Can we trust the energy companies?

Knumbnutts

Can we trust our energy companies?

During October I received a letter from my energy supplier – Atlantic Electric and Gas (AEG) – to inform me that unfortunately they were having to finally respond to the rising price of oil by increasing gas prices by 29.2% and electricity by 19.2%. On it’s own, this news would have been unwelcome and slightly concerning, but the letter went on to say that these price changes were effective from 25th August 2008 – over two months before I was being informed!

This seems outrageous – how can this be allowed? When will Tesco’s be sending me a bill for backdated price increases on my groceries? The next time I put petrol in my car, will an apologetic cashier request payment for six weeks of backdated fuel inflation?

Well apparently this is standard practice by the energy companies, and fully within the law. Putting my anger aside, it is a great business model, however, the regulations also state that if the customer rejects the price increase, and changes supplier, the incumbent must continue to charge at the pre-increase prices until the change over.

So, armed with this knowledge, and with a certain amount of smug satisfaction, I followed this guidance and served notice to AEG.

Move forward to February 2009, when the change of supplier has been completed (amazing how long this process takes), and I receive my closing statement from AEG. With an element of frustration, but not surprise, I discover that I have still been charged at the new rates. Whipping out the old calculator I discover that I have effectively been over charged by £228.

Immediately, I pick up the phone and relay my findings to the pleasant lady in customer services, who promises that this will be sorted out and a new bill will be issued in due course – I can’t wait.

However, imagine I had been a pensioner or a time-starved single mum, instead of the thrifty and mistrusting individual that I am? I wonder how many people out there will have not even noticed, and at £228 per person, that could be an awful lot of cash that is sitting in the wrong bank account.

It would be most interesting to hear if there are other people who have had a similar experience, so we can see how widespread this problem may be.

1carminestocky

Can we trust our energy companies?


Err, no.

Seriously, they are allowed by law up to 65 days to inform punters of any price increase/decrease. The way it's *supposed* to work, according to that champion of the consumer (cough) OFGEM is that you can then switch away and inform your energy supplier of this, state you don't accept the incresae and wish to be charged at the pre-increase rate until the switch is completed. Fine. Unfortunately, I'm hearing news that mnost of the Big 6 don't have any way of charging at the old rate in this way automatically and it can be an absolute nightmare getting them to charge you at the rate you are legally obliged to be charged at.

jd87

However, imagine I had been a pensioner or a time-starved single mum, instead of the thrifty and mistrusting individual that I am? I wonder how many people out there will have not even noticed, and at £228 per person, that could be an awful lot of cash that is sitting in the wrong bank account.

I suppose this is the problem with privitisation. When people used to get their gas from the not-for-profit "gas board" you could be fairly sure that little old ladies could be well taken care of and nobody would be ripped off. Now all the companies just want profit, and while the competition can be a good thing for many of us, the vulnerable people in society just lose out. The government need to be doing more about this.

This makes me wonder, are there any energy companies out there who actively claim to be "socially responsible" when it comes to this kind of thing? If there are I think it would certainly be a factor I would take into consideration if I were to move supplier.

Eagle15

You can trust the energy companies to do everything that they can to extract as much money as possible, in any devious way that they can think of, from their customers. You have to remember that they are there to make money for their shareholders. Providing a fair, reasonably priced service to their customers comes way down the list of priorities.

A_fiend_for_life

Depending what you mean by ethical:

Ebico - cheaper if your consumption is low and same cost per kWh regardless of payment method, Ecotricity and Good Energy - if you want renewable - ecotricity is a bit more expensive at least compared to SP and probably the big six, not sure about Good Energy. Not sure if there are any others.


http://www.ebico.co.uk/

http://www.goodenergy.co.uk/

http://www.ecotricity.co.uk/

KimYeovil

THEIR CUSTOMERS put a fair, reasonably priced service way down the list of priorities. This is moneysavingexpert. The last thing members of this site wants is fairness.

Ebicos can never work. Some louse posted a couple of days ago suggesting you switch to Ebico during the warmer summer months. THAT is the ethics of rip-off Britons - drive up the costs of idiot companies like Ebico and laugh as they put their prices up.

A 'socially responsible' company will not survive in our free market. And this is made worse by the immoral and unjust vocabulary and criteria that haunt definitions of 'poverty' and 'social'. (Eg, most poor people can not afford to spend enough money on fuel to qualify as being in 'fuel poverty.)

Premier_2

^^^^^^^^^

Shogx,

Please don't spam referral links here. You are only permitted to post referral links on the specific referrers board (terms & conditions apply)
You're unlikely to gain any commission anyway as they all are US based, rather than UK which this site is aimed at.

Post reported, along with your subsequent posts.

Ken68

shogx wrote: »

Oops, sorry bout that. :doh:

So you should be...I want my 'thanks' back.