Fixed price tariffs not genuine from Npower!

jerrylatham

I'm on a dual fuel (gas & elec) 'Energy Online January 2014' tariff with Npower. When I signed up for this it was on the basis that the prices were fixed until January 2014.

Today I have a letter from Npower announcing that they are increasing the prices they will charge me from 1st July this year; gas goes up by 9.8% and electricity by 9.9%).

So what is the point of signing up to a 'fixed price' tariff when they can change the deal whenever they wish? Surely Npower is breaking a contract they made with me - but what can I do about it?

chanz4

Did you read it?

Tariff Features

• Guaranteed to be 3% cheaper than npower's Standard charges until 31st January 2014.†
• Variable rate tariff - energy prices may go up or down.
• After 31st January 2014 you will be moved onto npower's Standard plan, unless you choose another plan.
• This tariff has a standing charge.
• Online billing - view your bills online.
• Monthly Direct Debit only.
• Dual fuel or single fuel available.
• Early termination fees apply: £30 (inc. VAT) for gas, £30 (inc. VAT) for electricity (a total of £60 for dual fuel).
• Notes: This tariff is not available with prepayment meters. If your gas is supplied by an Independent Gas Transporter, an IGT charge may apply. †For dual fuel customers.

Wywth

jerrylatham wrote: »

I'm on a dual fuel (gas & elec) 'Energy Online January 2014' tariff with Npower. When I signed up for this it was on the basis that the prices were fixed until January 2014.

Today I have a letter from Npower announcing that they are increasing the prices they will charge me from 1st July this year; gas goes up by 9.8% and electricity by 9.9%).

So what is the point of signing up to a 'fixed price' tariff when they can change the deal whenever they wish? Surely Npower is breaking a contract they made with me - but what can I do about it?

No it wasn't; it was a "Variable rate tariff - energy prices may go up or down"

NittyGritty

can you not use the price rise to leave penalty free, even tho it states £30 penalty for each to leave before jan 14

MillicentBystander

This is the problem with these tariffs, they are designed to look like fixed to the uninitiated. Not in any way excusing punters for not checking the T&Cs by the way but the market is confusing enough without adding to it. Oh, and these 'guaranteed to be less than (insert figure) % cheaper than our standard rate tariffs should be looked into to make sure the tariff is exactly that %age less than the standard tariff when you take it out and sticks to that %tage.. Otherwise these tariffs could be classed as bait and switch ones.

dogshome

As already posted, this tariff is something of a "Now you see it - Now you don't" illusion

With this price change you have the right to switch without Penalty Charges - WRITE/EMAIL n'power advising them you reject the price rises and are going to Switch, once they get this they have to maintain youir old prices till your Switch is complete

BUT BE AWARE that when you Switch you are going to lose that Cash-Back Credit that you will get after you have paid 12 consecutive D/Debits - Do the arithmatic to judge Higher prices but get cashback, against a Switch for lower prices and no cashback.
The window for you to Switch without penalty closes on the day the new prices come into effect

JSR

MillicentBystander wrote: »

This is the problem with these tariffs, they are designed to look like fixed to the uninitiated.

Is that true though? There have been quite a few threads posted about this tariff but look at the blurb for the current equivalent tariff on nPower's website. The word 'fix' is only used in one place and it says:

Prices aren’t fixed or capped, so may vary during the offer period.

Link

I don't know how the old tariff was advertised but there is no way you can say the current equivalent tariff is a trick or an illusion!

Mouseboy007

The problem is the way it's marketed. Just look at the current offer:

http://www.npower.com/home/electricity-and-gas/products/online-price-fix-june/

"Your Gas and Electricity prices will be fixed at the rate when you sign-up, giving you the comfort of knowing that you won’t see any price rises before 30th June 2014."

Smallprint "Offer is subject to availability and may be withdrawn, suspended or amended at any time."

So based on the smallprint, NPower can claim it's no longer available, is being withdrawn and/or amended. Of course you can then exit your contract easily but you miss out on the cashback which is the reason you signed up. I don't have the offer to hand that I signed up for but I'm fairly sure it had bold disclaimers worded to make you believe that you won't see rises. I mean, I *think* I'm a fairly intelligent/astute person but in my opinion the marketing was cynically written to sound like it reads "giving you the comfort of knowing that you won’t see any price rises".

I mean they may as well have a tariff called 'Free Electricity' which you get if you sign in to a 10yr Gas deal, but then charge you for electricty because "Yeah, that's just the NAME of the tariff, read the smallprint lol".

Makes me so angry >.<

JSR

But, mouseboy, neither nPower or anybody else, so far as I know, has ever changed the prices on a fixed price contract. So your anger is entirely hypothetical. Also the sentence you quote only applies to the offer not to in contract customers. The only way they can change the price once you're signed up is if the government impose new energy taxes.

Wywth

mouseboy007 wrote: »

The problem is the way it's marketed. Just look at the current offer:

http://www.npower.com/home/electricity-and-gas/products/online-price-fix-june/

"Your Gas and Electricity prices will be fixed at the rate when you sign-up, giving you the comfort of knowing that you won’t see any price rises before 30th June 2014."

Smallprint "Offer is subject to availability and may be withdrawn, suspended or amended at any time."

So based on the smallprint, NPower can claim it's no longer available, is being withdrawn and/or amended. Of course you can then exit your contract easily but you miss out on the cashback which is the reason you signed up. I don't have the offer to hand that I signed up for but I'm fairly sure it had bold disclaimers worded to make you believe that you won't see rises. I mean, I *think* I'm a fairly intelligent/astute person but in my opinion the marketing was cynically written to sound like it reads "giving you the comfort of knowing that you won’t see any price rises".

I mean they may as well have a tariff called 'Free Electricity' which you get if you sign in to a 10yr Gas deal, but then charge you for electricty because "Yeah, that's just the NAME of the tariff, read the smallprint lol".

Makes me so angry >.<

The Offer! Not contracts already entered into.

watchmywallet

Unfortunately, energy companies often promote a fixed price tariff – and what they actually mean is that the discount is fixed (in your case at 3%) but the price itself can fluctuate. So they’re not technically breaking the contract, although it is frustrating.

Use a comparison site such as uSwitch to see what the best tariff is. It’s unlikely that any energy company will be able to beat what your currently paying by more than £60, so it’s unlikely to be worth paying the cancelation fee to switch.

It’s probably worth sticking with Npower until January 2014 and re-evaluating the tariff then.