Watch out scottish powers lockin trap !!!!!

cold_snap

Hi

Just noticed the great switching offers for (SP Online energy saver 9). I was just ablout to switch when I decided to look at the details. I have always assumed that a lockin clause was only applicable for a fixed rate supply. However this 'offer' has a lockin and is 'variable' stating .....

"Under the Online Energy Saver 9 Offer, your prices are guaranteed to remain below ScottishPower's standard monthly Direct Debit gas and electricity prices until 31st March 2011"

Therefore they can if they wish double the tarriff tommorrow ( as long as its below the standard rate ) and you will be locked in, it also just so happens that this rate is their highest.

I think this is a sneaky trick that everyone should be aware of.

JasX

yup but so long as you've used a cashback site you'll grab £110-120 cashback switching in and hopefully a similar amount on the way out so more than cover the £50 early exit charge.... swings and roundabouts

cold_snap

True,
However unless you have a lot of time on your hands and you are prepared to keep checking the tariffs regularly and then have the patience to endure the protracted transfer process I would find this a bit of a bind. I prefer to fix on a reasonable rate for a year and forget about it.
What worries me is that if they can get away with putting a lockin on variable tariffs then they will all do this making it an industry standard, effectively putting a £50 charge on the actual switching process, which I do not think is in the spirit of the free to switch energy supplier market somehow.

Premier_2

cold_snap wrote: »

...I prefer to fix on a reasonable rate for a year and forget about it. ...

You probably don't want a variable rate tariff then.

cold_snap

Definitely not one I have to pay to get out of !!!

cold_snap

· Bump...
Sorry to bring this back but I think there is a serious issue here if the power companies are now all going to charge us get out fees every time we move supplier (even on variable rates ) then haven’t we lost something here, our ability to switch suppliers freely !!!
I though that we ‘the consumers’ were given that right by the regulator or am I wrong?:mad:

KimYeovil

You are completely free to choose a standard tariff and pay up to 40% more for the privilege. There is nothing unreasonable with offering short tie-ins. (And the tie-in periods are short.) And I fail to see why you are highlighting Scottish Power. Why not mention the others?

You are wrong. Consumers are currently at liberty to opt out of the standard one-month contracts if they so choose. It is you who is looking to limit consumer rights.

cold_snap

Hi
"There is nothing unreasonable with offering short tie-ins. (And the tie-in periods are short.)"
12 mths is not short in my book, not sure what you mean ?
Not picking on SP specifically please read the post. I'm mearly pointing out that this is now happening, its new, and they all now seem to be doing it to some degree.

Fail to see that ( It is you who is looking to limit consumer rights) !!

My point is that in the past it has only been fixed rate deals from providers that have had a justified get out clause, putting these on variable rates does nothing but limit consumer freedom to switch without penalty ( apart from to the very expensive deals which I suspect very few are on anyway )