MSE News: Escape energy lock-ins as prices soar

Consumerist

Ok. For better or worse it's gone as is.

Consumerist

backfoot wrote: »

I could minor wordsmith it for ages

Know what you mean. Me too but I've been a bit pushed for time recently.

Anyway, thanks again for your input and let's hope that more MSE-ers can pick up the baton and send something similar to CF, Ofgem or any other consumer organisation/forum who may be interested - Watchdog? Radio 4's Money Box? etc.

If we make enough noise between us, someone might do something.

superfluffydinosaurs

My 2 year duel fuel fixed rated deal with British Gas ends September 2011 and I switched earlier this month.
I wrote in quoting the Ofgem rules to say no thanks to a £60 early termination fine. (Even if its only a month or so)

Today I gave BG my final meter readings and they have applied the fine, but if the ofgem proposals are adopted for fixed rate customers them may be forced to pay it back at a later date.

How do I right to ofgem to encourage them to see things our way and would should we say?

backfoot

superfluffydinosaurs wrote: »

My 2 year duel fuel fixed rated deal with British Gas ends September 2011 and I switched earlier this month.
I wrote in quoting the Ofgem rules to say no thanks to a £60 early termination fine. (Even if its only a month or so)

Today I gave BG my final meter readings and they have applied the fine, but if the ofgem proposals are adopted for fixed rate customers them may be forced to pay it back at a later date.

How do I right to ofgem to encourage them to see things our way and would should we say?

If I understand you correctly you are terminating a fixed rate deal early. It is understandable for the Supplier's to charge termination fees for such tariffs.

The Ofgem guidance will not apply to a fixed rate deal.

Which product was it? Posters will be able to confirm whether it is a fixed,discounted, capped or variable product.

Consumerist

superfluffydinosaurs wrote: »

My 2 year duel fuel fixed rated deal with British Gas ends September 2011 and I switched earlier this month.

If your rates were fixed two years ago then you must have been getting comparatively good rates from it so why did you switch early? If you had posted within 14 days of your request to switch, you may have been advised to cancel but it's probably too late now.

As backfoot has said, termination fees are allowed on fixed-rate tariffs so, unfortunately, BG are within their rights.

fewkeste

On the 17th August I rang British Gas to tell them I was rejecting their electricity price rise. Discussed the cancellation fee - no problem they're not even trying. Did a comparison and selected LoCO2 Pocket as the supplier and tariff I wanted for electricity only. Initiated the switch via Quidco and energyhelpline but unfortunately I only get one payment - from Quidco only. Be aware - to get the money from energyhelpline you have to click through from the MSE web page.

Frustration now:mad: the paperwork has arrived from LoCO2 and the rates have gone up/will go up on October 1st compared to the rates I saw when I did the comparison and my calculations.:mad:

I've been trying to find a geographic number for LoCO2 but can't find one. Anyone got one? - I have to pay for 0845/0870 numbers so am reluctant to call them unless I absolutely have to.

Consumerist

fewkeste wrote: »

. . . I've been trying to find a geographic number for LoCO2 but can't find one. Anyone got one? - I have to pay for 0845/0870 numbers so am reluctant to call them unless I absolutely have to.

Can't find a geo number but you could try emailing them: [EMAIL="customerservices@loco2energy.com"]customerservices@loco2energy.com[/EMAIL]

Other contact details can be found <here>

Hope this helps.

martinfan1

I am with Eon (dual fuel), on their SaveOnline 4 tariff which is variable, paid by monthly direct debit. As they are hiking prices in September, I have just phoned them to query whether I can leave them before my year's term is up (middle January 2012), to be told there will be a £30 fee unless I choose a different tariff with Eon, in which case there is no charge.

This seems to be at odds with what I'm reading in this forum. Do they have the right to insist on a charge like this? As I received £30 via a comparison website for joining them (thanks Martin!), it's not actually too bad, but if they are not correct I don't like to see them taking advantage.

Keep warm this winter

jalexa

martinfan1 wrote: »

I have just phoned them to query whether I can leave them before my year's term is up (middle January 2012), to be told there will be a £30 fee unless I choose a different tariff with Eon, in which case there is no charge.

This seems to be at odds with what I'm reading in this forum

Who knows what weasel words they used.

The most recent forum reports of Eon practice are in accordance with recent Ofgem guidance.

To avoid the "early termination fee" you must "reject the increase" with Eon, anytime before the increase date, then promptly initiate a switch. If the switch completes satisfactorily you will pay neither the "early termination fee" nor the "hiked" tariff.

The reason for being "prompt" with the switch is because the gaining supplier must notify the losing supplier within 15 working days (of your "notice to reject". Though that is a worry on the face of it I have not seen forum reports of gaining supplier failure to comply.

Consumerist

It is not uncommon for CS staff to be uninformed so I would call again and refer to the Ofgem guidance letter of 16 August 2011 regarding their (Ofgem's) interpretation of SLC 23. Ask to speak to a manager if necessary.

Ofgem have indicated that they will change the wording of the Licence Conditions if the energy suppliers don't play ball. Ultimately, you can make a complaint to the Energy Ombudsman if E.on insist on charging termination fees.

Perhaps you could post again to let us know how you get on. It may help others to know whether your approach works.