MSE News: Escape energy lock-ins as prices soar

cdsheldon

cdsheldon wrote: »

I'm on British Gas WebSaver 11 tariff for electricity, and in my area, on the Economy 7 tariff, day units are going up by 23% and night units by a massive 38%. I've already asked British Gas if they will wave the £30 penalty charge if I switch to another suppler but they have told me they won't.

Further to my original posting, I am pleased to report that I have now received the following email from British Gas:

"Thank you for your email. I'm sorry for the confusion caused by my earlier email.

I confirm that British Gas has now decided to waive any cancellation fees attached to our variable tariff's.

I'm sorry to hear that you are deciding to leave British Gas; however, I do confirm that no penalty charges will be added to your account if you decide to withdraw from us."

Unfortunately the best of the fixed rate deals have now been pulled!

mozz100

Success - thanks again MSE. I phoned just now - leaving Websaver 11 for both Gas and Electricity so as to switch to a fixed tariff.

It felt weird but it worked. I encourage others to do the same if they feel it's right for them, especially asking BG to make a note of the fact on their account.

This isn't the exact conversation, but it's pretty close:

Me: "er, I'm ringing to tell you that I'm leaving British Gas."
BG: "Right, OK - you need to get your new supplier to contact us, then that's fine."
Me: "Oh, and, er, it says here that I don't have to pay a cancellation charge."
BG: "What tariff are you on? Websaver 11? Yes, there is a cancellation charge"
Me (getting ready for a fight): "Well, there's this website, and it says I don't have to."
BG: "OK then."
Me: "Oh, right."
BG: "Confirm your account numbers and we'll put a note on your accounts to say so."

Job done.

superfluffydinosaurs

Have sent my letter today quoting the OFGEM Supply Licence Condition 23, etc. I'm on Fixed Rate 2011 which runs out in September.

Have changed to another supplier to a cheaper than present 2 year fixed rate, plus I get £40 from sure switch - another one of your tips.

[FONT=Arial, sans-serif]My Gas Fixed Price 2011 deal states[/FONT]


[FONT=Arial, sans-serif]You will not be affected by any price changes until 30th September 2011. [/FONT]
[FONT=Arial, sans-serif]If prices increase in the future, your tariff will not be affected. [/FONT]
[FONT=Arial, sans-serif]Cancellation fee of £30 for electricity and £70 for Gas if you change supplier and/or tariff prior to 30th September 2011.
[/FONT]


[FONT=Arial, sans-serif]I certainly hope I can get out paying this fine.
[/FONT]

Consumerist

jalexa wrote: »

I don't find your post unacceptable, . . .

Well, thank you very much for your largess. Honoured, I'm sure.

jalexa

Consumerist wrote: »

Well, thank you very much for your largess. Honoured, I'm sure.

Why do you focus on my slightly awkward throwaway remark and not on the substantive issue of the debate?

Do you accept the Ofgem "non-quote" which you "quoted" as a "reasonable" interpretation of 24.3(c)? Do you accept it as a "legally correct" interpretation?

Anyway no need to feel dishonoured, MSE hasn't clarified either.

But I note that according to Forum posts BG are taking a "sensible" approach, by "sensible" I mean less costly than a few Energy Ombudsman referals.

davidgmmafan

Virtually every time there is confusion or bad practice in the area of gas and electricity supply Ofgem is somehow involved or at least that's the way to me. The Ofgem position is an clear as mud, and this reminds of when Npower used an Ofgem condition to RAISE prices. The rule was meant to stop prepayment customer being charged more but NPower interpreted it to mean people could only be on a discounted tariff for a limited period of time.

Ofgem even said at the time this wasn't thier intention but that's really the point isn't it? It wasn't clear enough so it was open to interpretation and abuse. Same thing applies here, I have no idea what they are actually saying, but the companies are playing it safe.

Why don't they clarify it? I'm sure Consumer Focus can once again show them how to do thier job if they're not sure...

jalexa

davidgmmafan wrote: »

Virtually every time there is confusion or bad practice in the area of gas and electricity supply Ofgem is somehow involved or at least that's the way to me. The Ofgem position is an clear as mud, and this reminds of when Npower used an Ofgem condition to RAISE prices. The rule was meant to stop prepayment customer being charged more but NPower interpreted it to mean people could only be on a discounted tariff for a limited period of time.

Ofgem even said at the time this wasn't thier intention but that's really the point isn't it? It wasn't clear enough so it was open to interpretation and abuse. Same thing applies here, I have no idea what they are actually saying, but the companies are playing it safe.

Why don't they clarify it?

I'm sure Consumer Focus can once again show them how to do thier job if they're not sure...

Perhaps you mean "every time there is confusion or bad practice in the area of gas and electricity supply Ofgem is somehow NOT involved?

You comments are spot-on but perhaps I feel the "deafening silence" is from Consumer Focus. If there is "Ofgem ambuguity" perhaps resulting from some "incompetence" surrounding the sign-off of 24.3(c), Consumer Focus could have undertaken sufficient consumer education to highlight the price rise risk in "guaranteed discount" tariffs.

And what about "deferred discount" tariffs where even my "uber consumer" approach can't see a "loophole"? Another "deafening silence" is from the original MSE official article author who hasn't clarified why the Ofgem opinion on this was outside the Ofgen "quotes", or publicly taken up on the impossibility of the "man in the street" understanding 24.3(c) (though personally I believe a "reasonable interpretation) bars the imposition of termination fees on a "guaranteed discount" tariff where the customer gives correct notice following a price rise notification. It is no real surprise that the Forum reports examples of British Gas backing down when correctly challenged.

It is a surprise and a disappointment that Consumer Focus appear silent on the issue.

Consumerist

jalexa wrote: »

Why do you focus on my slightly awkward throwaway remark and not on the substantive issue of the debate?

Well, frankly, I thought I had commented on the substantive issue and I didn't really understand your remark about being both unacceptable and yet welcome at the same time.

jalexa

Consumerist wrote: »

Well, frankly, I thought I had commented on the substantive issue and I didn't really understand your remark about being both unacceptable and yet welcome at the same time.

What I said was "I don't find your post unnaceptable....".

No idea why you have failed to understand *that* and quoted something I didn't say.

On the substantive issue, you "quoted" an Ofgem "non-quote" from the MSE article to give weight to an argument that, not withstanding what 24.3(c) says about termination charges not being permitted, termination charges are permitted on "guaranteed discount" tariffs, yet elswhere you quote BG Websaver as being a "variable tariff" which nearly everyone would expect to be switchable from without penalty, (becasue the tariff *is* implicit in the contract and is being varied to the customer's detriment).

Just like the tariff component of a "guaranteed discount" tariff.

I was trying to tease out your considered opinion on 24.3(c). That's all.

Consumerist

jalexa wrote: »

What I said was "I don't find your post unnaceptable....".

So why say it at all - the implication is that you could find it unacceptable.

I was trying to tease out your considered opinion on 24.3(c). That's all.

Again, I thought I had given my opinion (i.e. obscure) without any need to tease.

I think perhaps we have got off on the wrong foot by way of a misunderstanding. Let us not waste further time on the issue.