MSE News: Escape energy lock-ins as prices soar

jalexa

milla wrote: »

So do we have to inform BG that we have initiated a switch or will the waiver apply automatically ?

You need to act to reject the price rise, then initiate a switch, all within the statutory time frames.

I cannot promise that will avoid the fee being applied since the regulations are "obscure", but Forum comment suggests that BG are "waiving" the fee.

milla

Oops ..I initiated a switch yesterday .......was told EDF will now take care of it .........no mention of telling BG myself ?

myozone

UPDATE:- I phoned BG and they confirmed that there would be NO cancellation fee applied to Websaver 10 and also noted it my account. The only thing they said was to initiate the switch sooner rather than later ! :j

Paulf12345

I received an email from Scottish Power on March 10 2011 telling me my Online Energy Saver 9 offer was due to end on March 31 and that they would automatically roll me over to a new deal if I simply did nothing. In small print the email went on to say that if I switched after April 30th I may be subject to a cancellation charge. I took this on board and initiated a switch on April 19. I was therefore shocked to find I had been charged a cancellation charge. I complained (after eventually finding an email address) and they said:
'We at ScottishPower aim to provide a high standard of service at all times, and I am very sorry that in this instance, you have not received the level of service to which you are entitled.

I have removed the cancellation charges from both your gas and electricity accounts. Revised invoices will be with you shortly.'

This suggests to me that they try it on until someone bothers to read the small print and complain....

milla

I have just rung BG (supposed to be open till 11 p.m. tonight ) and they are 'closed for staff training ' !

jalexa

milla wrote: »

Oops ..I initiated a switch yesterday .......was told EDF will now take care of it .........no mention of telling BG myself ?

That is because as far as switching is concerned the gaining company does everything and there is no *requirement* to discuss anything with the losing company.

However this issue is about avoiding the (early) termination fee. If you are still within the statutory notice period following notification of the increase, just reject the increase with British Gas. (I'm assuming the MSE article explains how - yes just checked and the dates are given).

I stand to be corrected but I don't think Edf will contact British Gas at all until the expiry of the cooling-off period, so you should still have time to reject the increase.

Consumerist

milla wrote: »

I have just rung BG (supposed to be open till 11 p.m. tonight ) and they are 'closed for staff training ' !

In the original news article there is no mention of having to notify BG before initiating the switch but it will do no harm to let them know that you are switching. Make sure you confirm that the exit charges have been waived. See post #70 above.

jalexa

Consumerist wrote: »

In the original news article there is no mention of having to notify BG before initiating the switch....

Possibly not, but the "regulatory need" is described in 23.6(a), as referred to in 24.3(c)

Which is the clause which gives effect to the customer power to reject *any* increase.

Synonymous

Hello All,

I was looking at this info with a sad face as I am on Scottish Power's Online Energy Reward, which is fixed until the day before the price hikes.

As the article is mainly about variable rate tariffs, I didn't think I could get round the cancellation fee, which was necessary if I was going to get onto a good new fix before they are all pulled.

I then discovered the small print of an email Scot Power sent me..

"Our standard monthly Direct Debit prices are higher than those you are currently paying....

If you don't think these prices are right for you, you are free to end your agreement by changing your supplier*

*If you notify us that you wish to do this before 1st August 2011 and we receive a request for your supply from another supplier within 15 working days, we will not move you to our standard monthly Direct Debit prices or charge the agreed cancellation fee. 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. "

Sadly the customer service is closed now for the weekend, and I want the NPower fix that will be pulled before Monday, so I've sent them an email informing them of my intention which should be just as good.

ALSO.....

The risk of loosing my £105 bonus for staying on their tariff was also bothering me as the same recent email claimed I would not get this if I left before 1 August 2011. But my original terms and conditions state this is payable if I stay until 7 June 2011, so I've also argued my case that they better give me that too!

Hope this is helpful to someone, I missed the small print the first time around (not like me at all!) but appears we who are stuck in a fix can get out of it too without the exit fees, and (hopefully) keep hold of our bonus too!

Consumerist

jalexa wrote: »

Possibly not, but the "regulatory need" is described in 23.6(a), as referred to in 24.3(c)
Which is the clause which gives effect to the customer power to reject *any* increase.

SLC 23.6 says :-

23.6 The licensee must treat the variation as ineffective and neither enforce nor take advantage of it where –
(a) the Domestic Customer notifies the licensee after he becomes aware (by any means) of the variation on or before the date on which the variation has effect that he is ending the Domestic Supply Contract by changing his Gas Supplier; . . .

I agree that it is not clear whether "by any means" refers to the becoming aware of the variation or to the notification that the customer wants to switch, but I would say that notice served by the new supplier to the current supplier would fulfil the requirement for the notice.