MSE News: Escape energy lock-ins as prices soar

backfoot

Thanks Meggsy :j

Hannah Mummery,mentioned in the article, is one the people who I have been liasing with regarding the ongoing issues with exit fees, after the Ofgem Guidance.

I know they are keeping a close eye on this and it is clear that they have picked up the ongoing failures of the Suppliers. I wonder how

This sort of publicity puts the Suppliers definately on the backfoot.:D

DTDfanBoy

gentlebloke wrote: »

* One of Scottish Power amended conditions

5.8 If [FONT=Dialog,Dialog][FONT=Dialog,Dialog]we [/FONT][/FONT]increase the price or vary other terms of the [FONT=Dialog,Dialog][FONT=Dialog,Dialog]Agreement [/FONT][/FONT]to [FONT=Dialog,Dialog][FONT=Dialog,Dialog]your [/FONT][/FONT]significant disadvantage [FONT=Dialog,Dialog][FONT=Dialog,Dialog]we [/FONT][/FONT]will notify [FONT=Dialog,Dialog][FONT=Dialog,Dialog]you [/FONT][/FONT]of that increase or variation by giving [FONT=Dialog,Dialog][FONT=Dialog,Dialog]you [/FONT][/FONT]at least 30 calendar days’ notice before the date the increase or variation takes effect. If you do not accept the increase or variation [FONT=Dialog,Dialog][FONT=Dialog,Dialog]you [/FONT][/FONT]are entitled to end the [FONT=Dialog,Dialog][FONT=Dialog,Dialog]Agreement [/FONT][/FONT]by giving [FONT=Dialog,Dialog][FONT=Dialog,Dialog]us [/FONT][/FONT]notice to end the [FONT=Dialog,Dialog][FONT=Dialog,Dialog]Agreement[/FONT][/FONT], at any time prior to that increase or variation taking effect[FONT=Dialog,Dialog][FONT=Dialog,Dialog]. [/FONT][/FONT]If [FONT=Dialog,Dialog][FONT=Dialog,Dialog]you [/FONT][/FONT]give [FONT=Dialog,Dialog][FONT=Dialog,Dialog]us [/FONT][/FONT]that notice, the increase or variation will not take place. However the increase or variation will come into effect if, within 15 [FONT=Dialog,Dialog][FONT=Dialog,Dialog]Working Days [/FONT][/FONT]of [FONT=Dialog,Dialog][FONT=Dialog,Dialog]you [/FONT][/FONT]giving that notice to [FONT=Dialog,Dialog][FONT=Dialog,Dialog]us[/FONT][/FONT], [FONT=Dialog,Dialog][FONT=Dialog,Dialog]we [/FONT][/FONT]do not receive notification through the relevant supply industry processes that another [FONT=Dialog,Dialog][FONT=Dialog,Dialog]Gas Supplier [/FONT][/FONT]will begin to supply the [FONT=Dialog,Dialog][FONT=Dialog,Dialog]Premises [/FONT][/FONT]within a reasonable period of time after that notice has been given by [FONT=Dialog,Dialog][FONT=Dialog,Dialog]you[/FONT][/FONT].

Do you have any other completely baseless claims you'd like to be disproved

And just where does it say you won't be charged for ending?[/QUOTE]

Here you go,

*If you notify us that you wish to cancel your agreement before 1st August 2011 and we receive a request for your supply from another supplier within 15 working days, we will not apply the price increase or the cancellation fee for your product. If you have an outstanding debt, we may object to your supply leaving us, but we will give you time to pay the debt and leave us without incurring the increased prices.

Deputy_Dawg

Thanks for the article about lock in charges on 21 Sept. I had queried with NPower but was told (very nicely) there was nothing they could do even if I was staying with another of their own deals.

Challenged this today even though it is 3 days after the 1 October deadline and was told there was no issue of paying lock in charges if I was staying with them - only if I moved supplier. I told the guy I believed that wasnt right but didnt make an issue of it as I was staying.

Only thing that I kick myself for is that I could have got an even better deal if I had moved a bit faster before it was withdrawn.

Still better than nowt

Consumerist

Deputy_Dawg wrote: »

I was told there was no issue of paying lock in charges if I was staying with them - only if I moved supplier. . .

I would be cautious about accepting anything you may be told over the phone. Wait till you get the bill / statement. Keep a note of the name of the person you spoke to and the date of the conversation. Once you get your bill, you may need them.

Edit
From the Telegraph article referred to in a previous post by meggsy.

Npower said customers who tried to leave its fixed-term variable-rate tariffs should not be charged a fee. This included customers on its popular Sign Online tariff. A spokesman said the terms and conditions were "complex"

Consumerist

I've just had a reply regarding my email to Consumer Focus (post #169), as follows :-

Dear xxxx

Firstly apologies in the delay in responding to you. Your original email did not make it through the system to me unfortunately.

We have had long-term concerns around the visibility and complexity of tariff structures, and how and when discounts are applied or when they expire. We consulted on the issue of discounts during the Confidence Code consultation exercise last year. I have attached a link to the Consumer Focus page on the consultation exercise – ‘Improving the Code’. http://www.consumerfocus.org.uk/get-advice/energy/confidence-code/improving-the-confidence-code

We are looking internally at your question about discounts and the Confidence Code and have approached Ofgem’s legal team for further guidance on SLC 23 and 24. We are waiting for clarification on whether discounts are a contractual term.

