PfP Energy ceases trading - here's everything you need to know

[Deleted User]

macladd said:

MWT said:

#2 Your switch appears to go through but the bulk transfer process runs anyway and you get switched back from your new supplier soon afterwards. This one is really messy and will take some time to unravel.

Pre warn customers of a supplier in serious financial trouble (they know but say nothing!)

How would that work in practice? Utility Week is reporting that a large number of suppliers are facing liquidity problems because of exceptional wholesale energy prices. Ofgem could produce a list of those on its watch list knowing that by doing so consumers will switch away in droves which would immediately result in numerous supplier failures. It is not going to happen.

Small companies and low energy prices are clear indicators of potential vulnerabilities if the market turns. Consumers who choose these suppliers must accept some risk that their chosen supplier might fail. The SoLR process is focussed solely on keeping the lights on. Three weeks on a Deemed Contract will only cost you a few £s extra.

mrkds

Einst said:

I think OFGEM need to revamp the whole process... especially "forcing" you to accept a certain supplier... you may have valid reasons why this is unacceptable..
A better way would be to inform you to make a switch to a new provider of your choice, and keep the current tariff going until the switch, then sort out the finances with the administrators etc..

That was the point I was trying to make. How can it be legal for you to...

(a) be forced into a contract with a new provider you never made any agreement with, and
(b) change the terms of your original ontract without your knowledge, only tell you after the fact, without advising you what the new terms (i.e. costs) are,
?

Is anyone more clued up on the legality of this situation who can comment? 

Alpha_5

For those switching away now, which company are you advising your new supplier that you're switching away from: PFP or BG? 

MWT

mrkds said:

Einst said:

I think OFGEM need to revamp the whole process... especially "forcing" you to accept a certain supplier... you may have valid reasons why this is unacceptable..
A better way would be to inform you to make a switch to a new provider of your choice, and keep the current tariff going until the switch, then sort out the finances with the administrators etc..

That was the point I was trying to make. How can it be legal for you to...

(a) be forced into a contract with a new provider you never made any agreement with, and
(b) change the terms of your original ontract without your knowledge, only tell you after the fact, without advising you what the new terms (i.e. costs) are,
?

Is anyone more clued up on the legality of this situation who can comment? 

The alternative is that your electricity/gas gets cut off on the day your supplier ceases trading and your account balances join the unsecured creditor queue…

Someone has to accept the cost of your supply to avoid that. The administrators of the failed company cannot do that, nor can Ofgem, so that is where the SoLR process steps in to find a commercial entity who will commit to carry the cost and ideally not ask for funds from the industry to help them. 

It is not a perfect system, but better than the alternatives. 

Einst

Alpha_5 said:

For those switching away now, which company are you advising your new supplier that you're switching away from: PFP or BG? 

I put in a switch early this afternoon, and very soon after, the new supplier said they had contacted my previous supplier.
As I have never signed a contract with BG, it can only be with PFP.

MWT

macladd said:

MWT said:

#2 Your switch appears to go through but the bulk transfer process runs anyway and you get switched back from your new supplier soon afterwards. This one is really messy and will take some time to unravel.

Surely if this happens we can request our new supplier objects and stops the transfer back?

The bulk transfer process doesn’t have the same checks and warnings build into it which is why they tell you not to switch while it is in progress. 

You can ignore the warning if you want, but it is done for a reason. 

niktheguru

mrkds said:

That was the point I was trying to make. How can it be legal for you to...

(a) be forced into a contract with a new provider you never made any agreement with, and
(b) change the terms of your original ontract without your knowledge, only tell you after the fact, without advising you what the new terms (i.e. costs) are,
?

Is anyone more clued up on the legality of this situation who can comment? 

I really don’t understand why people are so outraged about the solr process. I think you’ve lost sight that your current provider has gone out of business, so in any other industry you’d be at the back of the queue with the administrator and have a high chance that you’ve lost all your money. Your contract is finished, you can’t just expect to be on the same low tariff.

Would you prefer the alternative, that you lose any credit balance and have your electricity cut off? Then we’d get even more moaning.

some one has to take over your supply, and sort out refunds of credit balances.it’s not a quick process. The fact that you are not tied into a contract and can switch away when it’s all sorted is fair.

everyone is just moaning now because prices are so high. That’s the risk you take going with a small supplier with low prices. If you don’t want the hassle pay more and go with a big 6 firm!

bagand96

mrkds said:

Einst said:

I think OFGEM need to revamp the whole process... especially "forcing" you to accept a certain supplier... you may have valid reasons why this is unacceptable..
A better way would be to inform you to make a switch to a new provider of your choice, and keep the current tariff going until the switch, then sort out the finances with the administrators etc..

That was the point I was trying to make. How can it be legal for you to...

(a) be forced into a contract with a new provider you never made any agreement with, and
(b) change the terms of your original ontract without your knowledge, only tell you after the fact, without advising you what the new terms (i.e. costs) are,
?

Is anyone more clued up on the legality of this situation who can comment? 

The alternative is they disconnect your gas and electricity the moment your supplier goes bust. 

I'm sure you'd be straight on here questioning the legality of that too!

Ofgem have to safeguard the continuous supply of consumers energy. To do that they have to find a new supplier. By forcing an unprofitable, loss making tarriff, they'd never find anyone to take on the accounts. 

It really isn't perfect. But it is what it is. It's a risk we all took bouncing round the bottom end of the energy supply market using small suppliers with loss leading tarriffs (especially at a time when wholesale rates were skyrocketing)

bagand96

Dolor said:

macladd said:

MWT said:

#2 Your switch appears to go through but the bulk transfer process runs anyway and you get switched back from your new supplier soon afterwards. This one is really messy and will take some time to unravel.

Pre warn customers of a supplier in serious financial trouble (they know but say nothing!)

How would that work in practice? Utility Week is reporting that a large number of suppliers are facing liquidity problems because of exceptional wholesale energy prices. Ofgem could produce a list of those on its watch list knowing that by doing so consumers will switch away in droves which would immediately result in numerous supplier failures. It is not going to happen.

Small companies and low energy prices are clear indicators of potential vulnerabilities if the market turns. Consumers who choose these suppliers must accept some risk that their chosen supplier might fail. The SoLR process is focussed solely on keeping the lights on. Three weeks on a Deemed Contract will only cost you a few £s extra.

Well put. This should be a sticky for whenever there is a supplier failure. 

bagand96

niktheguru said:

mrkds said:

That was the point I was trying to make. How can it be legal for you to...

(a) be forced into a contract with a new provider you never made any agreement with, and
(b) change the terms of your original ontract without your knowledge, only tell you after the fact, without advising you what the new terms (i.e. costs) are,
?

Is anyone more clued up on the legality of this situation who can comment? 

I really don’t understand why people are so outraged about the solr process. I think you’ve lost sight that your current provider has gone out of business, so in any other industry you’d be at the back of the queue with the administrator and have a high chance that you’ve lost all your money. Your contract is finished, you can’t just expect to be on the same low tariff.

Would you prefer the alternative, that you lose any credit balance and have your electricity cut off? Then we’d get even more moaning.

some one has to take over your supply, and sort out refunds of credit balances.it’s not a quick process. The fact that you are not tied into a contract and can switch away when it’s all sorted is fair.

everyone is just moaning now because prices are so high. That’s the risk you take going with a small supplier with low prices. If you don’t want the hassle pay more and go with a big 6 firm!

Another well said post that should be a sticky for whenever a supplier goes out of business.