Cancelling / Ending Agreement

5lugger

Hi,

This might seem a stupid question :embarasse, but its late so I'm asking anyway!

Now Ofgem have changed the regulations re gas & elec price changes, will you be able to change suppliers if they raise their prices and you are on a "fixed term?"

Currently with Scottish Power on their Online Energy Saver 9 deal, this has now changed to the Online Energy Saver 9 April 2012, with the caveat that if you don't switch by April 30th you are locked in again for another year.

Kind of happy to stay for the mo, but would be grateful if anyone could clarify if I can up and go should the raise their prices.

Thanks in anticipation:)

Cardew

5lugger wrote: »

Hi,

This might seem a stupid question :embarasse, but its late so I'm asking anyway!

Now Ofgem have changed the regulations re gas & elec price changes, will you be able to change suppliers if they raise their prices and you are on a "fixed term?"

Currently with Scottish Power on their Online Energy Saver 9 deal, this has now changed to the Online Energy Saver 9 April 2012, with the caveat that if you don't switch by April 30th you are locked in again for another year.

Kind of happy to stay for the mo, but would be grateful if anyone could clarify if I can up and go should the raise their prices.

Thanks in anticipation:)

You should move today to On line saver 13 which is 8.5% cheaper!!

It is an absolute disgrace that OL13 is supposed to be for new customers only and demonstrates how Scottish power treat existing customers i.e. like mugs!!

As a matter of principle I am switching from Scottish Power - even though I was offered OL13 - several threads about this subject.

brewerdave

Cardew wrote: »

You should move today to On line saver 13 which is 8.5% cheaper!!

It is an absolute disgrace that OL13 is supposed to be for new customers only and demonstrates how Scottish power treat existing customers i.e. like mugs!!

As a matter of principle I am switching from Scottish Power - even though I was offered OL13 - several threads about this subject.

Just a repeat of how they tried to treat their customers when their very good fixed price package ran out in August 2009 - the forums were full of irate (soon to be ex) SP customers:rotfl:

Yorkie1

Definitely ring them today to ask to switch to OL13. It's the final day you can do so without getting a cancellation charge on OL9 April 2012. They may try to fob you off by saying it's for new customers only, but people who have encountered that message, have said that they know through MSE that existing customers are being offered it, and they have tended to back down.

I *think* I recall that when prices went up during the OL9 period, the notification said we could move without penalty if we didn't want to pay the increase, but I wouldn't make any decision on my potentially woeful memory!

5lugger

Thanks for replies so far, but question not totally answered.

So if anybody could "shed any light" and confirm I would be grateful!

grahamc2003

It's a question I'd like to know the answer to also Slugger.

Idirectly, it seems obvious that you can switch without penalty, otherwise it's a retrograde step for customers, taking away the ability to switch and avoid higher prices, for the sole benefit of finding out about the increase before, instead of after, it takes place. But obvious logic and the regulator often don't go hand in hand.

I suppose it's a contractual question - after you've signed a contract for a peiod of time, do you have th right to cancel if the terms change. I'm sure that most contract (away from the electricity suppliers), once signed the terms are fixed, but they may not apply here (then again, it may!). Obviously, there's something stopping suppliers signing an agreement for a year at 10p/kwh, then the next week rising the rate to £1/kwh and expecting you to be locked in - just not sure what mechanism stops that.

Hopefully, if the supplier wishes to raise the prices during the term, the idea of giving notice in advance of that is so that you can switch in adance and avoid it. Would be great to get confirmation that that is the actual situation.

KimYeovil

Cardew wrote: »

You should move today to On line saver 13 which is 8.5% cheaper!!

It is an absolute disgrace that OL13 is supposed to be for new customers only and demonstrates how Scottish power treat existing customers i.e. like mugs!!

As a matter of principle I am switching from Scottish Power - even though I was offered OL13 - several threads about this subject.

Again, this is OFGEM's policy, not Scottish Power's! It is OFGEM who are insisting that cheapest tariffs are not offered to existing customers.

Joyful

If the contract says the price will be X amount below the standard tariff then the suppliers can put it up as much as they want without breaking their terms.

If anyone wants a guarantee that their price will not change they have to sign up for a fixed fee with a higher price.

Surely consumers cannot have it both ways? I have my plan till July but I also know if BG increase their standard tariff that mine will go up too. I knew this when I went onto this tariff.

Cardew

KimYeovil wrote: »

Again, this is OFGEM's policy, not Scottish Power's! It is OFGEM who are insisting that cheapest tariffs are not offered to existing customers.

Have you a link for that policy statement please.

grahamc2003

Joyful wrote: »

If the contract says the price will be X amount below the standard tariff then the suppliers can put it up as much as they want without breaking their terms.

If anyone wants a guarantee that their price will not change they have to sign up for a fixed fee with a higher price.

Surely consumers cannot have it both ways? I have my plan till July but I also know if BG increase their standard tariff that mine will go up too. I knew this when I went onto this tariff.

Not sure what you mean by 'having it both ways'.

All the factors you mentioned (which I'm not sure are all correct anyhow) applied recently, and yet we had the option of 'rejecting' any price increase.

The question is, can we still 'reject' a price increase under the new rules?

Cardew

grahamc2003 wrote: »

Not sure what you mean by 'having it both ways'.

All the factors you mentioned (which I'm not sure are all correct anyhow) applied recently, and yet we had the option of 'rejecting' any price increase.

The question is, can we still 'reject' a price increase under the new rules?

I think what Joyful means is that most of the fixed term(not fixed price) guarantee that the price on a particular tariff will always be at least x% below their standard price.

The original Scottish Power OLE9 stated they would stay a minimum of 3% below Standard rate until March 31 2011.

That tariff was introduced at way more than 3% below their standard rate, and they did increase prices considerably during the term of the tariff. However as they remained within the terms of the tariff, you could not 'reject' the tariff because of the price rise.

I don't see how this new ruling will affect that situation. If they keep within the terms of the tariff, you cannot reject the tariff.

With the notice that is now being given, you switch on receipt of that notice on an unrestricted tariff.