Problems switching to the new energy upstarts

MrGimlet

Hi just sharing my recent (last year or so) experience and canvassing to see if it's happened to others...


To cut a long story short, I joined one of the new small energy companies about a year ago. MSE email saying could save more by switching later last year so off I go and yes, another switch to another new small supplier.


Then the problems started trying to close the account with the original firm. Towards the end of last year I moved so had to close account with second firm as they weren't available in the area I moved to.


But woe is me, they started dragging their feet too!


It took approximately 9 months of continual chasing to get a refund of about £150 with the first company and about 5 months (again continual chasing) to get a refund of about £250. Both started taking action only after threats to escalate.



I have two issues here:


1. The huge amount of my money they are holding on to.
2. The protracted time it takes to recover this money from them.


I suspect this is the small suppliers' modus operandi.... they both wanted the direct debit payment up front when the account was created, they both were wallowing around in my money when I came to close the account and they both procrastinated over returning the money.


My experience with these two is causing me to seriously consider sticking with the big boys as I never had any problems with them whatsoever (I've been switching since the very early days).


Has anyone else experienced this behaviour with the new kids on the block? What are your thoughts and ideas?

Benight

MrGimlet wrote: »

Hi just sharing my recent (last year or so) experience and canvassing to see if it's happened to others...


To cut a long story short, I joined one of the new small energy companies about a year ago. MSE email saying could save more by switching later last year so off I go and yes, another switch to another new small supplier.


Then the problems started trying to close the account with the original firm. Towards the end of last year I moved so had to close account with second firm as they weren't available in the area I moved to.


But woe is me, they started dragging their feet too!


It took approximately 9 months of continual chasing to get a refund of about £150 with the first company and about 5 months (again continual chasing) to get a refund of about £250. Both started taking action only after threats to escalate.



I have two issues here:


1. The huge amount of my money they are holding on to.
2. The protracted time it takes to recover this money from them.


I suspect this is the small suppliers' modus operandi.... they both wanted the direct debit payment up front when the account was created, they both were wallowing around in my money when I came to close the account and they both procrastinated over returning the money.


My experience with these two is causing me to seriously consider sticking with the big boys as I never had any problems with them whatsoever (I've been switching since the very early days).


Has anyone else experienced this behaviour with the new kids on the block? What are your thoughts and ideas?

Thanks for the warning.
Glad we stuck to a Big 6 supplier now

JJ_Egan

Been with about 5 of what you call upstarts .
Never a problem and two of those upstarts are now much bigger .
Long time since i have used a big 6 company .

Robin9

As an example of good service

My Gas is with Zog. I sent them readings at the end of the month and apparently got them wrong such that Zog emailed me this morning - are your sure ?

Corrected the reading and Zog have emailed back

[Deleted User]

OP, you can mention the "upstarts " by name on here ( Iresa Energy, Eversmart by any chance ?.). The upstarts are cheaper than the big 6 because they employ fewer call centre staff manning the phones.
Personally I have been with several of the rock bottom suppliers without any real problem because I do not expect them to manage my account for me.
It helps if when you start off with these you get a very accurate yearly consumption in kwhs logged with them and only accept a realistic direct debit.. plenty of meter readings helps too of course to make sure you do not owe or get too much in debit

MrGimlet

Hi All thanks for your replies.


So far it seems to be that I was unlucky, but not alone, though can anyone explain the time it takes (months) for money to be returned? I've never known it take longer than a couple of weeks or so with the big ones. I bet if I owed them cash the story would be much more different!



Would it be reasonable to divulge the two companies involved? I'm not desperate to do so and don't want to risk saying things when they don't have an opportunity to respond. Though if you think it would help others I would.


Regarding the meter readings, these used to be read regularly by the electric company years ago then all of a sudden the customer is expected to do this job, saving the energy company money. This is just one of many things that has changed over the years that enables the companies to boost their profits at the customers' expense.

matelodave

It took me 10 weeks to get my money back from Scottish Power when I left them the longest ever from all the suppliers that I've been with. However that said I do try and make sure that I run my account as close to balanced as i can, so there's not all that much to worry about.

I'm in severe danger of being more in credit than I want to be this year because of the mild winter. I'm expecting my account to balance in June, rather than in August when my fix ends. I should be around £80 in debit today but its only £24.12 as we've used significantly less energy than usual.

wakeupalarm

The time it takes to refund credit balances is a problem that seems to be getting worse. Those who take payments as soon as your switch has completed should be compelled to refund credit balances within a 2 weeks of switching away or face having to pay compensation payments on top.

giraffe69

Regarding the meter readings, these used to be read regularly by the electric company years ago then all of a sudden the customer is expected to do this job, saving the energy company money. This is just one of many things that has changed over the years that enables the companies to boost their profits at the customers' expense.

I'd much prefer to read my own meters and not have someone come round. Years ago, of course, it wasn't so easy. For example the facility to log them online was not available. If the companies reduce the number of readers then the consumers share in the reduction of cost so win-win. If and when they manage to get the smart meter installs on track and with appropriate meters that will also be a positive but not holding my breath quite yet!

Thomas_Edison

I believe from May onwards suppliers will have to pay £30 compensation for certain switching issues.

Like for example late refunds, suppliers actually have up to 6 weeks to refund you after you switch away due to how long it takes to validate the switch readings.

https://www.ofgem.gov.uk/publications-and-updates/consumers-receive-automatic-compensation-switching-problems

CityLite

Thomas_Edison wrote: »

I believe from May onwards suppliers will have to pay £30 compensation for certain switching issues.

Like for example late refunds, suppliers actually have up to 6 weeks to refund you after you switch away due to how long it takes to validate the switch readings.

Up to 6 weeks is the period allowed for a losing supplier to issue a final bill.

The supplier is permitted up to 10 working days from the final bill issue date to refund any credit.