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

[Deleted User]

I understand that people are angry. My daughter is now one of UP’s unsecured creditors: children rarely listen to their parent’s advice!  The CEO of UP has set out very clearly the factors that caused his company to call it a day. Squeezed by Ofgem not to chase consumers in debt and a Cap that left him with no way of hedging. I suspect that a large number of other suppliers are in a similar situation. 

As I see it, the Government has three options: one, to let other suppliers go to the Wall; two, relieve suppliers of some of the green taxes imposed on energy (remember the wholesale price accounts for c.40p in every £ we pay, or, three, approve an emergency CAP to allow suppliers to charge higher prices for the energy that they have to purchase to supply us. I suspect that the Government will favour the do nothing option.

gt94sss2

[Deleted User] said:

I understand that people are angry. My daughter is now one of UP’s unsecured creditors: children rarely listen to their parent’s advice!  The CEO of UP has set out very clearly the factors that caused his company to call it a day.

Why do you think your daughter is an unsecured creditor?

Any balance owed to her will be returned by whichever company their customers are transferred too..

[Deleted User]

gt94sss2 said:

Dolor said:

I understand that people are angry. My daughter is now one of UP’s unsecured creditors: children rarely listen to their parent’s advice!  The CEO of UP has set out very clearly the factors that caused his company to call it a day.

Why do you think your daughter is an unsecured creditor?

Any balance owed to her will be returned by whichever company their customers are transferred too..

Because whenever a company folds anyone owed money becomes a creditor of the failed company. The Ofgem Consumer Levy doesn’t change basic business law. The levy was brought in because secured creditors (HMRC; Ofgem and wholesalers with a legal charge against the supplier) are first in line for payment leaving diddly squat for unsecured energy customers who are owed money.

 The Consumer Levy used to pay back consumers is usually recovered by the SoLR from a charge levied on all other energy customers. A collective insurance policy if you like. 

Consumers who have already switched from the failed supplier with a debit balance will be pursued by the Administrator for payment. Business law works both ways.

tghe-retford

[Deleted User] said:

I understand that people are angry. My daughter is now one of UP’s unsecured creditors: children rarely listen to their parent’s advice!  The CEO of UP has set out very clearly the factors that caused his company to call it a day. Squeezed by Ofgem not to chase consumers in debt and a Cap that left him with no way of hedging. I suspect that a large number of other suppliers are in a similar situation. 

As I see it, the Government has three options: one, to let other suppliers go to the Wall; two, relieve suppliers of some of the green taxes imposed on energy (remember the wholesale price accounts for c.40p in every £ we pay, or, three, approve an emergency CAP to allow suppliers to charge higher prices for the energy that they have to purchase to supply us. I suspect that the Government will favour the do nothing option.

There is a fourth option - abolish the cap with immediate effect and allow companies to end fixed rate contracts immediately (of course, you'd be free to switch with no exit fee). It would allow companies to become profitable but the flip side would be that prices will rise quicker than a laser going into space considering the consistently record breaking wholesale energy prices and we will have consequences to come - such as people having to sacrifice heating to cut costs, electric appliances being rationed or turned off to cut costs or people eating less or turning to foodbanks to pay the extra costs that are shortly coming home to roost. Particularly so if we have a cold winter as is being suggested by early forecast weather models. These are the uncomfortable truths and reality check that will have to be explained to the public, never mind the other elephant in the room that's coming in the next few months.

In terms of dealing with continuing failures of energy companies, could stress test them like the banks or introduce a minimum price cap. But yes, I agree, the Government will do nothing - bigger problems at the moment anyway. Not a hope of any green taxes going with the current situation of climate change and influence on Government.

People do seek the cheapest deals knowing that their credit balances are protected (even hinted at in MSE's promotion of finding a cheaper tariff) and that it is a cost-free risk. You could end that, make choosing a cheaper tariff or a new/unknown entrant a risk for consumers by having them lose credit if a company collapses or have to share the burden of the costs of a failed supplier, but that would scare people from switching supplier and allow the established firms to raise prices even more to take advantage of consumers sticking with the said established firms.

