Final Bill Failure to refund Credit Compensation

JPears

Under the change of regulations,
01 May 2019, energy companies are required to refund any credit within 10 working days of the final bill.
Failure to do so results in an automatic compensation payment of £30.
Failure to pay this within 10 working days results in a further £30 payable. And this contunes.
My understanding the additional £30 compensation is payable if the original compensation payment (and subsequent ) is late. irrespective of actual settlement of the original credit amount.
My my case, GNE supplied a final bill on 11th November 2019.
There was £25 credit ( this was actually wrong it should have been £130 credit....)
I asked for payment by cheque ( this is an option under the regulation) as I had already cancelled my direct debit.
No credit payment despite several emails both to "customer services" and complaints was received.
Eventually I received a payment on 8th Jan. I calculate this is 38 working days after the date of the final bill =£90 in compensation. I have pointed this out to GNE. They have offered £30 with an additional £30 goodwill. In reply I pointed out that failure to pay this amount promptly would result in additional £30 after several more days.
No reply (no suprise) as yet.
Am I correct in my interpretation of the regulations/law?

JGB1955

My understanding is that there is only one £30 compensation payment due. I would accept the additional goodwill payment and move on.

DawnCrush

JPears wrote: »

Under the change of regulations,
01 May 2019, energy companies are required to refund any credit within 10 working days of the final bill.
Failure to do so results in an automatic compensation payment of £30.
Failure to pay this within 10 working days results in a further £30 payable. And this contunes.
My understanding the additional £30 compensation is payable if the original compensation payment (and subsequent ) is late. irrespective of actual settlement of the original credit amount.
My my case, GNE supplied a final bill on 11th November 2019.
There was £25 credit ( this was actually wrong it should have been £130 credit....)
I asked for payment by cheque ( this is an option under the regulation) as I had already cancelled my direct debit.
No credit payment despite several emails both to "customer services" and complaints was received.
Eventually I received a payment on 8th Jan. I calculate this is 38 working days after the date of the final bill =£90 in compensation. I have pointed this out to GNE. They have offered £30 with an additional £30 goodwill. In reply I pointed out that failure to pay this amount promptly would result in additional £30 after several more days.
No reply (no suprise) as yet.
Am I correct in my interpretation of the regulations/law?

A summary of the rules is here:
https://www.ofgem.gov.uk/publications-and-updates/customers-entitled-automatic-compensation-switching-problems-1-may

The full details are available from here:
https://www.ofgem.gov.uk/publications-and-updates/supplier-guaranteed-standards-performance-decision-switching-compensation

As I see it, you are automatically entitled to £30 compo if the supplier does not refund you within 10 working days of the final bill.

If that is not paid within 10 working days of the breach, you are entitled to a further £30. I see no time limits in the rules about when this second payment needs to be made, nor any subsequent right to automatic compo.

I also see nothing in the rules that requires a supplier to refund you by cheque.

So no, I don't think your interpreation of the rules is correct, and you may incur issues trying to enforce the rules if you have already breached the supplier's contract. e.g. by cancelling the DDI where the agreed terms require you to have one in place.

JPears

Hi,
Thanks for feedback.
The regulations:
The Electricity and Gas (Standards of Performance) (Suppliers) Regulations 2015, including amendments 01/05/2109, do actually allow the consumer to request repayment by cheque.


Given the amount of credit I had, 1 week after a previous bill and given the ineptitude of GNE, there was no way I was going to maintain a direct debit open to them after my contract had been terminated and supplier switched.

DawnCrush

JPears wrote: »

Hi,
Thanks for feedback.
The regulations:
The Electricity and Gas (Standards of Performance) (Suppliers) Regulations 2015, including amendments 01/05/2109, do actually allow the consumer to request repayment by cheque.


Given the amount of credit I had, 1 week after a previous bill and given the ineptitude of GNE, there was no way I was going to maintain a direct debit open to them after my contract had been terminated and supplier switched.

So you had already read the legislation relating to the supplier's standard of performance, and the penalties associated with any failure?.
... and in my opinion, your interpretation of that was wrong. :cool:

Now, would you please indicate where, in that legislation, you think it states anything about you being allowed to demand by cheque any refund contractually due as stated on the supplier's final bill.
... because, again, I suggest you have misinterpreted that legislation. :cool:

Pete99

Direct Debit does what it says on the tin, it is for taking money from your account not for paying money in, in order for the supplier to send you a refund they just need your account number and sort code which they already have, when your contract ends so does their right to take money by Direct Debit in my view.

Heedtheadvice

Quite a lot regarding late credit refund and compensation payments.


Certainly my understanding having read the formal documentation and guidance is that the regulator deems repeat compensation payable for subsequent repeat delays.


I currently have a complaint with OFGEM (pending) regarding delays by Enstroga similar to that outlined by the OP except cheques are not involved. We shall see what the conclusion of that is in due course!

PennyPenny

Thanks to OP and to DawnCrush for the thread and the links, I've just got myself an unexpected £30 bonus from my previous supplier. It wasn't provided automatically as described in the ofgem document though, I had to ask for it
I now feel sorry for anyone that doesn't know about this and should have received compensation.

DawnCrush wrote: »

A summary of the rules is here:
https://www.ofgem.gov.uk/publications-and-updates/customers-entitled-automatic-compensation-switching-problems-1-may

The full details are available from here:
https://www.ofgem.gov.uk/publications-and-updates/supplier-guaranteed-standards-performance-decision-switching-compensation

As I see it, you are automatically entitled to £30 compo if the supplier does not refund you within 10 working days of the final bill.

If that is not paid within 10 working days of the breach, you are entitled to a further £30. I see no time limits in the rules about when this second payment needs to be made, nor any subsequent right to automatic compo.

I also see nothing in the rules that requires a supplier to refund you by cheque.

So no, I don't think your interpreation of the rules is correct, and you may incur issues trying to enforce the rules if you have already breached the supplier's contract. e.g. by cancelling the DDI where the agreed terms require you to have one in place.

Swipe

PennyPenny wrote: »

Thanks to OP and to DawnCrush for the thread and the links, I've just got myself an unexpected £30 bonus from my previous supplier. It wasn't provided automatically as described in the ofgem document though, I had to ask for it
I now feel sorry for anyone that doesn't know about this and should have received compensation.

Was your previous supplier Utility Point, by any chance?

WhoIsThat

PennyPenny wrote: »

Thanks to OP and to DawnCrush for the thread and the links, I've just got myself an unexpected £30 bonus from my previous supplier. It wasn't provided automatically as described in the ofgem document though, I had to ask for it
I now feel sorry for anyone that doesn't know about this and should have received compensation.

They should read MSE :money:

https://www.moneysavingexpert.com/news/2018/06/mse-victory-as-ofgem-looks-to-compensate-consumers-for-late-switching-bills/

WhoIsThat

Swipe wrote: »

Was your previous supplier Utility Point, by any chance?

Ovo, I suspect.

According to one of the most recent, previous posts by this user, they were moved to Ovo as SoLR after the collapse of Economy Energy, and were then looking to move from Ovo. That was last February.

Did you have a problem with Utility Point then?
Did you leave the Direct Debit Instruction in place until the final bill was settled as you were advised?
The people I know who have been with Utility Point all said they were refunded very rapidly once the final bill was produced, but they did follow the advice of the supplier.