MSE News: Escape energy lock-ins as prices soar

Consumerist

I would question the wisdom of switching to a variable tariff which charges exit fees.

In the greater scheme of things, I wouldn't worry too much about being on a higher (variable) tariff for a short period in order to ensure you don't pay exit charges when you switch. The additional cost to you will only be the difference between the prices of the new tariff and the old tariff at Summer consumption levels.

jalexa

planetf1 wrote: »

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?

Not as I think you have put it. You need to "reject the increase" with BG any time before the BG increase date. Then (Eon) must notify BG within 15 days after *you* notified BG. So if you promptly begin the switch with Eon there are no (defensible) grounds for the 15 days not being achieved.

I offer no comment whether your tariff choice is sound or not.

planetf1

I probably didn't explain clearly -- I am aware I need to notify BG -- so I'm leaving it until Thursday (last day).

Since I signed up with EON yesterday they will have a 14/15 timer ticking, so my issue was whether they'll be prompt enough to notify BG within the (thursday: the day I notify BG) + (eons 14 day cooling off period)

I'm hopeful but not certain .. by leaving my notification to BG until Thursday I'm trying to maximise that window..

Consumerist

planetf1 wrote: »

I probably didn't explain clearly -- I am aware I need to notify BG -- so I'm leaving it until Thursday (last day).

E.on will almost certainly notify BG 14 days after you applied to switch. If you waited a few days after applying to E.on before notifying BG then you should be ok to meet the 15-day deadline with BG.

As mentioned in my previous post, in the worst case you might pay BG's variable rate for a month while the switch takes place but that seems unlikely from what you have said.

backfoot

Consumerist wrote: »

I would question the wisdom of switching to a variable tariff which charges exit fees.

No longer a problem. Ofgem have banned Termination Fees being charged following a price increase.:D


No exceptions.

Consumerist

backfoot wrote: »

No longer a problem. Ofgem have banned Termination Fees being charged following a price increase.
No exceptions.

That's great news. Thanks. Any source for that information?

backfoot

Consumerist wrote: »

That's great news. Thanks. Any source for that information?

https://forums.moneysavingexpert.com/discussion/3427121

backfoot

Link to Ofgem Ruling included in this thread.

http://www.ofgem.gov.uk/MARKETS/RETMKTS/COMPL/PRICECHANGE/Documents1/Guidance%20letter%20on%20SLC%2023.pdf

NO TERMINATION FEES FOLLOWING PRICE INCREASES.

No exceptions.

:D

jalexa

backfoot wrote: »

Link to Ofgem Ruling included in this thread.

http://www.ofgem.gov.uk/MARKETS/RETMKTS/COMPL/PRICECHANGE/Documents1/Guidance%20letter%20on%20SLC%2023.pdf

Well done again.

Given the text at 1.4 of the ruling "...always of the view.....intended to capture..." time for :oMSE Guy:o to make copious use of :o:o:o methinks.

And a slight caution, not to detract from the ruling, given that 1.5 refers to compliance "being subject to the requirements of SLC 23", I think that means the increase must still be "rejected" in accordance with SLC 23.

mjmal51

Good to have an official ruling. However as I posted elsewhere BG did impose £30/fuel exit fees on me in the past week despite previous e mails saying they would not.
When I phoned BG and explained both charges were reversed. So just keep an eye out when accounts are closed.
My suspicion is that their computers are still programmed this way at the moment.