Should I pay cancellation fee to Scottish Power?

robdaphunk

I have just changed my gas and electric supplier from Scottish Power to nPower. I received a letter from Scottish Power back in June stating that they are increasing their prices and I quote:
"You are also free to end your agreement by changing supplier*"
*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

I changed supplier via Uswitch on 7th July. I received a letter from Scottish Power in July saying they are aware I have chosen to leave for another energy supplier, so surely this is me notifying them via Uswitch.

Today I received my final electric bill from Scottish Power with a £30 cancellation fee. So I rang them. I was told because I didn't inform them that I was leaving, I am liable for the cancellation fee on both my gas & electric, which amounts to £51...!

Firstly I didn't realise I would receive a cancellation fee on both accounts as I thought that it was a dual fuel account. And secondly they were full aware that I was leaving in July so how can they say that I didn't tell them....???

Is there anything I can do to challenge this....?????

Jennifer_Jane

I'm sure that I didn't notify Scottish Power but just did the change. I was phoned by someone from customer services to stop me going and he said I would be paying the cancellation charge. I said I wouldn't be because I was within the time and they had broken their contract with me.

I would certainly fight this, and tell them that you will never go back to them with such terrible customer service. Customer Service number is 0800400200 (or perhaps 0845 270 6543?).

It's nonsense that you should have to 'notify' them, when all the switching stuff says you don't need to contact the old company. Anyway, I didn't have to. Good luck

backfoot

In my view it would be completely churlish of Scottish Power to invoke the cancellation charges.

The recently issued OFGEM Guidance Letter reinforced the freedom to switch without restraint following price increases.SP fully know of your intention to switch and are preying on a technicality at best.

If you don't get satisfaction from Graeme, the excellent SP Rep here, I would make a formal complaint and ask for a deadlock letter, so you can take the matter to the Energy Ombudsman.

I will gladly help you draft your case for the EO if they don't concede.

Having already obtained a significant clarification of the application of termination charges from OFGEM , I feel totally confident that you would win the case and be awrded compensation for a Supplier not abiding by the intentions of the legislation.

In any event,it is appalling Customer Service and I am sure SP don't want to continue to pursue such a policy.

eurmalian

Unfortunately, if you look back through all of the posts from the time of the announcements on here, the process that all the suppliers were following was that you had to call them (or write or email) and let them know that you were leaving due to the price change. You then had 15 days for the new supplier to inform them and you wouldn't be charged. No informing them of why you were leaving, no waving of charges.

Even the letter that you've quoted specifically says that you need to notify them, and as you said, you didn't. Switching sites don't contact your old supplier at all. They've no reason to. All they do is let the chosen new supplier know that you want them to take over the supply, which fulfilled the "and we receive a request for your supply from another supplier" part, but misses out the initial section. You can complain, but you haven't actually followed the instructions they gave you in the letter...

backfoot

I would beware posts on this matter from employees of the Suppliers. Many of them have a history of maintaining the company line on termination fees.

Only when OFGEM issued their Guidance Letter following my representations did they cease giving their incorrect advice.

Using technicalities, like the Suppliers were doing previously,will not go down well with OFGEM. I will happily invite them via my contacts to further clarify the rules and I know Consumer Focus are already seeking further guidance on a number of matters.

It would be in the best interests of fair trading and good customer service for SP to quickly concede the point. It may well annoy some of the 'employee posters',but this Forum is designed to help customers fight back.

robdaphunk

backfoot wrote: »

If you don't get satisfaction from Graeme, the excellent SP Rep here, I would make a formal complaint and ask for a deadlock letter, so you can take the matter to the Energy Ombudsman.

I will gladly help you draft your case for the EO if they don't concede.

Thank you, I will wait for a reply from the SP Rep. If I don't hear from him I will be in touch, as I am not gonna let this lie.....

jalexa

robdaphunk wrote: »

I will wait for a reply from the SP Rep

I strongly suggest you invoke the Scottish Power complaints procedure now, strictly in accordance with the written procedure, in writing (or by email). If there is a telephone response, decline to discuss the issue but insist on a written (or email) response. Do it now because the 8 week Energy Ombudsman clock does not start until you do.

roddydogs

So why didnt you just notify them?

backfoot

roddydogs wrote: »

So why didnt you just notify them?

I don't know specifically, but he/she didn't.

Quite often, customers don't fully know the rules and procedures or they may simply not fully read or understand the requirement.

Most of the switching process revolves around the new Supplier giving notification of the switch. Thereafter,you let the new supplier have the opening read and they pass it on to the old Supplier.It can be confusing to the uninitiated. I know all about SLC's 23 and 24 but the vast majority of customers will never have heard of them.

The issue here,is what significant importance was that notification? Nothing really. Scottish Power were fully aware, within the timescale, that the customer was leaving on the back of a recent price increase.

OFGEM are trying to restore simple effective competition to the energy market. Under the Retail Market Review they are asking Suppliers to simplify their tariffs, procedures and encourage competition. If the Supplier's don't do it voluntarily,Ofgem will legislate these things in.

As I said before,SP can abide by the clear intention of the existing SLC's and the recent Guidance Letter or they can have it spelt out formally in new legislation.

Levying £51 on a customer, basically for a procedural technicality doesn't show SP in a very good light IMHO. I trust they will see this and prevent an unnecessary escalation.

Scottish_Power

Hi robdaphunk,

As has been explained we did have a process in place and customers were advised to contact us directly if they were intending to change supplier. The reason for this was so that we could register your details using a manual process to prevent the charges being applied and if applicable ensure you were billed on the correct prices up until the date/s your supply transferred. As you have stated you did not contact us yourself it is correct that the cancellation charges have been applied. However, every situation can be reviewed indivdually.

If you want to e-mail me your account details to [EMAIL="onlinecomplaints@scottishpower.com"]onlinecomplaints@scottishpower.com[/EMAIL] I will certainly look at this for you.

Kind regards

Graeme @ Scottishpower

jalexa

backfoot wrote: »

The issue here,is what significant importance was that notification? Nothing really. Scottish Power were fully aware, within the timescale, that the customer was leaving on the back of a recent price increase.

I think SLC 23.6(c) is relevant.

";or...(1) the conditions in sub-paragraphs 23.6(a) or (b) are met;

Perhaps the SP rep could give an interpretation of SLC 23.6(c) (rather than the completely unnecessary "hard-ball" response given).

IMO, 23.6(a) and (b) are clearly "met conditions".

Maybe the rep could also advise the scale of any Energy Ombudsman "case fee" levied on the supplier. At no charge to the complainer.