Peoples Energy

600Bandit

I have received an email from peoples energy. Why do they want to get rid of me?

Your Direct Debit is likely to go up

No one likes sudden Direct Debit increases, so we want to give you prior notice. In the lead-up to October, we'll likely have to increase your Direct Debit by 25% to allow for higher energy usage in colder months. It will go back down again in 2022. We thought it was only fair to let you know well ahead of time.

We’ll waive your exit fees if you switch by the end of July - plus get a £25 Amazon voucher

Nobody wants to hear that their bills are going up. If you’d like to move on to another supplier, we understand – and we’ll cancel your exit fees so that you can switch away early and without being charged. We've teamed up with BillBuddy, who will offer you a £25 Amazon voucher if you switch through them by the end of July. Just click below to find a better deal, and get an Amazon voucher.

[Deleted User]

One reason might be that they have not forward purchased enough energy when prices were low, and they want to reduce their financial risk by reducing customer numbers as they can see wholesale prices increasing. Or, it could be that they are just jolly nice people.

Reed_Richards

It's just a guess but if your account is in arrears because you have used more energy than anticipated then they may want to get that money ASAP.  If you leave they can issue you with a Final Bill to collect all the money owed immediately, rather than gradually via an increase in your Direct Debit. 

brewerdave

Reed_Richards said:

It's just a guess but if your account is in arrears because you have used more energy than anticipated then they may want to get that money ASAP.  If you leave they can issue you with a Final Bill to collect all the money owed immediately, rather than gradually via an increase in your Direct Debit. 

...and Bill Buddy will ,no doubt, sling them a bung for taking away some customers!

yelias

600Bandit said:

I have received an email from peoples energy. Why do they want to get rid of me?

Your Direct Debit is likely to go up

No one likes sudden Direct Debit increases, so we want to give you prior notice. In the lead-up to October, we'll likely have to increase your Direct Debit by 25% to allow for higher energy usage in colder months. It will go back down again in 2022. We thought it was only fair to let you know well ahead of time.

We’ll waive your exit fees if you switch by the end of July - plus get a £25 Amazon voucher

Nobody wants to hear that their bills are going up. If you’d like to move on to another supplier, we understand – and we’ll cancel your exit fees so that you can switch away early and without being charged. We've teamed up with BillBuddy, who will offer you a £25 Amazon voucher if you switch through them by the end of July. Just click below to find a better deal, and get an Amazon voucher.

According to the latest terms and conditions

6.10.2 You agree that we may increase the monthly Direct Debit payment by up to 25% to cover additional usage in the winter months.

If you are going to take the opportunity to look at what other suppliers can offer you, I would urge you to use an ofgem accredited comparison site to seach the whole of market. (not Bill Buddy that only shows a few expensive suppliers that they have commission agreements with).

Or use this sites own Cheap Energy Club (powered by Ofgem accredited comparison service, MoneySuperMarket.com). They will offer you £25 Cashback  for a dual fuel switch in the unlikely event the best deal for you is a supplier they have a commission agreement with.

inspectorperez

I strongly suspect this organisation may well be having cash flow issues and customers might consider doing some further research before deciding whether to stick or twist in my view.

There seem to be 3 related organisations with common directors - Peoples Energy Community Interest Company (incorporated March 2020 and no accounts filed yet), Peoples Energy Supply Limited and Peoples Energy Company Limited. The latest accounts filed for the last 2 entities are up to 31 December 2019.

It is noticeable that the audit reports on the 2019 accounts are both qualified on a going concern basis and also in respect of a data breach which took place.

By giving the customers an option to leave without the imposition of the contractual exit fee, may well be an honourable intention by the organisation to allow those customers to get out before any wheels start coming off. If it were me, I think I would almost certainly jump ship having been given this opportunity. You just need to read the trauma which many former Tonik Energy customers are experiencing in dealing with administrators/debt collectors etc to realise how stressful these matters can become.

badmemory

Are you sure the email is actually from People's Energy?

600Bandit

I believe it is from Peoples Energy, I am on a fixed rate until May 2022, also I am not in arrears.
When I did a comparison yesterday using cheap energy club, the deal was still the best. So I think ill sit tight.

MWT

600Bandit said:

I believe it is from Peoples Energy, I am on a fixed rate until May 2022, also I am not in arrears.
When I did a comparison yesterday using cheap energy club, the deal was still the best. So I think ill sit tight.

... that fix until May '22 will be why they want to get rid of you.

As suggested earlier, it looks like they haver not hedged enough to cover what their fixed commitments will need through the winter so they are trying to persuade enough to leave so they don't have to deal with the loss...

Also do take it as a certainty that they will put your DD up by 25%...

PRAISETHESUN

At the end of the day, you are only charged for energy that you actually use. If they increase the DD and it turns out you don't actually use 25% more extra energy then your account will be in credit and you should get it all back eventually. Completely different story if they are also increasing their energy prices by 25% though. Might be issues if they go into administration but otherwise shouldn't be too much cause for concern IMO.

CotswoldJ

I too have received email. V misleading as heading “Beat the energy price rise and get a £25 Amazon voucher” but I’m on Fixed Super Tariff Mar 21 . Clearly if usage goes up you pay more so why are they taking these steps and imposing a deadline of 4/8 to avoid exit fees? I signed up through MSE Energy Club. Martin Lewis please advise us .