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GB Energy ceases trading

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As a customer I'm not entirely sure where that leaves me. Read More
MIDURIX Avatar
5m, 3w agoPosted 5 months, 3 weeks ago
As a customer I'm not entirely sure where that leaves me.
MIDURIX Avatar
5m, 3w agoPosted 5 months, 3 weeks ago
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1 Like #1
1 Like #2
Depends on whether you had credit or not, ofgem have the power to name one of the other suppliers, oftaker of last resort so you would move to them on a standard variable tariff I think in the meantime. It gets tricky if you had hundreds of quid credit on your account as I don't think the more advanced rules around that have come into play as of yet.

The only time a supplier has done this before was a company that only supplied businesses so it could get interesting. Ofgem has a consultation on their website about this that closed in the last couple of months so may be worth a look at that to see the outcome and what was in place.
2 Likes #3
I blame brexit the new £5 note and trump
3 Likes #4
points from martin Lewis money saving site
1. you will not be cut off. Ofgem will find another supplier to take over the business and you will continue to get energy meanwhile
2. Your credit is protected. If you are in credit, you will get this back likely once the new supplier is appointed.
3. Take a meter reading ASAP. Write this down right now, it will be important for the transfer process.
4. Do not switch now, until the firm is transferred to a new supplier, that could risk you not getting any credit you are in back (this is unconfirmed, the process is new, but I believe that’s the situation).
#5
Problem is if you wait for new supplier to take over, then get put on standard tariff, then switch, a lot of the cheaper deals may have been pulled by then...
#6
larrylightweight
I blame brexit the new £5 note and trump
You forgot global warming
banned#7
eande2
Problem is if you wait for new supplier to take over, then get put on standard tariff, then switch, a lot of the cheaper deals may have been pulled by then...

Doubt that will happen. There probably will be a choice of sorts & backdated
#8
Some good advice above . Take your meter readings now and retain . Ofgem will effectively "switch" you to a new supplier from today (probably at their standard rate ) . Wait till you hear from your new supplier and you can confirm the switch . Then try to negotiate a deal with your new supplier , if its no good go on a compare site and switch (from your new supplier) to the best deal for you . You will not be cut off or lose any credit you may have . Finally do not worry - you wont get cut off ,you wont lose any credit so all will be fine . All it means is you'll have to faf around again on comparison sites to find your next deal . No problem for you ,as you must have already done that to find GB Energy .


Edited By: rogparki on Nov 26, 2016 22:50
1 Like #9
Was easier when it was just Norweb and the gas board. Thatcher's Britain...
*shudder*
#10
psychobitchfromhell
larrylightweight
I blame brexit the new £5 note and trump
You forgot global warming

And that damn cyclist
#11
Well OP I guess we can say it leaves you...in the dark..

https://www.youtube.com/watch?v=iNkrF43SZEU
#12
Cancel your direct debit and "adjust" meter reading to use up some credit
#13
bcp
Cancel your direct debit and "adjust" meter reading to use up some credit
Have to say the thought crossed my mind X)
made the front page
https://www.theguardian.com/money/2016/nov/27/gb-energy-supplier-folds-blaming-rising-prices
banned#14
they did say they will give any credit back. I'd ring asap to ask for any
#15
sofiasar
they did say they will give any credit back. I'd ring asap to ask for any
lol, you ever tried getting credit from a company in administration? oO
#16
bcp
Cancel your direct debit and "adjust" meter reading to use up some credit
bad advice unless you dont mind an unpaid strike or your credit record.
#17
This was a 'car crash' waiting to happen.

The warning signs were there, uncontactable (they became very tardy in replying to emails), jacking up monthly direct debits in order to 'protect' customers from debt, notifying increases in tariffs against the trend.

There was some comments about this company on here six or so weeks ago - most of it negative, they knew!!
#18
I asked for a refund of the credit only a couple of weeks ago. Glad I did now.
#19
Thanks for the heads up only just moved to them :(
#20
Getting your money back from these Chancers may not be as straight forward as the press are suggesting. I am guessing that all of GB Energy's customer were in credit and despite the soothing words of Ofgem it would not be surprising to find that all the money is gone.

GB Energy look like they were keeping their heads above water by raising direct debit payments to continually fund their business. Companies don't go out of business instantly, it's a long drawn out affair and this company has doubtless been 'in trouble' for many months.

So what's the process?

As I see it Ofgem will now attempt to shift the business 'lock stock and barrel' to another energy supplier who as part of the 'windfall' of 160,000 new customers will have to take on the inevitable substantial debts of GB Energy. So who are these 160,000 customers? Well none of them are the British Gas non-moving types who have remained loyal despite all urgings to them to shop around.

So what Energy Supplier is going to 'bung' probably tens of millions into a business where the customer base is likely to take flight at the 'drop of a tariff'? Not to mention the likelihood of non-compatibility of any two billing systems and billing has been the bane of the industry for decades.

So GB customers could well be tied into an 'expensive' tariff for months, with no route out other than to forgo any claims they have against the company in respect of balances they might hold.

The scenarios are probably three fold -
An existing energy company 'buys' the assets and there is a seamless transition and nobody loses any money.
A 'buyer' can't be found and a very messy administration takes place and customers lose their money.
Ofgem manages to extract a levy from currently trading companies to placate GB Customers with the return of their funds.

To me the latter looks the most likely but there will be plenty who think its unfair that customers of unrelated energy suppliers have to pay for the 'management' of GB Energy and 'the greed' of their customers.

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