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Yet to be informed of Price increase

lgb2100
lgb2100 Posts: 148 Forumite
Part of the Furniture 100 Posts Combo Breaker
I was on British Gas Click 4 Energy :o .

When the prices increased at the end of July 2008, I was expected to either receive an e-mail or a letter informing me of the price increases to both Gas and Electric.

As I could only find Click 5 prices - which have not increase, and had not received any notice about increases, I assumed that Click 4 prices were also stable (and that it was just the standard tariffs that had increased).

When I received my bills in August, it showed that I have been charged the increased prices as from the end of July ! :mad:

Checking again with the website, I did manage eventually find the tariffs for Click 4 had increased !

As Click 5 hadn't increased - I changed over to the Click 5 Tariff.

I e-mailed British Gas complaining that I had not received any notices of my increased prices, other than my bills, and the reply was to check the website for Click 5 prices, and the 2011 Price fix.

I feel that as British Gas has not informed me of any changes - they should not have charged me the increased prices !

As I pay by Direct Debit, does the Direct Debit agreement prevents me from paying an increase in billing without me knowing !

Worse still - my Gas Account was in credit, and they have decided to increase my payments by an additional £5 ! (However my Electric account is owed money, and they haven't increased that payment to recover the shortfall)

My estimation is that under Click 5 gas Tariffs, and my current monthly payment of £33 (and my credit), I will accumulate a credit of almost £100 !
However will be in a debt on my electricity (current payment £18.50 month) of almost £100.

(estimated Gas usage 10108kwh/year / Electricity 2858kwh/year - Total Billing Click 5 - £596 year after discounts)
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Comments

  • Cardew
    Cardew Posts: 29,064 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Rampant Recycler
    Under the new legislation Utility Companies have 65 working days(13 weeks) to formally inform you of price rises.

    Whilst that might seem outrageous, it actually works in a customer's favour. When you receive that notification you have 14 days to inform them that you are going to switch companies and then you will be charged for all your gas/electricity at the pre-increase rate.

    What I am not sure about, is how that formal notification is sent if you are on an internet account. With 'normal' accounts you are sent a letter, but with internet accounts you have agreed that communication will be electronic.

    Perhaps you might still get a letter or email.

    P.S. you can delete your duplicate thread.
  • lgb2100
    lgb2100 Posts: 148 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Changed to Click 5 Energy (still awaiting to be informed by letter/e-mail for price increase)

    When telephoned - was told that a letter had been posted informing of the price increase - this has yet to be received !

    Now Click 5 has increased at the end of September !

    Yet again - received no notification of Price increases by letter or e-mail !

    "It is not our policy to contact all our customers........we publish the prices on our website to make sure the customers are aware of them."

    When visiting the website, I am expecting to see a big banner stating prices have increased - all I see is advetisments for BG products.


    lgb2100 wrote: »
    I was on British Gas Click 4 Energy :o .

    When the prices increased at the end of July 2008, I was expected to either receive an e-mail or a letter informing me of the price increases to both Gas and Electric.

    As I could only find Click 5 prices - which have not increase, and had not received any notice about increases, I assumed that Click 4 prices were also stable (and that it was just the standard tariffs that had increased).

    When I received my bills in August, it showed that I have been charged the increased prices as from the end of July ! :mad:

    Checking again with the website, I did manage eventually find the tariffs for Click 4 had increased !

    As Click 5 hadn't increased - I changed over to the Click 5 Tariff.

    I e-mailed British Gas complaining that I had not received any notices of my increased prices, other than my bills, and the reply was to check the website for Click 5 prices, and the 2011 Price fix.

    I feel that as British Gas has not informed me of any changes - they should not have charged me the increased prices !

    As I pay by Direct Debit, does the Direct Debit agreement prevents me from paying an increase in billing without me knowing !

    Worse still - my Gas Account was in credit, and they have decided to increase my payments by an additional £5 ! (However my Electric account is owed money, and they haven't increased that payment to recover the shortfall)

    My estimation is that under Click 5 gas Tariffs, and my current monthly payment of £33 (and my credit), I will accumulate a credit of almost £100 !
    However will be in a debt on my electricity (current payment £18.50 month) of almost £100.

