OFGEM still silent on the Scottish Power Lie?

Simple_Simon_2

I'm talking about the fact that their Press Office sent copy to all the news organisations that the average price of electricity and gas would rise by an average of 10% an 19% respectively. When in reality if is far from the truth.

I also raised these concerns with my MP, and today I received a letter back from him dated 17th June, but it was post franked 21st June. Content of which is at the end of this post.

But firstly I post copy of the email I've sent to OFGEM.

Of course we mere mortals are not supposed to send OFGEM emails in regard to complaints about energy companies. But I sent it anyway.

Included below is the time line of events and denials by Scottish Power in regard to their deliberate miss information that was distributed by the news media. And their attempt to give credence to the lie by giving the impression it had all been cleared through OFGEM first.

I received the enclosed notification from Scottish Power last Wednesday regarding the price increases. And on entering said data into a spreadsheet I have constructed to monitor consumption and cost. It was immediately apparent to me that the figures quoted in the press were wildly inaccurate.

Last September I signed up to a new "Online Energy Saver 10" contract with Scottish Power. The contract on their part was that they would bill me at two percent below their standard rates for gas and electricity. On my part I was subjected to a cancellation penalty of £50 if I ended the contract before the contract expired in twelve months.

Indeed, two months into the contract they increased electricity prices by 5% and gas by just under 1%. Obviously as the contract was not a fixed price contract they were in titled to do so. Like wise they are in titled to increase prices this August.

My complaint is, that due to the tariff one and tariff two pricing structure for both gas and electricity. In reality my electricity costs will rise by 56% and gas by 26% resulting in an overall 49% increase of energy bills after applying Direct Debit and Duel Fuel Discounts.

To release a Press Notification that electricity and gas prices were to increase by an average of 10% and 19% respectively was a deliberate LIE.

Coincidently, I attempted to contacted Scottish Power by phone that very day but on being offered a three hour call back, I decided to put my complaint in an email. The same day I emailed the BBC, stating they had broadcast Miss Information, and stating the true costs increases, I received no reply. That evening I also contacted my MP. The following day I managed contact Scottish Power by phone, and when I put the accusation to them that they had deliberately miss represented the percentage price increases.

They said [all in one sentence] the Press Release was factual and that the price increases had been sanctioned by OFGEM. Now telephone customer services operatives read from on screen scripts. And it was blatantly obvious to me that Scottish Powers management had deliberately used a "slight of hand " approach to the usage of language, in an attempt to give their lie credence by linking it in the same sentence to the fact OFGEM had sanctioned the price increase.

I attach spreadsheets that reflect the true cost of energy price increases in relation to my annual energy consumption. One in the original Open Office format, and one in its Microsoft Excel conversion.

Might I just add, that in seven years of using U-Switch to source cheaper energy. I have found myself oscillating between contracts with Scottish Power and EDF, or a subsidiary of EDF on one occasion. It begs the question, given all the players in the market it there some sort of regional cartel being run by the energy companies?

MP's Letter.

I am grateful to you for the time and trouble you have taken to let me know of your concerns and confirm that I am making enquires on your behalf with Scottish Power.

I am also representing your concerns to Ministers and asking for their response.

As soon as I have any further news I will contact you again.

All you can do is keep plugging away, until something gives.......or they start tampering with your brake pipes

backfoot

Well done for fighting your corner with the passion that your posting puts across.

It is appalling that Ofgem aren't customer facing in their dealings, hiding behind intermediaries and well away from the day to effects on Customers. It is another structurally defunct part of the Energy Industry.

A couple of my reactions.

Where there has been such a dramatic all at once increase in price, I think customers are entitled to have their termination fees waived.Particularly when the structure of the product changes materially, as in this case, between first and second tier charging. In effect ,they are materially altering the substance of the contract.

Both SP and EDF and Eon (I think)have actually granted this recently. I for one would have challenged this via the Energy Ombudsman if they hadn't conceded it voluntarily.

SP have dug an enormous hole for themselves. Against the background, of various investigations ,by Ofgem, they increased prices dramatically for standard and associated products and it is clear that the catch up on some Online tariffs is greater than the publicised numbers.

Such a closing of the differential has naturally upset customers.The issue is one of transparency and trust. As you yourself understand, you had a variable priced product. however,you also had an expectation that it would still move in line with market rates equally.Where that doesn't happen it leaves a impression of a con, albeit there is little recourse available.

Finally, SP on the same day as peeing off thousands of customers, offerred a new product to new customers offering a market leading variable product.(Direct October 2012). It beggars belief and its advertising blurb has now fallen foul of advertising regulations.

The product has been withdrawn, like an apple reaching it's sell by date, within two weeks of launch.

I dare anyone to defend the manner and management of these events.

kidohno

Gas and Elec isn't a right, you aren't entitled to it. If you don't like it, go to another company.

