MSE News: Iresa banned from taking on new...

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  • cws666
    cws666 Posts: 5 Forumite
    edited 27 March 2018 at 2:53PM
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    I was told my Direct Debit would be increased due to being I debit and it was. I was told an extra payment would be taken and it was and, despite considerably reducing my consumption of both gas and electricity received an email stating that another lump sum will be taken in April. Rang Iresa and only had to wait 1 hour, 19 minutes and 4 seconds for someone to answer!!! They stated that my account has to be in credit by one months payment at all times but that no further lump sums would be taken, and, that as my account will now go into credit then my direct debit will reduce. Seems very convoluted!! The other thing I discovered was that Iresa use estimated meter readings - even though I submit readings every month. Apparently they use estimated readings due to so many customers failing to supply readings themselves. Even though they are the cheapest I think I will probably change when my year is up.
  • System
    System Posts: 178,104 Community Admin
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    cws666 wrote: »
    Apparently they use estimated readings due to so many customers failing to supply readings themselves.

    Under the terms of their Licences, all suppliers are required to use a customer’s reading for billing purposes if one is provided. If they suspect an error, they are required to contact the customer. That said, if you provide an actual meter reading on, say, the 28th and you are billed on the 31st, then an estimated reading will be used based on your reading of the 28th. I am currently with separate suppliers for gas and electricity and both suppliers list all the actual meter readings that I have provided on their bills.

    Moreover, if I provide Octopus with an electricity reading it is validated within a day and billed immediately. Zog issues its bills on the last day of each month, and I provide a gas reading on that day which is again used for billing.

    There are reasons why a supplier might like to use estimated readings even when actual readings are provided!!
  • donerkebab
    donerkebab Posts: 177 Forumite
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    Hengus wrote: »
    In fairness to The EO, the Order only came into force today.

    OK called EO they weren't aware but after checking were kicked in action. Another 8 weeks and no response by Iresa are next steps.

    Not sure how further 8 weeks will help those who

    a) are having switches blocked even though in credit
    b) having ridiculous forced increased DD to now keep them in 1 months credit.
    In the words of Jerry Maguire "SHOW ME THE MONEY"
  • cws666
    cws666 Posts: 5 Forumite
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    Thanks for that. After checking my bills I can see that Iresa request readings on or around the 24th of the month but the bills are dated the last day of the month. This explains the estimated readings.
  • molerat
    molerat Posts: 32,036 Forumite
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    poggles wrote: »
    With regards to direct debit changes or one off payments, that starts tomorrow, being the day after publication of today's provisional order.
    It is the day after service, a quite specific legal term so it depends on how the notice has been served.
  • Rovergb
    Rovergb Posts: 10 Forumite
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    I've been looking for a new supplier and was aware of the ban on them from taking new customers, out of interest I went through the process of applying for a quote and I got to the stage where they ask for all the relevant details to open an account.

    I don't think I should have got that far if they are supposedly banned from expanding their customer base.
  • System
    System Posts: 178,104 Community Admin
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    edited 28 March 2018 at 9:54AM
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    Rovergb wrote: »
    I've been looking for a new supplier and was aware of the ban on them from taking new customers, out of interest I went through the process of applying for a quote and I got to the stage where they ask for all the relevant details to open an account.

    I don't think I should have got that far if they are supposedly banned from expanding their customer base.

    If you are that concerned then contact:

    consumeraffairs@ofgem.gov.uk
  • System
    System Posts: 178,104 Community Admin
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    I see that they have finally amended the quote page with a simple message NOT TAKING NEW ORDERS and WE WILL BE BACK SOON.

    Ever the optimists.
  • gardner1
    gardner1 Posts: 3,154 Forumite
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    Rovergb wrote: »
    I've been looking for a new supplier and was aware of the ban on them from taking new customers, out of interest I went through the process of applying for a quote and I got to the stage where they ask for all the relevant details to open an account.

    I don't think I should have got that far if they are supposedly banned from expanding their customer base.

    "out of interest"....you must have nothing better to do if you've got time to waste 5-10 minutes trying to apply for quote to a company who are banned from taking any more customers
  • Gerry1
    Gerry1 Posts: 9,938 Forumite
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    Iresa is one of many companies including British Gas / Sainsbury's / Places for People Energy etc who give FRAUDULENT QUOTATIONS for Economy 7 electricity. Their bills can be significantly higher because they choose to make unfounded assumptions about the amount you use overnight: they ask only for the total usage, or ignore the usage figures you have given them. They arbitrarily assume that up to 70% is used overnight, but if you use a smaller proportion at night their fake "quotations" amount to Misrepresentation, which is a criminal offence.

    Try it yourself: get an online "quotation" for 20% night usage, e.g. 2000kWh (day) and 500kWh (night), and then calculate from their published E7 rates just how much more expensive it would really be !

    OFGEM CEO Dermot Nolan has personally known about this scam for 18 months but has chosen to allow the offenders to keep scamming all the way to the bank.
    siren.gif Would MSE like to hold the dozy OFGEM and all the rogue energy companies to account? siren.gif
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