Cheaper Tariff - the energy companies duty to advise
Hi all,
I did a quick search and couldn't find exactly what I needed so hopefully this isn't a duplicate post.
I've just discovered, after 4 years of being in our house, that we're on an economy 7 meter and, therefore, a tariff where day time electric is substantially more than night time electric (17p vs 5.6p). It all came about after 9 months of not giving (or having taken) any meter readings - after submitting readings we went from £28 in debit to £477 in debit - quite a shock.
I thought this was possibly down to me getting a plugin hybrid car 12 months ago and our fixed price tariff expiring but apparently not. I used Scottish Power's site to transfer onto what they said was the cheapest tariff but I still wasn't happy with why we're so badly in debt with them.
I called SP to discuss as I was worried there was some error somewhere and it was only then that I pushed the agent on why no single rate tariffs came up on their site for me. He said it was because of our meter type and that they only had a duty to tell us if we could save money switching to a different tariff ACCORDING TO OUR METER TYPE.
Firstly, I feel a bit dumb that my wife and I knew very little about what meter we had and how tariffs work - we've owned a number of houses over the last 10 years so we feel like we should have know this but I guess we've never owned a house with an economy 7 meter!
Secondly, if what SP are telling me is true, surely this is a massive oversight in both the governing legislation that forces providers to advise of cheaper tariffs AND the providers moral duties to its customers.
By my rough calculations I think we may have been paying over the odds to the tune of 70% for the last few years and that would wipe out the £500 debt we're in if they agreed they did have a responsibility to tell us to change our meter.
The really annoying thing is that they have all the data to be able to make this really easy - and automated so why aren't they using it. It took me 30 seconds to log into their site, look at some meter readings we took 14 days apart and calculate that, in those 14 days, we used only 8% of our power at night - I was surprised it was even that high!
I have a complaint open with SP who are issuing a 'deadlock letter' which means I can then pass it onto the energy ombudsman but does anyone have either any experience with this situation or can give me any advise?
Thanks in advance
I did a quick search and couldn't find exactly what I needed so hopefully this isn't a duplicate post.
I've just discovered, after 4 years of being in our house, that we're on an economy 7 meter and, therefore, a tariff where day time electric is substantially more than night time electric (17p vs 5.6p). It all came about after 9 months of not giving (or having taken) any meter readings - after submitting readings we went from £28 in debit to £477 in debit - quite a shock.
I thought this was possibly down to me getting a plugin hybrid car 12 months ago and our fixed price tariff expiring but apparently not. I used Scottish Power's site to transfer onto what they said was the cheapest tariff but I still wasn't happy with why we're so badly in debt with them.
I called SP to discuss as I was worried there was some error somewhere and it was only then that I pushed the agent on why no single rate tariffs came up on their site for me. He said it was because of our meter type and that they only had a duty to tell us if we could save money switching to a different tariff ACCORDING TO OUR METER TYPE.
Firstly, I feel a bit dumb that my wife and I knew very little about what meter we had and how tariffs work - we've owned a number of houses over the last 10 years so we feel like we should have know this but I guess we've never owned a house with an economy 7 meter!
Secondly, if what SP are telling me is true, surely this is a massive oversight in both the governing legislation that forces providers to advise of cheaper tariffs AND the providers moral duties to its customers.
By my rough calculations I think we may have been paying over the odds to the tune of 70% for the last few years and that would wipe out the £500 debt we're in if they agreed they did have a responsibility to tell us to change our meter.
The really annoying thing is that they have all the data to be able to make this really easy - and automated so why aren't they using it. It took me 30 seconds to log into their site, look at some meter readings we took 14 days apart and calculate that, in those 14 days, we used only 8% of our power at night - I was surprised it was even that high!
I have a complaint open with SP who are issuing a 'deadlock letter' which means I can then pass it onto the energy ombudsman but does anyone have either any experience with this situation or can give me any advise?
Thanks in advance
0
Comments
-
There is nothing specific in the Supply Licence to indicate that suppliers are under an obligation to inform customers that they may be better off paying for a meter exchange from economy 7 to a standard meter. Many suppliers will accept an economy 7 meter on a single tariff ( by adding the two usage figures together). This has to be at the request of the consumer. If the supplier has immediately agreed to a deadlock letter then it could mean that they are confident that the EO will not find against them.0
-
Hi all,
I did a quick search and couldn't find exactly what I needed so hopefully this isn't a duplicate post.
