Igloo Energy Ceased Trading - But still billed me

londonice

Hi guys,

I'd like your take on this situation.
I was a customer of Igloo Energy and according to OFGEM, EON Next officially took responsibility of my energy as of the 3rd October 2021.  

Igloo Energy Supply Limited has ceased to trade

E.ON Next has been appointed by Ofgem as the new energy supplier for Igloo Energy Supply Limited customers.

From Sunday 3rd October all Igloo Energy Supply Limited customers are now being supplied energy by E.ON Next . There's no need to worry, your energy supply won't be affected.

We’ve pulled together some frequently asked questions to help explain what will happen next for customers.

So I gave my "final read" via igloo website and waited.

I was surprised to learn that Igloo have billed me up to the 21st October using an estimated read.  One, if the regulator has used the SoLR (supplier of last resort) as a vehicle to change Igloo's customers to Eon Next, according to the guidance, Eon Next should be the ones billing as of the 3rd October onwards.  Is Igloo right in continuing to bill from the 3rd October since they have ceased to trade?

Igloo used an estimated reading, I can't make contact with them as their phone lines just play a message, so I can't change the bill to an actual read.  

How can I go about complaining about this?

microcristallina

You can ask your bank to reverse the direct debit under the 'direct debit guarantee'. That's what i did when economy energy carried on billing me after they went bust.

MWT

There is nothing unusual in the DD continuing from the old provider, your account balance is protected and whatever is not required to settle your final bill from Igloo will pass over to your new supplier.

How you handle this really depends on your own circumstances, if cash is tight and you want to keep it in your account until the very last minute then cancel your Igloo DD now, and be prepared to set up a new DD with the new supplier, just don't spend the money in the meantime...

That can can a few bumps along the path to your new supplier as they will get your details handed over as a credit account without a DD which has a different tariff cap level to one with a DD. Mostly it just requires you to set up a DD when asked, but do watch out for that so you don't end up on a more expensive tariff  for a period of time.

Reversing the DD that has just gone out is also often possible, but some banks will not do that when the supplier is in the hands of the administrators, but you can try if you want to and if you do then again, just set the money aside, don't spend it as you will need it for a payment in the near future...

Gerry1

It seems that the billing systems tend to keep going on auto pilot when energy companies go bust.  Presumably the staff know they won't get paid so haven't bothered to turn the billing systems off.  Or perhaps they're locked out of their offices and Working At Home accounts and couldn't do anything anyway.  The latter seems quite likely because it's often a standard practice to lock out staff when they lose their jobs to prevent any possible sabotage or downloading of confidential information.

However, Symbio seem to have people still working for them and tried to bill me until the end of October.  Glad I'd already cancelled the DD !

MWT

I think people tend to take the words 'ceased trading' a little too literally at times.

In these cases the company moves into 'Administration' in the hands of the administrators who then in conjunction with the SoLR decide what to do about retaining staff and processing DD etc. to deliver the best outcome for the existing customers and creditors...

The administrators have the creditors are their prime focus and the SoLR has the customers and the transfer process as theirs, so their can certainly be a conflict of objectives at times, but 'ceased trading' does not mean all the staff immediately lose their jobs for example, that is up to the administrators and most often they will need to keep a good number of them working to facilitate the best outcome for the creditors, and similarly the SoLR may wish to employ a good number of them to aid in the transfer and support of those customers...

londonice

I have just got off the phone to Igloo Energy and have had my questions answered.

Igloo Energy have been instructed to continue billing until November where Eon Next will take over.  This was agreed as Eon wanted to lower their adverse exposure to customer debt. 

If the latest bill is based on estimate, you have until next week to submit a new meter reading to Igloo who will adjust it.  After this, Eon will receive an actual read and will retroactively adjust your bill.

spot1034

It would be logical to assume that this might also apply to Enstroga and Symbio customers as well, as Eon was appointed as SOLR to all three on the same day. I'm ex-Symbio and haven't yet cancelled my DD - the main reason  being that I did not want to be hit with a penalty charge and possibly being put on to a different tariff for my final bill from them, even if it might be possible to argue against it in such circumstances but why create extra hassle?

To be honest, I'm perfectly happy for them to take another payment just as long as it finds its way to Eon, and of-course I'll be keeping an eye on it to make sure this happens. 

zagfles

londonice said:

I have just got off the phone to Igloo Energy and have had my questions answered.

Igloo Energy have been instructed to continue billing until November where Eon Next will take over.  This was agreed as Eon wanted to lower their adverse exposure to customer debt. 

If the latest bill is based on estimate, you have until next week to submit a new meter reading to Igloo who will adjust it.  After this, Eon will receive an actual read and will retroactively adjust your bill.

They don't seem to have billed me. Normally get a bill around the 16th. I did cancel my DD but have credit of around £500 so plenty available to pay the bill.

Curiousgirl1

When a supplier ceases to trade it’s not a case of everything on their systems stop. It takes time for the SoLR to transfer the accounts to their own systems so final bill from old supplier will be up until the account is set up on the new one. 

Any direct debits that are paid will be credited on the final bill and no monies paid will be lost. Think it’s just a knee jerk reaction when people cancel their direct debit thinking it’s going to be used to pay the suppliers debts when it’s not - it still goes towards your usage and stops you from getting either a high bill or being charged non direct debit rates