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First Utility Review
HaveIBeenRippedOff
Posts: 9 Forumite
in Energy
I have been asked by other forum posters to share my experiences of taking a First Utility energy contact (see forums.moneysavingexpert.com/showthread.php?t=2862272) and am doing so in order that others may be aware of possible pitfalls and traps.
In January 2010, I did a comparison of the energy market, and found First Utility dual fuel online was the cheapest.
The rates they were offering were not the cheapest, but once a 12.5% discount off of their rates was taken into consideration, which was deducted if you stayed with them for 12 month, the rates were better by a considerable margin than any other competitor for our situation.
On 28th July 2010, I received my monthly email from First Utility notifying me of my monthly bill. Scrolling down towards the bottom of the email, off-screen initially, was a notice:
'Updates to your prices
We’ve updated your prices. To view your new prices for electricity and gas please click here.'
If I hadn't been reading the email closely, I would have missed the notice.
Clicking on the link led me to a notice stating that gas and electricity prices were rising, and First Utility had been forced to raise my prices from 1 July 2010, and there followed a list of varied rises in the rates for my gas and electricity, with my gas standing charge going up 110%, my electric per KwH rate going up 15%, and an across the board average increase to my net payments of almost 20% (using First Utility's own comparison figures).
OK, I thought, gas and electricity prices must have gone up across the board. I wonder what everyone else is charging. But other tariffs had not gone up.
Worse, First Utility themselves were offering a tariff to new customers that was broadly similar to my original tariff (ie almost 20% cheaper net final payments than my raised tariff using First Utility's own comparison figures). The individual rates being offered to new customers were different, with gas actually cheaper and electricity more expensive than the original tariff, but using First Utility's own across the board comparison figure showed an almost unchanged net resultant tariff for new customers, compared with my 20% increase.
How could:
1) First Utility put my tariff up effectively by 20%, with explanations of rising gas and electricity prices, whilst still charging new customers an almost net-unchanged reduced tariff ?
2) How could First Utility put my tariff up on 1 July 2010 and only notify me of the increase on 28 July 2010 ?
I could not leave First Utility for another six months without paying 12.5% more for my first six months energy purchase from them (as I would lose the 12.5% year's discount). But if I stayed, my energy prices would be 20% higher for the second six months !!!
I do not know if this is correct, but to me it seemed possible that First Utility were playing a game, offering customers a cheaper tariff for a year to get them hooked, but then increasing the price by 20% mid year, so that the net effect was more expensive energy prices than I could have purchased elsewhere initially.
Another forum poster on the thread advised me of my situation as he saw it:
You have been ripped off by First Utility. Unfortunately, from their point of view, I don't believe there is anything you can do about it for the reasons stated by other posters.
Of course, there should be a simple rule to avoid this scam which no doubts catches out many unsuspecting customers.The rule would be that if they have an essentially identical product ,then the rates on your existing product cannot go above that new product.
Only some sort of representation,to say OFGEM or via your MP regarding this, seems to be your only route but quite frankly they are hopeless and have allowed this market to descend to varying false marketing practices throughout. It shouldn't have been allowed to happen with Energy.They encourage switching but let us all fall into the clever traps of the marketing conmen.
From your own viewpoint,time has kicked on, so you have to weigh up the financial benefit of switching now or biting the bullet and seeing it through with FU. If you had given notice ,then they would have had hold their old price till the supply change went through. I don't know how you stand with that now.
Lessons to be learnt:
1. Probably avoid First Utility.(FU seems appropriate)
2. Beware products effectively containing back end discounts.
3. Be aware, that variable does definitely mean variable.
4. Don't believe that the various Regulatory Bodies are any good whatsoever.
Sorry not much practical help but at least I have shown sympathy.
In January 2010, I did a comparison of the energy market, and found First Utility dual fuel online was the cheapest.
The rates they were offering were not the cheapest, but once a 12.5% discount off of their rates was taken into consideration, which was deducted if you stayed with them for 12 month, the rates were better by a considerable margin than any other competitor for our situation.