Thank Maggie Thatcher for selling off the assets.

backfoot

kidohno wrote: »

Gas and Elec isn't a right, you aren't entitled to it. If you don't like it, go to another company.

Thank Maggie Thatcher for selling off the assets.

There are many rights to gas and electricity.

http://www.direct.gov.uk/en/Governmentcitizensandrights/Consumerrights/Energy-yourconsumerrights/DG_196251


In this oligopoly, the price varies little and the paucity of decent customer service is sadly obvious.

If only it were that simple. It's broken badly from a customer perspective whatever the history.

ian1969uk

kidohno wrote: »

Gas and Elec isn't a right, you aren't entitled to it. If you don't like it, go to another company.

What rubbish!

In any civilised, supposedly advanced society then energy is a necessity and therefore a right.

We all accept that we must pay for our energy usage, but the simple fact is that energy is becoming unaffordable for many. This can not be allowed to happen, or else where does this leave huge parts of the population?

The government need to address this and this should be one of their absolute priorities. Soaring energy costs are in the interests of nobody but the energy companies.

eurmalian

Simple_Simon wrote: »

To release a Press Notification that electricity and gas prices were to increase by an average of 10% and 19% respectively was a deliberate LIE.

As has been stated many times on these forums and even by you in your post, these increases are an AVERAGE. Unless you are incredibly rare, you're never going to be right on the average. As things stand, some peoples prices will go up more than average, some by less.

From the sounds of things, you would seem to be a very low user (I could be wrong, but that's what I'm guessing). Instantly not average.
You're also on a specialised discount tariff. Again not average (sad as it is, I think most people are still on standard rates).
And yet, you think that because the change to your bill does not match the quoted increase, the entire thing is a lie.

I'm pretty sure that the increases that they quote will be for someone using 16000 kWh gas and arround 3500 kWh electric (average consumption), on the standard tariff (most common prices) and averaged accross all areas due to regional pricing.

This is the most accurate figure for the most people. There is no way arround that. It may be way off for some, but it is the most accurate they can make it.

I'm curious what you suggest that they put in their press releases in future instead? Every level of consumption from 1 kWh to 100,000 kWh for both fuels, on all tariffs, in every area as separate figures? As otherwise there may be someone it's not accurate for. They would need to release a book so big no one could pick it up to do that.

Or do you think that they should release the highest possible increase that you could end up with and scare the living daylights out of everyone who's prices are actually only going up 10%? That would get them even more complaints than doing it this way...

Really. I want to know. I've heard your complaint, now tell me the solution that you want to see. As to make a genuine complaint you must have a potential solution.

Oh, and not to raise prices like this is not a solution. Your complaint was about the percentages they announced, so you need a solution for what they should have announced instead. If your complaint had just been 'my prices went up a lot', that would have been a different matter.

backfoot

eurmalian wrote: »

..

Really. I want to know. I've heard your complaint, now tell me the solution that you want to see. As to make a genuine complaint you must have a potential solution.

The effect on low, medium and high users ?

ian1969uk

They could quite easily have announced three things:

1. The average rise.
2. The minimum rise for any of their customers.
3. The maximum rise for any of their customers.

These should have been accompanied by a statement that they encourage all customers to contact them to find out how they personally are affected.

By announcing the average, many people would simply assume that their bills would rise by 19%/10% and then be in for a nasty shock.

I wouldn't go so far as to say they were lying, but I do feel it could have been handled much, much better.

eurmalian

backfoot: The effect on low, medium and high users on what tariff? All of them would be far too much info, while if you stick to just the standard one then anyone on a specialist tariff that goes up further would still complain.

ian1969uk: That's a slightly more sensible option, however if they did that you know that within 2 hours of the announcement all that would be all over papers, forums, websites, etc. would be the maximum figure. That's fairly close to just announcing the maximum for the effect it would have.

ihateyes

Ofgem announced yesterday Simon that they have launched an investigation into SPowers claims of cheaper oct2012 offer. http://www.ofgem.gov.uk/Media/PressRel/Documents1/RMR%20June%20Press%20notice.pdf

in particular:

Ofgem today announced that it is to investigate Scottish Power under its Consumer Protection powers under the Enterprise Act in relation to potentially misleading marketing. The investigation will focus on the claim of £459 savings from the "Direct October 2012 offer".

backfoot

eurmalian wrote: »

backfoot: The effect on low, medium and high users on what tariff? All of them would be far too much info, while if you stick to just the standard one then anyone on a specialist tariff that goes up further would still complain.

It's far too much information because they have far too many tariffs. Some of which are only on offer for two weeks !

Anyway,why not? A look up table showing the effects for high,medium and low users for each tariff.

Or would the information be too embarrassing in relation to the average headline number?

Just reading the feedback of many 'ordinary' posters tells you that there has been shock and outrage at some of the individual impacts.

You are a sophisticated customer (and employee) who has been with all of this for some time (like me ). Sometimes, you have to look at it from a bottom up approach assuming liitle knowledge.