Utillity point to Neon Reef

steelman99

Recived an e-mail tonight  advising me  that  Utillity  point  were  transfering me to  Neon Reef as my  electricity  supplier. I do have  both gas  and  electricity  with Utillity  point , but  they  are  both on diffrent  contracts  , as  I had  gas and  Electricity  with diffrent  companys  for  a  long time  and  the  electric ended  up  on an 18  month cntract  , whilst the  gas  was son a  12 month contract . so gas  is  always  up  for  renewal  in Feb , Electric in July 
In the  bumf  they  send  me  they  tell  me "Utility Point would like to reassure you that you will be transferred over to a more competitive tariff that caters for electricity only customers." 
When I check on line  I  see  that  the  unit  rates  for  Neon Reef are  higher  than my present  fixed  term contract  with Utillity  point.   They  tell me  although I  will be  on a  fixed  term contract  , I  can move  away  with no exit  charge  , but  my  issue  is  I had an agreement  with utillity  point  to suppy  me  with electricity at  a  fixed price  until  the  end  of July. 
First  Question is  can they  do this  -  second  question is  that  the  contract  with Utillity Point says  there  is  a  £30  charge  for terminating the  contract  early  - as  they  have  terminated  it  , can I  ask them for  £30 towards  the  price  diffrence ?

Shedman

A number of people have reported that this is happening to them as well. Not sure how UP can do this legally as, although NR is a sister company with shared directors but not a subsidiary , it is a separate legal entity and has its own separate supply licence, (so not what is called a White Label where a billing entity operates under another suppliers licence).  There is some dubious clause in UPs T&Cs clause 22.1 that tries to infer that that they can transfer to a third party without necessarily getting customer consent but it looks as if it could be an unfair contract term to me.   

I think somebody needs to contact Ofgem and make enquiries as a) whether they know what's going on  b) whether this is legal and c) whether it breaches either UPs or NRs supply licence terms.   EdIt:   I have just sent a tweet to @ofgem to see if that elicits any information.  

bagand96

Neon Reef is a sister company to Utility Point with at least some of the same directors.

Many reports on MSE of customers struggling to get credit refunds from Utility Point.

Now reports that Utility Point are "transferring" Electricity accounts over to Neon Reef.

A bit fishy?

Shedman

bagand96 said:

Neon Reef is a sister company to Utility Point with at least some of the same directors.

Many reports on MSE of customers struggling to get credit refunds from Utility Point.

Now reports that Utility Point are "transferring" Electricity accounts over to Neon Reef.

A bit fishy?

Certainly gives that impression in the absence of any further info....  Hopefully bolstering NR by increasing customer base but does make you wonder what the intent is with the residue of UP customers.   UP finances certainly didn't look very healthy in the 2019 accounts but heavy losses seem to be the modus operandi of new suppliers for first few years.  Can't tell what position NR finances are in as their accounts as at July 19 were put together pretty soon after they started supplies and there's nothing further to go on.   

bristolleedsfan

steelman99 said:

, but  my  issue  is  I had an agreement  with utillity  point  to suppy  me  with electricity at  a  fixed price  until  the  end  of July. 
First  Question is  can they  do this  -  second  question is  that  the  contract  with Utillity Point says  there  is  a  £30  charge  for terminating the  contract  early  - as  they  have  terminated  it  , can I  ask them for  £30 towards  the  price  diffrence ?

Best thing is to put a complaint in to UP, if not happy after that take it to Energy Ombudsman

GN_TDCI

Well it all seems to make sense today.

UP made Reef, and they transferred their Electricity customers to them. Their gas customers stayed in UP and today they go bust. They allowed me to renew 3 days ago, with no warning this would happen. They are sitting on credit with me, and I did have problems in 2020 getting my elevated balance off them. Luckily now it's not quite as much, but its still credit which should be me.