MSE News: Spark Energy ceases trading - here's what you need to know

System

robcyb wrote: »

I started a switch away from Spark Energy more than 3 weeks ago and it's set to complete on Wednesday 28th November. I am in significant credit on my account and was advised at the time of the switch that I would get it back within a few weeks after the switch.

What happens now? Do I wait for Ofgem to appoint the new supplier and ask for the money back from them? How does this 'safety net' work? I'm still technically a Spark Energy company the day it went into administration.

Thanks in advance

The appointed SoLR will be in touch once it has got access to all Spark's account information. As you have switched away, do not expect to be at the front of the queue when it comes to repayment of your credit. If I recall, it took the Coop about 3 months to repay me what I was owed after GBEnergy's failure. The process might be quicker if another supplier takes over the business as a going concern, and Spark CS/billing staff stay in place.

matelodave

As Hengus says it seems to take around three months to get all the accounts sorted out - it took about that before I got my credit back from the GB/Co-op swap and nearly that from the IRESA/Octopus one that's just happened. (GB/Co-op owed me £20 and IRESA/Octopus about £6)

Taking over 100k+ accounts and sorting out the mess that the failed company has got itself into isn't quick or easy especially when trying to sort out accounts that aren't up to date and there are lots of estimated readings.

Theres also has to be negotiation between the new company and the administrators of the failed one especially when it comes to recovering credit balances.

This is usually the time when most customers realise that they should have kept better control of their energy bills and wished that they'd sent in regular readings, got bills corrected and saved their own copies because they now dont have a clue where they stand and can't get into their old accounts anymore.

Just think of the sequence ove events in your case. You haven't actually swapped yet - so you should be sending in your present meter readings ready for 28th.

These will get verified by your new supplier who should send them to your old supplier who doesn't now exist. The supplier who has taken over has to sort out the state of all the SE accounts to see who owes what and get up to date readings from all the customers to see who's in credit and whos' in debit.

They've then got to recover monies from the admisnistrators for those in credit and then get that back into those accounts that sare still live and refund those who have swapped. In the meantime 100's of customers will have cancelled DDs and tried to swap away as soon as they can just to add to the confusion.

So getting your credit back in only three months it pretty good going really

System

It has been announced in various media today that Ovo has signed a conditional agreement to takeover the domestic arm of Spark Energy but it still awaits formal agreement from Ofgem to to takeover Spark’s domestic customers. No doubt there will be haggling going on over what Ovo is prepared to pay for the additional customer numbers, and the money reportedly owed to Ofgem.

System

It has just been confirmed (source Utility Week) that Ovo Energy has been appointed by Ofgem as the SoLR for Spark Energy:

Quote: Ovo Energy will take on Spark Energy's customers. Ovo Energy has been confirmed as the supplier of last resort (SoLR) for the 290,000 customers of failed supplier Spark Energy, Ofgem has confirmed. ... It means Spark becomes part of a very successful large independent energy supplier Unquote

waswasere

Life to short to detail the problems I've had with Spark. The TL'DR version.

I paid by monthly DD on a 1 bedroom flat. They didn't review it for 3 years or ever send me a bill. They then hit me with a bill for £3,200. They closed my account three times resetting it to their highest tariff. Eventually, they wrote off £3,500 because of OFGEM back billing rules. I changed to a smart meter to get on top of why there appeared to be excessive usage at which point they removed my Economy 7 tariff. No amount of calls could get it resorted. It was summer, I stopped pushing them.

However, I called them on the 23rd Nov because I had been told my flat was going to fail its ERC because I wasn't getting Economy 7. They put me back on it immediately (or at least the smart meter updated).

I've just checked my online account. All my previous bills have been deleted. Not all bad though as according to them my current balance is £7,725 in CREDIT!

But I have to say that throughout the call centre staff have been really great. Not their fault that behind the scenes there was a complete shambles.

Former Spark Representative

Hi waswasere

I'm sorry to hear you've had issues with your bills.

If you'd like me to take a look at your account please drop me a line with your full name, your MSE screen name, your supply address and any other information that you think might be useful.

Kind regards

Jenny
Customer Relations Team

JayWalker

I was a customer of Extra Energy and am apparently being transferred to Scottish Power. They haven't transferred the account, just initiated a switch. I had an agreement with EE that they'd read the meters, 'cos I'm in a wheelchair. SP are insisting I read the meters for them and give me no way to contact them as I'm not even a customer until they've completed the setting-up, which will take "a few weeks" from when I give them the readings. Does anyone want to come and read the meters for me?

jamest89

Whats happening with the Warm Home Discount for Spark customers?

Will OVO still pay me the Warm Home Discount?

Former Spark Representative

Hi jamest89

Thanks for asking the question.

I'm really sorry but I'm not able to answer it just yet.

Please be assured that as soon as we know what's going to happen, that we'll make sure to inform anyone that applied before we became part of the OVO family.

If you want me to update you personally, feel free to drop me a line to the email address given in my profile.

Sorry I can't give you more information now, but hopefully we'll be able to answer you soon.

Kind regards

Jenny
Customer Relations Team

jamest89

Thanks Jenny.

Hopefully fuel poor customers won't be disadvantaged as a result of the supplier of last resort process.

If OVO are not going to be honouring Spark Energy's Warm Home Discount obligation then customers must be informed very soon to allow them to switch and apply through another supplier before its too late