MSE News: Sale of 30,000 former Economy Energy customers to another supplier blocked by regulator

Former_MSE_Stephen_B

The energy regulator has stepped in to stop tens of thousands of former customers of the failed supplier Economy Energy from being moved to the provider E (Gas and Electricity), it announced today...

Read the full story:
'Sale of 30,000 former Economy Energy customers to another supplier blocked by regulator'

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twhitehousescat

I wonder who owns "E"

answers on a postcard labelled "con"

Anthorn

Immediate suspicion kicks in. E was featured in the previous action against Economy Energy when both energy suppliers were ordered to stop sharing information about customers and to stop transferring customers between the two.

So ok the transfer of customers from EE to E flies in the face of Ofem's Supplier of Last Resort. But which tariff is cheapest, the SoLR OVO or the proposed E?

Anthorn

twhitehousescat wrote: »

I wonder who owns "E"

answers on a postcard labelled "con"

{Edited by Forum Team}, who owns Economy Energy, ceased to be a person of significant control in E in 2016, records filed with Companies House in December last year show.

Two other companies, Green Deal Marketing Southern and Access Install, who install smart meters, also took legal action against Economy in 2017 and 2018 over unpaid bills. The Green Deal lists E (Electricity and Gas), it’s owner {Edited by Forum Team}, and {Edited by Forum Team} as co-defendants.

http://www.cityam.com/271798/failed-supplier-economy-energy-tried-sell-customers-e

Sterlingtimes

It is very difficult to do searches on E even in these forums. Not a brilliant search word is it?

I wonder whether the customer transferees were even informed of their apparent transfer.

To get the better answer on ownership, it is necessary to step up to E Holdings Limited where it appears that Cooke has 75% control/ownership and Khilji has 25% control/ownership.

wavelets

I don't fully understand how one customer can sell their customers to another company.

I thought Ofgem ruled that a customer can only change supplier if that customer specifically requests to switch. At least that is what they told Ebico when Ebico dumped SSE as their supply partner & got into bed with RHE instead.

Ebico wanted to take all their customers with them (albeit with an opt-out option) but were told in no uncertain terms that it was for the customer to request the switch, not to object to it. (and that was staying with the same supplier, albeit being supplied by different supply partners i.e. different supply licences)

The only exception was where Ofgem moved the customers, such as where they appointed a SoLR when a customer's supplier ceases to trade.

Presumably that is why anyone who was switched from Economy to E, must now be reverted.

Sterlingtimes

wavelets wrote: »

I don't fully understand how one customer can sell their customers to another company.

The Provisional Order appears to imply that a transfer of customers effected by a contract between suppliers is not a breach of the licence. But the contract arranged on 21December dictated that the transfer should be complete by 21 January. But the series of intervening events, including Economy's insolvency and OFGEM's intervening order, frustrated the contract.

wavelets

Sterlingtimes wrote: »

The Provisional Order appears to imply that a transfer of customers effected by a contract between suppliers is not a breach of the licence. But the contract arranged on 21December dictated that the transfer should be complete by 21 January. But the series of intervening events, including Econom14y's insolvency and OFGEM's intervening order, frustrated the contract.

I'm not sure I agree with any implication you assume.

The Provisional Order refers to a possible breach of SLC 14A

SLC 14.A.11 states:

Where the licensee becomes aware, prior to starting to supply electricity at a premises, that it does not have a Valid Contract for the supply of electricity to that premises it shall take all reasonable steps to prevent its Transfer Request from having effect.

and gives the following definition

A “Valid Contract” is one:
(a) that has been entered into by the Customer;
(b) that relates to the premises for which the Transfer Request has been made; and
(c) for which notice of cancellation of that contract has not been received by the licensee in accordance with any relevant contractual term or statutory provision.