Millwall_Alan

'Any transfers being made will still go through'. Not so!
I had transferred, had a start date (22 September) and a new account number with British Gas Evolve. Then PfP went bust, I contacted British Gas Evolve and they confirmed everything was in place and would go through, then PfP blocked the transfer. Cannot contact PfP, as the contact details they gave when blocking me just go to their statement that they have ceased trading; British Gas Evolve can't help as they get the same response (and tell me that PfP have simply blocked all transfer requests, regardless); and I do not yet have the details of the new supplier (British Gas) to transfer again.
Worried that the tariff I should have been transferring to will not exist by the time everything is sorted out. 
Does anyone know if my transfer will be honoured, or if it can be backdated when British Gas finally give me my new contract details, as according to everything I have read, including here, my transfer should have gone through, it hasn't only due to PfP blocking all accounts instead of only new transfers. 

fly-catchers

Like others have seen a £12 penalty fee added today. Is that money you will get back or just disappearing into the money pit!

macladd

Millwall_Alan said:

'Any transfers being made will still go through'. Not so!
I had transferred, had a start date (22 September) and a new account number with British Gas Evolve. Then PfP went bust, I contacted British Gas Evolve and they confirmed everything was in place and would go through, then PfP blocked the transfer. Cannot contact PfP, as the contact details they gave when blocking me just go to their statement that they have ceased trading; British Gas Evolve can't help as they get the same response (and tell me that PfP have simply blocked all transfer requests, regardless); and I do not yet have the details of the new supplier (British Gas) to transfer again.
Worried that the tariff I should have been transferring to will not exist by the time everything is sorted out. 
Does anyone know if my transfer will be honoured, or if it can be backdated when British Gas finally give me my new contract details, as according to everything I have read, including here, my transfer should have gone through, it hasn't only due to PfP blocking all accounts instead of only new transfers. 

I started a switch to Octopus from PFP on Sat 11th, checked this morning with Octopus who confirmed both fuels have now been accepted and my supply start date will be 28th. Also checked with British Gas who advised they will monitor my switch and not object, there's been no objections received from PFP either. By the looks of your Evolve start date, you switched before I did. 

Verdigris

I started a switch to Octopus from PFP on Sat 11th, checked this morning with Octopus who confirmed both fuels have now been accepted and my supply start date will be 28th. Also checked with British Gas who advised they will monitor my switch and not object, there's been no objections received from PFP either.

That's good to hear. My transfer to Green, also started on the 11th, seems to be going normally, so far. I took the precaution of submitting a meter reading to PfP, backed up with a photo, on the same date.

Fingers firmly crossed.

Freeflyer1

milu333 said:

Says on the guidance that as soon as you supplier contacts you, you can switch.

British gas emailed me on the 10/09/21 with the following:

As of 10th September you became our customer, welcome to the British Gas family.

I assume I should be able to switch with no issues, no?

milu333 said:

Says on the guidance that as soon as you supplier contacts you, you can switch.

British gas emailed me on the 10/09/21 with the following:

As of 10th September you became our customer, welcome to the British Gas family.

I assume I should be able to switch with no issues, no?

I have also received a e-mail from British Gas saying we have taken over your supply, Ofgem advise not to switch yet, but with prices going up on 1st Oct can I switch/should I switch now not knowing what to compare with ( no mention of what tariff i will be on from British Gas),

lisyloo

fly-catchers said:

After cancelling my DD with PFP as I noticed other people have. I got an email from them today asking for me to reinstate it. As I always end up making the wrong decision do I ignore the Mail. Or reinstate? But as they have gone bust, have a large credit with them and BG are taking over can’t see the point!

I called them yesterday. They told me to ignore the automated email.