MSE News: Escape energy lock-ins as prices soar

Consumerist

backfoot wrote: »

The logic being?

As far as I can see, there is no logic to it but that's my interpretation of what Ofgem have to say in the article.

jalexa

Consumerist wrote: »

As far as I can see, there is no logic to it but that's my interpretation of what Ofgem have to say in the article.

But this goes back full circle to what was my original "quibble" with your position, which was that in the MSE author's article, the "quotes" (quoting an alleged Ofgem position on something or other) ceased before the contentious interpretation on "guaranteed discount" termination was asserted (by the MSE article author).

Who comes out of this with little credit.

A "technical argument" I realise, but I think my "quotes" comment is accurate, even if not yet acknowledged by you.

And BTW, although I have a (strong) opinion on the matter, not half as strong as my concern about the "deafening regulatory silence". Unless I have missed something, Ofgem (and Consumer Focus) have said nothing. And nothing on the "15 day" issue either. Though I excused that because it was Saturday and "pen-pushers" don't work Saturday.

At least you have stated your (strong) opinion. Something I acknowledge.

nickp8

nickp8 wrote: »

** IMPORTANT INFO **

I havent read the whole thread so someone else may have mentioned this but dont ring to cancel with your current supplier before or straight after you have applied to switch to a new supplier.

Reason for this is for e.g. in the case with British Gas say once you apply to leave, to do so without any exit fees they need notification from the new supplier within 15 days that your switiching to them. Not sure if they are allowed to put a time limit on this?

Due to the rules when switching supplier the first 14 days you have a cooling off period so the new supplier does not actually start the process of transferring you over till after the 14 days cooling off period.

So wait till you are a week or more into the cooling off period before you ring your existing supplier to give notification you are switching, so they will receive the notification your switiching from your new supplier within 15 days.

I am switching to an EOn fixed tariff. 14 day cooling off period ends in 2 days. Rang British Gas today and I didnt even need to mention the ofcom statement etc, the CS advisor said she will fill in the necessary form and there will be no exit fee as long as they are informed by the new supplier within 15 days we are switching to them.

I think many people will be caught out regarding the above.

Further more to my original post we signed up with our new provider on the 13th July. Contacted British Gas on 25th July to give notification we were leaving and they stated they need notification from the new supplier within 15 days. BG called yesterday 30th July to say they had received notification from the new supplier that we were switching over. So as stated it does indeed seem the new supplier wont contact your current supplier till after the 14 day cooling off period.

gazjoneswales

nickp8 wrote: »

Further more to my original post we signed up with our new provider on the 13th July. Contacted British Gas on 25th July to give notification we were leaving and they stated they need notification from the new supplier within 15 days. BG called yesterday 30th July to say they had received notification from the new supplier that we were switching over. So as stated it does indeed seem the new supplier wont contact your current supplier till after the 14 day cooling off period.

Or bg called you a few days after they received notification?

Consumerist

jalexa wrote: »

At least you have stated your (strong) opinion. Something I acknowledge.

It is just an opinion, not particularly strongly held, and offered as part of the discussion (without lecturing). But I accept that you don't understand the actual position any more than I do until the regulator makes things clearer.

jalexa

Consumerist wrote: »

It is just an opinion

Some interesting coverage of the issue here...

https://forums.moneysavingexpert.com/discussion/3392982

Consumerist

jalexa wrote: »

Some interesting coverage of the issue here...https://forums.moneysavingexpert.com/discussion/3392982

Thanks for that link. An interesting read.

I think that, in the end, only a reference to the ombudsman is going to give us a definitive resolution to this question. I'm glad the process is already under way and we can only wish meherenow good luck.

backfoot

Consumerist wrote: »

Thanks for that link. An interesting read.

I think that, in the end, only a reference to the ombudsman is going to give us a definitive resolution to this question. I'm glad the process is already under way and we can only wish meherenow good luck.

I think mereherenow is doing a great job. The situation will not go to the Ombudsman for a ruling because EDf have waived all termination fees and will allow a price hold on all switches away from all their online tariffs. Regretably no one has told the sharp end of the operation.

It is quite clear to me, that Ofgem's licence condition 23.4 (c) has been exploited previously by Suppliers. They have, over time introduced new tariffs, carefully worded to circumvent the intention of the condition by arguing that putting up the price on certain contracts does not constitute a 'unilateral variation'.

They got away with it when price rises were less than 5% or around that level. Faced with the 20% increases seen recently, the game is up and their ruse is plain to see. Already EDF, BG and SSE have conceded the point. Happy to add others if they want to come forward.

Even if, they could sustain such an argment in law,which I personally doubt, a savvy Regulator would simply amend the licence condition to make it a catch all for all variable tariffs.

If they didn't, it would be the grossest example to date of their inabilty to control suppliers and adopt competitve practices.

Three Supplier's have seen the writing on the wall and EDF's Commercial Solicitor told me a few months back when I personally raised it that this issue was already conceded as far as they were concerned.

I have asked Ofgem to advise and whether they will respond or not is to be seen. I won't let up on the principle even though people like MSE have just accepted it at face value without understanding the implications.

If EDF's admin is so bad as to let it run through to the Ombudsman then great as it will add fuel to the fire. In the meantime, other customers will probably have to suffer the painful process or end up paying £60 when they shouldn't have to.

Consumerist

backfoot wrote: »

If EDF's admin is so bad as to let it run through to the Ombudsman then great as it will add fuel to the fire. In the meantime, other customers will probably have to suffer the painful process or end up paying £60 when they shouldn't have to.

Must confess I seem to have got myself out of the loop here, I wasn't aware that EDF had announced any price rises since February; I've only heard about Scottish Power, BG & SSE. Was that a typo or have they announced something?

Edit
It seems, from the Energy Helpline website that E.ON and npower will announce price increases this week. Don't know the detail.

backfoot

Consumerist wrote: »

Must confess I seem to have got myself out of the loop here, I wasn't aware that EDF had announced any price rises since February; I've only heard about Scottish Power, BG & SSE. Was that a typo or have they announced something?

Edit
It seems, from the Energy Helpline website that E.ON and npower will announce price increases this week. Don't know the detail.

EDF increased its prices on most of it's tariffs following the winter price freeze promotion.


http://www.edfenergy.com/products-services/for-your-home/winter-price-freeze/EDF-Energy-winter-price-freeze-2011.shtml

However, a number of online tariffs were not included.

On the 14/7/11 some other tariffs including the infamous OS7 were also increased.(mereherenow is on OS7.)