Swapped to British Gas on 16/6/2011 - Can I cancel now?

backfoot

mbailey wrote: »

i fully accept the fact I signed up for a variable tarrif with a imminent price rise. That is always the risk when 1 provider has increased prices (ie Scot power) but the others haven't.

I still come back to the point that the T&C say "we may apply a cancellation charge".

I've contacted BG now, so I will see what they come back to me with. I am guessing the BG customer service inbox is likely to be pretty busy today so might be a couple of days before I hear back from them.

I think BG would face a PR nightmare at best if they maintain their exit fees stand in the circumstances of this price rise.(20% +).

I personally think customers should be lobbying the press,their MP's,Consumer Focus and anybody else to show what a false competitive market we have.

To tie Customers in such as the OP who entered into a contract in good faith only to bang him with an increase of 1/5th a month later is ridiculous.

It smacks of a totally Unfair Contract and someone should challenge it in law.

duggie1982

You can stop the rise and agree to change but because you have agreed the contract the cancelation fee's may apply!

backfoot

duggie1982 wrote: »

You can stop the rise and agree to change but because you have agreed the contract the cancelation fee's may apply!

May being the operative word.

How can you have a contract saying something may happen?

Against an increase from the starting position of a 1/5th increase in the essential part of the contract,they are hedging their bets against a challenge in law.

They would cave in rather than face a precedent.

Why do you think EDF and SP have conceded switches recently and waived the exit fees?

duggie1982

But if you agree a tariff and then get the price increase then maybe you should not agree to such a contract (do not agree with the price increase).

mbailey

In my view, if the British Gas price stayed the same, and I wanted to swap to another (cheaper) tarrif, then it would seem fair being a exit fee.

However when the price rises I don't see it being fair charged an exit fee.

Also for my particular case although yes I fully agree I am out of the cooling off window, I haven't actually been charged for any product yet and will not be until end of July.

As backfoot has also pointed out, having a contract saying "may" is a little confusing and basically gives them the option to charge or not to charge.

mbailey

duggie1982 wrote: »

But if you agree a tariff and then get the price increase then maybe you should not agree to such a contract (do not agree with the price increase).

That is a valid point, how ever when I took out the variable priced contract over the fixed price ones, the difference was significantly less and at the time I made a judgement prices couldn't possible rise that much, so I went for the variable price and i expected and would have been ok with a small to medium increase.

Obviously that was a bad call as the increase was alot more than alot of people expected.

duggie1982

mbailey wrote: »

That is a valid point, how ever when I took out the variable priced contract over the fixed price ones, the difference was significantly less and at the time I made a judgement prices couldn't possible rise that much, so I went for the variable price and i expected and would have been ok with a small to medium increase.

Obviously that was a bad call as the increase was alot more than alot of people expected.

Very true, although thats the gamble I suppose

Devils-Advocate_3

backfoot wrote: »

May being the operative word.

How can you have a contract saying something may happen?

Against an increase from the starting position of a 1/5th increase in the essential part of the contract,they are hedging their bets against a challenge in law.

They would cave in rather than face a precedent.

Why do you think EDF and SP have conceded switches recently and waived the exit fees?

Sorry but you are talking nonsense. They WILL enforce the cancellation charge.

backfoot

Devils-Advocate wrote: »

Sorry but you are talking nonsense. They WILL enforce the cancellation charge.

Are you the policy maker?

I get told a lot of things here are not possible, not open to challenge, no way they will budge,people have their facts wrong only to find the complete opposite occurs.

EDF/OS7.....Many issues.

SP and Direct Debits in the final month.

Eon and their final bill policy.(changes to the Comparison sites).

Npower/doorstep selling.

and so on.

You seeing being 'devil's advocate' is fine. Trying to diminish the efforts of Forum Members who represent the Customer rather than the Suppliers/status quo just gets us nowhere.

You may have a vested interest or just take pleasure in other people's difficulties. I try to help and get things changed. Don't win them all but happy to have a go.

Looking at this case, other Suppliers have conceded the very point recently. Maybe the ongoing sensitivities of the OFGEM investigation into the retail market. Maybe that the Regulator will ban completely exit fees if they are used to discourage switching....etc. etc.

Against the background of the economic climate and fuel poverty for many, how can a Government sit back and not protect ordinary people against this price onslaught? The Energy Minister talks about switching but these artificial Exit Fees on variable priced contracts discourage it.

I don't know your posting history and I can't be bothered to look it up, but I guess most of your posts are one liners contributing very little.

yoda011087

backfoot wrote: »

May being the operative word.

How can you have a contract saying something may happen?

Against an increase from the starting position of a 1/5th increase in the essential part of the contract,they are hedging their bets against a challenge in law.

They would cave in rather than face a precedent.

Why do you think EDF and SP have conceded switches recently and waived the exit fees?

Cancellation fees MAY be applied depending on the circumstances. If someone moves house for example, fees are not applied. If someone just leaves the tariff because of a better deal, fees will apply.