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

[Deleted User]

Einst said:

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.

Wrong. The Ofgem guidance on supplier failure is enshrined in legislation. If no supplier comes forward, Ofgem can appoint a SoLR.

https://www.ofgem.gov.uk/sites/default/files/docs/2017/09/solr_revised_guidance_final_21-10-2016.pdf


Para 3.23 on Deemed Contracts

As PfP is no longer trading then all contracts have lapsed. What you have received in the way of a message means that the supplier that you contacted has contacted MPAS that it is taking on your supply (a gain). MPAS notifies the old supplier of a loss. If there is a transfer to the SoLR in progress then your attempts to switch will be blocked. Even if the switch was to go through, you will pay BG at the agreed Deemed Tariff rate until the transfer of supply takes place.

MWT

A number of you seem to be missing the basics of 'deemed contracts'.

This is no different to moving into a new home, you are under a deemed contract from the moment you use the electricity or gas and you have to create an account with your new supplier before you switch away.

The SoLR process is the same.

You are under contract to BG already, you just haven't got your new account yet, you didn't have to sign anything and your agreement isn't required.

If you switch away and get dragged back by the bulk transfer process there is no valid complaint as you have failed to switch properly in the first place.

tlcgrantham

BG say they will offer a “competitive tariff in line with the Price Cap and no exit fees”. If that applies to the current Price Cap i.e. 1/4/2021 we could be on a very good tariff. Even if it’s the new Price Cap there’s few fixed tariffs cheaper. 

Sitting tight till we know may be the best option.

[Deleted User]

tlcgrantham said:

BG say they will offer a “competitive tariff in line with the Price Cap and no exit fees”. If that applies to the current Price Cap i.e. 1/4/2021 we could be on a very good tariff. Even if it’s the new Price Cap there’s few fixed tariffs cheaper. 

Sitting tight till we know may be the best option.

Deemed contracts never have any exit fees as the supplier cannot tie consumers in for a fixed period. The price cap isn’t an all you can eat tariff. It is just a maximum cost that a supplier can charge based on set annual consumption figures. Use more energy than the assumed amount and you will pay more. The Cap increases on the 1st October so even if BG offered you the April 21 Cap today, it would be within its rights to increase your tariff costs on the 1st October, or 30 days after it gives you notice of a change. You then accept the higher costs by doing nothing or you switch to another BG tariff or you switch to another supplier.

tlcgrantham

[Deleted User] said:

tlcgrantham said:

BG say they will offer a “competitive tariff in line with the Price Cap and no exit fees”. If that applies to the current Price Cap i.e. 1/4/2021 we could be on a very good tariff. Even if it’s the new Price Cap there’s few fixed tariffs cheaper. 

Sitting tight till we know may be the best option.

Deemed contracts never have any exit fees as the supplier cannot tie consumers in for a fixed period. The price cap isn’t an all you can eat tariff. It is just a maximum cost that a supplier can charge based on set annual consumption figures. Use more energy than the assumed amount and you will pay more. The Cap increases on the 1st October so even if BG offered you the April 21 Cap today, it would be within its rights to increase your tariff costs on the 1st October, or 30 days after it gives you notice of a change. You then accept the higher costs by doing nothing or you switch to another BG tariff or you switch to another supplier.

Very helpful, point taken. However we are in an unusual situation where SVTs are often the cheapest option and are in reality fixed until 1/4/2022 so are well worth considering.

QrizB

mrkds said:

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

You retain the option of switching off your gas and electricity supplies yourself, and not turning them back on until the SoLR process is finished and you have arranged a switch to a supplier of your choice. You'll still be liable for the standing charge.
As a guide, GNE went bust in late January and it was May before EDF had everything sorted out for my account. That would have been 3-4 months without utilities.

[Deleted User]

QrizB said:

mrkds said:

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

You retain the option of switching off your gas and electricity supplies yourself, and not turning them back on until the SoLR process is finished and you have arranged a switch to a supplier of your choice. You'll still be liable for the standing charge.
As a guide, GNE went bust in late January and it was May before EDF had everything sorted out for my account. That would have been 3-4 months without utilities.

The legality of the situation is that PfP is no longer a trading entity and its energy Supply Licence has been revoked. PfP is now in the hands of an Administrator/Receiver. Ofgem, a non-Ministerial Government Department, has a Supplier of Last Resort process which is enshrined in various Acts of Parliament. The legal detail is explained in this link:

https://www.mayerbrown.com/en/perspectives-events/publications/2021/02/supplier-of-last-resort-as-a-solution-to-energy-supply-company-administrations

The SoLR process is not perfect but as the old adage states 'perfect is often the enemy of the good.' SoLR works and consumer credit balances are now protected (many would argue that they shouldn't be). What more do consumers want from a system that protects their continuity of supply?

t0rt0ise

What I want, is for the take over of my account to be done more quickly. I don't mind paying more for a few weeks but when it stretches to months I feel justified in moaning as I see the savings I have made over the last year get eaten away.

spot1034

t0rt0ise said:

What I want, is for the take over of my account to be done more quickly. I don't mind paying more for a few weeks but when it stretches to months I feel justified in moaning as I see the savings I have made over the last year get eaten away.

The actual takeover of the account usually happens quite quickly. Even the one I was caught up in - YE to SP - which was somewhat slower than the norm for reasons that I don't think were ever made clear - was sorted so that, from YE going into administration around Dec 3rd, many of us were able to apply to move on from the SOLR by the first couple of days of January. 

fly-catchers

Got a email from PFP for a meter reading today. Should I go ahead and enter it? Did read my meters yesterday after first hearing from BG.