I've just discovered, after 4 years of being in our house, that we're on an economy 7 meter and, therefore, a tariff where day time electric is substantially more than night time electric (17p vs 5.6p). It all came about after 9 months of not giving (or having taken) any meter readings - after submitting readings we went from £28 in debit to £477 in debit - quite a shock.
I thought this was possibly down to me getting a plugin hybrid car 12 months ago and our fixed price tariff expiring but apparently not. I used Scottish Power's site to transfer onto what they said was the cheapest tariff but I still wasn't happy with why we're so badly in debt with them.
I called SP to discuss as I was worried there was some error somewhere and it was only then that I pushed the agent on why no single rate tariffs came up on their site for me. He said it was because of our meter type and that they only had a duty to tell us if we could save money switching to a different tariff ACCORDING TO OUR METER TYPE.
Firstly, I feel a bit dumb that my wife and I knew very little about what meter we had and how tariffs work - we've owned a number of houses over the last 10 years so we feel like we should have know this but I guess we've never owned a house with an economy 7 meter!
Secondly, if what SP are telling me is true, surely this is a massive oversight in both the governing legislation that forces providers to advise of cheaper tariffs AND the providers moral duties to its customers.
By my rough calculations I think we may have been paying over the odds to the tune of 70% for the last few years and that would wipe out the £500 debt we're in if they agreed they did have a responsibility to tell us to change our meter.
The really annoying thing is that they have all the data to be able to make this really easy - and automated so why aren't they using it. It took me 30 seconds to log into their site, look at some meter readings we took 14 days apart and calculate that, in those 14 days, we used only 8% of our power at night - I was surprised it was even that high!
I have a complaint open with SP who are issuing a 'deadlock letter' which means I can then pass it onto the energy ombudsman but does anyone have either any experience with this situation or can give me any advise?
Thanks in advance
Cheapest tariff offerings for your meter type should be provided on your bills. (as you have been advised by the supplier)
A complaint based on different metering is one without foundation
(e.g. if you had a PPM, you are not advised of cheaper tariffs available if you had a credit meter)
So I wouldn't worry the ombudsman service with that.
I very much doubt a £500 accrued debt (how did that occur?) would be covered by a different meter. Perhaps you could show your calculations for that please.
You'd be better off paying monthly by DD - that would save you money usually, and would have precented a £500 debt accruing in the first place (unless you failed to provide regular meter readings, and the debt is now due to a catch up bill after many years)
Good luck!0 -
@footyguy - appreciate your response!
I get the argument about pre-paid meters but I still don't feel like I'd be 'bothering' the ombudsman with my challenge, I feel strongly that there is a better way that things could be done to benefit consumers. All the information is at the fingertips of the provider and I feel like they either do have a duty to inform of cheaper tariffs or they don't. PPMs aren't really put in due to usage patterns, more financial situations as far as I'm aware? In my utopia, the energy companies would inform you regardless or your meter type, econ7, single, PPM whatever - the same way the would inform you that you could save by switching to DD rather than paying quarterly.
With regards to the debt, here's my VERY crude calcs which I've had to base on 14 days of use across June/July:
Day Use @ 16.92p = 217 units / £36.72
Night Use @ 7.682p = 19 units / £1.46
Total Use over 14 day period = 236 units / £53.61
Total yearly cost calculated by multiplying £53.61 x 26.07 (the number of 14 day periods in the year) = £1397.61 / 6152.52 units
Single rate tariff = 11p per unit, therefore 6152.52 x 0.11 = £676.78
Econ7 cost £1397.61 - single rate cost £676.78 = £720.83
** I accept that this may not be the best way to calculate this but as I said, it was VERY rough - if someone's got a better approach then I'd be happy to use it **
Finally, we do pay by DD and we have been bad at submitting readings (2 kids under 3 years old will do that to some people!)0 -
... a tariff where day time electric is substantially more than night time electric (17p vs 5.6p)......
Day Use @ 16.92p = 217 units / £36.72
Night Use @ 7.682p = 19 units / £1.46
...
I can't believe I'm responding to this, but I just wanted to to save the above :cool:
(My highlighting)
Which tariff with SP are you on exactly? (and which supply region?)
