Last month I noticed my OVO Energy account was £350 in credit. I pay £120 per month via direct debit, so asked OVO if I could reduce it.
OVO was reluctant to do so and said I could apply for a refund.
However, its website states that I must leave the value of three monthly direct debit payments in the account.
Can it refuse to give me back credit? Jan Goodall, Southampton, Hants.
In your corner: Dean Dunham has worked as a barrister and solicitor focused on consumer rights for 23 years
Dean Dunham replies: Your instinct is absolutely right — energy providers should not cling onto direct debit overpayments made by consumers and, in fact, they are not permitted to.
The energy regulator Ofgem confirms this, saying: ‘There is no minimum amount that suppliers are allowed to keep.
‘Our rules ensure consumer credit balances are always protected and we recently strengthened rules regarding direct debits, which should prevent excessive accumulation of consumer credit balances.
‘Refunds should be returned by suppliers in a timely fashion. Customers can always request their balance back at any time and we have made sure this is firmly in our rules.’
This means OVO and other suppliers are not entitled to hold on to any credit, so its policy of forcing those consumers in credit to leave the value of at least three monthly direct debit payments in the account is unlawful.
It appears OVO is not familiar with these ‘rules’, as it is clearly flouting them. I put all this to OVO, but it declined to comment.
If you have difficulties getting a full credit refund from an energy supplier, then your next step is to ask your provider for a ‘deadlock letter’.
This is a letter setting out its final position on your claim, which the ombudsman will need to see.
You can then lodge a complaint with the energy ombudsman here.
Make sure you provide a clear timeline of events and show the period when your credit built up and when you made requests for a refund, as well as the response you received.
The ombudsman process typically takes between four and six months.
Price rise: This reader saw the bill for his loft conversion hiked from £33,000 to £42,500
Builder hiked cost of roof extension by £9,500
I engaged a builder to convert our loft into a bedroom and agreed a price of £33,000. As far as I was concerned this was a fixed price, and I took out a loan for this amount to pay for the job.
The work has now been completed and the builder has done a very good job. However, the final invoice is £9,500 more than expected, at £42,500.
I have told the firm I will not pay this and, in response, it has referred me to its terms and conditions which states: ‘We reserve the right to increase any fixed cost agreed if the cost of our service increases.’
Can a firm really do this? Lee Grant, Harrogate, N. Yorks.
Dean Dunham replies: A firm cannot impose a price increase after a job is completed for the following two simple reasons.
Firstly, the terms and conditions it relies on to impose an increase would be construed as a ‘key term’.
Section 64 of the Consumer Rights Act says key terms must be transparent and be made prominent to the consumer.
If a consumer is unaware of a term until after work is completed, then the term is not binding.
Secondly, the Consumer Rights Act also offers a term which has the effect of not permitting a trader to increase the price of goods or services without giving the consumer the right to cancel the contract.
This includes if the final price is too high in relation to the price agreed when the contract was concluded.
If a customer agrees a price which is then raised, the firm can either stick to the original price or take the customer to court.
It is highly unlikely that it will take legal action, given how much protection the Consumer Rights Act offers the consumer.
