Swaled Fixed Discount to 2014

momsgill

I have suddenly found that this scheme which I signed on to in February, 2012, has been changed. Instead of a fixed discount off each bill I now will only have approximately £40 per year discount. The discount on my last bill was £62. Can Swalec do this? The agreement was until 2014. It will mean that, with the price rises, I will have to pay a further £800 per year in the future. I am tied in until 2014 and will have to pay a fee to exit which I think is totally wrong as Swalec have changed the agreement. They said it was down to Ofgem?

jalexa

I find £800/year hard to believe. Are you sure?

lewroll

I thought that if your gas/electricity supplier changed the terms of their contract with you that you were able to change supply without any exit penalties. I also think that that applies to them changing the price of your fuel if your are on a fixed price contract but check it out. By the way, if you ring and ask them they don't always tell you the truth/know the rules!

jalexa

momsgill wrote: »

They said it was down to Ofgem?

If that was the only explanation then raise a formal complaint with Swalec.

A fixed-term contract may be varied but you must not suffer detriment. The test is the "fixed discount" against the contract reference tariff as varied, probably standard. As previously stated I do not believe your £800.

Perhaps you were duped by the term "fixed discount"? What did you think fixed discount meant?

notbritishgas

You have not really explained the terms of the fixed discount, however I have found this on the Swalec site

www.swalec.co.uk/GasAndElectricity/FixedDiscountDecember2014/

Is that the one? If so it is typical of most of the fixed discount schemes, ie it gives a 2% discount off their standard tariff, so when the standard tariff goes up so does the fixed discount tariff.

If I have got this wrong then tell us more about the original terms of your tariff.

momsgill

The fixed discount was 7% off the cost of khw on all bills. I am a high user with 4 beds 4 adults economy 7 and was saving about £250 per year. The prices have increased by 9% and the new discount is just £40 per year which is why the increase is about £800. Thankfully we have had solar panels fitted which reduce our khw in the day by half. I have a Swalec Manager working on figures as we speak finding where I can change to with fixed prices!!!!! I will have to pay an exit fee of £80 if I leave Swalec which I am furious about. Will probably be changing but my complaint with Swalec will stand. I intend complaining to Trading Standards too. Thanks for your input. Many other people are going to be caught out by Swalec.

momsgill

Sorry, just to clarify discounts. 2% fixed discount off standard unit rates. 6% off each unit for paying by Direct Debit. Another 1% off for paperless billing. Actually totals 9%. I will still receive the 2% discount off standard unit rates but only £40 a year instead of the 7% for direct debit and paperless billing.

notbritishgas

momsgill wrote: »

Sorry, just to clarify discounts. 2% fixed discount off standard unit rates. 6% off each unit for paying by Direct Debit. Another 1% off for paperless billing. Actually totals 9%. I will still receive the 2% discount off standard unit rates but only £40 a year instead of the 7% for direct debit and paperless billing.

Yes I can see from the T&C's I linked to that the discounts are now £40 for DD and £6 for paperless, but the exit fee is stated as £50.
This flat discount compared to a % discount obviously affects you as a high user quite a lot.

Can they do it? Well the guarantee was just to be 2% lower than standard, no mention of discount guarantees, so perhaps they can.
Make sure you go through the T&C's of your new supplier to ensure it is not out of the frying pan into the fire.

momsgill

Thanks for your post. Trouble is so much to read and such small print. I read your link re. £50 fee but it is up to £80 on the paperwork. I am changing to Scottish Power to a fixed fee until 2014 which will be a lot cheaper than Swalec. Energy prices can only keep going up!!!!! At least I will know what to budget. The Solar panels have made such a difference.

notbritishgas

Well done, stick out for the £50 not £80 as it is on the website, the same as the new discounts are, they cannot have it both ways.
The SSE companies are ones I have never tried and perhaps reading this I never will.

jalexa

momsgill wrote:

No cancellation charge would be payable on early termination due to you suffering detriment as a result of a unilateral contract variation. While I still cannot see the £800 it seems likely high users are particularly disadvantaged. You need to investigate the Energy Ombudsman but first you need to exhaust the Swalec complaints process.