Avro energy collapsed

[Janine]

I think that is what Emmit says here.

Thank you It's all a bit stressful!

It took me a week to choose Avro as being the best one to go with, and look how that turned out!

 

[SpeedyDux]

To those who have had a supplier go under I can give you the following.
Ofgem will provide you with a new supplier who will provide you with a continuity of supply.
The new provider will contact you and tell you of the above and tell you what the tarrif will be.
As a result of them being engaged by Ofgem to do this, they will continue to collect your D/D from your previous, now defunct supplier. Should you take unilateral action and close your D/D you may find that, although you have continuity of supply, you may be charged a less favourable tarrif. After all, you have pulled the plug despite them stepping in to help.
What you should be doing is checking the market to find your best supplier at a tarrif that suits you.
As we are motorhomers you may consider, in addition to the unit price, also check on the standing charge per day for the supply of the utility. We went for a Company that was charging a third of the Standing charge used by many Companies. That counts for a lot as, when we are away we use little or no energy.
When your new Co. finishes completing the changeover, IT IS AT THAT Time that you should change (if necessary to move to the new Co. YOU have chosen.

I hope this helps.

Besides, whether you have a contract with a new supplier or not won't stop you getting gas and electricity at your home. In practice a brief gap won't be anything to worry about.

At the previous newbuild I lived in the developer forgot to tell the utility company. For a long while nobody sent me a bill for electricity.

 

[busby]

When it suits Green goes out of the window, DRAX back in power production.
We are on the cusp of a major energy crisis with no or little European support.
Perhaps the USA or Australia will plug the gap.
Beware of the price of energy will spiral, you do not need me to tell you what is becoming obvious.
Our taxes supporting CO2 production, more to come out way very soon.
Plug your car in be Green

Plug into where? What happens when the power goes off.BUSBY.

 

[busby]

They reckon the amount of energy suppliers will go down from 70 at the beginning of the year to 10 by the winter.

We managed very well with hardly any pre Thatcher.BUSBY.

 

[busby]

Here is a novel thought, how about nationalising the energy industry one lowest pice for all, one CEO and board to pay and the profits, rather than being paid to shareholders are re-invested oh and those £50 handouts, well that could just go back into the re-investment pot..........I will get my coat

What a great idea and while we are at it bring back the tram systems that the clever buggers scrapped in the 50/60s and let's build well needed new railways,,how many miles of track did the same clever buggers rip out again in the 60s and can you also remember them saying OIL was the future in the 60s and DIESEL was the best choice in the 90s..Bloody experts.Send them to Eaton and Oxford and they forget to teach them common sense.BUSBY.

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[Minxy]

it is a refundable deposit to jon Avro, that's different; but that's not what you are saying.

I don't know what the issue is with what I've explained, there is no mischief going on, it's pretty straightforward . It isn't a deposit, just a pre payment, it would be deducted from your actual usage and if after the term of the contract you are in credit you'll get it back. They also adjust you monthly payment if you give them readings during the term so if you are overpaying they will reduce it, or increase it to avoid you ending up with a big bill at the end.

 

[Hirsch]

Like many on here, I've stood at the sharp end of management. I think that an organisation doesn't have to be nationalised to be run properly, it just has to be run properly...

And it can be run properly whether it be nationalised or private.

 

[DuxDeluxe]

Like many on here, I've stood at the sharp end of management. I think that an organisation doesn't have to be nationalised to be run properly, it just has to be run properly...

Spot on there. Above all keep it away from the simple serpents if you want it to work

 

[Silver-Fox]

but for many reasons it just doesn't work, beats me why not

Its doesn’t work because of soft Governments and most that work for Nationalised companies don’t have the drive to make it the best.

Just there for the wages and nice end pension.

 

[DuxDeluxe]

Its doesn’t work because of soft Governments and most that work for Nationalised companies don’t have the drive to make it the best.

Just there for the wages and nice end pension.

Don’t forget the obligatory gong for the senior simple serpents…….

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[ShiftZZ]

<Broken link removed>

 

[Coolcats]

<Broken link removed>

At least with companies that are nationalised ‘Boss’s’ Never transferred huge sums into their banks.

U.K. bosses just sent sell assets to over seas companies Remember the nice management at MG assert stripped, people lost their jobs and now it’s a Chinese Brand. Lotus is now owned by Geely, Caterham was sold by the family to venture capitalists then Tony Fernandez and sold on to the Japanese.

