Debts can be repaid over a period of months along with customers’ on-going supply. Suppliers will also take account of a common financial statement showing how much the consumer can afford to repay. If the consumer is worried about debt they should contact their supplier, the Citizens Advice consumer service (03454 040506) local CAB or other advice agency – their supply is at risk if they do not deal with the debts. They can find details of their local Citizens Advice by visiting or . Key Principles suppliers take into account Ofgem has identified a number of Key Principles suppliers should take into account to ensure that they are properly and proactively taking account of a customer’s ability to pay: Having appropriate credit management policies and guidelines Allowing for customers to be dealt with on a case-by-case basis. Linking incentives to successful outcomes not repayment rates. Making proactive contact with customers Making early contact to identify whether a customer is in payment difficulty. Regularly reviewing methods of proactive contact to ensure they meet the needs of customers. Using every contact as an opportunity to gather more information about the customer’s situation. Understanding individual customer’s ability to pay Providing clear guidance and training for staff on how to elicit information on ability to pay and monitoring the effectiveness of this. Making it easier for customers to concerns. Making full use of all available information. Proactively exploring not only payment amount but appropriate payment methods. Setting repayment rates based on ability to pay Where default amounts are set it should be made clear that these are guidelines only and in any event the levels should be reasonable. Ensuring all available information is obtained and into account including the customer’s circumstances identified on the warrant visit or when installing a prepayment meter on a warrant. Not insisting on substantial up-front payment before reconnection.
What should a consumer do if they their supplier has been dishonest in selling them a product, or has failed to meet the requirements outlined above? In the first instance the consumer should contact their supplier to query the circumstances or complain. The consumer should also report the allegation of dishonest selling to the Citizens Advice consumer service as suppliers may be in breach of the Consumer Protection from Unfair Trading Regulations. The consumer service will also pass such matters to the supplier to investigate. What should a consumer do if they are unable to resolve an issue with a supplier? If the supplier is unable to resolve the issue and the assistance offered by the consumer service has been exhausted, then the consumer can contact the Energy Ombudsman (either 8 weeks after the complaint is made or when the supplier issues a deadlock letter stating that it is unable to resolve the matter – whichever comes first). The Energy Ombudsman is a service set up to sort out disagreements between gas and electricity companies and their domestic and micro business customers. All suppliers are members of the Energy Ombudsman. The Energy Ombudsman: provides the consumer with a free and independent service that has been approved by as a statutory redress scheme investigates the complaint fairly by listening to both sides of the story and looking at the facts provides the consumer with a resolution to their complaint. If the consumer accepts the Ombudsman’s resolution then the Energy Ombudsman makes sure that the company does what’s asked of them. Like any service, there are rules about when the Energy Ombudsman can and cannot accept a complaint, and rules about the types of complaints that they can look at. Their website provides further information .
Direct Debit: Monthly / quarterly Variable Assists with budgeting as the same amount is paid each month/quarter (avoids unexpected high bills) Tends to be the cheapest payment method Payments are protected by the direct debit scheme (e.g. immediate refunds for payment errors and notice of any changes) Consumers can cancel at any time Consumers pay for their energy based on actual usage Payment level may be insufficient/too high Consumers must manage their bank accounts to ensure that there are sufficient funds every month budgeting more difficult if the amount is not fixed (will usually be high in winter and lower in summer) Monthly /quarterly standing order Assists with budgeting as the same amount is paid each (avoids unexpected high bills) Payments cannot be taken by the supplier in error Consumers might need to complete a form for the bank each time the payment needs to be changed Continuous arrangement Consumers can benefit from the ‘interest free’ period provided by the relevant card (sometimes up to 56 days) Cards may offer reward/loyalty points Consumers are not protected in the same way as they are for direct debit schemes (e.g. against unauthorised withdrawals) Expensive way of paying, if consumers don’t pay off the balance during the interest free period On demand (cash/ cheque/ debit card/ credit card) Consumers control when they pay their bill Tends to be more expensive than paying by direct debit Risk of late payment, which may incur a late payment charge Quick reference guide: payment methods for prepayment meters Method Advantages Disadvantages
Token / card As they are widely available they are easy to replace if lost and the consumer does not have to wait to receive one from the supplier Must pay off any emergency credit when the meter is re-credited Key The meter can be adjusted using the key rather than manually Some suppliers charge for replacement keys Smart card The meter can be adjusted using the card rather than manually Some suppliers charge for replacement cards APPENDIX C - Supplier contact details Energy company Website Customer Service Cheaper from mobile* Warm Home Discount Affect 0330 606 2672 Avro 0800 680 0795 0330 088 5754 Bristol Energy bristol -energy.co.uk 0808 281 2222 British Gas (including customers of Scottish Gas) britishgas.co.uk 0800 048 0202 0330 100 0303 prepay 0800 072 8625 credit 0800 294 8604 prepay Better Energy (gas only) betterenergy.org.uk 0115 846 0438* Not part of the scheme Bulb bulb.co.uk 0300 303 0635