I recently switched energy away from First Utility, but have now had a demand for more than £800 without explanation. The company says it will take the cash via the direct debit we set up. That will put us into an overdraft and we’ll incur charges. Can you help?
AM/London
This highlights one of the problems of switching – there can be an outstanding amount due, and suppliers are not shy about snatching it from people’s accounts.
We asked First Utility to explain why the final bill was so high.
There were two reasons. First, the company had been estimating usage for two years and the final meter reading revealed the bills had been underestimated. But it also turned out that you had been on a low fixed tariff which ended a year ago and had ignored its emails offering you a new fixed tariff. As a result, you ended up on the company’s highest tariff.
The good news is that First Utility has arranged for its best fixed rate to be backdated to the date your last one ended, which will cut the total amount you owe by around £400.
It also offered to let you repay the amount over the coming months.
However, First Utility should look at the way it communicates with departing customers. We put this to the firm and it replied: “We try to set fixed direct debits so that large credit or debit balances don’t build up. Where they do, we’re always there to speak to customers and look at ways to set up a payment plan. We’re looking at how we can make it clearer what the options are for customers who have an outstanding balance.”
OUTCOME: Energy bill cut by £400
Old NID
26 959Source Moneywise http://ift.tt/2qn6eQq
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