Can I change supplier with debt on account?

Itsallfunandgames

Hi
Almost a year ago I changed energy suppliers, my current supplier was increasing my monthly direct debit from £78 a month to £88 a month, when Scottish Power contacted me to get me back (I was with them before). Went through all the usage etc and at first they said they couldn't beat my existing monthly payment, then he went quiet for a bit and came back and said "oh actually we can match it".
So I switched, was paying £78 a month again, I was giving them meter readings when they were asking for them. Then 6 months later I got an email saying my direct debit was going up to £147 a month, I did check my bill every now and again and could see a debit building up, but I wrongly assumed I would compensate for this during the summer months when we barely use gas and electric.
So I've been paying £147 for about 4 months now, updating meter readings every time my bill is due and today my direct debit has increased again, to £165 a month.
My current debt is standing at £191, we appear to be using £90 a month atm, which is ridiculous considering we haven't had the heating on for months now.

Can I change suppliers even though I have the debt? then agree with Scottish power a monthly figure to pay it off, because I feel once it gets colder and we start using the heating, my direct debit is going to increase further and we can't afford any further increases.

matelodave

Most companies will expect you to settle their final bill or will block your swap.

You have to ask Scottish Power what they'll accept. The collective wisdom on this forum don't know what SP's attitude to this situation might be, especially if your debt is still increasing and they know that you'll have to pay another supplier as well as paying down your debt

Robin9

Itsallfun........ you need to get this account under control first.

12 months ago when you switched to SP your account would have been in balance - what has happened since? What has been your actual consumption and tariff since then ? Has SP taken all the DD's it was supposed to ?

FelineFunk

With a credit meter, a supplier will normally block a switch if you are in debt to them. The block will be removed as soon as you repay the debt.

Note that a debt is not the same as an account in debit.

A debt is only a debt if the amount has formally been demanded and not been paid for at least 28 days.
i.e. the supplier has sent you a bill that you have failed to pay.

(Such an event often has an adverse affect on your credit history file, and so a new supplier may not be willing to supply you on a credit meter or may require a security deposit)

Where people pay monthly by direct debit, it is quite common for accounts to be in credit or debit depending on the time of year. Unless severe, suppliers do not usually bill any debit amount separately, but if necessary (such as they believe you will not bring the account back into credit based on level of consumption and monthly payment), will simply adjust the monthly payment.

In such circumstances, suppliers are not permitted to block a switch request. However, be aware that folloing a switch, you will receive a final bill and that is usually expected to be settlled in full.
(if you have difficulties, you can request a payment plan, but a supplier that you have just switched away from will be less sympathetic than if they were still supplying you)

Itsallfunandgames

You're right, my mistake, the account is in debit, rather than it being a debt.

[Deleted User]

Prepayment meters can switch with a considerable debit on the account, last time I checked it was as much as £500 ..Credit meter cannot move without settling up first.
With modern smart meters which can easily be changed to either credit or prepay , i suppose its possible to get the supplier to remotely change the meter to prepayment mode, then do an exchange to better prepay tariffs

Gerry1

Oh dear, the OP has fallen into the trap of thinking in terms of monthly direct debit amounts. They're about as useful as a loose steering wheel.

The ONLY way is to compare the cost of supplying your annual expected usage, in kWh, obtained from actual meter readings. Even then, your consumption can increase because of cold weather etc, so your direct debits can be hiked if they haven't been sufficient to pay your bills.

Any dodgy sales agent can boost their commission by offering a DD of £1 per month knowing that it won't prove to be sustainable...

Robin9

IF (and its a big IF) your previous suppliers £78 was covering your cost then something has happened for the DD to have changed so much.

Perhaps you have read the wrong meter, or the correct one wrongly. Post your meter readings please - watch out for the decimal point on the new meters.

If things are going wrong you need to sort out the problem - swapping suppliers now will only make things worse.