Bunch Utility Bill Management... Numbers dont add up!

purplebobblehead

My daughter moved in to a new property with a flat mate 3 months ago and it appears they have been scammed by a utility bill management company called Bunch. This company was advertised on the same website they had to sign their Tenency Agreement through, you could say a perfect marketing strategy?

Allegedly, they were told they would carry on with their previous energy company, Ovo, that it wouldn't cost them anymore than they had been paying in their previous property, it would just be a lot simpler and easier paying one payment to Bunch, they also pay their water bill through them.

My daughter contacted me today as something about it all just seemed off. Their monthly payment has just been increased by £40 a month, so now paying almost £300 a month, for a small two bedroom semi-detached house with only 2 occupants. She showed me what she is being charged and I immediately noticed that the Standing Charges are enormous - £1.37 per day for Electric and 99p per day for Gas, and their Unit rates seem high compared to mine with Octopus. Their energy supplier with Bunch is stated as being TruEnergy, who's website has all their tariff details and although on the high side, are nowhere near what Bunch are charging them.

I did some online research and it seems this company targets the younger generation, using the language and overall vibe that would attract them, focusing on the easy "smart" way to pay your bills etc. but they are mis-selling products, adding huge extra charges that either they are adding or TruEnergy are lying about their tariffs, and assuming that their customers are either too naive to check the details or overwhelming them with information overload. Unfortunately they also attach large Exit Fees, after the 14 day cooling off period, although by my maths paying these fees is cheaper than continuing on my daughter's current arrangement for the next 9 months!

I did suggest this is a good learning opportunity for my daughter, to always check the details before signing up to anything, but I can't help thinking what this company is doing is so wrong! How many others are falling for this selling technique, and is there anything that can be done? Can anyone be held accountable, or is this the next "Were you mis-sold utility bills….. claim compensation here!" thing?

WiserMiser

The lettings agency probably gets a nice bung for every punter that signs up !

Woodstok2000

Did your daughter get any of the initial promises in writing?

purplebobblehead

https://forums.moneysavingexpert.com/discussion/comment/81862159#Comment_81862159

My daughter spoke to the lettings agent today and they said they advice their tenants NOT to sign up for this service as it works out so much more expensive, its allegedly the Tenancy signing website that promotes this service, and no doubt gets the kick back! The agents are going to make more of an effort to make their future tenants aware, it's a shame they didn't do that for my daughter. 🤨

QrizB

Welcome to the forum.

My daughter moved in to a new property with a flat mate 3 months ago and it appears they have been scammed by a utility bill management company called Bunch.

This organisation?

https://the-bunch.co.uk/

They seem to be typical of the "bills management" companies that provide this sort of service to students and similar renters.

Allegedly, they were told they would carry on with their previous energy company, Ovo,

Bunch's help pages say:

When you sign up with Bunch, we arrange the switch to our preferred energy supplier on your behalf.

So no, Bunch would never have kept them with Ovo.

Their energy supplier with Bunch is stated as being TruEnergy, who's website has all their tariff details and although on the high side, are nowhere near what Bunch are charging them.

TruEnergy's current SVT tariffs are here:

https://www.truenergy.co.uk/s/Published-SVT-tariffs-20260101v1.xlsx

They look to be the same Ofgem-capped SVT that most suppliers offer. However it's possible that your daughter is on a fixed tariff; fixes aren't capped, so it would be interesting to know how she ended up on her current tariff and not the SVT.

I did suggest this is a good learning opportunity for my daughter, to always check the details before signing up to anything

Yes, my kids are away at Uni right now and whenever anything like this comes up I tell them it's "learning how to adult". Better to do it now when the stakes are low than to fall for it later in life when there's more at risk.

purplebobblehead

https://forums.moneysavingexpert.com/discussion/comment/81862251#Comment_81862251

Unfortunately not the promise of the Ovo change, her flatmate did it all over the phone, just how companies like this like to do it! She even remembers at the time thinking this must be a scam.

I've since had a chance to look over the contract and it is just so sketchy, misrepresenting the tariff details by saying these are TruEnergy prices, then in the small print they state that THEY make the tariff not the supplier! I will be helping my daughter approach Trading Standards/Ombudsman about the whole marketing and mis-selling approach of Bunch, once we have fought for her own case.

purplebobblehead

https://forums.moneysavingexpert.com/discussion/comment/81862394#Comment_81862394

Thank you, and yes this is the company. It is very much geared at the inexperienced who think they are making a "smart" choice!

