Scottish Power Cancellation Charges

mrtibbs1999

Hi All


I signed up to a fixed term Scottish Power deal in 2010 because it was the cheapest for me and about half way through the contract -just before this winter!- they raised the prices like most utility companies did. I cancelled the contract and have now been charged the cancellation fees as outlined in the contract.

Is this actually legal? I remember many cases with mobile suppliers and telecommunication companies where even if people had 24 month deals they were able to cancel without penalty because the law recognised that the price rises were a material change in the contract.

Is there anyone on here who is a contract specialist who has any ideas about this?

If it is the case that price rises make the contract cancel-able, then I'm sure there are many people on here who will benefit.


Thank you in advance.

macman

Did you write to them advising that you were rejecting the increase as detrimental and that you were initiating a switch within 15 days? If not then then you are in breach of contract and can be charged an ETC.
They're perfectly entitled to increase prices at any time on a variable tariff.
Incidentally, even if you do this with SP, they'll still initially bill you at the increased rate until you switch. I've been chasing them for over a month for a refund on this basis.

mrtibbs1999

Hi

Thanks for you reply. I wrote to SP telling them that I was leaving because of their announced intention to raise my prices. I then applied to switch over to EDF -the same day- to get the £180 cash-back plus the cheaper prices they then offered.
I never heard back from SP until I got the final bill which charged me the penalties.

I understand that they have the right to raise prices, but to be able to do that and charge an exit fee seems to contravene the unfair terms in contracts regulations and the OFT advice regarding the regulations. If I send them a letter before action do you think that I am wasting my time? The rules on this seemed quite clear to me but then I am not an expert.

dogshome

Hi mrtibbs 1999 - You are quite right, it is a material change in the contract initiated by BG, not you, and if you followed the rules by giving them notice you were Switching because of the price rises, ( Some suppliers allow 10 days, others 20 after you first recieve notice of the rises), they can't charge exit fees
Don't mess about with the Customer Service phone line - WRITE a letter of complaint

Gerrard_8_lfc

dogshome wrote: »

Hi mrtibbs 1999 - You are quite right, it is a material change in the contract initiated by Scottish Power, not you, and if you followed the rules by giving them notice you were Switching because of the price rises, ( Some suppliers allow 10 days, others 20 after you first recieve notice of the rises), they can't charge exit fees
Don't mess about with the Customer Service phone line - WRITE a letter of complaint

I Corrected this for you