Payment plans = subsidy by consumer?

Telegraph_Sam

I can understand that at the start of a new contract the energy supplier might wish to ask for payment in advance, by one month say. After all but a year however I did a "reconciliation" of my account and came to the conclusion that I was still one month in credit. I asked for a refund of the credit but get the impression that the supplier [Green Network Energy] is unwilling to do this. Can energy suppliers rightfully insist on their customers pre-financing them even after months' of supply? There may of course be a clause to this effect buried in some small print somewhere ..

System

Telegraph_Sam wrote: »

I can understand that at the start of a new contract the energy supplier might wish to ask for payment in advance, by one month say. After all but a year however I did a "reconciliation" of my account and came to the conclusion that I was still one month in credit. I asked for a refund of the credit but get the impression that the supplier [Green Network Energy] is unwilling to do this. Can energy suppliers rightfully insist on their customers pre-financing them even after months' of supply? There may of course be a clause to this effect buried in some small print somewhere ..

Read the tcs and cs. Many suppliers now insist on a minimum of one month’s credit.

Suppliers pay their wholesalers in advance of supply. I pay Sky; phone; broadband; road tax; insurance etc at the beginning of a contract or at the start of a monthly billing period, so why not energy? You could always choose a supplier that doesn’t want to be paid in advance but one that charges higher prices. As I am sure you know, your energy credit balance is 100% protected by the Consumer Levy.

Telegraph_Sam

Tks for clarification.
" As I am sure you know, your energy credit balance is 100% protected by the Consumer Levy." To be frank I didn't know, your faith in me was misplaced.

System

Telegraph_Sam wrote: »

Tks for clarification.
" As I am sure you know, your energy credit balance is 100% protected by the Consumer Levy." To be frank I didn't know, your faith in me was misplaced.

The Consumer Levy was introduced in the Autumn of 2016 - just before GBEnergy went bust. Ofgem will appoint a Supplier of Last Resort in the event of a supplier failure. This supplier will take on existing customers along with their credit balances. The new supplier will pay something for the new business and Ofgem will pay them the balance to cover all credit balances. GBEnery failed owing £25M. Ofgem paid the Coop just over £10M from the Consumer Levy. Who pays the Consumer Levy: the answer is we all do in the form of higher bills. Is it fair: no it isn!!!8217;t. Why should Granny who has been with British Gas for years, contribute to payouts for consumers who have chosen a small/cheap supplier with no money in the Bank that goes bust? My view is that Ofgem should be insisting on insurance backed Indemnity Bonds from all suppliers, but what do I know.