    (estimated Gas usage 10108kwh/year / Electricity 2858kwh/year - Total Billing Click 5 - £596 year after discounts)
  • Cardew
    Cardew Posts: 29,064 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Rampant Recycler
    lgb2100
    Make sure you move to Click 6(if you are staying with BG) as the tariff is cheaper than Click 5 new prices.
  • lgb2100
    lgb2100 Posts: 148 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Cardew wrote: »
    lgb2100
    Make sure you move to Click 6(if you are staying with BG) as the tariff is cheaper than Click 5 new prices.

    Done that. Noticed by visiting this site that Click 6 was available, and changed to it (altough a week later). Dont receive billing until Nov, so would have missed out for at least two months !

    Still waiting for BG to inform me of a Tarrif Price Change on Click 5 !

    Wasn't inform at end of July about price changes, and moved to Click 5 when received bill and noticed the increase !

    Now BG has yet to inform me once again !

    Are they allowed to do this ?
  • alan99_2
    alan99_2 Posts: 225 Forumite
    Cardew wrote: »
    Under the new legislation Utility Companies have 65 working days(13 weeks) to formally inform you of price rises.

    Whilst that might seem outrageous, it actually works in a customer's favour. When you receive that notification you have 14 days to inform them that you are going to switch companies and then you will be charged for all your gas/electricity at the pre-increase rate.

    What I am not sure about, is how that formal notification is sent if you are on an internet account. With 'normal' accounts you are sent a letter, but with internet accounts you have agreed that communication will be electronic.

    Perhaps you might still get a letter or email.

    P.S. you can delete your duplicate thread.


    Does that mean that we now all have upto 5 and half months of electricity or gas at the old price ?

    13 weeks for formal notice of price rise. 2 weeks to arrange change . Another 6 - 8 weeks (?) to actually complete the change.

    Is there also a 65 day period to be informed if prices fall?

    Alan
  • Cardew
    Cardew Posts: 29,064 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Rampant Recycler
    alan99 wrote: »
    Does that mean that we now all have upto 5 and half months of electricity or gas at the old price ?

    13 weeks for formal notice of price rise. 2 weeks to arrange change . Another 6 - 8 weeks (?) to actually complete the change.

    Is there also a 65 day period to be informed if prices fall?

    Alan

    In theory it is possible I suppose.

    However that assumes they waited until the 65 working days were up before they sent the letter.

    However some people got their formal letter about the price rise within a day or two of it being implemented; so they now have to apply to change within the 10 working days.

    I believe there is a period of 4 weeks from you applying for the account to switch to the new supplier taking effect. I don't know what would happen if that 4 weeks was exceeded, I suppose the old supplier could charge you for a couple of weeks at the higher rate, but I suspect they wouldn't bother.

    I don't think the situation is covered about giving you 65 days notice if prices dropped. However I suspect if you asked them nicely they would allow you to pay the old higher price:confused:
  • They could say the letter has been sent. There's nothing that covers the non-delivery of the notification.
  • silvercar
    silvercar Posts: 49,923 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    I got a letter today (31/10) dated "October 2008" informing me that my gas prices (Brithish Gas tracker discount) have been increased from 30 July 2008.

    I make that 13 weeks and 2 days. Can they do this?
    I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • Cardew
    Cardew Posts: 29,064 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Rampant Recycler
    silvercar wrote: »
    I got a letter today (31/10) dated "October 2008" informing me that my gas prices (Brithish Gas tracker discount) have been increased from July 2008.

    Can they do this?

    They have 65 working days - 13 weeks.

    You now have 10 working days to notify them that you intend to move supplier and you will pay at the pre-increase rate.
  • silvercar
    silvercar Posts: 49,923 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    Its 13 weeks and 2 days, does that mean they can't force the increase and have to date the increase from later? I'm on some tie with them, so I can't leave for another 6 months without paying a penalty.
    I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
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