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

Sassaves

One bit of dubiously helpful news in my own personal GB energy in hell saga: I've found an email from them from early Nov clearly stating my credit balance - £469 ! Swearing and kicking myself for the idiot I am in not having reclaimed balance and switched earlier in the year, but work/life was busy busy etc.

Note to self: monitor things more regularly and keep records. But at least I now know, tho' no doubt the final figure will have changed quite a bit by the time i see it again!

smiley11

I wondered where I stood because first direct, said they could claim the direct debit refund from me if they couldn't claim it from GB.

My follow up because I was still unclear.
Thanks you for the advice.
If my bank are unable to claim it because the company is bankrupt can they take it back from me?

The BACs service advice said this.
This is correct. When an indemnity is raised the bank initially pay you from their own account.

As my colleague mentioned below, they then recover the funds from the company in question.

Twice, they have said it can be reclaimed from me. And first direct have said they can take back the money too.

Living_proof

The other directors over the last couple of years have only been in office for 3 or 4 months - surely that should be ringing bells in the ears of Ofgem. To what extent is the consumer going to have to exercise due diligence in future when choosing a supplier?

It's almost as though the big 6 have set this up to fail to obliterate all the smaller competitive companies recently set up.

But then I have a very vivid imagination.

sheff6107

uptdale wrote: »

Should we cancel our direct debits?

What we know:
1. GB has ceased trading, but we do not know if it is insolvent. The two are not the same thing. I checked Companies House this morning, and there is no notice of the appointment of a receiver, administrator or liquidator. (The company's full name is GB Energy Supply Limited, company number 08500842.)
2. Ofgem's website seems to have no advice specific to GB. The link on their home page takes you to their generic page on the Ofgem safety net.
3. Ofgem's generic advice on the question: Should I cancel my direct debit? is
What we do not know

1. The reasons for Ofgem's advice. If you are in credit, Ofgem cannot know that your old supplier (GB) will not take any DD payments from you. Ofgem does not control GB's banking and accounting systems. What is the reason for waiting for the new supplier to contact you and setting up a new account? What has that got to do with a DD in favour of GB? What has repayment of a credit balance got to do with the DD?
2. Is there anything different about DDs for electricity supply? Is there some contractual arrangement or regulation which can transfer the benefit of a DD from one company to another? I doubt it.
3. What downside, if any, is there to cancelling your DD if you are sure you are in credit (as many of us are)?
4. What is the point of keeping a DD in place in favour of a company which has ceased trading and to which you owe no money?

The sooner Ofgem clarifies its advice the better. If it has not done so before my DD is due, I'm going to cancel my DD.

It's a no brainer to cancel. If GB Energy's administrator (if they even appoint one) thinks you still owe them, they'll let you know. Whether you're in credit or not has no relevance to an automatic system you've set up to send them money.

The basic fact is that if a company ceases trading and your money lands in their account it's as good as gone. And if you're in credit with said company you're are just throwing good money after bad.

I suspect Ofgem just don't want to issue the advice 'do not pay GB Energy another penny and cancel your Direct Debits immediately' because it's alarmist. 'Stay calm, don't do anything and let us sort everything' is much better PR.

tomthered

Well like others have started a switch to the EDF collective with Energyhelpline. If anyone else wants this fixed tariff they have till nearly midnight tonight to switch.

I calculate that GBenergy will owe me a small amount as they have taken two direct debits totalling £63 and my lectric cost is £44.15, so nearly £20 down, but not as bad as others owed hundreds in credits they will not get.

TommyFarr

On September 18 we transferred our gas and electricity supply from GB energy to Sainsbury's (British Gas) with an estimated credit balance owing from GB energy of £380. The meter readings were accepted by both parties on October 5. We expected the GB energy credit balance to be refunded to our bank account within 14 days.

However GB energy took two further direct debit payments of £178.22 on October 24 and November 23. Having accepted the transfer of suppliers on October 5 we believe there has been possibly illegal activity that Ofgem need to investigate.

Having been a company director for many years, I am well aware that a company director may be personally liable for his company’s business liabilities and may be fined, prosecuted or disqualified as a company director if we don’t follow the rules.

I believe that Luke Watson as Managing Director and the other three directors of GB energy should be held responsible for the financial losses incurred by many of its 160,000 customers. What additional powers does Ofgem have in this situation? And what funding have Ofgem taken put in place to protect individuals who have already changed suppliers?

OTHER DIRECTORS

Luke Watson has held no less than 27 other director positions in the last 13 years, many of which have GB in their titles and 20 of which have been dissolved. GB Energy (Renewables) Ltd and GB Water Supplies Ltd are still active. Why did Ofgem not carry out due diligence on the history of Luke Watson before allowing GB Energy Supply Ltd to trade as an electricity and gas supplier?

Other directors include Brett Austin Trevalyan, Phillip Darwick, and Grant Findlay. Six other directors have already resigned. Along with Luke Watson, Brett Austin Trevalyan was also a director of Great British Energy Ltd which was dissolved in 2011 with 2 CCJs and £219k of liabilities.

Did Ofgem carry out investigations into the total of ten directors history before allowing GB Energy Supply Ltd to trade as an electricity and gas supplier?

We are currently £740 out of pocket. Money Saving Expert have phoned me today to ask permission to use our situation as a news item. But what is the likelihood of any recompense?

uptdale

And if you're in credit with said company you're are just throwing good money after bad.

Not if you believe Ofgem, that credit balances are protected - you would just have a larger credit balance. This is what they say:

Your new supplier will pay back the outstanding credit you may have. Once we have appointed the new supplier, they will contact you to explain how this will work. They may, for example, automatically credit money to your new account with them.

Ofgem are saying two different things. First they say your new supplier will pay back credit balances, then they say that the new supplier may automatically apply the credit to your new account with them. Not the same thing at all - you would then have the hassle of getting it back from the new supplier - or waiting until you had used up the credit with the new supplier, at whatever tariff they choose to put you on.

What is not made explicit is how the new supplier funds the repayment of the credit balance that GB owes. If there is no external funding, then the new supplier has to recover it from the profits it makes from you from your new contract with them. But most people will look around for a better deal, and move again. It doesn't seem a good deal for any new supplier - unless Ofgem allows the new supplier to insist on a minimum contract period. All in all a mess. I don't think Ofgem has really thought this through.

But I agree, better safe than sorry and cancel the DD.

Hoof_Hearted

sheff6107 wrote: »

It's a no brainer to cancel. If GB Energy's administrator (if they even appoint one) thinks you still owe them, they'll let you know. Whether you're in credit or not has no relevance to an automatic system you've set up to send them money.

The basic fact is that if a company ceases trading and your money lands in their account it's as good as gone. And if you're in credit with said company you're are just throwing good money after bad.

I suspect Ofgem just don't want to issue the advice 'do not pay GB Energy another penny and cancel your Direct Debits immediately' because it's alarmist. 'Stay calm, don't do anything and let us sort everything' is much better PR.

I agree 100% with you there. DD's are automatic. Can you really see that when your DD becomes due that somebody will be checking your personal credit/debit situation first to decide whether to take the DD? The information may not even be available unless there is a recent meter reading.

tg99

Has anyone come up with a definitive or well-informed view on what might happen to your credit file if you cancel the DD particularly when you owe them money?

Marky_Boy_2

I have just started looking around for potential new electric suppliers following GB energy going out of business. A key factor on comparison websites is knowing your consumption. As I can no longer access my statements via the GBenergy website how am I now going to be able to notify my consumption accurately?