MSE News: Warning for Scottish Power customers on fixed rate deals

ceridwen

NickAJ wrote: »

Hi ceridwen,

You should have had an email in July advising you that the offer was coming to an end. There is an option on there to opt out of the new Capped Tariff. If you can't find it don't worry, just phone SP and ask them to put you on their standard tariff. It's no more expensive than the Capped Tariff and has no exit penalties.

You can do this without charge until the end of September.

Would then suggest you check out your options on a price comparison site to see your best price plans with other suppliers. For me E-on works out cheaper, plus cashback with topcashback.

No email received here - no surprises there then....

Can I clarify? I'm taking it you mean that they normally charge to switch to their standard tariff - but there wont be a charge for doing that provided I do so this month?

That I can then take my time to figure out whether to swop and who to - and (because of being on their standard tariff) then there would never be an exit penalty charge even if I dont swop till after end of this month?

Have I got it correct what you mean?

(Scottish Power are just so confusing - to find that I'm told "you're on Capped for Free" tariff when I asked for the "exact" name of the tariff I'm on - only to find there are FOUR separate "Capped for Free" tariffs and none of them finish when he told me mine would:mad:..ie end Sept 2010).

cw18

Yes.

Swap to the standard rate with SP before the end of this month, and you'll be on the same price per kWh (and standing charge) but with no ties to them at all (and no penalty fees for than swapping to someone else)

But if you swap without doing this SP change FIRST, then they'll fine you for doing so.

NickAJ

Yes you are correct and cw18 is correct about the right sequence of doing it all. I did think that MSE was looking into the legality of automatically moving people onto a tariff which locks you in for another year.

A lot depends on how you think energy prices will go over the next year, if you think they will rise, then a capped deal is a good option. With static or falling prices then a discounted tariff will pass on a bigger benefit.

Once you tell SP you want to change tariff then you'll most likely get an invite to switch to their option 6 tariff:

We recently sent you an email to let you know your Fixed Price Energy Offer ends on 31st August 2009 and we would automatically move you to Capped Price Energy 2010* on 1st September 2009.

However, you told us you wanted to opt out of this new deal and move to our standard monthly Direct Debit prices^ instead of capping your prices until 31st August 2010. On 1st September 2009 this transfer will take place.

Another great deal just for you
At ScottishPower we're committed to trying to bring you our best deals. And, although having the reassurance of capped rates wasn't the right deal for you, there are other offers available.

For example, as you're happy to manage your account online, our Online Energy Saver 6 offer is 3% cheaper than the standard monthly Direct Debit prices that you will shortly be moved to - and will remain so until; 31st July 2010.**

But it still doesn't beat EDF - well at least for me.

ceridwen

Whew - its sure confusing. Longing for the days of when there was just one fuel company with one tariff - much less confusing it used to be....

Had phonecalls with S.P. this morning and told I'll have a penalty whatever - unless I've swopped by end Sept this year. I said "thats not what MSE says" and they just repeat it parrot fashion.

End result of call:
They say they put me on tariff called "Capped for free" and this ends 30 Sept 2010. When I queried why I cant find this exact tariff anywhere on line they say its because new customers cant get access to it - I have this because I'm an existing customer. They say its their standard direct debit tariff - but they are not charging me the £2 per month extra a new customer would be charged to cap my charges at the prices they are quoting me today.

The prices they quote are:
GAS
Standing charge 9.99p daily
Usage 3.398p per kw

ELECTRIC
Standing charge 13.26p daily
Usage 10.367 per unit

They say they deem me to have left and not be due a penalty if they have been told by another firm that I'm moving to them - and that the move doesnt have to be complete. Its sufficient for firm 2 to have just told them.

They say firm 2 "will tell" S.P. "within 7 working days" of the date I tell Firm 2 I'm swopping to them that this is the case. There doesnt seem to be any legal obligation or anything on firm 2 to ensure that they do indeed tell S.P. within that "7 working days" - in order to ensure this was done by end Sept 2009. I seem to have to rely on firm 2's efficiency to ensure that they do do "the telling" in time - oh no:eek:.
I hate having to rely only on how efficient - or otherwise! - a firm is - with no protection if they arent...(cw18 - I like things just as precise as you do - exact prices/exact wording/etc and I bet you'd understand the frequent "hair tearing out" when people mess up:rolleyes:)


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So thats the position I've been told.

Does that sound about right to everyone purlease?

and have I got the cheapest capped deal I can get? (I'm not concerned with getting "freebies" for swopping - I'd only put myself through the hassle of swopping tariff or firm if I was going to get noticeably cheaper fuel by doing so). Life's too short to spend hours chasing a bit of cash or few bottles of wine ....I'm content as long as I have the best possible deal and some price protection.

NickAJ

I think SP Customer Services are telling you a load of porkies. They CANNOT put you onto a tariff with a penalty for leaving without your consent. Nor can they insist you go on any fixed rate / capped / whatever tariff.

