Shell energy - credit file entry

texas_pedro

Hi all, hoping to see if anyone has had a similar issue with shell or any other utility company. 

My utility contract was moved from pure planet to shell due to pure planets demise. The move was completed in January and since then I’ve paid by direct debit and currently have a credit balance with up to date meter readings. 

However, this week a credit entry has been added to my file under shell energy duel fuel. Whilst the entry shows a credit balance, I am concerned that they have added an account against my name when I don’t have a credit agreement with them. 

I have raised a complaint but the initial response wasn’t very helpful - very much it’s normal and your in credit don’t worry - but I don’t buy that so I’ve raised a further complaint. 

Anyone else had any other issues like this? 

[Deleted User]

It's common for utilities to report to CRAs. It'll be detailed in your agreement with them.

Their response to you was correct, so you can safely buy it. 

penners324

Nothing wrong with them reporting to the CRAs. As long as payments are upto date then no issues 

Thrugelmir

texas_pedro said:

 I am concerned that they have added an account against my name when I don’t have a credit agreement with them. 

The utility company is providing you with a credit facility. The ability to pay in arrears. The alternative is to pay up front for your energy. 

To users of your data. Knowing that you are under financial distress or duress is an important tool. Reduces the amount of bad debt that gets written off. Reducing the cost of providing credit to everyone else. 

texas_pedro

Is it common for utility providers to put markers on your credit file? In over 20 years I’ve never seen it with the multitude of energy companies I’ve dealt with. But I’ll check out my agreement with shell.

I don’t see how it’s a form of credit if I’ve not borrowed anything but I’ll take a look at it. From my reading and experience in financial services I’ve only seen utility companies add markers when customers are not paying. And given I am paying and have an excellent credit rating I am concerned. 

But clearly given the replies I should just mind my own business. Thanks anyway. 

[Deleted User]

texas_pedro said:

Is it common for utility providers to put markers on your credit file? In over 20 years I’ve never seen it with the multitude of energy companies I’ve dealt with. But I’ll check out my agreement with shell.

I don’t see how it’s a form of credit if I’ve not borrowed anything but I’ll take a look at it. From my reading and experience in financial services I’ve only seen utility companies add markers when customers are not paying. And given I am paying and have an excellent credit rating I am concerned. 

But clearly given the replies I should just mind my own business. Thanks anyway. 

A few companies are doing it, there are periodic mentions on the forum - it's similar to the way car insurance does when paying on monthly

Uxb1

Any form of payment agreement which is not upfront for the service being provided is a form of credit.
They provide you with the "service" or the "goods" in the expectation that you will provide them with payment at a future time/date. Until you do pay they the supplier is incurring costs and making purchases to supply your goods or services for which they have not yet had payment and so they are giving you credit.

When a tradesman does work for you he/she is giving you credit and if they are sensible and get you to sign a quote agreement form that is a form of credit agreement, so they are paying themselves for the paint etc and you will pay them "later".

For energy companies in the past it was obvious that there was a credit agreement.  You used the energy and they then billed you every three months for the past use - up to that payment time your were "borrowing" the energy used from them. 
With DD's its a bit more murky as if your account is ALWAYS in credit for more than the month's usage of energy then you are not borrowing however the system allows you to go into debit without your energy being cut off and then you will be a borrower: hence it is a credit type agreement.  Its exactly the same as my bank. It allows me go do into debit so it reports to the CC agencies as a "credit agreement" regardless of the fact that I've never ever actually gone into debit and always have a positive balance at the bank.