Neo Energy

Qyburn

Hi,

I was with Neo Energy until they went bust, at which point we were transferred to Octopus.  That is perfectly fine, Octopus started off with some silly estimated readings and resulting silly bill, but that was sorted out once we'd submitted a couple of real readings.

I thought we were just about square with Neo so really didn't expect to hear from them.  Octopus said that as far as they could see there was no balance with Neo.

Now Neo have popped back up again, saying that they have not gone bust, it was their "market access partner" that has ceased trading.

They have sent me what they call a "Reconcilled lifetime invoice" supposedly covering the whole period that I was with them, however it is incorrect in just about every way possible.
(1) They have billed from February 2021, when in fact the transfer at that time was blocked and we remained with our existing supplier, only finally transferring to Neo in June
(2) They have incorrect tariff change dates, charging the April price from 1st April rather than the 6th
(3) Used incorrect unit price since April, they have billed 31.7p +VAT, where it should be 27p +VAT
(4) They haven't given an end meter reading, and their estimate is way out.  I don't have a meter reading for 9th July as I didn't realise one would be needed.  However I gave them a reading on 30th June (which they don't mention in their bill) and I gave Octopus a reading on 20th July.  The end reading for 9th June should be roughly halfway between those.  
(5) They've used an incorrect unit price for the period April to July 2022
(6) On the reconciled invoice they have not accounted for my payments made by bank transfer, only the final one made by credit card. (Just FYI in April Neo cancelled everyone's direct debits and asked for the bills to be paid manually each month)

The result of all this is that they are asking for just over £650, where my analysis says we don't owe anything.

I'm not sure where to go with this.  The only contact details I have are their helpdesk email, to which they never reply except with an automatic "your email is important to us".  They publish a phone number but that is not out of service.

I'm tempted just to leave it lying, on the basis that if it goes to court I will defend. But I don't want the hassle of debt collectors or defaults on my credit record.

gt94sss2

If you search this forum, you will find similar posts.

As you say, Neo Energy have had their supply licence withdrawn.

Don't pay the bill and contact Octopus instead.

https://www.thetimes.co.uk/article/keep-giving-us-your-money-failed-supplier-neo-energy-tells-its-old-customers-spn2zl56z

Octopus Energy said: “We advise any customers contacted by anyone other than Octopus, especially when being asked for payment, to get in touch with us immediately.”

MWT

Qyburn said:

Now Neo have popped back up again, saying that they have not gone bust, it was their "market access partner" that has ceased trading.

Neo Energy Ltd. are at this point in time still very much alive, they just don't have any ability to supply energy as UK Energy Incubator Hub Ltd. lost its supply licence and is in the hands of the administrators at the moment.

Neo customer contracts terminated at the point the supply obligation was transferred to Octopus, but Neo have not elected to have Octopus take on their debt collection so they are fully entitled to issue final bills and pursue any debts.

No harm in asking Octopus for their opinion, but unless something changes, I don't think there is much they can say or do about Neo raising final bills and chasing debts...

I would not be inclined to just ignore the invoices as they are still a trading entity with the right to recover amounts owed to it, the termination of the contract doesn't change that.

... but it sounds like the quality of these final invoices is poor so it is going to be a messy process it seems...

daveyjp

Same answer as other Neo posts.  They started as a basket case company, were useless when they were operating and their demise came far too late as the warning signs were there for months,

For now I'd treat it their demand as a scam.

Qyburn

Thanks.  I've just been speaking to the Energy Ombudsman and they are a bit perplexed.  They are under the impression that Neo ceased trading, and for that reason they will not take on a complaint against them.

Qyburn

The Ombudsman wouldn't act in any case until a deadlock letter had been sent, or eight weeks elapsed.  The guy I spoke to was having a good look at Neo's web site, and checking them out on Companies House.  So maybe by the time those eight weeks are up the Ombudsman will have officially realised that Neo are still trading.

I don't know whether Neo have an appetite for litigation under Scots Law, but I will get my defence together just in case.

[Deleted User]

Qyburn said:

The Ombudsman wouldn't act in any case until a deadlock letter had been sent, or eight weeks elapsed.  The guy I spoke to was having a good look at Neo's web site, and checking them out on Companies House.  So maybe by the time those eight weeks are up the Ombudsman will have officially realised that Neo are still trading.

I don't know whether Neo have an appetite for litigation under Scots Law, but I will get my defence together just in case.

The Energy Ombudsman cannot investigate a complaint unless the company holds an Energy Supply Licence. The fact that it might still be trading in some form or other is irrelevant. Ofgem’s powers only cover licensed suppliers. 

On the appointment of a SoLR , Ofgem will revoke the Supply Licence. The company then appoints an Administrator.  The Administrator has a statutory duty to recover all monies owed to the failed supplier before the company is formally wound up.

Qyburn

There's no administrator as Neo Energy Limit (Company number 12015844) is not in administration or any other form of insolvency.  It seems a bit of an oddball situation, they've lost their supply licence for domestic customers, but not apparently for business.  UK Energy Incubator (09844783) is in administration, but they are not the ones chasing for money.

The communication from Neo tells me not to make payment to Octopus, or to the insolvency practitioner for UK Energy Incubator.

Judging by what the Ombudsman said it sounds like they have not dealt with this situation before, normally when a supplier fails they go into administration and the balances on their customers' accounts are passed to the SOLR.

MWT

Qyburn said:

The communication from Neo tells me not to make payment to Octopus, or to the insolvency practitioner for UK Energy Incubator.

This would be correct, the customer contracts were with Neo Energy Limited, and they never had a supply license, that was with UK Energy Incubator Hub.

Check your original contract details, if that was with Neo Energy Limited then they are entitled to invoice and chase for payment on any balances outstanding.

... and no, neither Ofgem, nor the Energy Ombudsman can deal with any complaints in relation to them.

Qyburn

Well if they want to try and collect on the stupid invoice they'll have to do so through the courts.  I've already pointed out all the errors, but I've not yet re-worked it to give the correct figure with those errors removed.

Stupidly there are some items undercharged.  For example for the period from February to June 2021 they've billed 40 days standing charge instead of 140.  As it happens that's irrelevant, they didn't take over our supply until June so any billing for before that date will go.

MWT

Qyburn said:

Well if they want to try and collect on the stupid invoice they'll have to do so through the courts.  I've already pointed out all the errors, but I've not yet re-worked it to give the correct figure with those errors removed.

Stupidly there are some items undercharged.  For example for the period from February to June 2021 they've billed 40 days standing charge instead of 140.  As it happens that's irrelevant, they didn't take over our supply until June so any billing for before that date will go.

This is one of those situations where at some point you may need to decide how much time-wasting and grief you are willing to tolerate and if you do know that you owe them something, it may be easier to make an offer in full & final settlement just to get the thing behind you.

If you know you owe them nothing then fight it all the way...