MSE News: Escape energy lock-ins as prices soar

Consumerist

Big_MAC wrote: »

I asked that they ensure all their call centre personnel were made aware of this and that no other customer in similar circumstances be charged the exit penalties - time will tell whether that message ever got passed on!

Hi Big Mac and welcome to the MSE forum.

There has been a report, possibly earlier on this thread, that BG Customer Services was closed for "staff training" at some point last week so, perhaps, staff are now aware of the waiver. Let's hope so.

milla

"There has been a report, possibly earlier on this thread, that BG Customer Services was closed for "staff training" at some point last week so, perhaps, staff are now aware of the waiver. Let's hope so."


See post 76 .

jjlothin

I think the 'staff training' must have worked! Just called British Gas to say I was going to be switching (was on WebSaver 8) and the man on the phone was courtesy itself - didn't raise a quibble!

backfoot

ian1969uk wrote: »

Did backfoot write that article?

No.

Someone, had been listening though, it appears.

However,on getting back from holiday,I am delighted that the message has finally got through,despite all the doubters and posters telling me I was wrong.

Churchpolly

Well, would you believe it, I thought it was all sorted following receipt of my second email, now they have contacted me again saying my new supplier must write to them within 15 days of their email! :mad:

I have responded saying that the Ofgem spokesman says the customer must notify them of their intention to switch etc. and not the supplier - and I expect them to confirm that they will not charge me any cancellation fees.

(I have emailed EDF my new supplier but they dont get back to you for 10 working days which is useless - and despite hanging on the phone for 40 minutes today I havent managed to speak to anyone there - this hardly bodes well for the future.....)

when are our politicians going to take these power companies to task for the appalling way we are being treated?????

will keep you posted!

Polly

Momaz

Having done my homework, I've decided to move from British Gas Websaver 11 to EDF's fixed until 2014 tariff. I'd read all your posts and rang British Gas ready for an argument with regards to the waiving of exit fees. Before I had chance to say anything the sales guy told me that if EDF contacted them before the 10th August the exit fee would be waived and that I would be kept on the old tariff until my new supplier took over. They also informed me that if I decided to stay with British Gas and one of the remaining large suppliers eg.eon did not put their prices up before December they would credit my account with £100 in January 2012. I know that this is unlikely but I was surprised by not having to argue my case as has happened to many before me. My only worry now is that EDF do not inform British Gas within the 14 day timescale. I'm keeping my fingers crossed now that all goes well

jalexa

Churchpolly wrote: »

Well, would you believe it, I thought it was all sorted following receipt of my second email, now they have contacted me again saying my new supplier must write to them within 15 days of their email! :mad:

I *think* you are on top of this. For the record the relevant Licence clauses are 23.6(a) and 23.6(b).

Actually there are two separate processes, (1) the "rejection" of the increase by the "Domestic Supply Customer" (23.6(a) refers, anytime before the new conditions are notified to commence and (2) no later than 15 working days after (1) the existing supplier receives notification from the gaining supplier of a pending transfer (23.6(b) refers).

A poster in this thread raised an interesting scenario, what if the customer gives prompt notice, then the gaining supplier delays for more than 15 working days, perhaps because of the cooling-off period. It is an excellent literal interpretation. I have "no idea" whether it is right or not, except a hopefully not naiive "surely not". This right to reject a detrimental variation is a core customer power in the regulations.

It is wrong that customer service advisers seem to be able to have their own interpretation of the regulations. Usually simplistic and wrong, but blagged as correct.

backfoot

I have been catching up on this thread. There's a lot of it. Some excellent contributions from many informed posters. :T

Before my holiday,on a number of other threads, and prior to MSE's advice, I had consistently flagged up that under the Supply Regulations and in basic Contract Law that these Termination Fees were unsustainable following a price increase.

Nothing has changed that view, in fact,I am delighted that Customers are now getting a fair deal.

What we are left with is a confusion (unwarranted) caused by the MSE Author relaying a supposed statement from an Ofgem spokeswoman, that some 'discounted products' are not included.

