Energy Company Encouraging Debt

EdwardB

I got an email from my energy company, it was warning of the impending doom coming in October, in the email I noticed it said they had various options for people struggling so I called them up, I had done all of them but they said they had a fund to help out those struggling so I said TELL ME HOW do I get that.

Well the first person put me on hold while he had a rummage through my account, I am registered as vulnerable priority need so that helped.

Then he put me through to a lovely lady, she told me I met all the criteria except one, I NEED TO OWE THEM £500

I get 50% off my water bill and they base it on low income which seems fair to me, but this £550 debt requirement seems a crazy policy.

So I asked the dear lady, are you saying that if I cancel my direct debit, get put onto the pay on receipt of bill tariff and don't pay you for as long as it takes to run up £500 that I will qualify for this help.  She apologised and said that would be the case.

The question I have for the bright people on this forum is what else will they do to me meanwhile, will they put me on a pre-payment meter?

I think if I cancel my Direct Debit now it would take me 3 months at current consumption but I have not factored in the October rise, I expect it will triple, so what will happen in those 10 weeks in terms of meters etc? 

Also, who should I complain to about this, the ombudsman, OFGEM, the Financial Conduct Authority, my MP?

It seems crazy that someone earning £100,000 who owes £500 can get access to this fund but because I am super frugal and not eaten a meal since Monday I don't qualify.

MattMattMattUK

EdwardB said:

I got an email from my energy company, it was warning of the impending doom coming in October, in the email I noticed it said they had various options for people struggling so I called them up, I had done all of them but they said they had a fund to help out those struggling so I said TELL ME HOW do I get that.

Well the first person put me on hold while he had a rummage through my account, I am registered as vulnerable priority need so that helped.

Then he put me through to a lovely lady, she told me I met all the criteria except one, I NEED TO OWE THEM £500

I get 50% off my water bill and they base it on low income which seems fair to me, but this £550 debt requirement seems a crazy policy.

So I asked the dear lady, are you saying that if I cancel my direct debit, get put onto the pay on receipt of bill tariff and don't pay you for as long as it takes to run up £500 that I will qualify for this help.  She apologised and said that would be the case.

The question I have for the bright people on this forum is what else will they do to me meanwhile, will they put me on a pre-payment meter?

I think if I cancel my Direct Debit now it would take me 3 months at current consumption but I have not factored in the October rise, I expect it will triple, so what will happen in those 10 weeks in terms of meters etc? 

Also, who should I complain to about this, the ombudsman, OFGEM, the Financial Conduct Authority, my MP?

It seems crazy that someone earning £100,000 who owes £500 can get access to this fund but because I am super frugal and not eaten a meal since Monday I don't qualify.

The high earner would not qualify, neither would someone deliberately not paying, rather than unable to pay. This was either explained poorly, or you misunderstood, either way one cannot refused to pay, run up a debt, then get that written off as some magic handout. There is no point in complaining, move on with your life. 

wrf12345

From their point of view, they are going to help people who are in debt rather than those who pay their bills, this is reflected right through the welfare system and basically encourages all to become dependants of the State. It was Gordon Brown's dream world that the Tories have not been able to unravel.

CanNeverThinkOfAUsername

Back when i was in debt a scheme like this did help me. Basically i had to pay every month for my usage (and a little bit towards the debt), then every 3 months a bit of the debt was written off, at the end of 12 months the debt was gone, and i have not been back in debt since. The idea is to help pay off the debt, but also get you used to paying the correct amount for your usage too.

pochase

You can get help with a debt, but you need to be able to afford the current payments.

It is not a help to pay your current bills, but to reduce old debt while paying the current bills as described by @CanNeverThinkOfAUsername

Chrysalis

Thats the flaw with these type of schemes, that you need to be in debt, it encourages people to not pay bills.

Discretionary housing payments work under same principal, need to be in rent arrears.

Of course there is usually other criteria as well like having a very low bank balance, but I think its wrong the requirement to be in debt is there.