Beware - Check final Bill from British Gas

lowbrim

Just had my final bill from British Gas. I moved to NPower after the last price increase announcement. I noticed they had charged me £30 for terminating the account!

They cannot charge a termination fee if they change the terms of the account (increase price) I rang them and they backed down straight away and removed it from the bill.

So if you have recently moved from British Gas make sure they are not doing the same to you.

mjmal51

Already started thread last week
https://forums.moneysavingexpert.com/discussion/3423783

eurmalian

lowbrim wrote: »

They cannot charge a termination fee if they change the terms of the account (increase price) I rang them and they backed down straight away and removed it from the bill.

Only partially correct. This only applies if you contacted them and let them know you were leaving due to the price increase before you switched. If you just changed suppliers without giving BG a call then they would be completely within their rights to charge the termination fees.

lowbrim

eurmalian wrote: »

Only partially correct. This only applies if you contacted them and let them know you were leaving due to the price increase before you switched. If you just changed suppliers without giving BG a call then they would be completely within their rights to charge the termination fees.

Wrong! Speak to Ofgem. Providing it is clear from the timing of the switch that it is due to a change in the contract it should not be charged.

Until recently BG had 6 weeks AFTER the price increase to inform customers of the increase. You did then have to inform them that you were changing supplier as they could not actually charge you the increase whilst you changed suppliers. Of course they kept this quiet!! being a centrica employee you would know this!

gazjoneswales

lowbrim wrote: »

Wrong! Speak to Ofgem. Providing it is clear from the timing of the switch that it is due to a change in the contract it should not be charged.

Until recently BG had 6 weeks AFTER the price increase to inform customers of the increase. You did then have to inform them that you were changing supplier as they could not actually charge you the increase whilst you changed suppliers. Of course they kept this quiet!! being a centrica employee you would know this!

Can you provide any evidence to back up your claim that you dont have to contact the leaving supplier? As far as I am aware, and it has been well documented over the last few weeks on this forum, that you have to inform the old supplier your are leaving and reject the price changes, then they new supplier has 15 working days to confirm this to the old supplier.

I think you have been quite fortunate to speak to a agent who backed down without a fight as you have clearly not followed the correct procedure

jalexa

lowbrim wrote: »

Wrong! Speak to Ofgem.

I fear Ofgem would be bound to say "refer to SLC 23 (and specifically the "get out enabling clause" 23.6)", which requires customer "notice to reject".

Whether you are right or wrong "in practice", it is dangerous (to the uncertain consumer) to put it quite as you have stated it.

(with thanks to gazjoneswales)

backfoot

lowbrim wrote: »

Wrong! Speak to Ofgem. Providing it is clear from the timing of the switch that it is due to a change in the contract it should not be charged.

Until recently BG had 6 weeks AFTER the price increase to inform customers of the increase. You did then have to inform them that you were changing supplier as they could not actually charge you the increase whilst you changed suppliers. Of course they kept this quiet!! being a centrica employee you would know this!

The OFGEM website contains the following:


Notice of price changes


Domestic energy suppliers are required as a condition of their licence (Supply Licence Condition 23 – SLC23) to notify their customers of a unilateral variation of their contract to increase prices or in any other way that is to the significant disadvantage of the customer (these changes are known as ‘relevant variations’).

Changes to SLC23
At the time of the Energy Supply Probe we committed to examining SLC23. Following a review and consultation, Ofgem changed SLC23 on 28 April 2011 so that energy suppliers are now required to notify customers at least 30 days in advance of ‘relevant variations’ taking effect. This means that domestic customers will receive advance notice of ‘relevant variations’ and will normally be able to switch without being affected by those variations (and without being charged a termination fee).

Avoiding the variation
Once a customer becomes aware about a ‘relevant variation’ (e.g. a public announcement or individual notification), they can notify their supplier that they intend to switch in order avoid the effects of those variations at anytime on or before the date the variation is scheduled to becomes effective. Once the customer notifies their existing supplier of their intention to switch, their existing supplier must receive notice (within 15 working days) that the new (gaining) supplier will begin supplying the customer within a reasonable period of time. The new (gaining) supplier is responsible for triggering this notice.


Do you have any relevant source information which alters this guidance?

I would also say that now that policy is clear, any breach or complaint would be referred to Consumer Focus rather than Ofgem who would just bat it away.