counter the points and not just come out with insulting words.

But sure, do what you want. Switching is going to be hard as you can't do it without permission of your old supplier. If you cancel your DD and they don't honour the credit balance then you'll still owe them the money and won't be able to switch until it's paid. I'd take the haggling opportunity.

Small problem - how can they honour contracts with no cash? If you send money to a company stating they are no longer trading because you are fearful a receiver or debt collector may send you a threatening letter in future then you are a fool. The words 'we will honour all contracts' on a website is worth the paper it isn't written on.

Ofgem have already stated the SoLR would honour credits and it's between GB Energy and its debtors to sort out debits. The SoLR cannot bill anyone prior to Saturday and cannot prevent switching for anyone in debit with GB, and I can't see another company suffering all the bad PR with trying dirty tricks. They'll have enough billing issues as it is.

kevrex

Got an email this morning warning me that the energy helpline collective switch finished tonight at midnight.
Rang up and was asked if i was in credit with gb energy (i am not) was told no problems with switch so i switched to their EDF collective switch tariff.
i figure that i have a 14 day cooling off period but at least i have got a reasonable price.
Now do i cancel the direct debit to gb energy........

Chris75

My guess is that we have all done a search for a replacement supplier. Aren't we all going to be extra pi...d if that tariff is withdrawn whilst this is being sorted.

I have applied for a transfer on the basis that by the time the basic formalities are dealt with I may be able to move. If the accounts are moved to the company that I have selected so much the better. Fortunately I do not have a large balance with GB.

If the move fails I haven't lost anything.

The new supplier has set up my account so we will see what happens next.