Atlantic Electric&Gas Retrospective Price Increase - SURELY ILLEGAL?

Moo_2

I'm confused too.

I switched to Atlantic in May this year and was very happy with them. I too have received this letter to say they are increasing prices as from August 2008.

I cannot see how backdating an increase works in favour of the consumer?

Am I correct in thinking I have to switch energy providers for this to work in my favour? (I don't think I can do this as I have only been with them from May)

KimYeovil

Megabusymum - you have to explicitly inform Atlantic you reject their new prices within 10 days of being informed of the increase. If you just switch without telling them you will not receive the adjustment.

Moo - yes you have to switch to benefit. And I cannot see why you cannot see how backdating works in favour of some consumers (randomly according to where in the quarter their bills fall).

And, Moo, why can't you switch if you've been with them from May?

As to the thirteen month rebate or other companies' direct debit annual lock-ins, yes, you lose that but you lose that regardless of when the tariff change is announced. If you take a tariff with such discounts then you know from the outset you will only receive them if you stay with them for one year and ride out any price increases. That's one reason why they're there.

Megabusymum

Many thanks Kim, I'll call them first thing tomorrow and tell them what I'm doing.

dexterlevi

I too recieved letter on Friday telling me of price increase and am looking to change supplier if there is a lower rate. Can anyone tell me who is offering best deal for gas only and also gas and electric as I currently have mine supplied by two seperate suppliers.

I also heard something on the radio about price reductions at some point in the future due to global fuel decreases. If I have heard this correctly should I hang on?

Can someone clarify, if I chose to switch, do I have to tell Atlantic in order for me to benefit from pre increase prices?

Cardew

Moo wrote: »

I'm confused too.

I switched to Atlantic in May this year and was very happy with them. I too have received this letter to say they are increasing prices as from August 2008.

I cannot see how backdating an increase works in favour of the consumer?

Am I correct in thinking I have to switch energy providers for this to work in my favour? (I don't think I can do this as I have only been with them from May)

Without getting into a semantic discussion, the increase has not been "backdated" . The increase was announced on(or just before) 25 August and applied to all customers from that date.

The formal notification by letter of that increase was not sent to you until xx Oct. Others got it within a few days of 25 Aug and others in the period between those dates. It is possible that some could receive their notification up to late Nov.

The only advantage is that should you now decide to move to another company, you will get several months at the pre-increase rate.

magpiesaver

I'm so glad I logged on and read this thread. I am with Atlantic but have applied to move to British Gas. I got my notice of the Atlantic price increase the other day and assumed I just had to pay up.
After reading what others said here, I looked at the end of Atlantic's leaflet, where I read that I can terrminate my contract within 10 days of receiving the notice. As long as they receive the notice from my new supplier within 15 working days of my telling them I'm leaving, they'll make up my final bill at the old price (this could be the sticking point, as BG are overwhelmed with applications and making slow progess).
Happily, I have just received my annual bonus payout from Atlantic, so that's no longer a worry.

heywood_2

I think this one may have been done to death now.

I started this thread because I didn't know about the 65 day rule and the right to terminate your contract/switch, while having your final bill assessed on pre-increase prices, provided you stick to the timescale.

I now know about it - thanks everyone. I am therefore not quite so disgruntled with Atlantic now that I can see that this arrangement works in the consumer's favour (as pointed out repeatedly by others). I have done my sums and have decided to switch supplier, and will have effectively delayed my price increase by about 10 weeks, plus ending up on a better deal.

However, this only works if you know about it - not everyone is that switched on. My letter from Atlantic did not clearly spell out my rights. It is explained very briefly in an enclosed pricing leaflet, in the smallest print I have ever seen!

Anyway, that's me sorted out for a while - my electric capped deal with British Gas ends in April 09, so I expect to be reviewing both before then.

Thanks