Annual Discounts - Don't be caught out!

sephiroth

We all pay too much for our fuel don't we? It's so easy to compare and change suppliers nowadays, but be cautious of those very tempting annual discounts when chosing your next gas or electricity supplier.

I signed up with First Utility in Dec 09 after comparing my annual fuel spend on one of the comparison sites. The offer from First Utility sounded great, cheap rates, credit for reading your meter, and a healthy 12% dual fuel discount at the end of 12 months.

Like any other fuel supplier, I had a few issues - the first bills came monthly - then nothing for 3 months, then a big bill, then small bills again!

Then there was the time that they credited my entire payments to date and re-invoiced me. Nothing to tell me why they had done it - they just did. Of course they hadn't taken into account that they had been price increases - credited me the amount paid and then re-invoiced everything at the current higher rates.

But nothing pee'd me off as much as the dual fuel discount issue which in any other industry would be labelled a scam.

In Aug, I was informed of price increases across the board, electricty standing charge, electricity supplied, gas supplied all went up, but none as significantly as the standing charge for gas - up from 28p per day to 63p - £11.39 per month on it's own. I knew it wouldn't be worth changing suppliers as I'd heard the whole of the industry would be putting there prices up in due course, so sat tight.

I was therefore surprised when I looked on the First Utility website to find that there latest tariff aimed at new and existing customers offered significantly cheaper rates. The tariff was iSavev5 as wheras mine was iSave4, but the terms were the same and it offers the same 12% dual fuel discount.

I rang to ask to be transferred and I was told "no problem", but you will lose your accumulated £120 discount to date. But why - It's an iSave tariff, it's the same dual fuel supply, its DD, read your own meter, 12% dual fuel discount and no tie in!

To summarise this long story - First Utility increased prices within 8 months of switching by over £30 per month, including the whopping 100% increase in gas standing charge.

They then reintroduced lower rates again similar to what I signed up to under a "new tariff", but did not pass any savings back to me and won't let me transfer to the "new tariff", which in structure is the same as the old tariff, without being penalised £120. Alternatively I can stick with what I've got and shell out £30 extra per month until the end of December when I'm allowed to switch without penalty. The third option is to move supplier which wil again lose me my discount. Either way, its a First Utility WIN WIN and a customer LOSE LOSE situation. Sound familiar?

I have checked there terms and there website advice and the only information posted states, that I must be on an iSave tariff receiving gas and electricty supply for 12 months to qualify for the discount, which wouldnt change with a change of tariff.

I have logged compaint in with their complaints team, and consumer advice because not only is it p*** poor customer service - it's also not right given the number of families trying to make ends meet.

So for anyone thinking of switching - just be beware of those post-dated promises, it may turn out to be an expensive burden. And me, well ones things for sure - I won't be a First Utility customer in 2011.