On 28th July 2010, I received my monthly email from First Utility notifying me of my monthly bill. Scrolling down towards the bottom of the email, off-screen initially, was a notice:
'Updates to your prices
We’ve updated your prices. To view your new prices for electricity and gas please click here.'
If I hadn't been reading the email closely, I would have missed the notice.
Clicking on the link led me to a notice stating that gas and electricity prices were rising, and First Utility had been forced to raise my prices from 1 July 2010, and there followed a list of varied rises in the rates for my gas and electricity, with my gas standing charge going up 110%, my electric per KwH rate going up 15%, and an across the board average increase to my net payments of almost 20% (using First Utility's own comparison figures).
OK, I thought, gas and electricity prices must have gone up across the board. I wonder what everyone else is charging. But other tariffs had not gone up.
Worse, First Utility themselves were offering a tariff to new customers that was broadly similar to my original tariff (ie almost 20% cheaper net final payments than my raised tariff using First Utility's own comparison figures). The individual rates being offered to new customers were different, with gas actually cheaper and electricity more expensive than the original tariff, but using First Utility's own across the board comparison figure showed an almost unchanged net resultant tariff for new customers, compared with my 20% increase.
How could:
1) First Utility put my tariff up effectively by 20%, with explanations of rising gas and electricity prices, whilst still charging new customers an almost net-unchanged reduced tariff ?
2) How could First Utility put my tariff up on 1 July 2010 and only notify me of the increase on 28 July 2010 ?
I could not leave First Utility for another six months without paying 12.5% more for my first six months energy purchase from them (as I would lose the 12.5% year's discount). But if I stayed, my energy prices would be 20% higher for the second six months !!!
I do not know if this is correct, but to me it seemed possible that First Utility were playing a game, offering customers a cheaper tariff for a year to get them hooked, but then increasing the price by 20% mid year, so that the net effect was more expensive energy prices than I could have purchased elsewhere initially.
Another forum poster on the thread advised me of my situation as he saw it:
You have been ripped off by First Utility. Unfortunately, from their point of view, I don't believe there is anything you can do about it for the reasons stated by other posters.
Of course, there should be a simple rule to avoid this scam which no doubts catches out many unsuspecting customers.The rule would be that if they have an essentially identical product ,then the rates on your existing product cannot go above that new product.
Only some sort of representation,to say OFGEM or via your MP regarding this, seems to be your only route but quite frankly they are hopeless and have allowed this market to descend to varying false marketing practices throughout. It shouldn't have been allowed to happen with Energy.They encourage switching but let us all fall into the clever traps of the marketing conmen.
From your own viewpoint,time has kicked on, so you have to weigh up the financial benefit of switching now or biting the bullet and seeing it through with FU. If you had given notice ,then they would have had hold their old price till the supply change went through. I don't know how you stand with that now.
Lessons to be learnt:
1. Probably avoid First Utility.(FU seems appropriate)
2. Beware products effectively containing back end discounts.
3. Be aware, that variable does definitely mean variable.
4. Don't believe that the various Regulatory Bodies are any good whatsoever.
Sorry not much practical help but at least I have shown sympathy.
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Comments
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What complete and utter rubbish. You signed up to a variable tariff that also had a bonus if you stayed for a period of time. You are complaining that a variable tariff has been varied and that a bonus is only paid at the time it was said to be paid.
If you want to pay a fixed price per kWh for a fixed term then do not sign up to a variable tariff! Sign up to a fixed one!
There are at least five suppliers with the same style of tariffs. Why are you not complaining about all of them? You have not been ripped off.
Ridiculous whinge.
I thought on these forums we were meant to show respect to posters? I think you may need to re-read the Eitquette rules above (I can't link to them being a new poster sadly).
As for it being a ridiculous whinge, I would (politely) disagree. I have never know any company before, even on a variable rate, put up charges like the original poster describes. Yes it is a variable rate but to put up a standing charge 110% and the overall charge 20%? It may be legal but i'd say immoral.
