Maryrose Lyons blogging since 2003...

Thats a bit crappy. I’ve already had to pay a major deposit to them. Well ok not major .. I think it was 400 quid or something like that but couple that with deposit and rent in advance and so on when you move house.

I was actually thinking of switching over to them but if its going to cost me from the looks of it 200 quid there is no point what so ever. I won’t be staying in the current place for more than a year I’d say.

Not a happy camper

This is a most strange post, you are having a real go at the two companies that have brought massive change to Ireland’s residential electricity market.

Im surprised that you as a business operator would have such a go at companies charging deposits. Lets take the situation were a total stranger hires Brightspark to design a website. Does Brightspark spend several weeks designing a website without receiving some kind of deposit upfront. I doubt it very much. Furthermore Brightspark DOES NOT outline their terms of business for potential clients on their website yet bemoans the fact that Bord Gas hasn’t outlined their terms fully. “This is not how we do things on the web.”

You go on to say “suddenly ESB becomes more attractive..” yet the ESB also charge deposits for new accounts opened.???

I switched to Airtricity in January and was quite happy to pay them a deposit as Im a tenant. As someone who also operates a business I insist on the security of a deposit as I have been caught-out too many times by non-payers and I simply cant afford to take such hits. I also purchased a leather 3-piece suite from Harvey Norman in January and had to pay a 30% deposit upfront and as yet havent received my suite.

Interestingly one of those who have left a comment above operates a business Mor Solutions who I’m sure insists on upfront deposits from clients they dont know. Furthermore they work for Flogas (a Bord Gas competitor) who also insist on deposits btw. ????

Whats the agenda here guys ?

Maryrose,

In response to the serious inaccuracies in your post.

“Yesterday I posted about how Airtricity and how they take €200 off new customers at sign up. I was a bit miffed about that, so I looked to the Big Switch.

As there is no information about customer entry fees on the Big Switch website either, I telephoned and found out that Bord Gais Energy also charge a switching fee. In fact, they have a matrix that helps them determine what that fee should be.”

Bord Gáis Energy does not charge a ‘switching fee’. “Switching fees” are not allowed under EU law and Bord Gais Energy absolutely does not charge customers a “switching fee”. Bord Gáis Energy may require a security deposit from some customers as security against future payments as electricity (and gas) is paid for in arrears and in effect customers are receiving 2 months worth of free credit before they have to pay for the product. Whether a Security Deposit is required is dependant on the applicant’s situation for example, are they the home owner or a tenant, how long they have been a tenant for and the type of payment method they are using.

“• If you’re already a Bord Gais customer and you are a tenant – you pay €100
• If you’re already a Bord Gais customer you’re a tenant living at your address less than 14 months – you pay €200
• If you’re a home owner living at your home less than 14 months – you pay €200.
The reason they say is because tenants have a habit of skipping off without paying their electricity bills. Fair enough. But what about a new home owner already beleagured with multiple costs? They’re hardly going to skip off.
• How long does Bord Gais get to sit on your money? 6 – 7 bills.
• That’s about 14 months of interest-free cash from you. Nice one.
Now this is all regular business practice I’m told.”

Bord Gáis Energy will refund the deposit after 14 months of tenancy provided payment history is satisfactory. You have to understand that you are paying for your electricity (or gas for that matter) in arrears and therefore it is common practice in utility companies to require a security deposit of some sort in certain circumstances.

“But what I find highly irregular is the fact that Bord Gais do not advertise any of this on their website.
The Big Switch says nothing, nowhere, not even in the terms and conditions which I read. Nor does the Bord Gais mothership site. The first time you find out about this fee is when you’ve already done the switch (or so you thought) and you get a demanding letter in the post.”

The switching form gathers the users’ information as they fill out the form and this dynamically displays the security requirements based on this information. If a security deposit is required this is clearly displayed at the payment options step of the process and the user has the option to pay the deposit there and then or sign up for direct debit or both or none. Section 7 of our Electricity Supply T&C’s clearly states that security may be required and the user is presented with his requirements within the form as stated already.

“This is not how we do things on the web.
We give people full information as early as possible – so as not to waste their time and piss them off. Good sites show the full price (including shipping) as early as possible because that is the way things are done.
I take issue with Web Factory again because they ought to know this. OK, maybe they were a bit afraid to bring it up with their important client Bord Gais? But hey, the guys at Bord Gais ought to know this. They’re currently shortlisted as best internet marketers in the Net Visionary Awards. Is this how you’d expect such esteemed people to behave?”

Webfactory have not been nominated for “best internet marketers” in this years’ Net Visionary Awards, Eoin Ó Súilleabháin the e-channel developer for Bord Gais Energy who was responsible for the online marketing aspect of the ‘The Big Switch’ campaign has been short listed in the Internet Marketer category.

“Either way people, if you are planning on switching from ESB to either Bord Gais or Airtricity, you WILL have to pay for the privilege if you don’t want to give away your bank account direct debit details. Suddenly big fat utility co ESB looks more attractive….”

Please note that ESB also requires security deposits from customers in a very similar manner and at similar values to BG Energy. Requiring deposits is standard across the electricity industry and is approved by the Commission for Energy Regulation. To date the majority of BG Energy applicants (98.4%) had no security deposit requirements, again where a security deposit is paid the customer is refunded after 14 months as outlined in our supply T&C’s. Thousands have already made the Big Switch to electricity from Bord Gáis Energy and are already making big savings on their electricity costs.

We constantly look to improve and build on the information we provide customers on both the Big Switch site and the main BG Energy site. On foot of this information gap being highlighted to us it is our intention to include a security deposit requirement question in the FAQ’s section of the Big Switch site.

Regards,
Stiofáin on behalf of The Big Switch

If, as Bord Gais claims above, the security deposit is to protect against customers not paying then the deposit should be held at a third party. This third party would protect me in case Bord Gais goes bankrupt. In addition, I should receive interest on MY money that Bord Gais is holding. This is normal business practice that Bord Gais enters into with any of its proffessional counterpartys.

The fact that the other utilities perform this sharp practice along with Bord Gais is no justification. This hasn’t happened in any other country I’ve lived in. The fact that you have my name, address, date of birth, bank account details etc is more than enough to pursue me for any unpaid bills.

The real situation here is that Bord Gais uses this money as working capital in its business – otherwise they would agree to a third party holding the funds in escrow.

I am certainly not going to make the change to either Bord Gais or Airtricity although the ESB are no better. I had an account with the ESB for over forty years and moved into a new house two years ago. Because I didn’t want to sign up for direct debit, I had to pay €300 deposit to them when I moved. I was told this would be refunded after twelve months but it wasn’t actually refunded to me. All I got was a credit on my ESB bill. So why didn’t they say that after twelve months I would receive a credit instead of using the word “refund”.

Good points Ray and well made.