If you were on the old fixed rate August 2009 tariff (which the majority were) they will automatically move you to the "online energy - capped rate" tariff, which locks you in until the middle of next year, and isn't a particularly competitive deal. If you opt out of this (penalty free before the end of September) they should transfer you to the "standard monthly direct debit prices" tariff. This has no tie-ins, penalties etc. You then have all the time in the world to decide what to do.

and have I got the cheapest capped deal I can get? (I'm not concerned with getting "freebies" for swopping - I'd only put myself through the hassle of swopping tariff or firm if I was going to get noticeably cheaper fuel by doing so). Life's too short to spend hours chasing a bit of cash or few bottles of wine ....I'm content as long as I have the best possible deal and some price protection.

According to the energy helpline calculator the saving of approximately £300 (16%) on my annual bill, plus £60 cashback will pay for my cavity wall insulation and leave some change for a few cases of wine!

ceridwen

I was on the old capped rate tariff until end August 2009.

They say I'm now on that standard tariff in effect - ie thats what I pay, but its capped at no extra cost until end Sept 2010.

Thanks for the mention of the Energy Helpline Calculator - I will have a go at that. Wonder whether it will come up with similar result to the Scottish Power one - I decided to pretend to be a would-be new customer and put in my amount I currently spend on fuel and it responded with a "you must be joking" type response - ie a screen message asking whether I was sure I had got my amount paid correct - as it seemed too low. I currently pay £50 per month for gas and electric together - and they have said they think it will go up to £65 per month (30% increase!!!).

So - I'll check out that Calculator you mention and then tell any new company I decide to swop to that they MUST tell Scottish Power I am swopping by 29 September at the latest - or I cancel the swopover and bill them any £50 penalty S.P. whack on me - think that should get them to get a move on (and yes - I actually would do that).

cw18

ceridwen wrote: »

They say I'm now on that standard tariff in effect - ie thats what I pay, but its capped at no extra cost until end Sept 2010.

If it's CAPPED, then there will be a penalty fee if you switch.

You need to be on the 'Standard' tariff if you're looking to move away from SP

ceridwen

Thanks for clarifying that Cheryl.

UPDATE:
No sooner said than done - I checked out that energy calculator site and took advice from here just to put myself in as a "low user" - as I dont actually know how much I use or what the breakdown of that £50 per month is between gas and electric.

The site calculated that I am currently spending £615pa on fuel - well I thought that was pretty exact - as I actually pay £600pa. I asked for the capped and fixed tariffs webpage and have decided to go with e-on on their "Fix Online NSC v3" (until Dec 2010) - ie my price is fixed till 1 December 2010. The calculator site had told me they estimated I would be spending £571pa with e-on (so a saving of £29pa on what I actually pay now). Thats got to be an improvement on a 30% price increase.

I've just rung e-on and arranged this and told them what a pain Scottish Power can apparently be about exit penalties and that it MUST transfer over before end of month. The man said "you should be with us in the next 4-6 weeks" - but that notification will be given to the transporter in 14 days (ie on 24 September) and that the transporter tells the old fuel company "that day or the next day" - ie by the end of day 25 September Scottish Power will have been told by e-on in effect (in time to beat that 30 September deadline). The 14 days thing apparently comes from the fact that e-on wont start the process deliberately for 14 days to give the customer "14 days change their mind" time.

The e-on man said that Scottish Power dont have to receive the notification of change of firm from the new firm within the deadline for it to count - that I myself have the authority to tell S.P. that I'm changing to e-on and they have to take account of that as being an "official notification". So - I will send S.P. a letter in writing and phone them as well to give this "official notification" - belt and braces time:rolleyes:

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Can I clarify one point here - I know that the reason one has an online account is because its cheaper to do so. This means I wont receive a paper bill (thats been the position with my current S.P. account too). S.P. have never expected me to fill in meter readings myself on my online account - and have managed about their meter readings anyway. I seem to recall that meter readers come round at whatever intervals they come round regardless of whether the account is online or no - there is clearly no difference between an estimated reading over the phone by the customer on the one hand or an estimated reading input online by the customer on the other hand. The customer is going to give the same figures either way. Do I actually HAVE to go into that online account to put in those estimated meter readings ever?:eek: (not computer-literate......)

cw18

I'm actually surprised that SP haven't given you a hard time about not entering readings on-line. When I switched to an on-line tariff with them, the terms said I have to enter my own readings at least every 90 days - and if I consistantly failed to do so they would take me off that tariff and put me on a 'paper' one (meaning I'd lose my annual on-line discount if nothing else). My meters are only read by their representative about every 18 months!!!



I still think you need to ensure SP do NOT have you on a capped tariff before they get notification from another firm that you're moving away. The 'no penalty until the end of September 2009' was only (to my understanding) if you change to another SP tariff.

violetta

Hi ceridwen - it would be best to either phone Scottish Power or PM Craig, the Scots Power Rep on this board, to change you to standard tariff rather than capped (it costs the same at the moment whichever you are on) to make sure you are safely off the capped tariff by the end of September, as it is easier to do this than risk having to argue later.