Cancellation fees after passive rollovers

LouisM_2

I signed up to a BritishGas dual fuel fixed term contract in late 2008, fixed until December 2009. Since then I have let it run, but because of the new price hikes I have now initiated a change to a cheaper supplier's fixed term contract. I expected BG to to try to persuade me to change my mind. What I didn't expect, a year after the expiry of the fixed term I signed up to, was that they would threaten me with a cancellation fee (gas only). They say my Gas (not electricity) is now on the their March 2011 fixed tariff as a result of a 'rollover'. I don't recall ever signing a contractual agreement to this, nor being advised of any cooling off period, etc. It looks like unlawful browbeating to me and sharp practice. By saddling people with contractual liabilities through passive rollovers (even on one one element of a dual fuel supply), they can put customers in the position where it will always cost them a penalty to switch supplier. I am writing them to demand full details of my contractual agreement to this, but would be grateful for any informed opinion on the legality of this.

MillicentBystander

Tell them you will need this in writing and then you will run it past Consumer Focus/ Ofgem for them to explain its legality. Ofgem are (allegedly!) looking into these IMO morally corrupt 'rollovers' to a tariff that includes an exit fee. They've been looking a while now and, of course, we haven't heard anything back as yet but if I complained that there was a large hole in their car park they'd probably spend years looking into that as well and eventually decide it was a wholly justified/legal large hole.

spiro

The T&Cs of a lot of fixed prices contracts (not just BG) have a clause that says that at the end of the period you will be rolled over onto the next deal. Therefore they put the onus on you to decide what you want to do before the contracts ends.

Its a lot worse for business customers as the roll over contract can be for 24 months on the suppliers standard (expensive) tariff which they cant get out of and have to advise the supplier 90 days before the end what they want to do.