Ofgem appoint Shell Energy as Green's SoLR

QrizB

rainiorainio said:

Shouldn't they be using the credit that is transferred over from green? There must be a few of us with hundreds in credit.

Why the heck wasn't green using the credit we bought and instead continued to use DD?

There isn't any cash to transfer from Green to Shell, it's all gone. Green spent it.

Green used your credit balances as working capital to stay afloat. So long as the customers kept financing them, they could buy more energy to sell to you. The only problem was they were selling it to you for less than they paid for it, so eventually they were bound to run out of money.

rainiorainio

QrizB said:

rainiorainio said:

Shouldn't they be using the credit that is transferred over from green? There must be a few of us with hundreds in credit.

Why the heck wasn't green using the credit we bought and instead continued to use DD?

There isn't any cash to transfer from Green to Shell, it's all gone. Green spent it.

Green used your credit balances as working capital to stay afloat. So long as the customers kept financing them, they could buy more energy to sell to you. The only problem was they were selling it to you for less than they paid for it, so eventually they were bound to run out of money.

Ofgem and green said credit balances would transfer over, though (?)

daaave

rainiorainio said:

QrizB said:

rainiorainio said:

Shouldn't they be using the credit that is transferred over from green? There must be a few of us with hundreds in credit.

Why the heck wasn't green using the credit we bought and instead continued to use DD?

There isn't any cash to transfer from Green to Shell, it's all gone. Green spent it.

Green used your credit balances as working capital to stay afloat. So long as the customers kept financing them, they could buy more energy to sell to you. The only problem was they were selling it to you for less than they paid for it, so eventually they were bound to run out of money.

Ofgem and green said credit balances would transfer over, though (?)

Yes, that’s the plan.

ofgem are fronting the cash to shell to cover a) customers green credit balances and b) the difference between the wholesale energy price and our new capped tariff price over the next 6 months.

Ofgem will reclaim this money from all bill payers (whatever supplier people are with) after April 2022.

It’s all rather unfair on other energy companies customers, but there you go.

QrizB

rainiorainio said:

QrizB said:

rainiorainio said:

Shouldn't they be using the credit that is transferred over from green? There must be a few of us with hundreds in credit.

Why the heck wasn't green using the credit we bought and instead continued to use DD?

There isn't any cash to transfer from Green to Shell, it's all gone. Green spent it.

Green used your credit balances as working capital to stay afloat. So long as the customers kept financing them, they could buy more energy to sell to you. The only problem was they were selling it to you for less than they paid for it, so eventually they were bound to run out of money.

Ofgem and green said credit balances would transfer over, though (?)

In practice Shell will credit your accounts with the balance, get whatever it can from Green and then claim the shortfall from Ofgem. This is what happened when eg. Octopus took over Iresa and claimed £11M in respect of customer balances (link).

GreenMan

Mm ... I'd already started the process of changing to Octopus on their fixed 24 month tariff two days before Green ceased trading - I dont really want to change to Shell.

Will I have to continue to switch to Shell before I can switch again?

Verdigris

GreenMan said:

Mm ... I'd already started the process of changing to Octopus on their fixed 24 month tariff two days before Green ceased trading - I dont really want to change to Shell.

Will I have to continue to switch to Shell before I can switch again?

Maybe, maybe not. There doesn't seem to be any consistency in the way already started switches are dealt with.

I started a transfer from PfP to Green, tried to cancel it when I saw the writing on the wall for Green, meanwhile BG have initiated a SoLR transfer from PfP with a transfer date of 30th September, then they put that back to 28th October, in the meantime Shell have picked up the Green switch and expect to have me transferred in a couple of days from now.

I'm just sitting back and seeing where I end up. I don't think it will make much difference as any deal will be at around the October cap prices.

brewerdave

I wonder how much of the customer "credit" that Green held , was the excess monies paid in to get the 10% return ? There must be a few people sweating on the return of £000s !!

ArKay

Does anyone know the legal position regarding paying the new rate if you have not chosen to swap. Specifically, I was on a cheap rate with Green and have been swapped to an expensive rate with Shell. I will switch supplier as soon as possible to a supplier of my choosing with a reasonable daily standing rate - but will I be obliged to pay Shell the very high rate or can I just pay them what I signed up for with Green?
(For information - a few years ago a similar thing happened and I did not pay the higher rate for the single month I was with the company I did not choose and the company accepted that - but what is the legal position as I did NOT sign up to pay for an extremely high rate with Shell.) Thanks everyone.

GreenCustomer

brewerdave said:

I wonder how much of the customer "credit" that Green held , was the excess monies paid in to get the 10% return ? There must be a few people sweating on the return of £000s !!

Not sure how  OFGEM allowed that to happen? The cost of this will be passed onto all energy customers eventually.

QrizB

ArKay said:

Does anyone know the legal position regarding paying the new rate if you have not chosen to swap. Specifically, I was on a cheap rate with Green and have been swapped to an expensive rate with Shell. I will switch supplier as soon as possible to a supplier of my choosing with a reasonable daily standing rate - but will I be obliged to pay Shell the very high rate or can I just pay them what I signed up for with Green?

You have to pay the Shell their tariff. You can't continue to pay the Green tariff.