A good % of rail power and water utilities are owned by overseas companies and profits head in that direction as well.

 

[SpeedyDux]

I don't know what the issue is with what I've explained, there is no mischief going on, it's pretty straightforward . It isn't a deposit, just a pre payment, it would be deducted from your actual usage and if after the term of the contract you are in credit you'll get it back. They also adjust you monthly payment if you give them readings during the term so if you are overpaying they will reduce it, or increase it to avoid you ending up with a big bill at the end.

Good luck getting any overpayment back from a supplier that is in Administration. Especially if they took the DD in advance just before going bust. Being an ordinary unsecured creditor is also pretty straightforward - you lost your money.

At least with companies that are nationalised ‘Boss’s’ Never transferred huge sums into their banks.

U.K. bosses just sent sell assets to over seas companies Remember the nice management at MG assert stripped, people lost their jobs and now it’s a Chinese Brand. Lotus is now owned by Geely, Caterham was sold by the family to venture capitalists then Tony Fernandez and sold on to the Japanese.

A good % of rail power and water utilities are owned by overseas companies and profits head in that direction as well.

Agreed. You missed out our rail and utilities being partly owned by foreign governments whose taxpayers are effectively subsidised by our taxpayers. UK privatisation has become a sick joke.

 

[sueandjohn]

Thanks Emmit - wish I’d read your email before I cancelled the DD from info I read on line

 

[15edward]

We were with Iresa - went bust couple of years back
I’d say we got all our moneys worth when we were transferred to Octopus. I would certainly recommend copies and photos of anything you can. It did become difficult to check just what our usage had been and checking just reinforces confidence. Took a while to settle down but it was a relatively painless experience

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[Silver-Fox]

Thanks Emmit - wish I’d read your email before I cancelled the DD from info I read on line

I cancelled my DD as well.

If we are moved in bro a poor rate I will be moving supplier anyway.

Im actually in two minds about trying to go with my preferred supplier now pre ofgem transfer.

 

[Janine]

I cancelled my DD as well.

If we are moved in bro a poor rate I will be moving supplier anyway.

Im actually in two minds about trying to go with my preferred supplier now pre ofgem transfer.

Me too but worried that if we don't play by the rules, payments made will not be refunded.

 

[Emmit]

Thanks Emmit - wish I’d read your email before I cancelled the DD from info I read on line

You are welcome.
The 'system' isn't perfect. It took Scottish Power in my case ten weeks to eventually pay me the £35 credit FROM the date they said the process was finished. I had to put it on their toes that I was prepared to involve the Ombudsman.

 

[Realist]

Avro Group, after expanding rapidly as an energy challenger in a market dominated by giants, its turnover swelled from £80m in 2017 to £390m in the 18 months to June 2019. Though the company still recorded a £28m profit loss.

How!

 

[busby]

Avro Group, after expanding rapidly as an energy challenger in a market dominated by giants, its turnover swelled from £80m in 2017 to £390m in the 18 months to June 2019. Though the company still recorded a £28m profit loss.

How!

Fiddle,,Some of these small energy companies operate from a small house..Before this price increase there were two or three going pop every month.The bigger companies picked up the pieces but in the long run Joe public pays.There was supposed to be an enquiry but that was well before Covid.Daily Telegraph were well into it a couple of years ago.It is downright fraud.BUSBY.

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[gus-lopez]

How!

#tilldippersrus

 

[SpeedyDux]

Avro Group, after expanding rapidly as an energy challenger in a market dominated by giants, its turnover swelled from £80m in 2017 to £390m in the 18 months to June 2019. Though the company still recorded a £28m profit loss.

How!

Maybe overtrading (expanding too rapidly) with insufficient working capital. This might also explain the insistence for up front payment from new joiners. Overtrading is a common cause of business insolvency, even if the firm is profitable, because it quickly runs out of cash. The rapid rise in spot gas prices might have been the final straw. Buying short and selling long - not going to end well.

 

[Realist]

I moved from Outfoxthemarket because they changed their business practices by charging advanced payments and increasing the monthly costs.

Didn't like it so moved to Octpus.

