Inducements to Stay - One for the Reps

backfoot

From time to time posters on the forum have said a call centre has offered an inducement, of say £200, to dissuade a customer from switching to another Supplier.

I suspect such situations are actually a Supplier suggesting that their own online tariffs are £200 cheaper than the standard. A sort of economical with the truth situation.

Can the Supplier Reps ,Consumer Focus, Ofgem or the Comparison Website Reps explain what is permissible and what is prohibited please.

Obviously,to me, this area impinges on potential mis-selling/compettion, so it it would be helpful to know exactly what the Regulations are.

backfoot

Here is a recent example.

https://forums.moneysavingexpert.com/discussion/4258559

Is this sort of apparent inducement allowed?

backfoot

http://www.utility-exchange.co.uk/energy-suppliers-offer-incentives-to-lure-back-customers-who-switch-15898/

NPower are quoted in the above article as making such offers.

Can the NPower Reps please give us their current policy please.

Do you offer inducements over the phone?

Do you only offer cashback inducements via intermediaries e.g quidco?

Can customers, say ending a contract request and obtain an inducement to stay with you?

What is allowed and what is not allowed.

Scottish Power, Eon, SSE what are your views please?

backfoot

Bumping this so that the Reps might respond.

It would be helpful to customers to know here they stand on this. For example, is it legal to offer inducements over the phone like in the BG case?

If a call centre rang with such an offer should the matter be reported to a Manager/ complaint or are such offers perfectly acceptable?

What are your companies policies,please?

Many thanks.

backfoot

Here is another one from BG.

'Fix n fall is a con, if you are a British Gas customer try what I did, I have been with them for at least 7 years, was going to switch 2nd October to another company, asked them if they recognised loyalty, the reply was, they have put a £100 credit on my a/c and if I am still with them in 12 months time I will benefit by £100,:j it pays to ask !! Can I just add, one of the reasons I stay with them is I think their customer service is 2nd to none '

From this thread.

https://forums.moneysavingexpert.com/discussion/4253893

Are we all entitled to negotiate our own loyalty price?

jessie-jane

Just been offered £75.00 into account if i stay with BG and change tariff to variable on line november 2013, currently on discount energy june 2013 does this sound like a good offer?

backfoot

jessie-jane wrote: »

Just been offered £75.00 into account if i stay with BG and change tariff to variable on line november 2013, currently on discount energy june 2013 does this sound like a good offer?

Which exactly illustrates why such offers can be mis-selling. If you don't know then BG have pulled the wool over your eyes.

You would need to post your annual consumption in Kwh.

Are BG or the other suppliers or CF going to explain their policy please and the Rules regarding such inducements?

Dave_save

The reps are silent on this one?

Pincher

This is like asking "What is your best price?" when you are buying a car, or "What's in your hand?" when playing poker.

Customer retention is not an open policy.
If you can simply call up the call centre and haggle, the switchboard will be jammed by customers trying it on.
The front line service staff cannot be given authority to discount at all. They usually have a separate department with discretion to haggle that calls you, if they want to retain you.

backfoot

I have asked Ofgem Consumer Affairs what Rules or Regulations cover this.

To me it smacks of anti competive behaviour, potential mis-selling and barriers to entry for any new Supply Company trying to gain market share.

It is a discriminatory pricing practice which is either already prohibited or imho should be. Otherwise, yet again, the unaware are left financing the selected few.

Recent tariff simplification and standards of conduct proposals from Ofgem should make it difficult for Suppliers to operate such predatory pricing.

jalexa

backfoot wrote: »

From time to time posters on the forum have said a call centre has offered an inducement, of say £200, to dissuade a customer from switching to another Supplier.

Quoting your OP rather than your most recent post.

What you say is an accurate reflection of what posters are saying but I believe that the posters misunderstand two things.

First of all it is not an inducement "not to switch", it is an inducement to return, having signed up to a new supplier and already subject to contractual liability for early termination fees.

Secondly, all posts I have seen studiously do not state which tariff British Gas (the worst, or most generous:( offender) requires the customer to return to. I have circumstantial evidence it is to the (most expensive) Clear and Simple tariff, a specific question there for a Rep.

If the customer does not understand either issue then, IMO, the customer has been miss-sold.