Energy supplier I had left has gone bust without issuing a bill

Giammy85

I left Neon Reef in July. I have been chasing them to get a final bill, but they always found excuses to justify the delay. I even logged a complaint with the Ombudsman but by this time they went out of business in November, so the Ombudsman couldn't enforce anything.
By my calculations, they own me more than 80£ (because I was paying by their arbitrary decided monthly direct debit amount). I cannot find this scenario explained by Ofgem. Anyone has already enquired what we can do? Is BG taking over also my case, shall I contact Citizens Advice or ask my bank for a direct debit chargeback?

worrywart_3

The administrators should in theory issue you with a final bill and British gas would be responsible for paying it back. Inwouod contact the administrators if you can find an email asking for a final bill to be produced and then of need be ring the British Gas team.

MWT

You will eventually get your final bill and a refund if you are in credit (no compensation for late payment though).
The refund will come from BG, but you’ll be at the back of the queue behind all the current customers, so it will not happen for a few weeks yet…

jbuchanangb

When I left Neon Reef in July (to switch to Symbio!) with a credit balance, I did get my credit balance back, by a convoluted process whereby I had to authorise a new direct debit to enable them to pay the credit. Alternatively they could have sent a cheque. Neon Reef's last bill was not marked as a final bill, but was correct as regards the closing date and reading.

It must be nightmare for the SOLR to pick up closed accounts from failed suppliers, for the sole purpose of honouring the OFGEM promise to refund the credit balance, when they are not actually gaining a customer. I read somewhere that E.ON Next are charging OFGEM £625 per customer for which they act as SOLR.

MWT

jbuchanangb said:

I read somewhere that E.ON Next are charging OFGEM £625 per customer for which they act as SOLR.

That is in effect charging us that cost as Ofgem just pass it back around the circle in the various levies.

That is not just an admin cost though, there are very real losses involved in having to buy additional energy for these unexpected customers at short notice, which they are then obliged to sell at a loss due to the Ofgem cap.

[Deleted User]

Patience my friend. The SoLR process has one aim: to keep the lights on. Taking over failed supplier customer accounts and re-paying credits is not covered by any Regulations relating to timescale.

Igloo may well owe you £80 but your credit repayment is not coming from Igloo. The repayment will be made by the SoLR from the Ofgem Consumer Levy Fund: an insurance policy if you like paid for by all energy consumers in the form of higher bills. I would hope - but who knows -  that once the total amount of consumer credits is known that Ofgem will submit a claim to the Administrators to recover some of this unsecured creditor money from the failed supplier.

Giammy85

I have called BG who told me that because it was a past account, I had to deal with Ofgem - not with BG.
Ofgem redirected to citizens advice. On the phone citizens advice directed me to https://www.citizensadvice.org.uk/consumer/energy/energy-supply/problems-with-your-energy-supply/your-energy-supplier-has-gone-bust/
So I understand that because BG was appointed to take over Neon Reef's accounts, then BG will also refund money that's outstanding on closed accounts. 
I have logged a complaint with BG has the customer service agent told me that BG would not deal with my case.

wild666

jbuchanangb said:

When I left Neon Reef in July (to switch to Symbio!) with a credit balance, I did get my credit balance back, by a convoluted process whereby I had to authorise a new direct debit to enable them to pay the credit. Alternatively they 

You shouldn't have had to set up a DD to get a refund as the supplier should have had your bank details on file.
In 2019 I cancelled an OFM DD after leaving them and 8 months later they refunded money plus Ofgem compensation without me having to set up another DD to receive the money. 
The set up another DD !!!!!! could have led to the company taking money from the account rather than issuing a refund, although unlikely. 

ANY company that claim you have to set up another DD to receive a refund is wrong as they have your details on file the only way that you would have to set up a DD to receive a refund is if you changed Banks in the time of asking for the refund.

MWT

wild666 said:

ANY company that claim you have to set up another DD to receive a refund is wrong as they have your details on file the only way that you would have to set up a DD to receive a refund is if you changed Banks in the time of asking for the refund.

One proviso with that statement, yes you are correct that they do not need a DD, they just need your bank details, but some providers have taken the position that if you cancel the DD then GDPR prevents them from retaining or using the bank details you previously provided for the DD for any other purpose.

So you may have to give them the details again, stating they are for the purpose of processing a refund and not for setting up a new DD.

molerat

Giammy85 said:

I have called BG who told me that because it was a past account, I had to deal with Ofgem - not with BG.
Ofgem redirected to citizens advice. On the phone citizens advice directed me to https://www.citizensadvice.org.uk/consumer/energy/energy-supply/problems-with-your-energy-supply/your-energy-supplier-has-gone-bust/
So I understand that because BG was appointed to take over Neon Reef's accounts, then BG will also refund money that's outstanding on closed accounts. 
I have logged a complaint with BG has the customer service agent told me that BG would not deal with my case.

Contacting front line CS is a waste of time, most of them know less about how things work than the posters here.  Being an ex customer you are at the back of the queue but will be dealt with eventually.  It took over a year for my daughter to receive her refund from one SoLR as an ex customer.

jbuchanangb

All water under the bridge now, but this was the instruction from Neon Reef back in July when I used their online chat to request refund of my credit balance: That link still works, but I doubt it will help anyone now.

Thank you for your time on our online chat service today. Please click here to complete our secure direct debit mandate form and we will process a refund for the credit left on your account.

If you have any questions, please do not hesitate to contact us.