Apologies; yet ANOTHER thread about leaving Scottish Power!

minicazzybee

Evening all,
Sorry to duplicate probably hundreds of previous threads, but I was wondering if any other moneysavers are in a similar situation to me, and I would like some clarification as I am confused on switching suppliers etc. etc.
I'm currently on a Online Saver 10 plan with Scottish Power and up until May have been paying £66.90 for dual fuel on a small 2 bedroom flat. I signed up in September 2010. To be fair I have been tardy with updating my meter readings, and when I gave them the info they reduced my DD's to £40.00 a month. Currently I am £207.00 in credit as I have been substantially overpaying. Following the advice I've red on this website I have decided to switch to a capped tariff as I'm on a limited income and think that a fixed 'maximum' charge for fuel is the most sensible option as I can't afford price hikes. I have heard on the grapevine that Scottish Power are waivering the cancellation fee as it is due to action on their part (i.e Price increase) that I would be leaving them. Is this the case??
Also, does anyone know how I would go about getting my £207.00 credit back from them if I did switch suppliers??

MAny thanks in advance for advice given, or even if you can just point me in the direction of a similar links I'd be really grateful.

Caroline xx

Cardew

They will not waive the cancellation charge if you leave Scottish Power.

It might be possible for them to Waive that charge if you switched to a fixed price tariff with Scottish Power.

You will get a final bill some time after you switch to another supplier and they will refund any credit on the account.

backfoot

minicazzybee wrote: »

I have heard on the grapevine that Scottish Power are waivering the cancellation fee as it is due to action on their part (i.e Price increase) that I would be leaving them. Is this the case??

Also, does anyone know how I would go about getting my £207.00 credit back from them if I did switch suppliers??

Yes you are entitled to leave without penalty following a price increase. Under the main Energy Supply Terms and Conditions of your contract, you have a right to end the the contract following a variation notice.

The 'variation notice' in this case is the letter informing you of the price increase,which puts you in a disadvantageous position. Providing you give notice within the prescribed time period and the new supplier gives notification within 15 working days,then the contract ends.

Once the Contract is ended,that's it.The Supplier does not have any right to enact any other clauses relating to the Service Plan you were on as they effectively don't exist.

Other suppliers are now making this situation plain to their customers. e.g EDF.

SP and other posters will probably tell you that it is written in the T and C's. Ignore them and take the matter to the Energy Ombudsman if they fail to waive the TF.

You will get a final settlement of your credit balance after the switch is completed.

Good luck

keith1950

Hi, I have found in the past that if they owe you more than £100 just ring them up and they will send you a cheque.

Leave some credit on the account, when you switch the bills will be finalised and if you are still in credit they will send you another cheque.

Cardew

backfoot wrote: »

Yes you are entitled to leave without penalty following a price increase. Under the main Energy Supply Terms and Conditions of your contract, you have a right to end the the contract following a variation notice.

I don't think you are correct on this particular tariff.

On this tariff, like so many these days, the guarantee is that they will be at least x% below their standard rate.

If you leave before 31 Oct 2011 you pay a penalty of £50(£30/£20)

They have remained within the terms of the Guarantee.

However if your contention is correct it will mean that the majority of the internet tariffs, that guarantee only they will be x% below standard rate and have a penalty clause, cannot enforce that penalty. So I hope you are correct.

backfoot

The price guarantee is one part of the contract. It simply defines what may happen to the price. It is not linked to the clause of the Termination Fee.The conditions about Termination Fees relate to customers terminating the contract before the 'end date.' (non price serial switchers).

The Customer has a full right, written into the main contract, to end the contract due to a 'Variation notice'. They simply have to give prescribed notice.

The contract is deemed to have ended by the Supplier's Variation,in most cases the price increase.

Once a contract is ended one party cannot choose to invoke other parts of the contract. In effect they don't exist.

Cardew

backfoot wrote: »

The price guarantee is one part of the contract. It simply defines what may happen to the price. It is not linked to the clause of the Termination Fee.The conditions about Termination Fees relate to customers terminating the contract before the 'end date.' (non price serial switchers).

