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Can i escape British Gas Contract ??

liamb2001
liamb2001 Posts: 15 Forumite
Hi, i have been with British Gas business over the last year or so and untill recently have been very happy with it, they have been competative and a lot cheaper than npower who i used to be with, problem is my recent electric bill was 70% higher than usual with BGB with my old rate 10.5 pence per kwh and now its 13.6 p per kwh.

When phoning them i expected them to apologise and ammend it but rather shockingly i was told that in my t&c if i dont phone them 90 days before each contract they auto assign my rates and that i am now bound to a contract which im not allowed to cancel till 120 days before feb 2011.

My question is what would happen if i found an alternative supplier and changed to them, where would i stand law wise, is theyre charges you have to pay for leaving a supplier early

any advice would be appreciated

thanks

Comments

  • Premier_2
    Premier_2 Posts: 15,141 Forumite
    10,000 Posts Combo Breaker
    You won't be allowed to change supplier.
    "Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 2010
  • liamb2001
    liamb2001 Posts: 15 Forumite
    very sly that, you think theyd want to keep their customers happy

    but thanks for that

    :)
  • Premier_2
    Premier_2 Posts: 15,141 Forumite
    10,000 Posts Combo Breaker
    They want to keep their customers, that's for sure ;)
    "Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 2010
  • nifflespink
    nifflespink Posts: 33 Forumite
    Yep beware folks who are on a business tariff - pretty much all of the big 6 have conditions that can be pretty ruthless when it comes to renewal. They usually send a letter telling you when your cancellation period is (kindly stating at the top, "You need do nothing now") and posting it several days after it's dated giving you not a lot of warning. If you don't tell them you want to cancel within this time frame they renew your contract and usually, as liamb2001 discovered, at a less favourable rate. Unfortunately as you are in a contract again, even if it isn't to your choosing, if you did try to change providers BG will either object the transfer, or let it go through but charge you a hefty cancellation fee. Check your Ts&Cs and find out what the cancellation fee is - and work out if this will be more than the extra 3p per unit on your consumption. And if you are stuck with them, diarise to cancel in time and go to someone less ruthless! good luck~
  • spiro
    spiro Posts: 6,405 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 27 July 2010 at 10:19AM
    Yep beware folks who are on a business tariff - pretty much all of the big 6 have conditions that can be pretty ruthless when it comes to renewal. They usually send a letter telling you when your cancellation period is (kindly stating at the top, "You need do nothing now") and posting it several days after it's dated giving you not a lot of warning. If you don't tell them you want to cancel within this time frame they renew your contract and usually, as liamb2001 discovered, at a less favourable rate. Unfortunately as you are in a contract again, even if it isn't to your choosing, if you did try to change providers BG will either object the transfer, or let it go through but charge you a hefty cancellation fee. Check your Ts&Cs and find out what the cancellation fee is - and work out if this will be more than the extra 3p per unit on your consumption. And if you are stuck with them, diarise to cancel in time and go to someone less ruthless! good luck~
    Some time ago someone quoted their cancellation charges and it was based on there expected consumption for the remainder of the contract i.e. you paid twice for the elec, once to old supplier (as penalty) and once to new supplier (for what you use).
    IT Consultant in the utilities industry specialising in the retail electricity market.

    4 Credit Card and 1 Loan PPI claims settled for £26k, 1 rejected (Opus).
  • liamb2001
    liamb2001 Posts: 15 Forumite
    thanks for the comments, i guess ill just stay with them and be more prepared for when my next contract runs out

    thanks again
  • undaunted
    undaunted Posts: 1,870 Forumite
    It's high time these sharp practices were curtailed. It seems to me that if you were not made aware of it at the outset or given warning the contract was due to expire new rates would be disadvantageous etc then it may constitute an unfair term in a contract. You could always ask a solicitor for their thoughts on this.
  • spiro
    spiro Posts: 6,405 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    undaunted wrote: »
    It's high time these sharp practices were curtailed. It seems to me that if you were not made aware of it at the outset or given warning the contract was due to expire new rates would be disadvantageous etc then it may constitute an unfair term in a contract. You could always ask a solicitor for their thoughts on this.
    The auto renewal will have been included in the T&Cs of tghe original contract, thats when any business should check them not 12/24 months later when they get caught by them.

    This is the 2nd or 3rd thread of this sort recently.

    Domestic customers not reading the small print, businesses are supposed to be more assute.
    IT Consultant in the utilities industry specialising in the retail electricity market.

    4 Credit Card and 1 Loan PPI claims settled for £26k, 1 rejected (Opus).
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