Opus electricity - monthly price doubles

collecting.dust

Hello there

I am putting this up here for a couple of friends who do not use the internet all that much but are currently really distressed because of problems they are having with Opus electricity.
My friends rent a small business premises that includes a workshop. Their electricity consumption is fairly high and for the last three years they have had their electricity supply from Opus electricity. The company were recommended by the landlord when they first moved into the premises.

Last month they had notification from Opas that the bill would be going up 100%

They rang Opus and said they would be switching supplier as they could not afford for the bill to double.
They were informed they could not do this - they were now tied into a contract with Opas for another year.
They asked how this was possible when they had not signed anything and was told that if a specific date for cancellation of current contact passed then the contract automatically rolls over for another year. In order to cancel they were supposed to have given three months notice before a specific date. They were told they had been sent a letter informing them of the procedure. In actual fact they never received such a letter although Opus have now produced a copy of what they allege was sent out to them last year.

They have not signed anything now or indeed three years ago - In the first instance when they moved into the business premises it was more of a matter of a phone call accepting Opus to be their supplier.

Opus say such terms are also written into their contract, but the only contract they have ever seen appears to be written on the back of the bills. It says nothing about being tied for fixed terms, or notice periods if they want to cancel.

Is there any way they can now switch supplier - Opas are holding firm and refusing to do anything. They say the electricity now being supplied to them was bought when oil proces were high and hence they had no option but to double the price

Cardew

There have been a number of posts about this issue on business accounts. It appears that the 'roll-over' provision is widespread with all the companies and, as you say, you are required to give notice to terminate the contract.

As a business account, they have none of the protection afforded to domestic customers.

There are some energy brokers who contribute to this forum who might be able to advise further, but I suspect that your friends have little hope of getting out of the contract.

They could ring ofgem for advice as well.

1carminestocky

Rolling contracts should IMO be completely outlawed by law, across all industries. BT, to their eternal shame, also employ this wholly dodgy business practice on their telephony deals. Shameful. Sorry this doesn't help, OP, but your friend's plight just demonstrates my point, I feel.

Energyman_2

This is very common - ALL suppliers do it - even the good ones!

Complaining to OFGEM generally will not help but do it as a bit of leverage. Ask for a copy of the original disc of the recording and see if they supply it (if they do it will be cut to pieces) but if they cannot produce it your friend could mention that. Were they sent out a written copy of the contract - they should have this by law - request a copy from them if not. If it wasn't sent out they might have an arguement there and this might be worth pursuing down this route.

They could argue that they never got a renewal letter and plead for mercy off Opus - but this is unlikely to work!
In my experience unless your friend can prove miss-selling or something similar, it is unlikely that they will be released (especially by Opus who are probably the worst of the suppliers in these matters)

Probably all they can do is establish when their contract ends, what the notice period is, how they cancel (they could write letter now for next year - make sure to use registered post) and stick it in their diaries for action in the future.

These pracyices were started in the energy sector by ENRON and we all know what happened to them! To their shame, the reputable companies all now use such tactics!

collecting.dust

My thanks to you both.

I agree - it all sounds like rather sharp practice.

collecting.dust

I just caught your post energyman

My thanks - I will pass make sure I pass all that information on to them.

No they were never given any written contract.
Thats what seems so bad about it - Its seems like Opus can make any rules they please and not bother to inform anyone about them.

Energyman_2

Another trick is to produce a copy of the cancellation letter which your friend wrote (and dated) at the appropriate time and sent to Opus! If it is good enought for them why not try their trick. (it helps if you find a friendly post office to backdate a 'proof of posting'

It also depends upon how long as elasped since the renewal window was missed.