MSE News: Ban on unsolicited energy lock-ins mulled by Ofgem

Former_MSE_Guy
Former_MSE_Guy Posts: 1,650 Forumite
I've been Money Tipped! Newshound! Chutzpah Haggler
This is the discussion thread for the following MSE News Story:

"Power firms could be stopped from locking customers onto new tariffs, when their deal expires, without permission ..."

«1

Comments

  • Cardew
    Cardew Posts: 29,036 Forumite
    Name Dropper First Anniversary First Post Rampant Recycler
    There are going to be a load of BG customers having their Price Promise April 2010 tariff finish at the end of this month - I went on this tariff in Nov 2005.

    BG's cheapest current tariff (Websaver 6) is not now the cheapest tariff for most people - although for average users it is not that much more expensive.

    The advantage is that it only 'locks you in' until 01 August 2010(i.e. 3 months)

    What is the betting that Websaver 7 will soon be announced!
  • DVardysShadow
    DVardysShadow Posts: 18,949 Forumite
    Good news. This practice is dishonest and diminishes the reputation of the utilities.
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • DaveF327
    DaveF327 Posts: 1,160 Forumite
    First Anniversary Combo Breaker First Post
    Now that the penny has finally dropped with an enforcement authority, will OFCOM be announcing a similar ban on BT et al doing the same with telephone accounts?
  • If this happens, prepare for the "my supplier didn't put me on a fixed tariff after my other one ended and now the prices have gone up" whinging.
  • jb5
    jb5 Posts: 90 Forumite
    If this happens, prepare for the "my supplier didn't put me on a fixed tariff after my other one ended and now the prices have gone up" whinging.
    So long as the customer is informed before the deadline and given time to act, I don't see a problem, no whining necessary.
  • smidgey
    smidgey Posts: 163 Forumite
    Cardew wrote: »
    There are going to be a load of BG customers having their Price Promise April 2010 tariff finish at the end of this month - I went on this tariff in Nov 2005.
    Yep! I've already initiated my switch to OVO. Based on my consumption the new deal that will be offered is too expensive. I can't say what it is but you should have a letter within the next two weeks and will be given 3 months to opt out without penalty!
    Cardew wrote: »
    What is the betting that Websaver 7 will soon be announced!
    *Cough*Today*Cough* ;)
  • smidgey wrote: »
    Yep! I've already initiated my switch to OVO. Based on my consumption the new deal that will be offered is too expensive. I can't say what it is but you should have a letter within the next two weeks and will be given 3 months to opt out without penalty!


    *Cough*Today*Cough* ;)

    OVO? Aren't you a British Gas employee?
  • smidgey
    smidgey Posts: 163 Forumite
    OVO? Aren't you a British Gas employee?
    Yes but it's not a requirement that I remain a British Gas customer?
  • KimYeovil
    KimYeovil Posts: 6,156 Forumite
    Combo Breaker First Post
    edited 9 April 2010 at 5:47PM
    jb5 wrote: »
    So long as the customer is informed before the deadline and given time to act, I don't see a problem, no whining necessary.

    Since when would that stop them?!?!

    See!
  • I received this email yesterday (nearly two weeks after my previous contract expired), However I can't see anything which states that I will be locked in for another 12 months if I don't take out the new discounted offer.
    Thanks again for picking ScottishPower. It's been brilliant having you as a customer. We thought we'd let you know that your Discounted Energy Offer ended on 31st March 2010. Over the year we're pleased to say it's saved our customers an average of £352. And we've found you an even cheaper discounted deal to take its place.

    4% discount for another 12 months
    We're excited about our cheaper Discounted Energy April 2011 Offer because it will save you even more on your energy bills over the next 12 months. Your discount will remain at 4% but because our standard monthly Direct Debit prices changed on 31st March 2010, your bills will be lower1. Just so you know, to make this great deal possible, we may have to charge a cancellation fee if you choose to leave before this Offer ends3.

    Sign up now and keep saving on energy
    It only takes a moment to grab this money saving deal. Just sign up before 30th April 2010 and we'll do the rest. Simple.

    Remember, if you choose not to sign up to Discounted Energy April 2011, you'll continue to pay our standard monthly Direct Debit prices4 which you were moved to at the end of your previous offer.

    Your new prices
    The recent ScottishPower price change (effective 31st March 2010) resulted in an overall price decrease for most Dual Fuel customers; however, changes to the gas primary kWh may mean a slight increase for very low consuming gas customers

    You have the right to end your contract and have 20 working days from receipt of this letter to do so. If you do that, and the transfer of supplier process begins no later than 15 working days after you inform us, the new prices will not apply.

    Discounted Energy April 2011 Offer Prices and Terms and Conditions

    Please remember that even if you move to Discounted Energy April 2011 Offer your Direct Debit amount may vary, depending on your usage. In the next 3 months we will look at the amount of energy you use and if there are any changes to the amount you have to pay, we'll let you know.




    Sign up today



    for more information call:
    0845 2700 700

    Why was I sent this email? As a valued online energy customer, you will occasionally receive messages about the service we provide you.This is just to keep you fully informed and to help you get the most from your online energy.

    1 Based on the kWh rate comparison between ScottishPower's standard monthly Direct Debit prices and ScottishPower's Discounted Energy April 2011 Offer for customers who take gas and electricity. This Offer is only available to monthly Direct Debit customers and is not available to customers who use more than 73,268kWh of mains gas per annum. Prices correct as at 31st March 2010.

    2 Average saving shown is based on an average of dual fuel customers across Britain with average Standard Rate electricity usage of 3,300kWh and annual mains gas usage of 20,500kWh, comparing our standard variable monthly Direct Debit prices for gas and electricity over the period 31st March 2009 to 31st March 2010 against our Discounted Energy April 2010 deal over the same period. Saving shown includes VAT at the current applicable rate of 5%.

    3 We may apply cancellation charges inclusive of VAT of £30 for electricity and £20 for gas if you switch to the Discounted Energy April 2011 Offer but then cancel your supply contract or switch to another tariff before the 31st March 2011. These charges will not be applied if the supply contract is cancelled due to a home move.

    4 Standard Terms and Conditions will apply

    ScottishPower Energy Retail Ltd
    Registered Office: 1 Atlantic Quay, Glasgow, G2 8SP
    Registered in Scotland No. 190287, Vat No. GB 659 3720 08
    ScottishPower Energy Retail
    Cathcart Business Park, Spean St, Glasgow G44 4BE
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 343.1K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.2K Work, Benefits & Business
  • 607.9K Mortgages, Homes & Bills
  • 173K Life & Family
  • 247.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards