Energy Bill 'Lock-In' not all it appears!!!

whwhzz

During the 2008 price increase lock-in panic, I could not get online to view the lock-in T&C's of Southern Electric and Gas, due to high volume on the site. I called them and was told that if I locked in today (for 2 years) the price would remain as it was that day and I would get a further 2% discount. I did this. Today I got my (much higher than expected) bill only to find that my so called 'lock-in' rate was a tracker rate and was subject to the increases (30% or so) like a non lock-in customer but I would receive a 2% discount. To leave the lock-in rate would cost £50 x 2 for each bill.

I complained bitterly, explaining that I was misled. They claim I was served by a temp during a busy period and 'unlocked' me with no charge, enabling me to look elsewhere for a better deal , but only after I threatened to report them.

Has this happened to anyone else or am I just a naive fool for thinking I would get the original rate for 2 years?

KimYeovil

To receive a fixed rate, it is typically about 6 to 10% more expensive than the standard rate when you apply. You received a tracker rate which, unfortunately, tracks up as well as down. And then you have a capped rate, which doesn't go above the initial but may go down.

2% below standard is 2% below standard - not to be sniffed at in current climate where the long term trend is undetermined.

Vestra

Did you not get a letter through the post confirming the details which you could have cancelled in the cooling off period?

whwhzz

Rian1988 wrote: »

Did you not get a letter through the post confirming the details which you could have cancelled in the cooling off period?

I only found out today there was anything to worry about when I got my bill. I was told my rate would remain unchanged (not a tracker) and only today found out that the rate had increased considerably. I rather stupidly believed what I was told on the phone by the staff member who got it wrong.

Plushchris

Sounds to me like you got hoodwinked by Southern Electrics decieving "Fixed discount" tariff which wasnt a fixed tariff at all, it just stayed 2% below their standard rate, meaning if their standard rate went up by 20% yours would too and still be 2% lower.

Southern electric launched that tariff at a time everyone was wanting to sign up to (proper) fixed rate tariffs, to use the word "Fixed" in the title of the tariff was, IMO, misleading, and they knew it.