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

LittleMax

So here's my situation...

Last bill at start of Nov I was £21 in credit, my monthly usage is around £25. DD of £42 taken yesterday - I couldn't have cancelled it as it was set up for 25th of the month.

I have now cancelled the DD - and claimed back the payment that left yesterday under the indemnity scheme. I'm not holding out much hope that Nationwide will get the payment back and therefore expecting that money to be taken off me again soon.

As I do not have a large credit balance, I have arranged a switch - I've chosen Robin Hood Energy. They were happy to do the switch but did ensure that I was aware of the advice from Ofgem regarding credit balances, and did warn me that I could lose any credit if I proceeded with the switch. I have gone ahead. They say they will be my supplier on 20 December.

Best case, I get the DD refund, and just have to pay for what I actually use between now and the switch. Worse case my usage between now and the switch costs me £42.

I would rather cut my losses and be done. I certainly don't want to end up with one of the big companies on their variable tariff taking 6 weeks to switch. At least this way I am in control.

I real feel for anyone with a high credit balance. I also feel for the employees of GB Energy (that certainly puts my £30 or so loss into perspective)

Marky_Boy_2

We are told that a " new supplier" will contact us. What is to stop potential scammers thinking " hey we could make lots of money here" and make fraudulent approach, hoping that customers off their guard might sign up for a scam.

System

Clearly, some in the industry are also concerned about Ofgem's due diligence and lack of oversight.

From Utility Week.

The comments from Green Energy’s chief executive Doug Stewart are in response to Ofgem’s consultation to protect consumer’s credit balance if their supplier becomes insolvent.

In the letter to Ofgem Stewart said: “I also believe that Ofgem should “stress test” energy suppliers (as the Bank of England does with our banks) to ensure that people offering utility services are capable of providing them and are proper and fit people to do so.

"The scenario in energy where almost anyone now can enter the industry, use consumer money as working capital and make eye-watering losses while holding customer money is, in my view, a derogation of duty.”

The regulator is considering on a case by case basis which supplier is best placed to reimburse the credit balances of customers when their energy suppllier fails.

LittleMax

Marky_Boy wrote: »

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?

You can base it on monthly payments - I presume they were looked at fairly recently. Make sure if you were on Topaz that you average out the higher winter payments and lower summer payments.

locky123

How much notice is required when cancelling a direct debit, 1 working day?

System

locky123 wrote: »

How much notice is required when cancelling a direct debit, 1 working day?

It's immediate if you do it online or call your Bank. Note this may not stop a payment going out. If it does ask your Bank to recover the payment under the DD Guaranatee (Indemnity Claim)

https://gocardless.com/guides/posts/cancelling-direct-debit/

Chris75

That is a good question as I have read one day but they also say that although you can phone/ internet the cancelation your bank may require a confirming letter etc. Whether you can be sure that they will cancel the DD before all the boxes are ticked I don't know. Why don't you ask them?

Personally I would want to leave more than 1 day.

Living_proof

LittleMax wrote: »

So here's my situation...

Last bill at start of Nov I was £21 in credit, my monthly usage is around £25. DD of £42 taken yesterday - I couldn't have cancelled it as it was set up for 25th of the month.

I have now cancelled the DD - and claimed back the payment that left yesterday under the indemnity scheme. I'm not holding out much hope that Nationwide will get the payment back and therefore expecting that money to be taken off me again soon.

As I do not have a large credit balance, I have arranged a switch - I've chosen Robin Hood Energy. They were happy to do the switch but did ensure that I was aware of the advice from Ofgem regarding credit balances, and did warn me that I could lose any credit if I proceeded with the switch. I have gone ahead. They say they will be my supplier on 20 December.

Best case, I get the DD refund, and just have to pay for what I actually use between now and the switch. Worse case my usage between now and the switch costs me £42.

I would rather cut my losses and be done. I certainly don't want to end up with one of the big companies on their variable tariff taking 6 weeks to switch. At least this way I am in control.

I real feel for anyone with a high credit balance. I also feel for the employees of GB Energy (that certainly puts my £30 or so loss into perspective)

I have just been checking present and previous directors of GBE using Companycheck. One guy who has consistently been tied up with Luke Watson et al is Steven Paul Gosling, who has 30 Active, 118 Resigned and 8 Closed directorships. He has also been involved with Robin Hood Energy. He has loads of active directorships in energy companies but I suggest you look back over his entire history and do a bit of cross-referencing.

Just sayin'.

Smodlet

Why don't Ofgem hold Luke Watson et al (along with all other companies' fat cat execs) personally liable for customers' credit balances? But no, it will be we who have to foot the bill, as always (Royal Bank, anyone?)

Cisco001

LittleMax wrote: »

So here's my situation...

Last bill at start of Nov I was £21 in credit, my monthly usage is around £25. DD of £42 taken yesterday - I couldn't have cancelled it as it was set up for 25th of the month.

I have now cancelled the DD - and claimed back the payment that left yesterday under the indemnity scheme. I'm not holding out much hope that Nationwide will get the payment back and therefore expecting that money to be taken off me again soon.

As I do not have a large credit balance, I have arranged a switch - I've chosen Robin Hood Energy. They were happy to do the switch but did ensure that I was aware of the advice from Ofgem regarding credit balances, and did warn me that I could lose any credit if I proceeded with the switch. I have gone ahead. They say they will be my supplier on 20 December.

Best case, I get the DD refund, and just have to pay for what I actually use between now and the switch. Worse case my usage between now and the switch costs me £42.

I would rather cut my losses and be done. I certainly don't want to end up with one of the big companies on their variable tariff taking 6 weeks to switch. At least this way I am in control.

I real feel for anyone with a high credit balance. I also feel for the employees of GB Energy (that certainly puts my £30 or so loss into perspective)

You could try calling your bank to see if they can do anything about the DD taken yesterday.