Changing energy supplier when in debit

alison_margetts

Hi
I am currently in debit with Scottish Power by £300, but i want to change service providers as SP are quite expensive, but I cannot afford to pay the £300 back in one go. Does that mean I will have to stay with Scottish Power?
Would appreciate any advice. Many Thanks

markharding557

I could be wrong but I think the limit is £200

SpotlandRules

To my understanding, they are allowed to block, if you have an outstanding bill over 28 days.

Robin9

Is your debt increasing or decreasing?

Are you on the cheapest tariff with SP?


Is your debt with SP one of several other debts - you may be better off reducing high interest debts first?

sfullan68

Hello,

We are also in debit almost £300 to Sainsbury's Energy but if we wait for the next few quarters our energy use would decrease and eventually we'd be in credit again.

Last year Sainbury's energy suggested they decrease our DD, when I suggested otherwise or not decreasing it as much as they suggested, and now we're in this position.

I'd like to consider switching as I can see from the MSE Cheaper Energy Club we could save anywhere up to £230 but we'd have to settle the debit.

If we switch we'd prefer to go with a supplier who has good reviews and reliable based on MSE reviews and feedback.

Is it really worth switching now, even though we are in debit £300? Would we have to pay it all off?

Regards,
Steve

System

sfullan68 wrote: »

Hello,

We are also in debit almost £300 to Sainsbury's Energy but if we wait for the next few quarters our energy use would decrease and eventually we'd be in credit again.

Last year Sainbury's energy suggested they decrease our DD, when I suggested otherwise or not decreasing it as much as they suggested, and now we're in this position.

I'd like to consider switching as I can see from the MSE Cheaper Energy Club we could save anywhere up to £230 but we'd have to settle the debit.

If we switch we'd prefer to go with a supplier who has good reviews and reliable based on MSE reviews and feedback.

Is it really worth switching now, even though we are in debit £300? Would we have to pay it all off?

Regards,
Steve

Hi - welcome to the forum. Look at it from the supplier's point of view. It is owed £300 and it has a hold over you. It can, for example, install a pre-payment meter if you default. If it allowed you to switch without insisting on repayment in full then it has lost some control over the management of your debt. I appreciate that this is a 'Catch 22' situation that doesn't help you. Have you spoken to the supplier to see if they are prepared to offer any advice?

Forgive me for asking, but if you knew that you were under-paying why didn't you just put the money to one side? Suppliers do not have a crystal ball and their algorithms are, at best, a guess.

sfullan68

Well, we have the money but we want to switch because we know we can save up to £150/yr. We asked the supplied to leave our DD as it was and not reduce it but they insisted because for some reason they don't want to be in credit to customers it seems.

I agree we have to pay it but it's rather annoying. Obviously our usage variies over the winter and summer seasons so that's the reason we're in the position.

thanks for the reply

System

sfullan68 wrote: »

Well, we have the money but we want to switch because we know we can save up to £150/yr. We asked the supplied to leave our DD as it was and not reduce it but they insisted because for some reason they don't want to be in credit to customers it seems.

I agree we have to pay it but it's rather annoying. Obviously our usage variies over the winter and summer seasons so that's the reason we're in the position.

thanks for the reply

You cannot just blame the supplier. If you had calculated that your annual cost would be £840 per year/£70 per month and the supplier dropped the DD to £50 per month, why not put the £20 per month to one side for the inevitable bill? It makes sense to me to do so. It just means that you have got an interest-free loan.

footyguy

alison_margetts wrote: »

Hi
I am currently in debit with Scottish Power by £300, but i want to change service providers as SP are quite expensive, but I cannot afford to pay the £300 back in one go. Does that mean I will have to stay with Scottish Power?
Would appreciate any advice. Many Thanks

Providing it is only your account in debit to SP as opposed to you being officially in debt to them, then there will be nothing to prevent you from switching supplier.

However, as you appear to understand, at the actual switch the supplier will produce a final bill for you and will usually want that bill settled almost immediately. (If you don't settle it within 28 days, you will then be in debt to them, which may result in adverse entry at a credit reference agency)

If you were to contact the supplier after the bill is received, it may be that the supplier will agree a repayment plan for you, but they are under no obligation to do so. Where they do, it is not usually for long. e.g. perhaps £100 now and £100 for each of the next 2 months.
Afterall, they will probably not be too keen on extending goodwill to you sinmce you had opted to ditch them.
Don't forget, you will also be paying your new supplier during this period.

If you want to avoid difficulties, and as you say you cannot afford to repay the bill you foresee coming, then I would recommend you remain with the existing supplier, but you can ask to transfer to their best available tariff for you. Then ensure the payments are revised to both cover your anticipated consumption plus to repay the accrued debit balance. Normally a supplier in such circumstances would be willing to arrange for such repayment in equal amounts over a similar period to which it accrued.

footyguy

sfullan68 wrote: »

Hello,

We are also in debit almost £300 to Sainsbury's Energy but if we wait for the next few quarters our energy use would decrease and eventually we'd be in credit again.

Last year Sainbury's energy suggested they decrease our DD, when I suggested otherwise or not decreasing it as much as they suggested, and now we're in this position.

I'd like to consider switching as I can see from the MSE Cheaper Energy Club we could save anywhere up to £230 but we'd have to settle the debit.

If we switch we'd prefer to go with a supplier who has good reviews and reliable based on MSE reviews and feedback.

Is it really worth switching now, even though we are in debit £300? Would we have to pay it all off?

Regards,
Steve

You'll have to pay what you owe in the end, and if you can save yourself £230 by switching, it would appear a no-brainer to me.

Can you really save £230 compared to the best available tariff for you from the existing supplier?
Remember, Sainsburys is only a white label actually supplied by British Gas

System

footyguy wrote: »

You'll have to pay what you owe in the end, and if you can save yourself £230 by switching, it would appear a no-brainer to me.

Can you really save £230 compared to the best available tariff for you from the existing supplier?
Remember, Sainsburys is only a white label actually supplied by British Gas

I fear a case here of the flawed Ofgem inflated savings methodology.