We share your concerns that energy tariffs are overly confusing and often appear to be designed to frustrate consumers rather than help them. For our views on this topic please see our response to Ofgem’s consultation on reforming the retail energy market (http://www.consumerfocus.org.uk/files/2009/06/Consumer-Focus-response-to-Ofgem-Retail-Market-Review.pdf ) and our recent report “Missing the mark” (http://www.consumerfocus.org.uk/publications/missing-the-mark-consumers-energy-bills-annual-statements-and-behaviour-change ).

Also please see attached a letter that Consumer Focus have sent to the energy regulator, Ofgem, dated December 2010. You will find that the letter summarises our view on the complex energy process. Ofgem has made some proposals in their Retail Market Review to tackle the worse of it. We are working on a follow up letter to Ofgem which includes the issue of dubious discounts, this should be published shortly.

I hope this has been useful to you, please let me know if you have any more questions.

Best regards

So something appears to be in the works at the moment. I'll see if I can find an online copy of that letter dated December 2010 and post a link to it.

backfoot

Very good work. The reply reflects a similar response that I received a month or so back.

However,it has moved on a bit in seeking legal opinion and continued pressure for tariff clarity.

It confirms that on important issues we are influencing the customer facing issues by well made representations. You are probably aware from other threads, of other important issues, where similar progress is being made.

Keep it up:T

meggsy

.... and here is mine, email sent on 23rd September, reply received on 3rd November ...

"Thank you for your email, i apologise for the delay in replying to you.

To address your points in turn:

1. We are aware that consumers often find energy tariffs confusing and difficult to understand which is why we wrote to Ofgem the industry regulator expressing concern about confusing tariffs. You may be aware that since then Ofgem have announced plans to force all suppliers to drastically simplify the tariff they offer – this should also address issues of deferred discounts.


2. As you will be aware Ofgem recently ruled that suppliers cannot prevent people on fixed term deals form leaving after a price rise. If you were charged a termination fee after exercising your right to switch following a price rise i suggest you write to npower and request a refund. However we are looking into the issue of discounts – discounts often are an incentive not a contractual term so if your tariff offers a discount after a 12 month period and you leave before this you may lose your right to the discount., however we are currently checking this with Ofgem.

3. Direct debit tariffs work on a “smoothing principal” that is you pay a fixed rate all year - overpaying in summer in order to cover your extra winter usage. You can ensure your supplier only raising your direct debit amount in line with your usage by ensuring you provide them with regular monthly meter readings. If you feel that your supplier has allowed your direct debit payments to build up a very large credit you are entitled to request that it is returned to you.

I hope that this has helped"

Now awaiting a reply to follow-up email regarding zero spring balances

Consumerist

meggsy wrote: »

. . . If you feel that your supplier has allowed your direct debit payments to build up a very large credit you are entitled to request that it is returned to you.

The obvious point which Consumer Focus seem to have missed here is that you can "request" till you're blue in the face but you cannot "insist". Whilst I accept that there may be good reasons for that, I do think some credit-balance limits need to be set to protect consumers from unreasonable DD payments.

backfoot

meggsy wrote: »

.... and here is mine, email sent on 23rd September, reply received on 3rd November ...

"Thank you for your email, i apologise for the delay in replying to you.

To address your points in turn:

1. We are aware that consumers often find energy tariffs confusing and difficult to understand which is why we wrote to Ofgem the industry regulator expressing concern about confusing tariffs. You may be aware that since then Ofgem have announced plans to force all suppliers to drastically simplify the tariff they offer – this should also address issues of deferred discounts.


2. As you will be aware Ofgem recently ruled that suppliers cannot prevent people on fixed term deals form leaving after a price rise. If you were charged a termination fee after exercising your right to switch following a price rise i suggest you write to npower and request a refund. However we are looking into the issue of discounts – discounts often are an incentive not a contractual term so if your tariff offers a discount after a 12 month period and you leave before this you may lose your right to the discount., however we are currently checking this with Ofgem.

3. Direct debit tariffs work on a “smoothing principal” that is you pay a fixed rate all year - overpaying in summer in order to cover your extra winter usage. You can ensure your supplier only raising your direct debit amount in line with your usage by ensuring you provide them with regular monthly meter readings. If you feel that your supplier has allowed your direct debit payments to build up a very large credit you are entitled to request that it is returned to you.

I hope that this has helped"

Now awaiting a reply to follow-up email regarding zero spring balances

Great stuff Meggsy as usual. :T

Very pleased to hear about the zero spring policy referal. That will add to representations made by other regular posters. Some have been made to CF and others to Ofgem.

You kept that quiet....

It also looks like the deferred discount policy is coming under some pressure.

Well done to all those who are trying to shift the playing field on these policy matters which penalise customers.

footboy

I've been charged an early termination fee on my final Electricity bill for both gas and elec OnlineSaver7 at £30 each by EDF.

I notified EDF that I did not accept their price rise on the 16 Jun 2011 that was due to take place on the 14 Jul 2011 and that I would be switching to nPower.

I have today made a complaint by email to EDF that I have been charged the early termination fees despite my letter to them not accepting the price rise and initiating a supplier move.

Does this sound right to you?

Thanks
Steve