Peoples Energy

CotswoldJ

alanprince said:

I too have received this e-mail and yes it appears genuine. My belief is that even if they have pre bought energy, they can see a way of making money by selling that pre bought energy to new customers at a higher tariff, only if they can get rid of the customers on the lower tariff who they’ve bought the energy for. 

I work in the energy sector and prices have rocketed since April beyond what anyone was expecting, this is a deceitful way of making more money, putting your DD up is tricking people into thinking they are paying more when it doesn’t change your tariff or your usage. I know already that I’m paying more than I need to, even for the winter months and have accrued hundreds of pounds in my account so there is no way they need to put my DD up.

My only concern now is if like others have said, the company is on the rocks do I risk losing the money they are accruing from me.

Bearing in mind your knowledge of the industry, what action are you taking , should we be switching ? Sounds like many of us are accruing credit !

CotswoldJ

Is this forum monitored by MSE , if not how do we bring these alarming developments to their attention for advice ?

[Deleted User]

alanprince said:

My only concern now is if like others have said, the company is on the rocks do I risk losing the money they are accruing from me.

If you work in the energy sector then I would expect you to be familiar with the Ofgem Consumer Levy which protects consumer credit balances when a supplier goes bust. It is now part of the SoLR process.

Lumphammer2

[Deleted User] said:

Lumphammer2 said:

[Deleted User] said:

Lumphammer2 said:

I have been in dispute with this outfit over the amount of DD they want every month.  I've been with them only a few months - during the spring and summer - and they wanted to increase my DD to a level way over what I would use on an annualised basis.  I told them I did not agree with the amount of the increased DD but they took it anyway - presumably in breach of DD regulations?  Due to their unreasonable behaviour, I then stopped my DD, so they have to whistle for their money - although I'm still loads in credit.

I also received this confusing email.  It sounds like they are running out of money.  Could get messy.

From their terms and conditions:

5.6 If you do not provide or you withdraw a direct debit instruction we will bill you monthly and may apply a charge of up to £10 where you have withdrawn a direct debit instruction. 

You may be adding to their coffers.

If they try that I will be in touch with my bank etc re breach of the DD regulations.  We'll see....

Exactly what DD regulations has the supplier breached? It is a condition of your contract that you pay by DD. A number of suppliers have similar terms and conditions in their contracts. The £10 will just be added to your bill.

[Deleted User] said:

Lumphammer2 said:

[Deleted User] said:

Lumphammer2 said:

I have been in dispute with this outfit over the amount of DD they want every month.  I've been with them only a few months - during the spring and summer - and they wanted to increase my DD to a level way over what I would use on an annualised basis.  I told them I did not agree with the amount of the increased DD but they took it anyway - presumably in breach of DD regulations?  Due to their unreasonable behaviour, I then stopped my DD, so they have to whistle for their money - although I'm still loads in credit.

I also received this confusing email.  It sounds like they are running out of money.  Could get messy.

From their terms and conditions:

5.6 If you do not provide or you withdraw a direct debit instruction we will bill you monthly and may apply a charge of up to £10 where you have withdrawn a direct debit instruction. 

You may be adding to their coffers.

If they try that I will be in touch with my bank etc re breach of the DD regulations.  We'll see....

Exactly what DD regulations has the supplier breached? It is a condition of your contract that you pay by DD. A number of suppliers have similar terms and conditions in their contracts. The £10 will just be added to your bill.

Fair enough.  They seem able to deduct any amount they want from your bank account, whether it is reasonable or not - as long as they advise you.  I told them by email that I did not agree with the increased amount and told them not to take that amount from my account - and said if they did so I would take my business elsewhere.  They did not have the courtesy to reply.  I can see now that they want me to leave!  Their T & C, say they can up the DD by 25% going into the winter but from what level?  A level that has already been increased by 30%?!

CotswoldJ

I have just sent an email to energyclub@moneysavingexpert.com I suggest we all do that to raise awareness. Title was URGENT - People’s Energy strange email to customers

[Deleted User]

CotswoldJ said:

I have just sent an email to energyclub@moneysavingexpert.com I suggest we all do that to raise awareness. Title was URGENT - People’s Energy strange email to customers

And what exactly do you expect MSE to say or do? The supplier has made you an offer which is covered, if memory serves, by Supply Licence Condition 24 - Mutual Variation of Contract. What sits behind the email is anyone’s guess.  As far as I can see, customers are free to accept or reject the offer that has been made.

UnclaimedEnergy

It literally just sounds like they haven't hedged enough power for the next couple of months and have more customers joined up than expected.

Power prices have gone up and they probably can't afford to buy more, so are hoping to ditch customers before that.

If you're in credit, the money is covered.

Only switch away if you can find a cheaper offer or do not want to go through the Supplier of Last Resort process. Otherwise just contact them questioning the DD rise instead if you feel it doesn't reflect your usage.

inspectorperez

The theory that your credit balance is covered sounds wonderful and should provide a robust assurance that everything will be in order if your supplier hits the rocks and you end up being supplied by SOLR appointed by the regulator.

The reality however sounds completely different when you read the harrowing accounts of former customers of some doomed suppliers who are still no further forward many months down the line after appointment of Administrators/liquidators etc. Judging my the many anecdotes which are available in the public domain, there appear to be numerous vague lines defining the roles and powers of Administrators, debt collectors, OFGEM, appointed SOLR etc in establishing accurate closing balances and where appropriate repaying credit balances.

I appreciate my comments are very general, but as a "for instance", the demise of Tonik Energy and the subsequent difficulties and harrowing experiences of former customers should be studied to provide a flavour of the stress which can arise in such situations rather than just assuming everything will be plain sailing and your credit balance is protected. IMHO.

Lumphammer2

An update on my situation.  After 2 missed DD payments, and after my request to pay the original DD amount they finally agreed.  I am not aware of a £10 charge on my account, but their bill system is confusing imo.  Fully expect them to up it be 25% but hey ho - at least they will only be upping it from a lower level.

rae73

I haven't had an email but had a call from them yesterday. They said as bills tend to go up in the winter they are going to put our DD up by approx 25%for the 6 winter months, or we can make a one-off payment of over £100 on top of our usual DD to cover it in advance, and which would we like to do?
I said they usually just increase our DD if they need to, why can we not stay the same and do this?  We are not in arrears.
Either way they will be taking money off us in advance that we don't owe. They are calling back in a few days as I needed to look into our account. Can they legally insist we change our DD in advance, in case we start to owe them money,  if we are not in debt?