Scottish Power terms and conditions

Simon_c_2 · 21 January 2008 at 4:11PM

Hi all.

I've just got a letter from Scottish power saying that they are changing their terms and conditions to allow them to retrospectively change the terms and conditions such as price and back date it 65 working days !! (so that's over 4 months. )

To avoid their increase you have to notify them you reject the increase within 10 days, and have the new supplier on line in 15 days from date of being server notice of the change.

I don't know if this is normal for power companies, but IMO it stinks that they can say that they say "oh yes, the power you were using over this last winter, that's actually cost you 20% more than you thought it was going to. "

So, I would expect large price increases from them soon.

I doubt they back date price drops now do they.

EDIT: I just noticed in the switching traffic light system that they have pledged not to increase their tariffs until 30th of March. Is that mean on the 30th of March they will say that the electricity you used for December-> march was actually more expensive ?

EDIT: I just called them (after having to dig really hard on their site to find there number) and they said that any price increases would not be before 1st april.
still very cross about it though !! I bet the price comparison sights don't have a "don't do retrospective T&C changes" filter options !

Cardew · 21 January 2008 at 4:48PM

Are you sure thats what the letter said?

See:

http://forums.moneysavingexpert.com/showthread.html?t=693151

Simon_c_2 · 21 January 2008 at 5:20PM

It sounds like the same letter, but even reading it a 2nd time, in the light of that thread, I can't see how it can have any other meaning that they can decide the price of power on day X, back date that price to day X-40, and still have 25 days to tell everyone of the new price.

Maybe it is based on some OffGen thing and the real idea is to give them more flexibility in announcing price changes, without having to write to everyone every time. I still don''t like it though. If there's ever an opportunity for a company to pass risk onto their customers, they always try it.

Just called Energy-watch it's a standard part of the standard regulation contracts that all suppliers have. :mad::mad:
So, If there are large retrospective price changes, I guess the best thing to do is move away, then move a 2nd time to the cheapest, that way avoiding the back dating effect.

I'll go an grumble to myself about the whole stupid system now I think.

--
Simon.
aka grumpy old man.

Cardew · 21 January 2008 at 5:59PM

I can understand your cynicism about utility companies but I don’t think any company has ever backdated their price rises from the time they made their announcement; and I doubt if the Regulator would allow that practice.

All rises when announced are covered extensively in the National Press and I believe this gives them 65 days to formally notify you.(although why they need that long I do not know)

I suppose if you were, say, living abroad and did not follow UK news, you could get a letter and discover that gas/electricity prices for your UK house had increased 3 months previously.

I believe Banks have only 14 days?(28?) to notify you of a decrease in saving rates, or an increase in mortgage rates. I frequently get a letter telling me that the interest on a savings account was reduced xx days ago.

P.S.
Welcome to the forum.

Terrylw1 · 22 January 2008 at 10:11PM

They can't backdate price changes, Ofgem would not allow that. Otherwise if it were legal they could recalculate it for years and bump your bill up.

If they say they are changing their prices from X date, it means that energy billed FROM that date onwards will be at the latest rate. It does not mean that the bill leading up to that date will also be billed at the higher rate.

When price changes go through these companies have to update their tariff versions from the new X date. Why? It's because they still need to retain the previous prices incase they need to amend your bills further back whcih they know they have to issue at the correct old price.

Look at it another way. Suppliers have to make backdated amendments to your bills daily (e.g. you were over estimated) and they have to use the prices that were available at the time. They cannot use the latest prices just because they are higher. They would never try it because legally they would never get away with it.

Scottish Power terms and conditions

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