You lure customers in with a promise of cheap costs, tie them in by saying if you leave early you have to pay a fee, and then bang, hit them with a huge rise. Nobody else in the market does that.
If it wasn't for posts like the OP's, I'd have considered First:Utility. I'm grateful to them, and people like them, for warning me off them otherwise I'd have been stung too. I very much doubt EDF will do what FU have done. Well I hope not!!!0 -
:rotfl:TwittersPVFC wrote: »I very much doubt EDF will do what FU have done. Well I hope not!!!
You're new here, aren't you? Not around, say, four months ago at the end of July?
Note it is the focusing on First Utility that is the silliness - you have added a sixth to the five other suppliers who do this. Complain about the policy if you like but don't pretend it is a rip-off. Re-structuring standing charges/tier 1 costs by a substantial sum happens often and is perpetrated by all suppliers.0 -
Other than nPower, Atlantic, Scottish Power, E-on, blah blah blah. Nope, nobody else does that.TwittersPVFC wrote: »[...]
I have never know any company before, even on a variable rate, put up charges like the original poster describes.
[...]
You lure customers in with a promise of cheap costs, tie them in by saying if you leave early you have to pay a fee, and then bang, hit them with a huge rise. Nobody else in the market does that.0 -
:rotfl:
You're new here, aren't you? Not around, say, four months ago at the end of July?
Note it is the focusing on First Utility that is the silliness - you have added a sixth to the five other suppliers who do this. Complain about the policy if you like but don't pretend it is a rip-off. Re-structuring standing charges/tier 1 costs by a substantial sum happens often and is perpetrated by all suppliers.
EDF promises to be 2% cheaper than the standard tariff, so unless that goes up the Online [EMAIL="S@ver"]S@ver[/EMAIL] 7 one won't be either. If the standard one goes up, the press would be all over them like a shot.
I've asked a few family members about direct debits and not one of them has described the same issues that the OP had with First Utility. I've read this forum as well and drawn to the same conclusion. The only company I've read that do this is First Utility.
Being honest, you post as if you have some kind of connection towards FU. The disrespect you show posters who have something negative towards the company seems to back that up. I could be wrong, and that's my personal opinion, but you get very angry only about FU critics.0 -
TwittersPVFC wrote: »EDF promises to be 2% cheaper than the standard tariff, so unless that goes up the Online S@ver 7 one won't be either. If the standard one goes up, the press would be all over them like a shot.
Eh? OS 7 is nine or ten percent cheaper than their standard tariff - so they are free to increase the price by seven or eight points.
Very selective reading, there. Stop sticking your fingers in your ears when you get to threads that do not support your world view.TwittersPVFC wrote: »The only company I've read that do this is First Utility.TwittersPVFC wrote: »Being honest, you post as if you have some kind of connection towards FU. The disrespect you show posters who have something negative towards the company seems to back that up. I could be wrong, and that's my personal opinion, but you get very angry only about FU critics.
My 'disrespect' ('shortness' or 'plain-speaking' I'd prefer) is universal and served to all without prejudice or precondition or exchange of brown envelopes. Nice to see that you are open minded and that you don't jump to conclusions about people after only eleven days.0 -
Eh? OS 7 is nine or ten percent cheaper than their standard tariff - so they are free to increase the price by seven or eight points.
Very selective reading, there. Stop sticking your fingers in your ears when you get to threads that do not support your world view.
My 'disrespect' ('shortness' or 'plain-speaking' I'd prefer) is universal and served to all without prejudice or precondition or exchange of brown envelopes. Nice to see that you are open minded and that you don't jump to conclusions about people after only eleven days.
By all means, feel free to point me in the direction of these threads, I'd appreciate the reading. However, my point still stands that
With regards to me being open minded, while I've been reading this forum the only time I've seen you post is to disrespectfully towards people who have been critical of First Utility. I also believe disrespect is the correct word to use.
Anyway, I don't believe it will benefit the board, or the OP, to continue this argument further. If you want to continue being disrespectful to other posters, then feel free.0 -
First Utility don't do Economy 7 metering set ups on their Online iSave tariff.
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