£400 DISCOUNT USED FOR DEBT

SammiJxx

pochase said:

Just had a read through the consultation with suppliers

BEIS recognises the operational difficulties in separating payments towards ongoing usage and suppliers’ needs to operate within BAU processes where possible to ensure scheme deliverability.

However, it is a priority for this scheme to ensure households can use their EBSS grant to enjoy increased consumption, not just reduced debt.

As this scheme starts at the end of summer, we understand that arrears should be at a minimum for most customers. We therefore expect and encourage suppliers to make it their priority to work actively to move customers with large arrears balances onto repayment plans wherever possible.

This should be in line with suppliers’ normal business processes in complying with supply licence condition 27, including Ofgem’s Ability to Pay Principles of:
(a) having appropriate credit management policies and guidelines;
(b) making proactive contact with customers;
(c) understanding individual customers’ ability to pay;
(d) setting repayment rates based on ability to pay;
(e) ensuring the customer understands the arrangement;
(f) monitoring arrangements after they have been set up; and
(g) re-engaging with a customer after an initial occurrence of a failed repayment arrangement.

This will help to ensure that, while EBSS will be allowed to contribute to debt and arrears, arrears balances should be minimised, and only an amount affordable for the customer should go towards debt.

The way I read it the suppliers should set up a payment plan with the customer, which was done in OP case.

Only the agreed repayment amount should go against the £67, if the £24 in case of the OP is paid I read it that the full £67 should be credited. If the debt repayment is not paid only the difference between £67 and the debt repayment would paid back/credited.


So I would say that the full amount should be paid back to the OP.

Thank you. I am going to print this off & speak to BG direct

Section62

SammiJxx said:

If BG tell me that they are going to put the £400 discount against my debt, I will contact the Ombudsman and show them the statements regarding it being used for usage.

You can only go to the ombudsman after exhausting the company's own complaints process (or if they fail to respond to your complaint in time).

Also, which statements are you referring to?  People on here?  AFAIK there is nothing 'official' which says the £400 has to be for energy usage.  The evidence there is suggests the government accept it could be used for (energy) debt as well.

I think you'd be better off if you focus on the payment plan agreement.  If you have both agreed the £24 figure there are only limited circumstances in which it can be varied, the company can't do that on a whim.

SammiJxx

Section62 said:

SammiJxx said:

If BG tell me that they are going to put the £400 discount against my debt, I will contact the Ombudsman and show them the statements regarding it being used for usage.

You can only go to the ombudsman after exhausting the company's own complaints process (or if they fail to respond to your complaint in time).

Also, which statements are you referring to?  People on here?  AFAIK there is nothing 'official' which says the £400 has to be for energy usage.  The evidence there is suggests the government accept it could be used for (energy) debt as well.

I think you'd be better off if you focus on the payment plan agreement.  If you have both agreed the £24 figure there are only limited circumstances in which it can be varied, the company can't do that on a whim.

In line with previous schemes, such as the Warm Home Discount, the consultation proposed that the reduction could be used to reduce some outstanding debt balances.
For customers with an agreed repayment plan, where a set amount or percentage of any customer payment goes towards repaying a customer’s debt, we propose that the reduction may also be used towards debt repayment in the previously agreed proportions.
 If an account is in arrears, we proposed that the credit can reduce these arrears.

 Summary of stakeholder responses to consultation Charities and some individuals who responded to this question felt it was important that the government mandate that EBSS payments can only be used towards future energy costs in order for the Scheme to meet its stated policy aim.
Some suppliers suggested that they would have operational difficultly in distinguishing between debt and bad debt. There was also a suggestion from some respondents that the government should allow for flexibility and that it should be for the supplier and/or customer to decide whether the grant is used towards energy debt.

Government response BEIS recognises the operational difficulties in separating payments towards ongoing usage and suppliers’ needs to operate within BAU processes where possible to ensure scheme deliverability.
 However, it is a priority for this scheme to ensure households can use their EBSS grant to enjoy increased consumption, not just reduced debt.
As this scheme starts at the end of summer, we understand that arrears should be at a minimum for most customers. We therefore expect and encourage suppliers to make it their priority to work actively to move customers with large arrears balances onto repayment plans wherever possible.
This should be in line with suppliers’ normal business processes in complying with supply licence condition 27, including Ofgem’s Ability to Pay Principles of: (a) having appropriate credit management policies and guidelines; (b) making proactive contact with customers; (c) understanding individual customers’ ability to pay; (d) setting repayment rates based on ability to pay; (e) ensuring the customer understands the arrangement; (f) monitoring arrangements after they have been set up; and (g) re-engaging with a customer after an initial occurrence of a failed repayment arrangement. This will help to ensure that, while EBSS will be allowed to contribute to debt and arrears, arrears balances should be minimised, and only an amount affordable for the customer should go towards debt. 

Mobtr

I’m in not sure what your point is here. Like I’ve said before, you’re paying £200 p/m for electricity which is huge, I don’t pay that for gas & electric combined in a 4 bed 4 adult household. Cut down on your usage, that will save you a lot more in the long run 

pochase

SammiJxx said:

Section62 said:

SammiJxx said:

If BG tell me that they are going to put the £400 discount against my debt, I will contact the Ombudsman and show them the statements regarding it being used for usage.

You can only go to the ombudsman after exhausting the company's own complaints process (or if they fail to respond to your complaint in time).

Also, which statements are you referring to?  People on here?  AFAIK there is nothing 'official' which says the £400 has to be for energy usage.  The evidence there is suggests the government accept it could be used for (energy) debt as well.

