What happens to previous balance when you switch suppliers?

Options
Hannimal
Hannimal Posts: 958 Forumite
First Anniversary First Post Name Dropper
in LPG, heating oil, solid & other fuels
I can't seem to find an answer to this easily. The switch from one provider to the next is meant to be easy. One of my accounts (gas) is in debit while the other (electricity) is in credit. When I switch what will happen? Will the balances automatically transfer to the new provider as would with a bank account, will I get an automatic refund / final bill? Do I need to provide meter readings to new and old providers? This seems much more complex than bank switch and I just don't understand this.

I am not British so this system is just completely different from how energy and gas were supplied where I last managed these bills. It was much less complex and I never gave a meter reading etc anywhere.

Comments

  • dogshome
    dogshome Posts: 3,877 Forumite
    Name Dropper First Post First Anniversary
    Options
    Debits/Credits at the closure of an account remain the responsibility of the old supplier - The new suppliers account starts at zero.
  • Robin9
    Robin9 Posts: 12,105 Forumite
    First Post First Anniversary Name Dropper
    Options
    As the gas is in debit the supplier may block the transfer. Can you make an extra payment and get it into credit?
    Never pay on an estimated bill
  • matelodave
    matelodave Posts: 8,608 Forumite
    First Anniversary Name Dropper Photogenic First Post
    Options
    You will have to give meter readings to your new supplier, who will get them validated and send them to your old supplier who will then issue you with a final bill. It is your responsibility to pay the bill if you owe them anything and their responsibility to refund you for any credit that you might have accrued.

    Unfortunately if you haven't been sending in regular readings then your bills will have been estimated (look for the E next to the readings). This could mean that your perceived credits and debits could be miles out. Perhaps you should check your meter readings and bill readings and do some sums to avoid getting avery nasty shock.

    The new supplier does not take over any credit or debit except in the case of a supplier going bust, where the gaining supplier has to try an sort out the mess.

    This is always made a lot easier if you have been sending in regular readings to your supplier and have been making sure that your bills are accurate and up to date.

    Nearly all the problems encountered by customers is caused by them getting a ginormous bill when the meter does eventually get read because they've been getting months, if not years of estimated bills and they haven't been getting them corrected.

    Just keep your finger crossed that you aren't in this situation.
    Never under estimate the power of stupid people in large numbers
  • Gerry1
    Gerry1 Posts: 9,937 Forumite
    Name Dropper First Post First Anniversary
    Options
    Robin9 wrote: »
    As the gas is in debit the supplier may block the transfer.
    Surely that's the case only if there is a debt (e.g. a direct debit has bounced or the customer has failed to pay a bill) rather than the account having a debit balance

    With fixed monthly direct debits, accounts will often have a debit balance during the winter. Half of all the transfers could be blocked should there happen to be a debit balance at the time of switching !

    Citizens Advice states 'You can't be stopped from switching if it's your supplier's fault that you're in debt - for example because they've estimated your bill wrong. If you do owe them money you'll still need to pay this when you get your old supplier's final bill.'
  • Hannimal
    Hannimal Posts: 958 Forumite
    First Anniversary First Post Name Dropper
    Options
    I have given fairly recent meter readings - I did one just last month - so I think the accounts are in credit / debit by around ~£40-80 each. So it's not a huge deal and can be sorted out. I also have a direct debit going out on Monday for both accounts, so should i pay the difference anyway? Or wait for the account to close?

    I mean, this shouldn't be difficult or rocket science - I am sure NO ONE has an account that is at exactly zero balance when they switch?
  • Flt._Lt._Biggles
    Flt._Lt._Biggles Posts: 300 Forumite
    First Anniversary Combo Breaker Name Dropper First Post
    Options
    Hannimal wrote: »
    I can't seem to find an answer to this easily. The switch from one provider to the next is meant to be easy. One of my accounts (gas) is in debit while the other (electricity) is in credit. When I switch what will happen? Will the balances automatically transfer to the new provider as would with a bank account, will I get an automatic refund / final bill? Do I need to provide meter readings to new and old providers? This seems much more complex than bank switch and I just don't understand this.

    I am not British so this system is just completely different from how energy and gas were supplied where I last managed these bills. It was much less complex and I never gave a meter reading etc anywhere.

    Please read this informative MSE article
    https://www.moneysavingexpert.com/utilities/you-switch-gas-electricity/

    Please pay particular attention to section 1 (particularly the Q&A's) and section 12 which I think covers most of your questions :)
  • mac.d
    mac.d Posts: 1,345 Forumite
    Name Dropper First Post First Anniversary
    Options
    Hannimal wrote: »
    I have given fairly recent meter readings - I did one just last month - so I think the accounts are in credit / debit by around ~£40-80 each. So it's not a huge deal and can be sorted out. I also have a direct debit going out on Monday for both accounts, so should i pay the difference anyway? Or wait for the account to close?

    I mean, this shouldn't be difficult or rocket science - I am sure NO ONE has an account that is at exactly zero balance when they switch?
    If you pay by direct debit its pretty straight forward so don't worry about it. Just go ahead and start the switch and your current supplier will issue you with a final bill which will tell you if have anything left to pay (or if they owe you).

    It'll take a couple of weeks for the switch to go through. Once its completed your new supplier will ask you to provide gas & electric meter readings on a specific date, and once those readings are validated, they'll be used as closing/opening readings and your new supply will be billed from then on, and you will get your final bill from your old supplier (within 6 weeks - the readings are checked and this can take a bit of time but its supposed to make sure you don't have any overlap in your bills).
  • Hannimal
    Hannimal Posts: 958 Forumite
    First Anniversary First Post Name Dropper
    Options
    Flt._Lt._Biggles wrote: »
    Please read this informative MSE article
    https://www.moneysavingexpert.com/utilities/you-switch-gas-electricity/

    Please pay particular attention to section 1 (particularly the Q&A's) and section 12 which I think covers most of your questions :)
    Thanks - I had read those and re-read the sections you pointed to but I don't see the answer there. Luckily I've gotten replies here and it's become clearer to me, also one of the e-mails I got from British Gas clarified this to me, but I must be stupid not to find it in the links you provided!
  • G_M
    G_M Posts: 51,977 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    Options
    This is what happens:


    https://forums.moneysavingexpert.com/showthread.php?t=6078203
  • Hannimal
    Hannimal Posts: 958 Forumite
    First Anniversary First Post Name Dropper
    Options
    G_M wrote: »
    This is what happens:


    https://forums.moneysavingexpert.com/showthread.php?t=6078203
    Oh dear, at least I have sent readings every few months!
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608.1K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards