Economy Energy banned from taking new customers over poor customer service - MSE News

Planetsaver

Sterlingtimes wrote: »

The new customer ban rather presupposes that Economy's issues all fall out from procedural irregularities. However, it is well reported that Economy has liquidity issues and is seeeking new investment. Their challenge now is to pay its ex-customers promptly amounts that are now well over-due and to cease using customers as a funding pool by a combination of over-estimating usage and increasing direct debits.

That is what happened to me, I would not leave as I always seemed to owe them money even if I deliberately overpaid to try to get out.

Planetsaver

paleale wrote: »

I'm owed ~£200 since switching away from them in August 2018.

Initially I was told the refund was automatic, in November when I chased the money they said I was actually meant to request it. It's now been 'processing' since end of November.

I received this reply on 14th December.



I don't think the magical finance spreadsheet will be paying up any time soon.

It is like Hotel California.

You can check out any time you like
But you can never leave!"

:rotfl:

danny_x

As I mentioned in the EE Review thread on 18th Dec 2018, they continued to take my monthly DD after I left them. I eventually contacted my bank (Smile) and requested a refund of those 2 payments under the DD Guarantee, and they refunded the money to my account within hours. So now EE still owe me, but it's less than £10 which is a relief. Hopefully this will be repaid within 14 days, in accordance with today's order, but I won't hold my breath.


So I advise anyone who's in a similar position to invoke the DD Guarantee. There's good advice online on how to phrase your letter to your bank.

wavelets

danny_x wrote: »

...
So I advise anyone who's in a similar position to invoke the DD Guarantee. There's good advice online on how to phrase your letter to your bank.

There is no need to put your claim in writing to the bank. You can do so, but that will only delay matters. Better to call your bank or pop into a nearby branch, and you will get a refund under the DD Guarantee immediately (at least by the end of that working day)

As the DD guarantee states:

If an error is made in the payment of your Direct Debit, by the organisation or your bank or building society, you are entitled to a full and immediate refund of the amount paid from your bank or building society

• If you receive a refund you are not entitled to, you must pay it back when the organisation asks you to

So you simply need to state there was an error, and the bank will be obliged to take your word for it.

The bank may ask you what kind of error (in order for them to make the claim correctly) and this would need to be one of the following reasons.

1. No advance notice received by Payer
2. Amount or date of collection differs from that given in advance notice
3. Payer cancelled DDI direct with supplier
4. Payer disputes any DDI was ever granted (obviously not applicable if you allow previous collections to remain)

Take your pick - as I said the bank is obligated to take the word of the Payer.

But the supplier may contest the matter later, and as per the DD guarantee, if you receive a refund you are not entitled to, you must pay it back when the organisation asks you to.

Consumerist

wavelets wrote: »

. . .

1. No advance notice received by Payer
2. Amount or date of collection differs from that given in advance notice
3. Payer cancelled DDI direct with supplier
4. Payer disputes any DDI was ever granted (obviously not applicable if you allow previous collections to remain)
. . .

Interestingly, this list does not exactly cover DDs being collected after the customer has switched to another supplier - unless the customer requested the DD be cancelled.

The lesson to learn is to always put in a request to the supplier to cancel the DD when you switch. It will not matter if the supplier makes excuses not to, as long as the request was made. Keep a record of the request.

Sterlingtimes

The Telegraph is reporting "Economy Energy in credit default days after new customer ban".

Mr.Everready

Tick tock ............

wavelets

Mr.Everready wrote: »

Tick tock ............

...on the clock
But the party don't stop, no

:cool:

The_Green_Hornet

Economy Energy - On the Brink

https://forums.moneysavingexpert.com/discussion/5947213/economy-energy-on-the-brink#1

twhitehousescat

Economy Energy is understood to be planning to enter the supplier of last resort process shortly as indications it is in financial difficulty has sparked further concern the company is closer to going bust.

Utility Week received the tip-off after Elexon published a credit default notice for Economy Energy on the BM Reports website.

Parties trading on the balancing mechanism are required to post sufficient collateral to cover their outstanding balancing charges in case they go bust.

Elexon, as the administrator of the balancing and settlement code, will issue a warning if the amount owed exceeds a certain percentage of their credit cover.

Earlier this afternoon (7 January), Elexon published a level two credit default notice for Economy Energy indicating the supplier’s outstanding balancing charges amount to more than 90 per cent of its credit cover.

An industry source has since told Utility Week that Economy Energy has informed Elexon of its intention to enter Ofgem’s supplier of last resort process.

Utility Week has contacted Economy Energy for comment but at the time of writing had received no reply.

The supplier was last week banned from taking on new customers for at least three months until it resolves issues regarding its customer service.

Ofgem warned that if the company fails to improve it could result in the revocation of its supplier licence.

Economy Energy has also been banned from increasing existing customers’ direct debits and asking customers for one-off payments during the period.

In November 2018, Ofgem placed Economy Energy under investigation for failing to meet the 31 October deadline for late payments under the Renewables Obligation scheme. Shortly afterwards the company was revealed to owe more than £17 million.

According to Companies House, Economy Energy has extended its accounting reference period from the end of March to the end of September last year. An industry source has previously suggested the sudden change could be a sign the company is facing financial difficulties.

A statement published on the supplier’s website towards the end of last year said: “In response to the recent speculation and circulating misinformation, we would like to provide assurance that we at Economy Energy have no intention of closing our doors.

“We will pay our outstanding ROCs obligation in full, business will continue as usual for our customers.

“We would like to thank customers for their loyalty and continued support.”

Ofgem currently has three open investigations into Economy Energy. One which is considering whether the company breached competition law, one into its compliance with the Renewables Obligation and one observing its sales and marketing obligations.

Eight energy suppliers ceased trading last year.

https://utilityweek.co.uk/economy-energy-enter-solr-process-credit-default