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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?
Originally posted by thelight
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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.