MSE News: Scottish Power to hike energy prices

Premier_2

silly_moo wrote: »

I was wondering... do you think the media will actually mention it that those 10% and 19% price hikes are in fact much higher? I can't believe nobody noticed (apart from us here)!

The percentages given would be those calculated as stated. i.e. an average.

e.g. all those customers on OES14 had a 0.0% increase The suppliers need to give a headline figure of some sort, and you'll probably find no one is actually 'average' so every customer will have their own individual value.

woohoo

jingleberry wrote: »

I'm on Scottish Power on line energy 12 and like others, I have calculated that my price hike will be in the region of 40%, much more than the headline rises quoted in the media. I'm moving to EDF (fixed price until 2014). There are cheaper deals, but frankly I just looked for the longest fix, and anyway it has the added advantage that I'll be able to stop thinking about these blasted energy prices for a few years.

I'm 'locked in' with SP until next year but I've been trying to get a definitive answer on whether there is a way to avoid the early termination fee (about £50 in my case). The standard terms and conditions from SP's website (which I believe apply to all SP contracts, reegardless of tariff) include:

GAS
5.8 If we increase the price or vary other terms of the Agreement to your significant disadvantage we will notify you of that increase or variation by giving you at least 30 calendar days’ notice before the date the increase or variation takes effect. If you do not accept the increase or variation you are entitled to end the Agreement by giving us notice to end the Agreement, at any time prior to that increase or variation taking effect. If you give us that notice, the increase or variation will not take place. However the increase or variation will come into effect if, within 15 Working Days of you giving that notice to us, we do not receive notification through the relevant supply industry processes that another Gas Supplier will begin to supply the Premises within a reasonable period of time after that notice has been given by you.

Electricity
9.8 If we increase the price or vary other terms of the Agreement to your significant disadvantage we will notify you of that increase or variation by giving you at least 30 calendar days’ notice before the date the increase or variation takes effect. If you do not accept the increase or variation you are entitled to end the Agreement by giving us notice to end the Agreement, at any time prior to the increase or variation taking effect. If you give us that notice, the increase or variation will not take place. However the increase or variation will come into effect if, within 15 Working Days of you giving that notice to us, we do not receive notification through the relevant supply industry processes that another Electricity Supplier will begin to supply the Premises within a reasonable period of time after that notice has been given by you.


I doubt if you have to wait until you receive formal notice of the price rise from SP before giving notice to reject. After all, it's all over the news, and SP have published the new prices on their website. However, the way I see it, there is a danger that you give notice to reject the price rise, but your new supplier does not then get in touch with SP to confirm your intention to move during the subsequent 15 working days.

So my plan is to wait until SP have contacted me in connection with the change of supplier, (so I know they have definetly heard from EDF about my intention to move), then give notice that I reject the variation in SP terms. I'll do this by post and email. (Clearly I have to give notice before 1 August at the latest as this is the day the prices go up). I hope that this will mean I can avoid not only the early termination fee, but also the price rise if the move to EDF is not complete by 1 August.

If anyone can see any flaws in my thinking, I'd appreciate your thoughts.

Anyone? I would appreciate thoughts as I would like to do this too!!

Premier_2

woohoo wrote: »

Anyone? I would appreciate thoughts as I would like to do this too!!

The contractual position is that the early exit fee will apply if you exit early.

There's no increase to the early exit fee, but if there was you could reject it and pay the original early exit fee fee (subject to the terms)

As for the price rise, well you know about it so you can reject it. As it is longer until it becomes effective than the time allowed to change, you will pay the pre-increase price until the change anyway.
( I believe the individual notices are being sent out this weekend, so well before the price change effective date - the terms are somewhat redundant now Ofgem doesn't allow the supplier to give notice upto 65 working days after the price change became effective)


Back to the early exit fee, SP may agree to waive the term if you ask nicely (as some others have found). Ask them, the worst they can say is no.

Swipe

Wish mine was only going up 10%.

OES10 for Midlands area is going from 17.532p per kWh / 7.577p per kWh above 900 kWh p.a

to 22.636p / 11.197p

Which works out around a 30% increase

mrooke

The 10% increase in SP's electricity price is a bit of an under exaggeration in my case too. Can't they do maths?

First 225 units up 23%
Standard up 36%
Night up 38 %

Region North West on Online Energy 10 NSC. % values rounded down too!

If I move onto their Fixed Price Energy 2015 Online NSC, the % increases become:-

First 225 units up 32%
Standard up 39%
Night up 41%

Unbelieveable.

Ignite

It's interesting the absence of any of the SP reps on this thread. Are they not allowed to comment about exit fees / price rises @ levels such as 44% for gas etc?

antrouser

silly_moo wrote: »

I was wondering... do you think the media will actually mention it that those 10% and 19% price hikes are in fact much higher? I can't believe nobody noticed (apart from us here)!

The news reporters don't actually do much work on stuff like this. They work to tight deadlines, so they get the press release from Scottish Power and use it. Other journalists, for example the personal finance commentators, do more but they have to be selective in what they focus on. So the earliest you might see commentary that Scottish Power's increases are far higher for many people than the company claims, is Saturday's or Sunday's personal finance sections. If any such journalists have looked at this forum, they will have been alerted by now.

antrouser

Premier wrote: »

The contractual position is that the early exit fee will apply if you exit early.

There's no increase to the early exit fee, but if there was you could reject it and pay the original early exit fee fee (subject to the terms)

As for the price rise, well you know about it so you can reject it. As it is longer until it becomes effective than the time allowed to change, you will pay the pre-increase price until the change anyway.
( I believe the individual notices are being sent out this weekend, so well before the price change effective date - the terms are somewhat redundant now Ofgem doesn't allow the supplier to give notice upto 65 working days after the price change became effective)


Back to the early exit fee, SP may agree to waive the term if you ask nicely (as some others have found). Ask them, the worst they can say is no.

I think that if you exit because you have rejected a price rise, in line with the contractual right you have and the law of contract, the exit fee must be waived. You will have to be careful to satisfy the letter of the rules of the timescales for the rejection action. This is not to say that Scottish Power won't seek to apply the exit fee, but the law would not be on their side. (See earlier post about unfair contracts.)

popshed

This is frustrating. I moved house about 2 months ago so I've got no idea what my annual energy usage is likely to be. I've got a detailed log of kWH going back over 4 years form my old house and only 8 weeks data in the new house in a period when the heating hasn't been used. I know our new house is less energy efficient (we're having the windows replaced soon) but not sure what estimates to put in.
Added to that, when I do search for a cheaper deal, Scottish Power is coming out top by a big margin, but I'm guessing that they're not factoring in the known price rise to come.
I called BG who currently supply our gas and was offered a total of £270 in rebates after a year but that wouldn't be a fixed tariff.
I've spent so much time on this that if I was billing myself for time (which you should always do) then I'm already in deficit. What's the point?

antrouser

popshed wrote: »

I've spent so much time on this that if I was billing myself for time (which you should always do) then I'm already in deficit. What's the point?

It's a good point. If you can bill somebody else for your time, then stop comparing tariffs, get out to work and bill that client for your time! You might most easily offset the price increases that way. It it's only yourself that you can bill, then quite possibly the most lucrative thing you can do is work on your energy estimates and tariffs.

If your new house is a conventional design, and occupied in a typical way, then maybe posting some details here will allow owners of similar ones to tell you their usage. None will be absolutely right but you might find a useful range to compare with.