Uncategorized

Economy Energy Ceased Trading

150 150 David

Just 8 days into the new year Economy Energy with 235,000 domestic customers ceased trading. Following 2018 with 8 suppliers going out of business, what will 2019 bring?

Is the utility market sustainable for smaller suppliers?

OFGEM and the DTI will have to answer this question.

OFGEM Takes Action Against Economy Energy

150 150 David

Ofgem has banned Economy Energy from taking on new customers until it resolves its customer service issues.

According to OFGEM the following problems have been identified with this supplier:

The particular behaviours of concern giving rise to the provisional order are that Economy Energy’s Domestic Customers are or are likely to be:

  • at risk of being unable to contact Economy Energy, where customer service arrangements are not fit for purpose;
  • at risk of not being billed with complete and accurate information;
  • at risk of not receiving a refund in a timely manner;
  • at risk of customer complaints not being correctly identified, logged and signposted to the Energy Ombudsman.

We are pleased to see OFGEM taking action against suppliers taking money but not delivering the customer service expected.

Hopefully this will be a wake up call to other suppliers as well, to put their house in order and improve their customer service level.

D-Energi Increases Unit Rate 3 Months After Contract Start by 3.5p/kwh

150 150 David

D-Energi has written to some customers that their fixed-term contract rate will increase by over 3.5p/kwh (over 20% increase!) just 2-3 months after the start of their electricity contract.

A customer who signed up in August an electricity contract with D-Energi to start in October has now a month later been informed that his unit rates will increase from 13.19p/kwh to 16.712p!

The supplier cites increased wholesale prices, which they are no longer able to absorb.

To add insult to injury we have checked the current matrix prices and found the company still offering rates of 2p/kwh cheaper to new customers than their proposed increased unit rates to customers who signed up just recently.

Alpine Utilities Ltd has written to D-Energy saying this is unacceptable and customers expect their contract rates to be honored for the duration of the contract.

We have also asked how can they still offer new customers cheap rates while at the same time increasing contract prices to existing clients?

A communication sent out by the company to TPI’s says the price increase decision was not made lightly but future contracts would not be subject to such a price review. But Alpine Utilities Director David Lande says he lost trust in this company unless they get clean with their existing customers.

Spark Energy Is The Latest To Go – Who Is Next

150 150 David

Spark Energy Supply Ltd is the latest small supplier to cease trading, after Extra Energy the 2nd in just a week.

This sparks the debate: are small suppliers viable? Is it worth signing up with a small supplier?

For domestic customers there isn’t that much on stake. OFGEM will now find an alternative supplier of last resort who offers to take on the failed supplier’s customers.

OFGEM’s message reads: ”

Our message to energy customers with Spark is there is no need to worry, as under our safety net we will make sure your energy supplies are secure and your credit balance is protected.

“Ofgem will now choose a new supplier and ensure you get the best deal possible. Whilst we’re doing this our advice is to ‘sit tight’ and don’t switch. You can rely on your energy supply as normal. We will update you when we have chosen a new supplier, who will then get in touch about your new tariff.

“Although we have seen a number of supplier failures this year, our safety net procedures are working as they should to protect customers.”

It’s a different story with commercial customers: The new chosen supplier will take on the failing supplier’s customers, but unless they offer to honor the previous supplier’s contracts, their new tariff offered maybe anything but competitive.

Changing supplier will place customers on the excessive deemed rate until the switch is complete.

OFGEM are now running a consultation on their proposal to increase the tests before granting a license to a new supplier. It remains to be seen whether this will improve matters and we will stop seeing suppliers going out of business on a regular basis.

So, our advise to customers considering their renewal is: Unless the savings are substantial, go for an established supplier that has been around for many years with a good customer service track record.

Alpine Utilties Ltd will advise to the best of our knowledge with every quote if the cheapest supplier offered belongs to that category.

Ofgem proposes new tests for licensing energy suppliers

150 150 David

OFGEM started a consultation on strengthen the criteria they use to assess supply licence applications for new entrants in the energy supply market.

This follows the collapse of a number of smaller suppliers over the past year(s) and failure of some others to provide adequate customer service.

In response to OFGEM’s supplier licensing review we have requested that robust testing of any new billing system should become mandatory before allowing it to go live as upgrades have in the past created many problems and untold misery to customers for several months.

Renewal Never Applied

150 150 David

Recently a customer sent us an electricity bill charged at the variable rate. A quick check revealed that a contract had been renewed back in November last year.

Alpine Utilities contacted the supplier who apologized for the error and promised to re-bill the customer.

This incident highlights the pitfalls energy customers can fall into.

Alpine Utilities always requests to receive the first bill of any new/renewal contract for free validation. As most customers rarely spot any issues utility brokers are in a much better position to find and rectify any errors.

BG Changes VAT Status At Renewal

150 150 David

Customers who paid the reduced VAT rate and no CCL during the 1st contract term, may find this changed at the contract renewal.

Customers are therefore advised to check the VAT rate after a contract renewal and should contact the supplier if the discount has no longer been applied.

Alpine Utilities Ltd encourages its clients to send in the first bill after a renewal or change of supplier for FREE validation.

Alpine Utilities Ltd will also assist the customer with any issues relating the implementation of the energy contract.

OFGEM Info On Third-Party FIT Ownership

150 150 David

OFGEM has published today an information leaflet regarding third-party FIT ownership.

This may be relevant to homeowners with solar panels installed and owned by another company.

The info can be found on https://www.ofgem.gov.uk/system/files/docs/2018/10/third_party_ownership_under_the_fit_scheme.pdf

Opus Delays CSD For Renewal Contracts

150 150 David

It has come to our attention that Opus Energy will only start a renewal contract 30 days late if no termination has been received.

Why should the customer continue to pay expensive variable (out-of-contract) rate once a new contract is in place, just because the previous contract has not been terminated?

David Lande, Senior Consultant of Alpine Utilities comments: Such a policy is unheard of and unacceptable and we will escalate the matter to the highest level.

Small Users Can Still Pay Higher VAT Rate & CCL

150 150 David

While domestic customers only pay 5% VAT on fuel and no Climate Change Levi, Business customers pay 20% and an element for CCL.

Small business users, however, are treated like domestic customers as are supplies for non-business use.

Yet some small businesses still end up paying the full rate if they happen to use an average of 145kwh of gas or 33kwh electricity over a billing period. This often happens to small businesses using most of their consumption during winter for heating or hot summer for air conditioning.

Looking at the whole of annual consumption would certainly be a fairer system.