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thelight wrote: »

I’m wondering at what point do OFGEM consider a debit on an account has turned into a debt?

I’ve had a message from Iresa to say that because my account has been in debit for more than 28 days, and this is visible of my monthly bills, then it is in debt and the 28 days notice notification has been served. I don’t recall my bills telling me I had to settle the debit, and I have continued to pay my direct debit every month. Are they correct?

have a read of this link:

https://www.ofgem.gov.uk/system/files/docs/2016/07/impact_assessment_on_review_of_domestic_objections.pdf

The key paragraph is the following:

Standard condition 14 of the gas and electricity supply licences set out the circumstances in which a supplier may raise an objection to a customer transfer. The vast majority of objections (well over 90%) in the domestic market occur because a customer is in debt. Erroneous transfers make up most of the rest.

Before objecting on grounds of debt, the supplier must have written to the domestic customer to request payment of the debt and the debt must have remained outstanding for more than 28 days. A supplier cannot object for an outstanding amount ‘on their system’ (whatever the amount) if they have not previously informed the customer about it and the debt has not been outstanding for 28 days. Prepayment meter customers with a debt of less than £500 may, if the new supplier agrees, switch using arrangements known as the Debt Assignment Protocol (DAP). Customers switching via the DAP must pay the debt to the new supplier.
Where a domestic supplier raises an objection, it must inform the customer as soon as reasonably practicable. This notice to the customer must state the reason for the objection and say how the customer can resolve or dispute it. The notice must also contain advice (or information about how and where consumers can get advice) on energy efficiency, debt management and alternative, available contracts offered by the supplier that may be preferable to the existing contract.

It is somewhat bizarre that there is a process in place that allows switching with up to £500 debt on a prepayment meter, but people with zero balances on credit meters, as reported on this and other forums, are having their transfers blocked. For the avoidance of doubt, this is what SLC 14 of every supplier's Licence states ( which I suspect has precedence over ts and cs):

The licensee may ask or allow the Relevant Gas Shipper to prevent a Proposed Supplier Transfer in relation to a Non-Domestic Customer at any Non-Domestic Premises at which the licensee is the Relevant Gas Supplier in any of the following circumstances:

(a) at the time the licensee receives Notice under the Network Code by way of the Relevant Gas Shipper that another Gas Supplier has applied under the requirements of the Network Code to supply the premises, the licensee!!!8217;s Contract with that customer for the supply of gas to the premises includes a term which:

(i) allows the licensee to prevent the Proposed Supplier Transfer; and

(ii) may be relied upon in the circumstances arising at that time;

(b) the Gas Supplier that initiated the Proposed Supplier Transfer has agreed with the licensee that the transfer was initiated in error; or

(c) in relation to a Contract entered into between the licensee and that customer before 5 January 2004 for the supply of gas to the premises which does not allow the licensee to prevent a Proposed Supplier Transfer:

(i) the customer has not paid Charges for the Supply of Gas to the premises or any other premises previously occupied by him which are due to the licensee, have been demanded in writing, have not been paid within 28 days after the demand was made and continue to be unpaid; or

(ii) the customer is bound by the provisions of that Contract and it will not end on or before the date of the Proposed Supplier Transfer.