Neon Reef - any views?

[Deleted User]

Note how NR are very keen on the 'collecting money' side of the business (switching, setting up dds, reminders for meter readings etc), but much less keen on any other aspect (such as information, query handling and paying their bills). I say this as a customer. 

CRISPIANNE3

Shedman said:

Farway said:

NR still here, just had reminder e mail to submit my monthly meter reading

My daughters account has been updated today to show the DD taken on 1st (so in line with the usual time frame for it to show up) so at least if there's nobody there they've left the computers on and running lol 😅

 They have only been stopped from taking on new customers. 

wittynamegoeshere

They've been told to stop taking on new customers.  They don't appear to have yet stopped, their website appears to still be keen to sign me up.

Perhaps there's an innocent explanation, that they have to post a letter to their website developer who needs to find the password to change the website, which he wrote on a scrap of paper that the dog ate or something.  Or perhaps they have no intention of stopping and are testing Ofgem's regulatory abilities, which may or (probably) may not be adequate.

I'm waiting to see Matt Allwright to ride his motorbike into their office, they appear to be that kind of company.

Shedman

wittynamegoeshere said:

They've been told to stop taking on new customers.  They don't appear to have yet stopped, their website appears to still be keen to sign me up.

Perhaps there's an innocent explanation, that they have to post a letter to their website developer who needs to find the password to change the website, which he wrote on a scrap of paper that the dog ate or something.  Or perhaps they have no intention of stopping and are testing Ofgem's regulatory abilities, which may or (probably) may not be adequate.

I'm waiting to see Matt Allwright to ride his motorbike into their office, they appear to be that kind of company.

The suspension was in a notice in a circular put out as part of the BSC (Balancing and Settlement Code Panel, established by the Balancing and Settlement Code) ...which reads (in part) as follows

"The Panel considered this matter and, having regard to its objectives under Section B1.2.1 and to its other obligations under the BSC, resolved as follows:

(a)  Pursuant to Sections H3.2.1(b) and H3.2.2(e), to suspend, subject to approval by the Authority, the right of the Defaulting Party to register any Metering Systems and further register any BM Units."

 Link to full notice https://elexonexternal.newsweaver.com/924j6pkkru/1p2v1th2e9h

So maybe until the Authority (being the Gas and electricity Markets Authority established by section 1(1) of the Utilities Act 2000) actually approves this suspension they are OK to keep taking on new customers until that approval is made?  I think Ofgem act on behalf of the GEMA so I guess it's in Ofgems court to get the approval passed? I presume there will be a notice on Ofgems site tomorrow.

Odd though that the other supplier (Orbit Energy) that was also subject to a similar notice do seem to have stop taking on new customers.

Reckon next week's the week NR finally goes t*ts up I fear

EssexHebridean

*waits for the inevitable comment about “some people only being happy when NR go under* 😆

WillPS

Shedman said:

wittynamegoeshere said:

They've been told to stop taking on new customers.  They don't appear to have yet stopped, their website appears to still be keen to sign me up.

Perhaps there's an innocent explanation, that they have to post a letter to their website developer who needs to find the password to change the website, which he wrote on a scrap of paper that the dog ate or something.  Or perhaps they have no intention of stopping and are testing Ofgem's regulatory abilities, which may or (probably) may not be adequate.

I'm waiting to see Matt Allwright to ride his motorbike into their office, they appear to be that kind of company.

The suspension was in a notice in a circular put out as part of the BSC (Balancing and Settlement Code Panel, established by the Balancing and Settlement Code) ...which reads (in part) as follows

"The Panel considered this matter and, having regard to its objectives under Section B1.2.1 and to its other obligations under the BSC, resolved as follows:

(a)  Pursuant to Sections H3.2.1(b) and H3.2.2(e), to suspend, subject to approval by the Authority, the right of the Defaulting Party to register any Metering Systems and further register any BM Units."

 Link to full notice https://elexonexternal.newsweaver.com/924j6pkkru/1p2v1th2e9h

So maybe until the Authority (being the Gas and electricity Markets Authority established by section 1(1) of the Utilities Act 2000) actually approves this suspension they are OK to keep taking on new customers until that approval is made?  I think Ofgem act on behalf of the GEMA so I guess it's in Ofgems court to get the approval passed? I presume there will be a notice on Ofgems site tomorrow.

Odd though that the other supplier (Orbit Energy) that was also subject to a similar notice do seem to have stop taking on new customers.

Reckon next week's the week NR finally goes t*ts up I fear

If the only thing perpetuating NR's ability to survive is their ability to take on customers on to loss making tariffs with front loaded payments... being generous, it's goal hanging with a minute chance of scoring (i.e. wholesale rates dropping through the floor and all those tariffs suddenly becoming profitable) - alternatively it is extremely sharp practice, and if any payments are going to directors in the last few weeks then I hope the full force of the law comes down on them.

wittynamegoeshere

It's looking more likely that NR's current "business" model basically follows the Ponzi model, where they need a constant stream of fresh money coming in from new customers to keep paying the overdue bills that resulted from the existing customers.  They're selling £10 notes for £5 each, so need an ever-larger number of those £5 payments coming in every month to pay last month's bills.  It won't be difficult for them to keep increasing the number of customers, as they're basically the only supplier you can choose at exactly the time that lots of people have seen huge price rises.

If this is their model then surely the music stops at the moment when that new customer money stops flowing.  This may explain their reluctance to turn the taps off.

brewerdave

I sent them a message ~ 5 or 6 weeks ago, querying when /how they reviewed DDs as I'm not paying quite enough and there appears to be no way to alter the DD myself. No reply and they are still taking the original figure.
Not going to chase in view of their possible demise as I'm going to owe them money , I suspect a rarity!
You never know -they MIGHT survive until my tariff end in early Feb.  

garrehsponges

WillPS said:

Shedman said:

wittynamegoeshere said:

They've been told to stop taking on new customers.  They don't appear to have yet stopped, their website appears to still be keen to sign me up.

Perhaps there's an innocent explanation, that they have to post a letter to their website developer who needs to find the password to change the website, which he wrote on a scrap of paper that the dog ate or something.  Or perhaps they have no intention of stopping and are testing Ofgem's regulatory abilities, which may or (probably) may not be adequate.

I'm waiting to see Matt Allwright to ride his motorbike into their office, they appear to be that kind of company.

The suspension was in a notice in a circular put out as part of the BSC (Balancing and Settlement Code Panel, established by the Balancing and Settlement Code) ...which reads (in part) as follows

"The Panel considered this matter and, having regard to its objectives under Section B1.2.1 and to its other obligations under the BSC, resolved as follows:

(a)  Pursuant to Sections H3.2.1(b) and H3.2.2(e), to suspend, subject to approval by the Authority, the right of the Defaulting Party to register any Metering Systems and further register any BM Units."

 Link to full notice https://elexonexternal.newsweaver.com/924j6pkkru/1p2v1th2e9h

So maybe until the Authority (being the Gas and electricity Markets Authority established by section 1(1) of the Utilities Act 2000) actually approves this suspension they are OK to keep taking on new customers until that approval is made?  I think Ofgem act on behalf of the GEMA so I guess it's in Ofgems court to get the approval passed? I presume there will be a notice on Ofgems site tomorrow.

Odd though that the other supplier (Orbit Energy) that was also subject to a similar notice do seem to have stop taking on new customers.

Reckon next week's the week NR finally goes t*ts up I fear

If the only thing perpetuating NR's ability to survive is their ability to take on customers on to loss making tariffs with front loaded payments... being generous, it's goal hanging with a minute chance of scoring (i.e. wholesale rates dropping through the floor and all those tariffs suddenly becoming profitable) - alternatively it is extremely sharp practice, and if any payments are going to directors in the last few weeks then I hope the full force of the law comes down on them.

Correct me if I'm wrong but according to https://www.catalyst-commercial.co.uk/works/november-2021-energy-market-brief/ the current wholesale prices of electric is around £117 MWh, so around 11p KWh. Neon Reef are selling at 17.5p KWh on the fixed rate Neptune v3 tarrif.

This is true of all suppliers even on variable rate capped tarrifs - they appear to be able to charge above the wholesale prices.

So why are companies struggling so much?

In terms of Neon Reef, they get most of their electric from green sources and only sell electric tariffs. You would hope they are in a better position than most energy firms to ride through this tougher market period.

garrehsponges

The biggest problem with these energy companies is it appears they just don't have enough cash reserves for when the market does change. This is a problem with the energy bosses and not customers, or Ofgem who are trying to protect customers.

It's not unusual in the industry. When you take out a mortgage you are "means tested" for scenarios to see if you are able to keep up with mortgage payments even if rates doubled or tripled. Energy firms should have the same cash reserves in place and be equally as means tested. Any firms that are falling right now is down to poor management from the top. There should be a "fit for purpose" test for all these CEOs once this period is over to protect customers in future.