Octopus Energy takes on Avro customers

tsb

QrizB said:

oliverbrown said:

abar121 said:

That's not consistent with their actions. 

Odd that they would be in discussions with Ofgem over these mid-transfer payments if they have every intention of paying them.

Octopus will make the payments if Ofgem then let them reclaim them under the SoLR process. It seems like there are still some details to iron out.

There shouldn't be any details to iron out at this late stage. We are seven months into this process.  They must have been aware customers mid transfer would have already made payments before actual supply, that is fairly standard when I've switched supplier. 

The other thing is, how much money can we be talking here in percentage terms of the whole Avro SOLR process? It can't be that much money that is being 'investigated'.  Why can't it be paid and argued about after?  The customer that is mid-switch is not at fault, just bad timing for them.

Xbigman

Don't forget that the SoLR costs are added to every bodies bills. If there is no legal basis to do that then OFGEM can't just pass the costs on anyway, and Octopus won't get reimbursed. Octopus, as SoLR are responsible for arranging the payment, they are not responsible for providing the money to do so, OFGEM is.


Darren

oliverbrown

So if the administrators have to pay and they don't have the money, then what?

Xbigman

If the administrators are found to be liable (which I think is unlikely) then you become a creditor of the failed company and probably won't get your money back. 
I see this current delay as a clarification of the legal position and when the shouting is over nothing will have changed. I could be wrong.


Darren

oliverbrown

Xbigman said:

If the administrators are found to be liable (which I think is unlikely) then you become a creditor of the failed company and probably won't get your money back.

Which would completely fly in the face of everything Ofgem always promised us, that the credit balances of failed energy suppliers would always be protected.

Xbigman

They state that the balances of an energy suppliers customers are protected. If you switch away before the date of administration you might no longer be legally a customer. This appears to be what is being clarified. You can only wait to see developments.


Darren

oliverbrown

Xbigman said:

If you switch away before the date of administration you might no longer be legally a customer. 

It's the opposite, these are customers who were in the process of joining Avro.

MWT

oliverbrown said:

Xbigman said:

If you switch away before the date of administration you might no longer be legally a customer. 

It's the opposite, these are customers who were in the process of joining Avro.

The problem seems to be around how Ofgem define 'customer', and if you meet that definition if your supply has not yet switched...

Mastanlem

Surely in the event of them not paying out,  if paid by dd then the bank has to refund.

QrizB

It's interesting that the wording of Octopus's statement is (my bold):

Ofgem are currently investigating accounts like this to decide whether we’re allowed to pay you back your credit, or if it should fall to Avro’s administrators.

As these accounts are those where payments were made to Avro in advance of Avro taking over their supply, it could be that the account holders weren't strictly customers at that time and I could imagine Ofgem insisting that those payments be refunded by the administrators rather than via the SoLR levy.