Energy provider is very economical with its refunds . . .
E.M. writes: Economy Energy supplied our gas and electricity until we changed suppliers last April. When our final bills arrived, we found we had overpaid by £577 so requested this money be transferred back to our bank account. In September, we were told payment could take up to 28 days as there was a backlog. In October, we were told there was no record of our repayment request. In November, we were told we would be called back, but needless to say we were not. Either this company is grossly incompetent or there is some underlying reason why it cannot return money that has been owed to customers for more than six months. THE situation at Economy Energy is worrying. As complaints have mounted – many from customers who have overpaid and want refunds – the Coventry-based utility company has even issued the following statement: ‘In response to the recent speculation and circulating misinformation, we would like to provide assurance that we at Economy Energy have no intention of closing our doors. We will pay our outstanding ROCs obligation in full and business will continue as usual for our customers.’
ROCs are industry jargon for renewables obligation certificates –a ‘green tax’ to be paid to the industry regulator Ofgem. Last weekend, The Mail on Sunday revealed that Economy Energy owes Ofgem £15.5 million.
The company’s latest published accounts show that in the year to March 2017, its profits were only a fraction over £2 million. Normally it should have filed its 2018 accounts by now, but directors have asked Companies House for a six-month extension.
There is a saying in the accountancy world that bad figures take longer to add up than good ones – and I would not disagree with that for a minute.
But where does this leave you and your missing £577?
I asked Economy Energy and an official confirmed you had been chasing your refund since last April.
He explained: ‘At the time that Mr M requested his final refund, we were in the process of changing our internal procedure around authorising and releasing funds.
‘This was being done to make the process more timely and efficient. Unfortunately, due to this, Mr M’s refund was raised by a colleague of mine incorrectly which did delay it being released. It then needed to be chased by Mr M to be rectified.’ So again – where does this leave the matter of your missing £577?
I was assured by the same official: ‘I do accept that this has now been ongoing for too long and the service Mr M has received is far from the level we aim towards. I have now chased Mr M’s refund to ensure this is received into his bank account this week.’
Sadly, that conversation was on November 19 – and still you have not received a penny of your missing money.
To make matters worse Economy Energy will now not speak to me.
I wish I could assure you that I know the company is sound, but it owes millions to Ofgem and its bank, HSBC, has a charge over all the company’s assets, giving it first bite at anything left if the business collapses.
If any gas or electricity supplier fails, customers are not cut off. Ofgem organises a switch to a new supplier. But this is no help to you. You have already switched.
Anyone considering moving to the Coventry company should take warning. Existing customers s hould keep an eye on t heir direct debits and not run up a big credit balance.