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£200 Alternative Fuel Payment can be used by Suppliers to pay Your Electricity Arrears

hazeofvenuss
Posts: 7 Forumite


EDF have refused to refund my AFP, despite my electricity account being £383.17 in credit. Despite having promised to do it when it arrived, they are insisting on another meter reading before releasing it. I gave them a reading on 4th Jan & I'm not due another bill until April as I'm a quarterly direct debit customer.
Having read the Government guidelines to suppliers on the AFP, the Government are allowing energy suppliers to use the AFP to offset against account arrears.
Even though this doesn't apply to me, I find it shocking that the AFP isn't actually going to be given to customers in order to pay their AF bills if they are in arrears with their electricity bills. In effect, this means that people could be without heating if they have historical debts. It really upset me today to think about it :-(
Having read the Government guidelines to suppliers on the AFP, the Government are allowing energy suppliers to use the AFP to offset against account arrears.
Even though this doesn't apply to me, I find it shocking that the AFP isn't actually going to be given to customers in order to pay their AF bills if they are in arrears with their electricity bills. In effect, this means that people could be without heating if they have historical debts. It really upset me today to think about it :-(
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Comments
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British Gas have added my AFP of £200 to my account and I am currently in credit but looks like I cannot access the full
£200 as I have an anticipated £14 arrears forecast in 12 months time. They have offered to reduce my dd payments or have a partial refund of the credit but not the full £200. Have to say I disagree with this policy as customers should be able to receive the full £200 to pay for their ‘alternative fuel’.1 -
In effect, this means that people could be without heating if they have historical debts.That is a bit extreme. In reality, the AFP is a windfall to the majority of consumers.they are insisting on another meter reading before releasing it. I gave them a reading on 4th Jan & I'm not due another bill until April as I'm a quarterly direct debit customer.So, give them the meter reading then.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.2 -
hazeofvenuss said:EDF have refused to refund my AFP, despite my electricity account being £383.17 in credit. Despite having promised to do it when it arrived, they are insisting on another meter reading before releasing it. I gave them a reading on 4th Jan & I'm not due another bill until April as I'm a quarterly direct debit customer.hazeofvenuss said:Having read the Government guidelines to suppliers on the AFP, the Government are allowing energy suppliers to use the AFP to offset against account arrears.
Even though this doesn't apply to me, I find it shocking that the AFP isn't actually going to be given to customers in order to pay their AF bills if they are in arrears with their electricity bills. In effect, this means that people could be without heating if they have historical debts. It really upset me today to think about it :-(0 -
@mattx3
I understand why they request an up to date meter reading. I’m now fully paid up to date & what’s left should be for me to use to purchase alternative fuel.Oh but it isn’t… & that’s my point.The status of the account should be irrelevant to the electricity supplier regarding the AFP for it to be equitable.It is an AFP precisely because it’s meant to be used to buy alternative fuel, not electricity.The AFP is in addition to the help everyone has received because the price of alternative fuels has increased exponentially (there is no cap applied to prices).The electricity supplier is being used as a third party to expediently distribute the extra £200. Unfortunately, some suppliers believe this money to be theirs. It isn’t.Or is it?Where you can already afford to pay your bills & have credit to spare, yes it is yours.Where you’re in fuel poverty, debt & crisis, it isn’t. Then it belongs to the electricity supplier, if they choose.So, someone in debt to their electricity supplier, who runs their central heating on LPG, oil or has a log burner or coal fire to heat their water, now doesn’t have the £200 to buy the fuel to heat the hot water or run their central heating. Their electricity supplier is happier with them though.If you don’t need the money you can put it towards your alternative fuel but if you do need the money you can’t buy alternative fuel because you actually need the £200 to purchase some.It’s too simplistic to see it as extra money or a windfall.After all, if things weren’t so difficult at the moment no one would be getting anything at all.1 -
hazeofvenuss said:@mattx3
I understand why they request an up to date meter reading. I’m now fully paid up to date & what’s left should be for me to use to purchase alternative fuel.Oh but it isn’t… & that’s my point.hazeofvenuss said:The status of the account should be irrelevant to the electricity supplier regarding the AFP for it to be equitable.hazeofvenuss said:It is an AFP precisely because it’s meant to be used to buy alternative fuel, not electricity.hazeofvenuss said:The AFP is in addition to the help everyone has received because the price of alternative fuels has increased exponentially (there is no cap applied to prices).hazeofvenuss said:The electricity supplier is being used as a third party to expediently distribute the extra £200. Unfortunately, some suppliers believe this money to be theirs. It isn’t.Or is it?hazeofvenuss said:Where you can already afford to pay your bills & have credit to spare, yes it is yours.Where you’re in fuel poverty, debt & crisis, it isn’t. Then it belongs to the electricity supplier, if they choose.So, someone in debt to their electricity supplier, who runs their central heating on LPG, oil or has a log burner or coal fire to heat their water, now doesn’t have the £200 to buy the fuel to heat the hot water or run their central heating. Their electricity supplier is happier with them though.hazeofvenuss said:If you don’t need the money you can put it towards your alternative fuel but if you do need the money you can’t buy alternative fuel because you actually need the £200 to purchase some.hazeofvenuss said:It’s too simplistic to see it as extra money or a windfall.hazeofvenuss said:After all, if things weren’t so difficult at the moment no one would be getting anything at all.3 -
The AFP is in addition to the help everyone has received because the price of alternative fuels has increased exponentially (there is no cap applied to prices).Most alternative fuels have not increased exponentially. For example, at the point the scheme was announced, the price of heating oil was lower than what it was 6 months earlier. Currently, oil is at the upper end of its normal around (68ppl)The electricity supplier is being used as a third party to expediently distribute the extra £200. Unfortunately, some suppliers believe this money to be theirs. It isn’t.Regardless of whether it is being held to the next billing point or refunded, the £200 is never the suppliers money and they know that.It’s too simplistic to see it as extra money or a windfall.So, let's take oil. it's not currently expensive, and there has never been a taxpayer handout when oil previously got that high in price.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.1
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