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Apologies; yet ANOTHER thread about leaving Scottish Power!

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  • Thanks to everyone for getting back to me.
    I agree that there does seem to be an element of confusion regarding the termination of the contract. I rang Scottish Power and in Customer Service Advisor 'Jean' advised that if I leave Scottish Power I have to ring them and fill out of cancellation form over the phone and as long as the new energy provider contacts them within 14 days then the cancellation fee will be waived. Don't know why but it didn't actually give me any confidence in the company as I felt the advisor was being a little vague and I'd bet my bottom dollar I could ring them again in ten minutes, ask the same question and get a completely different answer!!
    LOL, oh well, think I shall just take the bull by the horns and change to nPower and put it in the lap of the gods!!

    Thanks again for your advice x
    Sept GC £42.22/£60
  • Cardew
    Cardew Posts: 29,063 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Rampant Recycler
    backfoot wrote: »
    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 ? :D

    Wonder if Consumer Focus have had a word? ;)

    Interesting after this discussion that Martin has just published an article on this subject.(MSE News)

    I am puzzled by this excerpt:
    Under those rules, Ofgem stresses not all variable rate customers are eligible to escape their exit fee, such as where there is no change in the contract term.

    In particular, this applies to customers whose deal tracks their suppliers' standard rate by giving a percentage discount off that price.

    Such a contract would allow for a rise as there is no monetary definition of the standard rate.
    All the variable rate tariffs (with a penalty) I have seen, guarantee that they will always be at least x% below their standard Tariff.

    So if the guarantee was to remain 2% below the Standard tariff, a firm could introduce a variable tariff charging, say, 20% below Standard tariff and raise it by 18% without breaking their guarantee.

    If a firm has a variable tariff, what other criteria could they use to give a guarantee other than make reference to the Standard tariff?
  • kingstreet
    kingstreet Posts: 39,269 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    I'm switching from OES11 (ends 10/2011) and this is the text from my price notification email of 15 June;-
    If you notify us that you wish to cancel your agreement before 1st August 2011 and we receive a request for your supply from another supplier within 15 working days, we will not apply the price increase or the cancellation fee for your product.

    so I'll report back with the result.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • Cardew
    Cardew Posts: 29,063 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Rampant Recycler
    kingstreet wrote: »
    I'm switching from OES11 (ends 10/2011) and this is the text from my price notification email of 15 June;-



    so I'll report back with the result.

    Martin's article stated that BG and Scottish Power will waive their rights:
    Technically, not all customers on variable deals are eligible to escape charges. However, British Gas and Scottish Power say they will waive fees on all variable tariffs.

    The conditions of the SP tariff are
    Under the Online Energy Saver 11 Offer, your prices are guaranteed to remain below ScottishPower's standard monthly Direct Debit gas and electricity prices until 31st October 2011.

    However that surely means that they could impose the penalty charges - but have waived them - and it is not your right to leave as implied earlier in this thread.
  • kingstreet
    kingstreet Posts: 39,269 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Understood, Cardew. ;)
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • pors99
    pors99 Posts: 38 Forumite
    Part of the Furniture Combo Breaker
    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

    just had a call from them stating that they would waive only if i stayed with them with new fixed atriff until 2015
  • I'm also very interested in how the penalty fee "pans out".

    I'm currently with SP (online saver 7 - extended until Nov 11).

    I have applied to move to a smaller company (fixed rate & no penalty fee) and SP are applying the exit fee - even though I have said it is because of the price increase.

    They said they could move me to a new tariff with them that would save me money - and still wanted to apply the exit fee!

    However, I also have the email of 15th June (as Kingstreet's post) so ready for battle!
    Grocery Challenge £211/£455 (01/01-31/03)
    2016 Sell: £125/£250
    £1,000 Emergency Fund Challenge #78 £3.96 / £1,000
    Vet Fund: £410.93 / £1,000
    Debt free & determined to stay that way!
  • John905
    John905 Posts: 21 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    I rang Scottish Power and in Customer Service Advisor 'Jean' advised that if I leave Scottish Power I have to ring them and fill out of cancellation form over the phone and as long as the new energy provider contacts them within 14 days then the cancellation fee will be waived.

    Just like comedy, there seems to be quite an element of timing here. How long does it normally take EDF to contact Scottish Power? I rang customer service at EDF but have no confidence in their answer. I was told they would not make contact until after the cooling off period of 12 days. I explained twice why and what I needed to know, but I strongly suspect the operator is meaning when EDF will contact me.
  • qaiq
    qaiq Posts: 29 Forumite
    edited 26 July 2011 at 11:09AM
    I'm not a lawyer, but I understood this falls under contract law.

    There is a contract between you & your energy supplier - they will supply you and you will pay them.

    On a variable tariff, I guess they can raise & lower the price you pay, however, if it is a *substantial* price rise, this is a substantial change to the contract - it isn't dependent on the scale of the price change in relation to other suppliers, it is an absolute change.

    eg, if all the suppliers raised their prices by 20%, and your tariff is guaranteed to 2% below some other one, they couldn't argue that no contract change has occurred because their price is still 2% below. Your prices have changed absolutley.

    This is a change to the contract, and a contract is between at least two parties, and changes to it must be agreed by all parties. Hence they can't apply a fine/fee/charge for you terminating it. Essentially, they have ended the contract because they were the ones who changed it.

    You can just say I don't accept the change you have made to our contract.

    As far as I am aware...
  • backfoot
    backfoot Posts: 2,700 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Yes qaiq has got it.(although any variation is relevant)

    The price guarantees are just a feature pertaining to that product. Posters are confusing and linking them to the termination fee.

    There is no such link once a variation notice has been given. The customer responds to the material contract change by exercising their full right to cancel.

    The termination fee clause only relates to a customer cancelling a contract where no 'variation' exists.
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