MSE News: Escape energy lock-ins as prices soar

sorayascot

I'm with EDF on their saver7 rate. I called them to double check th tie in and it is until December. They were adamant that they would charge me £30 if I left before then, so I said I wasn't going to argue but they should read this site.

But after all that, the best saving I can get is £23 with npower (2% below their rate to Nov next year).

Given the hassle I anticipate, I'm not sure that it is going to be worth the frustration level!

Consumerist

sorayascot wrote: »

But after all that, the best saving I can get is £23 with npower (2% below their rate to Nov next year)

If you're talking about the NPower Save Online 23 then the 2% is the minimum discount to their standard tariff. When I did the calculation (medium user, roughly) the discount was over 20% to their standard tariff. So that means they can increase prices by 18% and still remain within their advertised claim.

Additionally, if they increase prices during the term and you switch supplier, you will lose up to £100 of discounts - effectively an additional termination charge.

I would advise caution if you are thinking about taking the NPower Save Online 23 tariff.

t0rt0ise

sorayascot wrote: »

I'm with EDF on their saver7 rate. I called them to double check th tie in and it is until December. They were adamant that they would charge me £30 if I left before then, so I said I wasn't going to argue but they should read this site.

The saver7 tariff is not increasing in November so the early opt-out will not apply. The price increase was in July so if you wanted out you should have gone then.

meggsy

For anyone who uses twitter

http://twitter.com/#!/npowerhq

Consumerist

jalexa wrote: »

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

I think it's actually the earned discount which is forfeited because it will be unpaid.

NJC1

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.

UPDATE

Phoned NPower spoken to a Manager in Customer Services. She has confirmed there will be no early exit fees for my transfer and my annual direct debit bonus will be paid. Beware all of this Npower dirty trick. When I signed up for online 19 the expiry date was 30 September. They wrote to me on 31 August 2011 extending it to 15 October in what appeared a goodwill guesture. They are trying now to say this is your new expiry date and therefore exiting early. They have had to concede today that the original date of 30th is what I signed up for. I have told her that these calls need to stop and she has raised a formal complaint. I am unable to raise this issue with OFGEM as you have to go through 8 weeks of complaints issues with the company first. But I feel that this needs to be brought to the attention of the puplic because what would have happpened if they had targeted an elderly or vulnerable person?

After this experience anybody thinking of signing up to NPower beware because they are fine while all is ok but try to leave them!!

Consumerist

NJC1 wrote: »

I am unable to raise this issue with OFGEM as you have to go through 8 weeks of complaints issues with the company first. But I feel that this needs to be brought to the attention of the puplic because what would have happpened if they had targeted an elderly or vulnerable person?

You can't raise an individual complaint with Ofgem but you can raise one with the Energy Ombudsman if your dispute is unresolved with the energy company.

Since your complaint has, effectively, been resolved what you can, and probably should, do is to raise the issue with Consumer Focus who take such issues on board and can refer them to Ofgem as part of a general issue. Ultimately, they can raise a "super complaint" which the regulator must respond to.

Are you up for it?

bendaw

backfoot wrote: »

EDF never had a policy of charging Cancellation Fees on OS7 following the price rise.

You have simply fallen foul of a dimwit.

Get them to refer the matter to Kerry Butler in CS.

I did that and have just had the following reply from EDF Customer Liaison (not from her though)

"I have looked into your query and I can confirm that you registered with EDF Energy for the Online S@ver Version 7 tariff. When the original contract was agreed, 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 £30.00 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 of 11 July 2011and therefore I have arranged for any early termination fees to be removed from your account as a gesture of goodwill".

Something of a result, though the deal I would have switched to is, of course, no longer available.

Any thoughts on best current deal for low/medium duel fuel?

Thanks

jalexa

bendaw wrote: »

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.

I think the issue here is that to escape an Early Termination Charge it is necessary to give notice to reject a rate increase and then promptly initiate a switch. If I understand other posts OS7 is not currently subject to increase, having been increased a few months ago, at which time, had you been aware, you could have rejected the increase and escaped the ETC.

I have to laugh though at the hardball "which you agreed to be bound by". I'll be turning that attitude back on Edf soon unless the billing system shapes up.

NJC1

Consumerist wrote: »

You can't raise an individual complaint with Ofgem but you can raise one with the Energy Ombudsman if your dispute is unresolved with the energy company.

Since your complaint has, effectively, been resolved what you can, and probably should, do is to raise the issue with Consumer Focus who take such issues on board and can refer them to Ofgem as part of a general issue. Ultimately, they can raise a "super complaint" which the regulator must respond to.

Are you up for it?

Yes

Posted the issue on there web site awaiting a call back. Thanks