MSE News: Escape energy lock-ins as prices soar

backfoot

meggsy wrote: »

backfoot I agree that the 'discount' is in effect an exit fee, could you post your contact again please, was it Ofgem or Consumer Focus ?

As it happens, I have received the following back from Consumer Focus in the last hour.

'As you aware Ofgem is likely to make some significant changes to tariff structures including discounts, these changes will be announced later this year. We do not intend on making any changes to the Code until this has been published. Then, if we need to, we will make changes to the Code to ensure is responsive to market changes. Presently sites do make it clear that the annual forecast you are given is based on things staying the same. As you point out, there are likely to be price rises but we don’t know for sure.

Again, thank you for your comments, we have taken them onboard. We will be reviewing the situation once Ofgem publish the next steps of the Retail Market Review.'

So you will see that CF are parking the issue,perhaps in the thougth/hope,that it will all become simpler and clearer following the Ofgem Review.

I personally, doubt that NPower will alter this dreadful policy voluntarily because, as we regularly see, it catches out customers. Given their Customer Service history, it will be a good barometer of how far and effective the Ofgem Review will be.

In the meantime, it would be nice to see someone challenge the 'deferred discount' issue under the principle that following a price rise, the accrued value, forms part of the principal terms of the contract.

A test before the Energy Ombudsman would be a good starting point.

Consumerist

backfoot wrote: »

As it happens, I have received the following back from Consumer Focus in the last hour.

Lucky you. I have haven't had so much as an acknowledgement of my email to them.

meggsy

I will try Consumer Focus anyway I had a standard reply from npower that there was no refund due.

Also just received Ofgem email - this published today

http://www.ofgem.gov.uk/Pages/MoreInformation.aspx?docid=140&refer=Media/FactSheets

csiman

bendaw wrote: »

Interesting comment from backfoot - especially as I have just received this email from EDF.


"Thank you for your e-mail dated 21st September 2011

I have looked into this for you and I can confirm that you registered with EDF Energy for the Online S@ver Version 7 tariff. When you originally agreed the contract for this, it was explained that it is a variable tariff and therefore subject to price changes. The contract also states that if you change your supplier before the tariff is due to end (the Online S@ver Version 7 tariff ends 31st December 2011) then you may be subject to an early termination fee of £25 per fuel.

EDF Energy is within its rights to charge these termination fees as it was stated in the contract terms and conditions which you agreed to be bound by.

However, I appreciate that you may be unhappy about the price increase and therefore I have completed a quote for you based on your current energy usage to see if any of our other tariffs may benefit you.

We have the Fixed S@ver Version 2 tariff which would only cost you around £4 more per year compared to what you are currently paying with the Online S@ver Version 7 but it has the added bonus that it protects you from any of our price changes up until 30th September 2012.

If you wish to switch to this tariff, we will be more than happy to do this for you if you give us a call.

I hope this e-mail helps and that you will consider staying with EDF Energy"


It's a complete muddle!

Is it an offer worth taking up as a low/medium user?

even there website T&Cs states £30 per fuel but no mention of agreeing to price changes through the contract

think I will just sit it out till 31/12/2011 but would be keen on knowing if that is the earliest date I can try to switch bearing in mind it can take up to 3 months to complete (EDF timescales )

Consumerist

meggsy wrote: »

. . . Also just received Ofgem email - this published today

Do I already hear the sound of cogs awhirring in the minds of the Dirty Tricks Departments of the energy companies looking for any possible loopholes they can exploit or preparing to lobby against any changes they will not be able to circumvent?

This not so much cynicism but more a realisation of, and the resignation to, the truth. I don't see MSE forums (fora?) going out of business on the energy front.

NJC1

I'm with Npower sign online 19 which is due to expire on 30 September 2011. Instigated a switch to Scottish Power at begining of this month and transfer will take place after expiry of my current deal. Had a phone call from Npower yesterday advising that unless I stay with them I will incur two £20 early exit fees as I instigated the exit before the 30th. Re read my terms and it states that the exit fee will become payable 'if before 30th September 2011 you change your supplier or tariff for electricity or gas or both' on the 30th my supplier will still be Npower Sign Online 19 tariff! I have sent a complaint to them about this yesterday and await there response. You couldn't make it up what sales pitch they will try to keep you.

backfoot

NJC1 wrote: »

I'm with Npower sign online 19 which is due to expire on 30 September 2011. Instigated a switch to Scottish Power at begining of this month and transfer will take place after expiry of my current deal. Had a phone call from Npower yesterday advising that unless I stay with them I will incur two £20 early exit fees as I instigated the exit before the 30th. Re read my terms and it states that the exit fee will become payable 'if before 30th September 2011 you change your supplier or tariff for electricity or gas or both' on the 30th my supplier will still be Npower Sign Online 19 tariff! I have sent a complaint to them about this yesterday and await there response. You couldn't make it up what sales pitch they will try to keep you.

Not so much of sales pitch but a License Condition breach.

Shameful.

Consumerist

NJC1 wrote: »

. . . I have sent a complaint to them about this yesterday and await there response.

Hi NJC1 and welcome to the MSE forum.

Please let us know how NPower react to your complaint.

jalexa

NJC1 wrote: »

I have sent a complaint to them about this yesterday and await there response. You couldn't make it up what sales pitch they will try to keep you.

And there is another thing. NPower would not have found out about the impending transfer until the expiry of the "cooling-off" period. At that stage the transfer cannot be cancelled so any early exit fees actually liable could not have been avoided. And any early exit fees applicable to your new tariff.

Is this the "new improved" Npower resulting from "Undercover Boss"?

I take it you realise you will however forfeit any unearned "deferred discount":eek:.

NJC1

jalexa wrote: »

And there is another thing. NPower would not have found out about the impending transfer until the expiry of the "cooling-off" period. At that stage the transfer cannot be cancelled so any early exit fees actually liable could not have been avoided. And any early exit fees applicable to your new tariff.

Is this the "new improved" Npower resulting from "Undercover Boss"?

I take it you realise you will however forfeit any unearned "deferred discount":eek:.

Yes thanks they have confirmed that they have paid my annual discount bonus and it will appear on my next statement.