Disputed debit balance

labourer1

The Regulator has switched me to Octopus Energy following the collapse of my previous supplier, but I find that they have now simply absorbed a disputed debit balance from my previous supplier in to my online account with Octopus Energy. Are they legally entitled to do that?

Neil_Jones

labourer1 said:

The Regulator has switched me to Octopus Energy following the collapse of my previous supplier, but I find that they have now simply absorbed a disputed debit balance from my previous supplier in to my online account with Octopus Energy. Are they legally entitled to do that?

Under SOLR you're just switched provider. The new supplier is not required to take on any unresolved complaints relating to your old supplier.  However, if you believe your complaint is still ongoing, once the new supplier contacts you please discuss with them how the issue can be resolved (Ofgem)

That being said, "disputed" debit balances usually occur for two reasons - self inflicted (lack of readings, estimated bills and so on), or provider/meter error (not using the readings, not updating accounts etc).  Usually the former.  Why is this debit balance disputed?  Presumably you were with Avro Energy?

[Deleted User]

labourer1 said:

The Regulator has switched me to Octopus Energy following the collapse of my previous supplier, but I find that they have now simply absorbed a disputed debit balance from my previous supplier in to my online account with Octopus Energy. Are they legally entitled to do that?

If Octopus has agreed a SoLR transfer reading with the failed supplier then I would have thought that the issue has, in part, been resolved.  Credit/debit balances are only valid for a single day and then only if the balance is based on an actual; customer or smart reading. If you know when the failed supplier last used an actual/customer/smart reading for billing then it is a simple exercise to calculate what you now owe based on the difference in units and days between the transfer reading and the last billed reading. Adjust the charges to take into account the credit/debit balance carried forward less all payments made during the billing period and you have an updated credit/debit balance.

It is though possible that the transfer reading has been estimated if you were not a regular provider of meter readings. If say you have been overcharged for 1000 units by the failed supplier then two factors need to be considered: one, you will not pay for the same units twice. The true cost is the difference between the two unit prices times 1000. Two, this might work in your favour.

As indicated above, you have no option but to take up your concerns with the SoLR. As the matter relates to a failed supplier then the EO will not adjudicate on the case as the failed supplier no longer holds a supply licence.

MWT

labourer1 said:

The Regulator has switched me to Octopus Energy following the collapse of my previous supplier, but I find that they have now simply absorbed a disputed debit balance from my previous supplier in to my online account with Octopus Energy. Are they legally entitled to do that?

Octopus has agreed with the administrators of Avro to handle debit collection on their behalf, so yes they are legitimately able to bring that debt over to your new Octopus account.

This doesn't stop you continuing to dispute the debt though.