I totally doubt the voracity of this statement and can see no support for it in any Regulation. Indeed the argument that there is no monetary definition to the standard rate is palpable rubbish.

The wording of price clauses are simply that they describe features of any one product. Whether they are stand alone or linked to another price is academic and has no bearing on the 'right to cancel' following a variation.

Is this Ofgem person really saying that if one company puts up the price on a variable contract by 5% then you are free from an exit charge. However, if on a linked product they put up the standard price by 25% then you are scuppered. It doesn't hold any water in legislation, law or logic.

Mr.Anker needs to get his act together with his Ofgem friend and join the debate again to clarify that no exit fees are payable following price increases on any variable priced contract.

p.s.why do they trendily call it a loophole? It's not a flippin loophole it's the License Conditions, and Contract Law that these jokers should be operating to, advised by their own Legal Departments.It's taken ordinary customers to take BG and the others to task to get anywhere. No wonder BG have been fined £2.5m today and this is before this debacle.

pps. I had also written to Audrey Gallacher at Consumer Focus prior to my break regarding the fact that Suppliers were incorrectly charging these fees and have received a reply which says I should submit my views to OFGEM under their Retail Market Review.
:wall: Hmmm.

All these bodies are supposed to be protecting our interests.:o

jalexa

backfoot wrote: »

I had also written to ..... Consumer Focus prior to my break regarding the fact that Suppliers were incorrectly charging these fees and have received a reply which says I should submit my views to OFGEM under their Retail Market Review....

An excellent commentary.

I am quite prepared to believe that on this issue Ofgem have "blown their budget" on "dodgy" contract advice, alternatively they had an inadequate budget to obtain quality contract advice.

However I am less charitable towards Consumer Focus whose deafening silence speaks volumes about Consumer representation, if I can really mix my metaphors.

One person (the MSE article author) has asserted an opinion of Ofgem. The "opinion" may (or may not) be right, personally think it is a contrarian interpretation of the relevant clauses, but I don't think the original interpretation by British Gas and Scottish Power was a result of the MSE article author's opinion and the British Gas and Scottish Power MSE forum reported "waiver when challenged" certainly isn't a result of the MSE article author's assertion - because it differs.

For most of the last 12 months, and today, "guaranteed discount" tariffs have regularly appeared at the top of, get this, Consumer Focus accredited comparisons. What was required was not a "decision" (AFAIAA, not in their power) but consumer guidance that the regulations were sloppily drafted - if that is the reason for the "confusion" (I really hope it wasn't *intended*) - and that the status of early terminanation charges on the occasion of an increase in the linked tariff was unclear.

My own consistent advice for many months - "beware guaranteed discount tariffs if you do not know what you are doing" would have been better than the Consumer Focus silence.

Now I see that Southern Electric has a new tariff, "Fixed Discount January 2014", not being a "fixed price" tariff at all, but a "variable price tariff" offering lock-in until 2014 for a paltry 2% discount. Are Southern Electric taking the regulatory p*ss or what?

"Fixed Discount" is a defining moment for Consumer Focus, if they want to go out on a high.

backfoot

jalexa wrote: »

Now I see that Southern Electric have a new tariff, "Fixed Discount January 2014", not being a "fixed price" tariff at all, but a "variable price tariff" offering lock-in until 2014 for a paltry 2% discount. Are Southern Electric taking the regulatory p*ss or what?

"Fixed Discount" is a defining moment for Consumer Focus, if they want to go out on a high.

It is indeed putting fingers up to the Regulator in the face of the Retail Market Review.

I think CF have shown some positive actions on behalf of customers and I have liaised and got positive reaction to a number of items. Also helped on the gas sculpting NPower issue.

That was why I was surprised at their disinterest in looking to help customers recover false Termination Fees,where they could have made a noise for themselves. Even if it had to be pointed out to them.

Any good Regulatory system would require approval in advance for new tariffs to test them prior to any damage caused to customers by misleading marketing. It doesn't happen as evidenced by the post issue enquiry into SP Direct Oct 2012.

It strikes me that their are any number of posters here who are more aware of the marketplace than the so called custodians.