 

[Minxy]

Good luck getting any overpayment back from a supplier that is in Administration. Especially if they took the DD in advance just before going bust. Being an ordinary unsecured creditor is also pretty straightforward - you lost your money.

Not a unsecured creditor to the company, this was to our fuel account, so I don't see what the problem is, energy firms have had this happen before and I've haven't heard of anyone not being refunded or having their account credit transferred, I'm sure if it happened then Money Saving Expert would NOT be putting them on their Energy Club site as providers in the first place.

 

[Coolcats]

Good luck getting any overpayment back from a supplier that is in Administration. Especially if they took the DD in advance just before going bust. Being an ordinary unsecured creditor is also pretty straightforward - you lost your money.

Agreed. You missed out our rail and utilities being partly owned by foreign governments whose taxpayers are effectively subsidised by our taxpayers. UK privatisation has become a sick joke.

Agree with you and really don't understand why our government of rich ever party cannot have a little more business insight and do the same for us.

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[Coolcats]

Maybe overtrading (expanding too rapidly) with insufficient working capital. This might also explain the insistence for up front payment from new joiners. Overtrading is a common cause of business insolvency, even if the firm is profitable, because it quickly runs out of cash. The rapid rise in spot gas prices might have been the final straw. Buying short and selling long - not going to end well.

Listening to radio 4 they were saying that some of the companies were working at a loss to attract more customers with the hope of raising prices or selling the company on once they reached x number of customers.

 

[SpeedyDux]

Not a unsecured creditor to the company, this was to our fuel account, so I don't see what the problem is, energy firms have had this happen before and I've haven't heard of anyone not being refunded or having their account credit transferred, I'm sure if it happened then Money Saving Expert would NOT be putting them on their Energy Club site as providers in the first place.

I think we are at cross purposes. I was writing about the basic insolvency situation. The energy supply industry has a special set of rules which as you point out are summarised on the MoneySavingExpert website. Nevertheless, this is an unprecedented situation in terms of the predicted large number of small energy entrants that are very probably going to enter into Administration in the coming weeks and months, and the millions of their former customers who will be transferred by Ofgem to suppliers of last resort. Will this work smoothly in practice? Hmmm.

The assumption seems to be that the Big Six who are the suppliers of last resort will take all the customers that Ofgem allocates to them, regardless. It assumes that none will refuse on the grounds that they can't take any more. As well as that, it is hoped the Big Six should get in touch to arrange a refund when the customer's account with the bust supplier was in credit. Note the word should. I expect that the Big Six will drag their feet on the refunds and there will be endless excuses and delays if the aggregate sums involved become significant, which is likely. We saw similar problems recently with some of the budget airlines and holiday tour operators. Ofgem and the Ombudsman may be overwhelmed by the sheer number of complaints. We shall see. Looking at the medium term future, there is a strong chance that the Big Six will persuade Ofgem to allow them to recoup these refunds and other transfer costs in other ways, obviously when it comes to raising the cap, but maybe also including raising standing charges and default tariffs on their existing customers, and keeping them high when eventually wholesale energy prices drift down again. Spread losses yet boost profits? It's a one-way racket.

You wonder how many new thinly capitalised fly-by-night chancers entrants will be authorised to offer cheap fixed deals when the wholesale gas market cycle normalises. And, which banks will risk funding them. Ofgem has a lot of thinking to do.

Meanwhile you may have read that the founders of Avro walked away from the wreckage with millions. How nice for them.

 

[tofo]

Just found this on inter web

sorry if you can’t read it
basically Avro are transferring to octopus energy
you’ll understand from the headline

I’m only reporting not saying or promising

And it comes from the evening standard

Octopus Energy to take on Avro customers after collapse — The Standard

The energy regulator said Octopus had been chosen after a ‘competitive process’ to get the best deal for Avro’s clients.

apple.news

UK's Ofgem appoints Octopus Energy to take on collapsed Avro Energy's customers

Ofgem also said that outstanding credit balances, including money owed to both existing and former Avro Energy customers will be honoured. Domestic customers will also be protected by the energy price cap with Octopus Energy and energy supply will continue as normal, Ofgem added.

uk.finance.yahoo.com

 

[sueandjohn]

Just had an email from octopus and they are taking our account over

 

[sueandjohn]

Just had an email from octopus and they are taking our account over

They also said don’t worry if you cancelled your DD

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