2 Direct Debits in 1 month

PFloren

I am in the process of switching energy providers. Moving from First Utility to Avro Energy. The switch is due to complete 27th May but Avro have already taken a direct debit. I have also paid a direct debit to First Utility.
Is it usual to pay the new supplier before they are supplying the gas and electricity?

System

PFloren wrote: »

I am in the process of switching energy providers. Moving from First Utility to Avro Energy. The switch is due to complete 27th May but Avro have already taken a direct debit. I have also paid a direct debit to First Utility.
Is it usual to pay the new supplier before they are supplying the gas and electricity?

Yes. Smaller suppliers often ask for payment in advance of supply as they have to pay their wholesalers in advance. This is usually covered in a supplier’s Welcome Letter and notification of first direct debit payment. The reason that small suppliers can offer cheaper prices is, in part, due the fact that they avoid borrowing money from the bank. Your credit balance is now fully protected by Ofgem’s Consumer Levy and you will only pay for the energy that you consume at the agreed tariff rate.

PFloren

Thank you. I assume you also paid in advance?

PFloren

Just checked the welcome letter and right enough, it's as clear as day! Thanks for your help and clearing up my query

System

PFloren wrote: »

Just checked the welcome letter and right enough, it's as clear as day! Thanks for your help and clearing up my query

No problem. The losing supplier has 6 weeks from the date of transfer to raise a Final Bill. Changing energy suppliers isn’t the fastest process in the World!!

cranford

I have been with AVRO for over two years and have had no problems and they have not kept the payment in advance at the start of the second and third years when they have calculated that years DD. I too switched in the spring so always have a credit until the end of the year so AVRO don't have to use their own money to run my account. Send in your readings like clockwork every month and provided the consumption estimates you gave them were realistic you should have no trouble.
The only criticisms I have is that they don't send emails when the bills are ready only when they want the readings, and the usage charts that run from month to month do not make any sense. Looks like they are not proportioning the consumptions from the mid month bills properly.