The Customer has a full right, written into the main contract, to end the contract due to a 'Variation notice'. They simply have to give prescribed notice.

The contract is deemed to have ended by the Supplier's Variation,in most cases the price increase.

Once a contract is ended one party cannot choose to invoke other parts of the contract. In effect they don't exist.

This is what the OP agrees when he contracts with SP.

Under the Online Energy Saver 10 Offer, your prices are guaranteed to remain below ScottishPower's standard monthly Direct Debit gas and electricity prices until 31st October 2011. Please note that your monthly payments may vary depending on how much energy you use.

Scottish Power may apply cancellation charges inclusive of VAT of £30 for electricity and £20 for gas if you switch to Online Energy Saver 10 but then cancel your supply contract or switch to another tariff before 31st October 2011. These charges will not be applied if the supply contract is cancelled due to a home move. Online Energy Saver 10 customers need to manage their accounts online, and submit meter readings at least once every 90 days.

All of the major Utility companies have similar tariffs with similar conditions.

If I understand you correctly, you are saying that penalty condition is meaningless if there is a price rise???

I can't see how that can be the situation if SP have kept within the terms of the Guarantee.

If your contention is correct, it is a matter of huge importance.

Are you not getting confused with the provision that allows people to leave tariffs without exit penalties if there is a price rise and stay on the sames pre -increase prices until they switch?

One way or another this needs sorting out. Plenty of people have been charged the penalty clauses for leaving, which you contend is 'illegal' and they should get that money refunded.

backfoot

No I am not confused.

The right to reject a price increase and hold prices while switching comes from the Supply Regulations.

The 'right to cancel' arises from the Suppliers Main Terms and Conditions.

The clauses which you have quoted relate to T and C's of the particular tariff or Plan as some call it.

The Main Terms and Conditions are overiding and basically govern any contractual relationship between the parties.

So if a Customer simply leaves the tariff or switches, then the Supplier may invoke the Termination Fee.That occurs because a contract exists.

If no contract exists, the Supplier cannot legally make a charge.

Of course,you have realised the implication. I personally have never received such a charge but I suspect many have.It will require someone to take up the issue with a reclaim.

I had hoped EDF would try to charge me when I recently left OS7 mid term, a tariff similar to your example. They have chosen to concede the issue to all OS7 customers and also for the future online tariffs and I have that confirmation in writing.

Cardew

backfoot wrote: »

If no contract exists, the Supplier cannot legally make a charge.

.

What do you mean by no contract exists?

Anyway I hope you are correct, but am not convinced!! However I detest these tariffs that are introduced at an attractive price but can increase massively without the company breaching their guarantee.

Wouldn't it be a good idea for you to get Martin, Which or the EST to take this up and possibly get loads of people refunds?

backfoot

Yes indeed it would be nice to get the balance back to where it should be.

I am happy to be a campaigner but as I said I have no personal losses. As you know,I don't let that deter me trying my best on behalf of Customers.

So far, I have started by publicising the issue within the forum to see if anyone wants to come on board and test it fully.In addition, I have submitted the issue formally under the Ofgem Retail Review.

I have also written to Audrey Gallacher and the Confidence Code Manager both at Consumer Focus. I felt of all the authorities they have shown the best appetite to represent customers.I haven't had a reply as yet.

To be honest,this is a straightforward Contract Law issue.Another poster 'dogshome' has posted similar views.

I am on holiday now so will not be doing anything in the short term.

It would be better for someone with a personal interest to take up the reclaim issue.

backfoot

Cardew wrote: »

What do you mean by no contract exists?

It cancelled under the 'right to cancel'.

If you look at this thread,you will see BG have now conceded the issue to the customer.

https://forums.moneysavingexpert.com/discussion/comment/45297184#Comment_45297184


Everyone seems so reluctant to accept the fact. Just because they have got away with it before,doesn't make it so. Bank charges ?

Wonder if Consumer Focus have had a word?