The day & night rates you quote is consistent with the suppliers (expensive) standard variable tariff (although I can't see that exact price for any supply region)
In comparison their day (flat) rate is about 2p chearper than on E7
I'd be surprised if any E7 tariff was charging almost 18p day and almost 8p night if they are selling flat rate on a comparative tariff at 11p.
Why haven't you consulted a comparison site and switched?
You seemed to be an a very expensive tariff
We only pay about 11p day rate and a similar price night rate to what you express, although that is with a supplier that is currently not accepting new customers at present.
But if we were to choose from currently available tariffs, I'm sure we could come somewhere close to those fugures.0 -
I thought this was possibly down to me getting a plugin hybrid car 12 months ago
Presumably you have been charging this car during the day?
Having an E7 tariff and charging the car during the 7 hours cheap electricity period(using a timer) is standard practice for most people with an electric car.
Just get a decent E7 tariff, and also run appliances where possible overnight.0 -
Presumably you have been charging this car during the day?
Having an E7 tariff and charging the car during the 7 hours cheap electricity period(using a timer) is standard practice for most people with an electric car.
Just get a decent E7 tariff, and also run appliances where possible overnight.
Yes I have - as I said, I have only just discovered we're on an Econ7 tariff otherwise I would have used the scheduled charging. The unit prices i quoted are, I believe, their Standard Online tariff - as we hadn't realised our fized term had expired - not sure what the prices were before.0 -
Why can't you believe you're responding to this - I'm not trying to provoke an argument here, but you are hinting at something that I'm doing wrong here?? If the purpose of you highlighting the unit prices was to bring attention that I made a typo, then apologies for that - I'm only human :-)I can't believe I'm responding to this, but I just wanted to to save the above :cool:
We're currently on their standard online - the fixed deal we were on expired. We're in CambridgeshireWhich tariff with SP are you on exactly? (and which supply region?)
That's what the guy at the end of the phone told me.I'd be surprised if any E7 tariff was charging almost 18p day and almost 8p night if they are selling flat rate on a comparative tariff at 11p.
We came to Scottish Power via USwitch and I did a comparison the other day - it said SP was still the cheapest.Why haven't you consulted a comparison site and switched?
You seemed to be an a very expensive tariff
Sounds like you have managed to get a good deal, I'll keep looking but with the best will in the world I don't believe an Econ7 tariff will work for us when the wife & kids are at home all day so have requested to have the meter changed.We only pay about 11p day rate and a similar price night rate to what you express, although that is with a supplier that is currently not accepting new customers at present.
But if we were to choose from currently available tariffs, I'm sure we could come somewhere close to those fugures.0 -
Day Use @ 16.92p = 217 units / £36.72
Night Use @ 7.682p = 19 units / £1.46
Total Use over 14 day period = 236 units / £53.61
I appreciate you said it was only a rough, crude calculation but to get £53.61 as a result of the sum of £36.72 and £1.46 is very rough indeed! :eek:
And if you think you can get SP to supply you single rate at 11p/kWh on their standard varible tariff, then go for it! :cool:
As footyguy indicates, it's about 50% more than that no matter what supply region you are in.
(you can see that from uSwitch too)0 -
As a long time meter reader with a strong interest in Eco 7 meters I think the supplier should be warning every customer that they either bill them single tariff, or switch meters when the occupier clearly is at a loss on a multi rate meter.They have all the records and can easily see that they are paying too much..I have been seeing these Eco 7 meters fitted to entire streets and many areas of towns just to encourage night use so that power stations keep busy at night.Some towns were selected for eco 7 meters even when they were built with mains gas central heating..Towns such as Worksop and Retford and many others , usually close to large power stations.
The ombudsman should step in and end this nonsense and make suppliers toe the line or fine them. I hope the OP logs a complaint to the ombudsman.0 -
Yes I have - as I said, I have only just discovered we're on an Econ7 tariff .....
So you've been on E7 for at least a couple of years (been on default tariff for a year, and presumably were on a fix for at least 12 months before that)
even if you have not been taking regular meter readings yourself in that time, you would have received numerous (estimated) statements/bills that would presumably not only specify you were on an E7 tariff but would have the give away signs of 2 registry readings
And you say you are not trying to provoke an argument here.
If the jury are still out on that one, I'm sure it won't be too much longer before they reach a unanimous verdict :cool:0
This discussion has been closed.
Categories
- All Categories
- 343.2K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608K Mortgages, Homes & Bills
- 173.1K Life & Family
- 247.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards