MSE News: Escape energy lock-ins as prices soar

davidgmmafan

I don't think its as bad as I first thought in relation to timescales. If the cooling off period if 14 days and the old supplier has to be notified within 15 working days that's plenty of time. Ten working days is two weeks, so unless the new supplier is half asleep it should be fine. If that were the case then you get to try out their own complaints procedure.

I kinda see where people are coming from a bit more with their criticism of consumer focus now maybe they should be saying something rather than nothing, but I still maintain if the suppliers have been finding ways round the license conditions or those conditions aren't clear this MUST be Ofgem's fault. Like when they said N Power interpreted a rule which was meant to benefit prepayment customers to apply to ALL customers. If the rule is unclear or not working then draft it CLEARLY and REMOVE the loopholes. What other reason is there for Ofgem to exist?

At the moment we have the worst of all possible outcomes. Ofgem survives because it is cheap but hopeless, and CF gets the chop because it costs money even though with gas sculpting alone it has paid for itself many times over...

sly_dog_jonah

*BUMP*

EON's rises announced today mean SaveOnline v3 will be hiked 24.9% in SWEB region. Yikes.

I've initiated a switch to EDF Fixed S@ver v2 but haven't had success with EON so far at avoiding the £30 exit fee, after quoting the MSE news article to them and them checking with several layers of management.

Their argument is SaveOnline v3 is defined as a discount of 'at least 6% off standard rates' thus seem to think they can hike the prices as much as they like so long as it remains at least 6% below standard tarrif, and still charge the exit fee.

I've just checked my very small print (font size <8pt?) and under term "3 Changes to prices or this contract" it says you can cancel after 'significantly detrimental' price changes, but that only the prices changes will be waived while you switch away. There's no mention of the exit penalty being waived.

So my next tactic is going to be to try to find out if I can switch to their new fixed price (but no exit fee) 2 year tariff launched today (E.ON Fixed Price October 2013) so long as they don't charge the £30 fee to do so.

I won't proceed with the tarrif switch just yet (but I'll phone and enquire), as I have a feeling EON might have a similar change of heart like BG and ScottishPower and waive exit fees for variable tarrif customers, and I don't want to pay any more than I need to before the switchover (since the fix is more expensive than SOv3).

STOP PRESS! :-)

The news article has been updated (check the bottom third):-
http://www.moneysavingexpert.com/news/utilities/2011/08/eon-is-latest-to-announce-energy-price-rises

I think I might just wait a couple of days until this info propagates down to the CSAs before I phone up! :T

Consumerist

sly_dog_jonah wrote: »

STOP PRESS!
The news article has been updated (check the bottom third):-
http://www.moneysavingexpert.com/news/utilities/2011/08/eon-is-latest-to-announce-energy-price-rises

It's good news that E.on is waiving its exit charges for the linked tariffs but the bad news is that none of the energy companies seems, yet, to be admitting that the price rises constitute an effective change to the terms of contract.

jalexa

Consumerist wrote: »

the bad news is that none of the energy companies seems, yet, to be admitting that the price rises constitute an effective change to the terms of contract.

I speculate that is because they recognise that "in the round" it is an "unwinnable" argument (for the regulatory reasons backfoot has clearly stated), though if you read my posts very carefully you may see that I recognise how regulation 24.3 might have a different narrow meaning in isolation (huh, your argument I concede)

However I see a very weak supplier argument as follows..

1. some suppliers have (in print) described "guaranteed discount" as "variable".

2. the clause which gives consumers the right to temporarily stay an increase is 23.3 (not 23.4). It refers to "varying a term of the contract" yet even in standard "variable" tariffs the unit price is an implied term. Nobody is saying that customers of a standard variable tariff don't have the right stay an increase.

3. see 1. therefore it is the price *increase* which is the issue, nothing else.

4. Ofgem (bless them) and Consumer Focus [RIP] are *big* on consumers being able to stay an increase and will see it done, by Regulation if necessary.

5. To avoid an ETC, 24.3 requires a "term not varied" interpretation which I suggest would not enable the increase to be stayed. *Nobody* (well except Edf briefly) is saying "guaranteed discount" customers don't have a right to stay an increase.

I rest my case. But as backfoot knows, my argument isn't infallible.

backfoot

I believe Eon were one of the first to recognise that the Termination Fee was a dead duck. Others have followed and it will be a silly strategy for anyone to take on their customers now.

I imagine behind the scenes,they have been quietly ushered towards the 'exit'

EDf got it wrong for a while through poor admin, not policy, but we are used to that.:)

I am still waiting for Ofgem Consumer Affairs to let me know what they think. They have 10 working days according to their auto response back to me. Whether they come up with anything positive for customers is yet to be seen. It would indeed be a rarity.

backfoot

Consumerist wrote: »

It's good news that E.on is waiving its exit charges for the linked tariffs but the bad news is that none of the energy companies seems, yet, to be admitting that the price rises constitute an effective change to the terms of contract.

It's probably tactical for them to make a half way gesture. If they made a legal admission, then it would open the way for previous charges to be returned to customers.

While they can still muddy the waters, and be seen to be doing the right thing now, then they are attempting to buy the Regulator's favour.

wakeupalarm

With inflation at around 5%, what happens in the next round of price increases when say the energy companies only raise prices say 4-6%.

The exit fees will remain and the energy companies will argue that its not a significant increase. This is a tatic that the mobile phone companies have used in the past when changing prices in contract.

With the energy companies backing down on this round, and nothing in writing, their argument stays in place for the next increases.

backfoot

wakeupalarm wrote: »

With inflation at around 5%, what happens in the next round of price increases when say the energy companies only raise prices say 4-6%.

The exit fees will remain and the energy companies will argue that its not a significant increase. This is a tatic that the mobile phone companies have used in the past when changing prices in contract.

With the energy companies backing down on this round, and nothing in writing, their argument stays in place for the next increases.

Hence why I have lobbied Ofgem.

Have to say I don't know anybody else who has, so just one formal objection may not carry much weight.

meherenow

I've had some good news which I posted over on the thread I started - no price increase OR exit fee for me on EDF OS7 tariff - good news indeed, however I was certainly willing to push the point with EDF.

I don't see why companies should just make up some terms & conditions that seem to defy regulations and expect us to slavishly follow on. :mad:

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

planetf1

Trying to figure out if I've left this too late...

I'm on BG WebSaver 11 dual fuel.
I have until 18th August (seemingly 6pm) to notify them I wish to leave under the price change rules.
I applied for EON SaveOnline 9 *today* just after 6pm

I gather BG require notification from the new supplier within a certain period - I think it's 2 weeks? followed by a switch within some unspecified period, but applying old rates for 30 days.

* When would EON notify British Gas. With just 2 days spare, will they notify BG in time?
* I've already emailed EON, anything I can do to persuade them to notify BG promptly as per the required timetable?
* If the timing is not met, will the transfer be blocked or allowed but with cancelation fees levied.

My estimated saving is "only" around £140. Add £50 cashback, but take away £42 IGT. So even paying fees it still makes sense to switch, but I'd rather not!