I think you'd be better off if you focus on the payment plan agreement.  If you have both agreed the £24 figure there are only limited circumstances in which it can be varied, the company can't do that on a whim.

In line with previous schemes, such as the Warm Home Discount, the consultation proposed that the reduction could be used to reduce some outstanding debt balances.
For customers with an agreed repayment plan, where a set amount or percentage of any customer payment goes towards repaying a customer’s debt, we propose that the reduction may also be used towards debt repayment in the previously agreed proportions.
 If an account is in arrears, we proposed that the credit can reduce these arrears.

 Summary of stakeholder responses to consultation Charities and some individuals who responded to this question felt it was important that the government mandate that EBSS payments can only be used towards future energy costs in order for the Scheme to meet its stated policy aim.
Some suppliers suggested that they would have operational difficultly in distinguishing between debt and bad debt. There was also a suggestion from some respondents that the government should allow for flexibility and that it should be for the supplier and/or customer to decide whether the grant is used towards energy debt.

Government response BEIS recognises the operational difficulties in separating payments towards ongoing usage and suppliers’ needs to operate within BAU processes where possible to ensure scheme deliverability.
 However, it is a priority for this scheme to ensure households can use their EBSS grant to enjoy increased consumption, not just reduced debt.
As this scheme starts at the end of summer, we understand that arrears should be at a minimum for most customers. We therefore expect and encourage suppliers to make it their priority to work actively to move customers with large arrears balances onto repayment plans wherever possible.
This should be in line with suppliers’ normal business processes in complying with supply licence condition 27, including Ofgem’s Ability to Pay Principles of: (a) having appropriate credit management policies and guidelines; (b) making proactive contact with customers; (c) understanding individual customers’ ability to pay; (d) setting repayment rates based on ability to pay; (e) ensuring the customer understands the arrangement; (f) monitoring arrangements after they have been set up; and (g) re-engaging with a customer after an initial occurrence of a failed repayment arrangement. This will help to ensure that, while EBSS will be allowed to contribute to debt and arrears, arrears balances should be minimised, and only an amount affordable for the customer should go towards debt. 

What is your point? That is what I posted a week ago.

Jyana

pochase said:

SammiJxx said:

Section62 said:

SammiJxx said:

If BG tell me that they are going to put the £400 discount against my debt, I will contact the Ombudsman and show them the statements regarding it being used for usage.

You can only go to the ombudsman after exhausting the company's own complaints process (or if they fail to respond to your complaint in time).

Also, which statements are you referring to?  People on here?  AFAIK there is nothing 'official' which says the £400 has to be for energy usage.  The evidence there is suggests the government accept it could be used for (energy) debt as well.

I think you'd be better off if you focus on the payment plan agreement.  If you have both agreed the £24 figure there are only limited circumstances in which it can be varied, the company can't do that on a whim.

In line with previous schemes, such as the Warm Home Discount, the consultation proposed that the reduction could be used to reduce some outstanding debt balances.
For customers with an agreed repayment plan, where a set amount or percentage of any customer payment goes towards repaying a customer’s debt, we propose that the reduction may also be used towards debt repayment in the previously agreed proportions.
 If an account is in arrears, we proposed that the credit can reduce these arrears.

 Summary of stakeholder responses to consultation Charities and some individuals who responded to this question felt it was important that the government mandate that EBSS payments can only be used towards future energy costs in order for the Scheme to meet its stated policy aim.
Some suppliers suggested that they would have operational difficultly in distinguishing between debt and bad debt. There was also a suggestion from some respondents that the government should allow for flexibility and that it should be for the supplier and/or customer to decide whether the grant is used towards energy debt.

Government response BEIS recognises the operational difficulties in separating payments towards ongoing usage and suppliers’ needs to operate within BAU processes where possible to ensure scheme deliverability.
 However, it is a priority for this scheme to ensure households can use their EBSS grant to enjoy increased consumption, not just reduced debt.
As this scheme starts at the end of summer, we understand that arrears should be at a minimum for most customers. We therefore expect and encourage suppliers to make it their priority to work actively to move customers with large arrears balances onto repayment plans wherever possible.
This should be in line with suppliers’ normal business processes in complying with supply licence condition 27, including Ofgem’s Ability to Pay Principles of: (a) having appropriate credit management policies and guidelines; (b) making proactive contact with customers; (c) understanding individual customers’ ability to pay; (d) setting repayment rates based on ability to pay; (e) ensuring the customer understands the arrangement; (f) monitoring arrangements after they have been set up; and (g) re-engaging with a customer after an initial occurrence of a failed repayment arrangement. This will help to ensure that, while EBSS will be allowed to contribute to debt and arrears, arrears balances should be minimised, and only an amount affordable for the customer should go towards debt. 

What is your point? That is what I posted a week ago.

Possibly a reply to @Section62's question of "Also, which statements are you referring to?" ? Otherwise, I'm stumped too.

wild666

I would turn off everything that's left in standby mode except the fridge, freezer and router. If the appliance are not the latest tech they will be using more than the latest tech gadgets, this could save you 30% or more on the monthly electric bill. With gas lower the temperatures on the boiler to 50 degrees for water, 55 degrees for heating and lower the thermostat to 18 degrees.
I'm saving an average of £35 per month in winter months when the heating is on. 
When there is only you in the property try using a hot water bottle and lowering the thermostat to 12 or 14 degrees so the property doesn't get mould or damp in the winter months. Don't leave the heating on overnight as this will cost more it's better to use a hot water bottle again when in bed rather than leave the heating on.