Me and my mrs are in right mess with a powergen bill which is in debt by 400+pound are are currently paying 100 pound per month which will go down to 60 in 3 months

When we first set up account 2 years ago after we moved in together (her dad was previous account holder),we set up a direct debit to pay 30 pound a month which was agreed with powergen,however we were told months later that our usuage was too high(not really much different from when she lived with her dad) and that we would have to pay 70pound per month which has risen to now 100 pound with the price rises ,usuage and debt.

I really want to leave powergen but have been told ive got to settle the final bill first,cant we jsut change provider and pay the bill under a set monthly payment arrangement.

I'm afraid not.

You need to settle the debt first and then give notice under their Ts and Cs. If you do try to just change providers without going through the right procedure you may find yourself with an adverse credit rating very quickly. Powergen are not the most responsive or helpful company in the world.

SHARK! 

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For every positive action, there's an equal and opposite government plan.

My credit rating is bad anyway,really want to just give them the heave-ho and go to a cheaper supplier.

Your problem may be that in addition to your current credit status, the new company will be unlikely to be able to help, but see what they say.

SHARK! 

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For every positive action, there's an equal and opposite government plan.

cool,will do a hunt around and report back.

Hi Red Army,

Regrettably there is no way you can leave a supplier without paying the final bill, as of the end of the day clearly the consumption has been used, its just your supplier hasnt kept a stringent check on your usage/monthly payment.

However, if you have a regular monthly payment scheme,by DD, then Powergen are really not supposed to block your transfer to a new company.  Energywatch asked all suppliers to stop this practise a few years ago because it was unfair to tie you in like that when you might be financially better off changing due to better rates being available and unlike if you were purposely not agreeing to pay anything, you have a DD in place.

As for your credit rating I know most suppliers dont really do a check, unless you have Prepayment meters, and ask for them to be removed with credit meters being installed, they ask for a security deposit, which isnt applicable in your case.

As for keeping stringent checks yourself I would go with an online account with your new supplier, I myself am with ScottishPower and there online account is excellent, you can produce your statement 24/7, entering your readings online, and you see your usage there and then, you can even do it on a month by month basis if you like, with a monthly dd still being paid for a set amount.  Clearly there are other suppliers around with Online accounts, but as I havent been with them I cant really comment, well except for BG - keep well clear!

Once your application has been made, your new supplier will ask you for your readings a few weeks after, once your at this stage, Powergen have definately let you transfer.  Your final bill will be based upon the readings.  Once you get your final account, clearly most companies ask for payment straight away. However, I would offer to clear the balance over an agreed payment schedule, as it sounds like they messed up aswell not notifying you of the need to increase your DD, if they refuse, then suggest you mention going to Energywatch or speaking to a supervisor.

Hope this helps, and I would definately try a switch, especially online, and see what happens...

 

Sounds like a plan,im not against paying the bill just dont want to pay it before leaving them!!>

I have in my head a notion that there was mention somewhere of establishing a formal £100 threshold below which you had to be allowed to change. I.e., an existing supplier could only block a transfer if the outstanding bill was greater than £100. Am I imagining this?

BIT OF A SHOCKING UPDATE HERE!!

Got a letter from powergen demanding the overall debt of just over £400 be paid over 3 months ,meaning with my normal usuage i had to pay over £200 per month.

The account is in my wifes name and at first they basically told her to sod off and that there was nothing they could do.

Obviously powergen hadnt reckoned to clashing with me,i got on phone my wife gave them dpa to speak with me and i got a very nice homeworker whom i vented my spleen to about the incompetance of powergen allowing the debt to increase and that i will be consulting legal people and making reports to energy wacth about this.

Within 5 minutes the homeworker was putty in my hands,couldnt do enough for me,reduced my dd to what was previously agreed and with a bit of luck it will only take 6 months to clear the debt!!.

We just have to stand up to these shysters!!

Hi,

I think you might be being a bit unreasonable here.

You said in your original post that Powergen DID let you know that you weren't paying enough to cover your usage. They wouldn't know when you first started up with them how much gas and electricity you would use seeing as you had just moved in. When they did know they let you know that you needed to increase your DD's. You should have been sent quarterly statements to show whether you were in debit or not. Powergen have given you an interest free loan for more than a year. Then you seem to be shocked when they ask you to pay a debt for gas and electricity which you have used.

I'm surprised Powergen haven't referred you to a debt agency to chase on their behalf.

Dellxps,

You're new here, aren't you?

What may seem to you or I a perfectly reasonable and responsible course of behaviour is, in the eyes of moneysupermarketers, disgusting elitist forelock tugging. To expect that poor benighted consumers should every other month subtract a number and multiply by twelve to keep track of their consumption is outrageous. How dare you presume such numeracy and housekeeping skills.

Remember, unlike you or I, many of these creatures seem to live in properties without access to their meters. I have never encountered any such properties in real life but I presume they may exist.

(It's probably best not to mention that the standard repayment period is twelve months not six months so the triumphant crowing seems a little misplaced.)

The point about all this was powergen set up the dd too low,even with the estimated bills which under estimated our usuage the overall balance kept creeping up as the dd was too low and the fact that powergen only review the account every 12 months.

Anyway ive sorted it now to a somwat satisfactory level.

Recieved letter demanding £200 per month

knocked it initally down to £100 which went down to £90 per month when i found i could structure the debt over 12 months.

However i complained about this as it worked out £90 per month was meaning we were paying £55 for usuage and £35 for debt ,which with the imminent prices rises would mean taking longer to pay the debt,

i complained that it was powergens fault that the debt kept increasing and after initially being told the debt was our fault they admitted the way they review accounts was 50% their fault as i wasnt the only one who complained about this.

The debt has gone down from £430 to around £250 after being offered £80 off the debt and paying this months payment.

They have also reduced the dd from £90 to £80 per month which makes it slightly easier to manage.

Powergen have now told me they intend to review customers accounts every 3 months as per an industry standard of 12 months,thus improving the system and making these sort of cases less of an occurence.

I was offered more off the debt if i paid in full ,which was cheeky as they knew i couldnt pay £200 to clear the balance off .

I switched from Powergen to Atlantic Electric and Gas over a year ago and have never regretted it. On top of getting the 13th month free, I initially paid less per month than with Powergen, and now my direct debit payments have even gone down.