Holding onto my cash

hurl

I used Moneysupermarket to switch energy providers recently which went ok. What my complaint is that the new supplier (Green) took £112 before the switch over date and my old supplier (Avro) are holding onto £63 of credit! It does seem strange to take money from me before I’ve effectively used anything, can you imagine any other retail transactions working like that? Going into Halfords and at the door having £50 taken out of your wallet? I contacted Avro and they’ve said it could take 6 weeks to get any credit back, main excuse is the final readings have to come from a national database. Why would that take so long and I supplied the final reading to my new supplier anyway??? 

This information needs to be made readily available when considering the switch over. It might be industry standard but it needn’t be if us customers could choose with this information at hand, only then would the “industry” support the customers when holding onto our hard earned cash.

brewerdave

Nearly all of the "smaller" suppliers take a month in advance - the only way that they can offer cheaper prices than the Big 6 (or 5 or 4.....). Its been that way for at least a couple of years. 

SPOWER

I agree with what you are saying but I thought they all did that now.  Just keep fingers crossed that Avro don't bill you within 6 weeks and you can claim money off them.  Your new supplier is not very good.  I got £100 off them and then months later they telephoned me to ask me to remove a bad review from Truspilot.  I done this and then regretted it.

yelias

hurl said:

I used Moneysupermarket to switch energy providers recently which went ok. What my complaint is that the new supplier (Green) took £112 before the switch over date and my old supplier (Avro) are holding onto £63 of credit! It does seem strange to take money from me before I’ve effectively used anything, can you imagine any other retail transactions working like that? Going into Halfords and at the door having £50 taken out of your wallet? I contacted Avro and they’ve said it could take 6 weeks to get any credit back, main excuse is the final readings have to come from a national database. Why would that take so long and I supplied the final reading to my new supplier anyway??? 

This information needs to be made readily available when considering the switch over. It might be industry standard but it needn’t be if us customers could choose with this information at hand, only then would the “industry” support the customers when holding onto our hard earned cash.

Welcome to MSE @hurl,

Avro take their first DD collection 12 days after you apply - so also before the switch goes live (before even your statutory cooling off period has expired).

The information is readily available if you look.

9.3.2 The Direct Debit will be taken 12 days after initial sign up and monthly thereafter.
https://www.avroenergy.co.uk/terms-and-conditions

Green should have taken their first payment on the switch date:
7.4 We will collect the Direct Debit payment in the agreed amount for each month of supply in line with the supply start date, and then collect subsequent payment on that date each month thereafter. If we are unable to collect payment on that date we will process payment on the next working day.
https://green.energy/terms

UnclaimedEnergy

The Halfords analogy isn't the best one.

When you join a supplier you commit to them supplying your energy, plus there's admin costs etc. for them processing your switch and putting your account into their billing system. Having an upfront payments helps pay for these guaranteed costs due to having such tight cashflows and being a month away from going bust all the time.

If you walk into halfords, that's not costing them anything and there's no guarantee you will actually buy anything.

Instead, it's like restaurants asking for payment up-front when booking a table to cover the definite cost of food/service/table 
Most don't do it, but more are currently starting to do it due to tight cash-flows and people not actually turning up after reserving tables.

MWT

hurl said:

I contacted Avro and they’ve said it could take 6 weeks to get any credit back, main excuse is the final readings have to come from a national database. Why would that take so long and I supplied the final reading to my new supplier anyway???

The industry process requires that the reading you submitted be validated against historical usage and if they deem necessary it will be adjusted.

So don't be surprised if the opening reading they use isn't the same as the one you submitted, but the updated reading should also be used as the closing readi9ng on your old account so you do not pay for anything twice.

Robin9

@hurl

From the MSM comparison site - Green - Tariff info

"Tariff Summary

• Prices are fixed for 12 months. 100% renewable electricity. There is an exit fee of £36 per fuel. Green take payments in advance each month and your first payment may be taken on or before your supply start date.

[Deleted User]

UnclaimedEnergy said:

The Halfords analogy isn't the best one.

When you join a supplier you commit to them supplying your energy, plus there's admin costs etc. for them processing your switch and putting your account into their billing system. Having an upfront payments helps pay for these guaranteed costs due to having such tight cashflows and being a month away from going bust all the time.

If you walk into halfords, that's not costing them anything and there's no guarantee you will actually buy anything.

Instead, it's like restaurants asking for payment up-front when booking a table to cover the definite cost of food/service/table 
Most don't do it, but more are currently starting to do it due to tight cash-flows and people not actually turning up after reserving tables.

Cash flow is the real reason for payments in advance. It reduces borrowing and it allows suppliers to offer a lower price. All suppliers have to pay their suppliers in advance of supply so it is logical for them to ask for payment at the start of a contract. 

The energy industry works in 30 minute usage settlements which is why the Government through Ofgem wants to make 30 minute smart meter usage monitoring the default position for domestic customers.

Tokmon

hurl said:

I used Moneysupermarket to switch energy providers recently which went ok. What my complaint is that the new supplier (Green) took £112 before the switch over date and my old supplier (Avro) are holding onto £63 of credit! It does seem strange to take money from me before I’ve effectively used anything, can you imagine any other retail transactions working like that? Going into Halfords and at the door having £50 taken out of your wallet? I contacted Avro and they’ve said it could take 6 weeks to get any credit back, main excuse is the final readings have to come from a national database. Why would that take so long and I supplied the final reading to my new supplier anyway??? 

This information needs to be made readily available when considering the switch over. It might be industry standard but it needn’t be if us customers could choose with this information at hand, only then would the “industry” support the customers when holding onto our hard earned cash.

Yes i can imagine that because that's how all insurance works where they take payment for the whole year before it starts, it's how all subscriptions works such as streaming sites, magazines etc. It's how online shopping works where you pay for the item and don't get it for a day or so. So it's not exactly unusual.