Ive been going through all the small print and they are very much skirting the law as far as miss-selling is concerned, they give the impression that this is the TruEnergy tariff but then state in the teeny tiny part that THEY create the tariff, not the energy company. This level of opacity is inconsistent with the Consumer Rights Act 2015 requirement for transparency and fairness in consumer contracts.

In the small print, they also state that they charge 40p a day for their fees, but I made a quick spreadsheet using TruEnergy generic tariff prices for my daughters area, and it works out a difference of £1.87 per day and thats just the gas and electric…. Who knows what profit they are making from my daughter's water bill!

Feels like I am going down a really nasty rabbit hole. Lucky my daughter let me know now, at least its only 3 months damage plus the Exit Fees (that I will be helping her fight), just wish I could stop others falling into this trap?

gpman

https://forums.moneysavingexpert.com/discussion/comment/81862408#Comment_81862408

IANAL, nor have I even read their terms and conditions, so do not take this as legal advice.

But as far as I know, Bunch are not a licenced energy supplier. Therefore don't waste the ombudsman's time approaching them; they won't help you.

Also, if Bunch are not a licenced energy supplier, they cannot resell you energy other than at the "Maximum Resale Price", essentially the price they are charged by the licenced energy supplier. What you don't know is what price the licenced energy supplier is charging Brunch. e,g, As Brunch are clearly a business, I doubt they are paying a domestic tariff.

The way most 'Bills Management" service providers work is that they effectively would work as an agent for your daughter and simply switch supplier on her behalf; she would be the account holder with whichever licenced energy supplier Bunch chose. Only then could she rightfully have a domestic tariff (if she is not doing it herself).

Unfortunately, the choice of supplier & tariff may not be the best from the 'whole of market', The Bills Management provider will probably pick the supplier & tariff that gives them the biggest kick-back (because they'll be keeping that for themselves), and just as comparison sites don't allow direct switching to every supplier & tariff (because there is no commission agreement in place), the Bills Management provider will also be selective on who they choose. I've seen some Bills Management providers offer their customers a short time to object to any proposed change of tariff they propose, which is a useful benefit if you really want to use a Bills Management provider.

Remember, it's easy to manage this without a Bills Management provider, and the Cheap Energy Club here shares any commission with you if you switch via them. Some other comparison sites offer cashback via the main cashback sites for switches you make via them, which is often higher than the cashback the CEC offers. If you use other comparison sites, ensure you are looking at the 'whole of market'; their default is to only show you the suppliers & tariffs that they have a commission agreement with (because unless you go via a cashback site, they'll be keeping that commission to themselves). But don't allow possible cashback to influence your choice of supplier & tariff; think of it as a bonus if you eventually receive it.

WiserMiser

Now that the lettings agency are fully aware of the problem they should find a respectable website for the tenancy agreement, or do it in house. Might be worth pursuing the agency to refund your daughter's unnecessary expenses? Point out that any savings made by being cheapskates using such an iffy site will be vastly outweighed by the damage they are causing to their own reputation.

gpman

Btw, whilst TruEnergy are a licenced energy supplier, my understanding the last time I looked at them is that they now only supply domestic energy via Huddle Utilities Ltd, essentially a Bills Management provider.

So if Bunch are buying the energy from TruEnergy, (and re-selling to your daughter) another reason to believe it would not be on a domestic tariff basis.

purplebobblehead

https://forums.moneysavingexpert.com/discussion/comment/81862558#Comment_81862558

Thank you for your comprehensive reply, up until 10am this morning I didn't even know these Bill Management Companies existed, and everything I am reading about them wishes my daughter had spoken to me 3 months ago and I would have told her to run for the hills!

It seems such a complex system, and it is very interesting that you point out that they may have placed my daughter on a non-domestic tariff, even more reason how the transparency of this company is as clear as a muddy puddle, and supports the miss-selling angle that I am going to try.

Currently I have advised my daughter on the first stage of the complaint, basically asking for a clear and concise break down of exactly what the tariff includes, what is actually charged/paid to TruEnergy in both unit price and Standing Charge, and what is their fee for the (abysmal) job they are doing. If they do not clearly state this, it appears that this is where Trading Standards can step in under the Consumer Rights Act 2015 requirement for transparency and fairness in consumer contracts.