Cheap Energy Club will cost me £100's

neiledwards27

I wanted to share my story because I feel it is relevant to the problems you can encounter with some companies who do try to rip us off.

I have taken out a deal with Green Star Energy, 3 years ago I fixed for three years to protect against price rises. This was through the cheap Energy club. They estimated I would use £85 pre month of gas and electricity. I gave them my previous years kWh for both gas and electric. To help them give me an accurate price.

All flowed fine despite them having an awful app and web interface which meant I found it very difficult to understand whether I was in credit or debt with them. I managed to input meter readings and believed things were good.

Approximately one month before I was due to end my deal I chose another cheap Energy club deal through mse. However my problem starts here.

Green Star Energy rejected my transfer request because over the course of the three years they had just left my direct debit and allowed me to get into debt of over £400. They then said unless I pay within 7 days they would cancel the transfer request. I explained they have never adjusted my direct debit or told me I was in debt with them and as I can't physically change my direct debit myself this was unfair.

I then received an email saying they have now increased.my direct debit by £35 to allow for my new rates as I have been switched on to the ridiculously expensive variable tariff. They used mse to obtain customers and force them into staying by creating debt and then increasing the rates so it makes it so much more expensive to escape.


I asked them to escalate this to a complaint because I was unhappy how they had used this scheme to trap me. I have also requested my initial meter readings and start date of my supply with them so I can calculate my bills and ensure I haven't been overcharged.

I have heard nothing since all I get is emails or fobbed off from pillar to post on the phone. Can anyone suggest anything? Apparently I can't complain to ofgem because it's not a formal complaint and they haven't had enough time to fix but it's been 3 weeks since I've had anything but an automated response.

tempus_fugit

They haven't caused you to go into debt, it's up to you to keep tabs on your usage and how much in credit or debit you are at any one time. I don't know the company so I don't know what their systems are like but most companies have an online system where you can submit readings, check your account and view/download statements to help you see where you are. To leave it for three years I think is as much your fault as the energy company's I'm afraid.

elsien

It's not MSE who've created your debt. You get regular bills and an annual statement telling you whether you are in credit or in debit.
You can also ask to have the direct debit increased yourself or make one off payments.
I do think you should take some responsibility for this yourself.

AndyPK

Maybe you should if calculated yourself like yearly ? Then you would’nt be in this mess?

neiledwards27

The difficulty is probably in their website they don't send regular bills only a running total.

neiledwards27

And I did ask them to increase my direct debit to clear the debt which they did without incorporating the charges that would increase due to th increase in rates. I've raised a complaint and been ignored for over 4 weeks but I guess yes obviously that's my fault too. Imagine if I was a pensioner. Who finds bills hard to follow anyway and they just left them then sent a £400 bill when they tried to leave. It could prove fatal that's all I wanted people to be aware of. I have the money to pay it off but refuse to until they actually contact my back in regards my complaint

matelodave

I'm with those who feel that you should have been a bit more proactive by checking your own meter, checking the bills/on-line account and making sure that you were aware of what was going on.

My energy use profile means that I can go around £180 into debit over the winter but recover it all in the summer so I dont want the company faffing about with my direct debit - I don't rely on the energy company to see if I'm on target, I do it myself.

It's not difficult and by spending 10 minutes once a month you could have avoided the situation because you would have been in control.

BTW I'm a pensioner and don't have a problem doing it. It's not pensioners who have a problem it's those who cant be bothered.

So, not a lot of sympathy.

System

Under Ofgem rules a debt technically isn’t a debt until the customer has been advised of the debt and it has remained unpaid for more than 28 days. That said, suppliers can block transfers when there is a large amount of debit. There are no fixed rules on this although there was a suggestion earlier this year that Ofgem might be consulting on a future policy.

OP - you cannot take an individual complaint to Ofgem. You have to follow the supplier’s complaints procedure and after 8 weeks, or a Deadlock Letter, escalate the matter to The Energy Ombudsman who will then take a further 8 weeks to deliberate. If you decide to go this route, I fear that you may not get a satisfactory outcome for the reasons already given.

Robin9

neiledwards27 wrote: »

. Imagine if I was a pensioner. Who finds bills hard to follow anyway and they just left them then sent a £400 bill when they tried to leave. It could prove fatal that's all I wanted people to be aware of. t

Please don't generalize like this - I'm a pensioner and quite capable of reading meters, understanding bills - more capable than you it would seem.

Smodlet

Admittedly I have never seen Green Star Energy's website but cannot imagine it is incapable of receiving meter reads. If it is, it's called the phone. If, as you say, this company failed to adjust your DD once in 3 years, I suppose it may be possible they have contravened some rule or other however, there is nothing to prevent a customer from working out their own bill every month and contacting their provider if they find they are drifting into any significant debt.

Thank you for posting this cautionary tale, OP; it may be of help to others who have yet to learn this lesson. Unfortunately, at the moment your thread appears to be preaching to the choir.

Ofgem rules state customers must raise an official complaint and the energy company then has 8 weeks in which to resolve it. If they fail to do so within this time, you can then escalate it to the Energy Ombudsman. HTH.

ETA: Cross posted with Hengus. I type slowly, sorry.

System

Smodlet wrote: »

Admittedly I have never seen Green Star Energy's website but cannot imagine it is incapable of receiving meter reads. If it is, it's called the phone. If, as you say, this company failed to adjust your DD once in 3 years, I suppose it may be possible they have contravened some rule or other however, there is nothing to prevent a customer from working out their own bill every month and contacting their provider if they find they are drifting into any significant debt.

Thank you for posting this cautionary tale, OP; it may be of help to others who have yet to learn this lesson. Unfortunately, at the moment your thread appears to be preaching to the choir.

Ofgem rules state customers must raise an official complaint and the energy company then has 8 weeks in which to resolve it. If they fail to do so within this time, you can then escalate it to the Energy Ombudsman. HTH.

ETA: Cross posted with Hengus. I type slowly, sorry.

Not a problem my friend.