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British gas AFP

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  • EssexHebridean
    EssexHebridean Posts: 24,424 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    t0rt0ise said:

    Well done to the suppliers that have chosen to pay out the £200 to their customers rather than profit from it themselves. 
    Can you confirm how you think suppliers are profiting from the AFP? As far as I was aware it's either being refunded to customers banks, or being retained on customer energy accounts. Are you suggesting that some suppliers are choosing not to distribute it?
    It is wrong that suppliers are keeping this money to cover electricity bills. It's supposed to help the customer pay their alternative heating fuel.
    It's not clear whether the OP has asked for a refund but what is meant to be happening is that the account holder can then request the payment back to their bank to apply against the LPG/Oil/whatever. My reading of the comment I was responding to was that Haze was under the impression that some suppliers weren't even applying it to accounts though - but instead simply pocketing the money for themselves, hence my asking for clarification.
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  • Spoonie_Turtle
    Spoonie_Turtle Posts: 10,347 Forumite
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    t0rt0ise said:

    Well done to the suppliers that have chosen to pay out the £200 to their customers rather than profit from it themselves. 
    Can you confirm how you think suppliers are profiting from the AFP? As far as I was aware it's either being refunded to customers banks, or being retained on customer energy accounts. Are you suggesting that some suppliers are choosing not to distribute it?
    It is wrong that suppliers are keeping this money to cover electricity bills. It's supposed to help the customer pay their alternative heating fuel.
    In some ways it can be seen a bit like the £66/67 payments - by being credited to the electricity account, it means people have to pay less for their electricity which frees up money to then spend on their heating fuel.  I believe that's the intention behind not making suppliers refund it to customer's accounts automatically.

    That said, in reality that doesn't necessarily work very well and I agree suppliers really ought to just be refunding it.  But what we think should be happening doesn't change the reality of what suppliers are allowed to do.  You'd have to take it up with BEIS, the government department organising it https://www.gov.uk/government/publications/domestic-alternative-fuel-payment-afp-scheme-in-great-britain-guidance-for-electricity-suppliers
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