Reduced tariff choice = rip off?

andy12312

SteveRoffey wrote: »

Just had a letter from First Utility telling me that as a result of the consultation with OFGEM to simplify tariffs my current tariff will be discontinued from April 2014. My account will be switched to a tariff which they estimate will be £11.50/month more expensive!!!! Even the best fixed tariff they are offering will be £7.50/month more. I can't find any mention of these new tariffs on any of the comparison sites, they are still offering only the current tariffs.

I have also received the same letter in essence they are using the opportunity to increase there tariffs in my case by £11 per month although they said they would not increase any prices in a recent statement

andy12312

I am on isave V16 duel fuel monthly charge will go from £86 to £97 per month.

SteveRoffey

As you say this gets even more interesting, my letter agrees with yours on the existing standing charges and the monthly average payments BUT everything else is different!
I am in Shropshire, out near the Welsh border, so it would appear that although there are now 'only four' tariffs, each one varies depending on where in the country you live.

Here is my breakdown

Existing Tariff (iSave v14)
Electricity S.C. 10.50
Electricity U.R. 13.888
Gas S.C. 21.00
Gas U.R. 3.735
Monthly average price 85.42

iSave Everyday
Electricity S.C. 2.27
Electricity U.R. 19.463
Gas S.C. 2.43
Gas U.R. 3.977
Monthly average price 96.96

iSave Fixed April 2016
Electricity S.C. 2.38
Electricity U.R. 16.877
Gas S.C. 2.55
Gas U.R. 4.254
Monthly average price 92.96

iSave Fixed April 2017
Electricity S.C. 23.90
Electricity U.R. 15.218
Gas S.C. 23.90
Gas U.R. 4.095
Monthly average price 98.06

I have been doing comparisons on the UK Power site and it looks very much as though I shall be switching supplier come April as these revised tariffs will make a big difference to my bills. At the moment it would appear that the cheapest course, for me anyway, will be to go for separate suppliers of gas and electricity which will be a nuisance but actually save money compared to what I am currently paying.

Gopes

Will be interesting to see if they will let us switch away. I am supposedly tied in until July 2015.

I have just read through my T&Cs which states:

2.2 We may from time to time make changes to the terms of this contract by notifying you in writing. Where we make any variations to the terms which are to your significant disadvantage or we change our prices we will notify you at least 30 calendar days in advance of the change or variation taking place, and, subject to clause 2.3, if the change in the terms relates to energy and is to your significant disadvantage or the price increase is unacceptable to you (a “Relevant Change”), you may terminate the contract in accordance with clause 15.1(b) provided that the variation to the contract is not due to misleading information you have provided to us regarding your status.

2.3 Where the change of our terms is in order to take account of changes to any of the industry agreements or the licence terms under which we operate or due to any changes in the law, regulations, standards or codes of practice applicable to the services or any order, judgment or direction made by the government or any other competent authority you will not have the right to terminate the contract. Such changes will come into effect as soon as you are notified of them.

So I suspect they will maintain that the changes were made in response to legal / regulatory requirements, and so 2.3 applies and I cannot exit my agreement... Even though they have blatantly (in my opinion), taken advantage of this regulatory change to increase their tariff by 35% (electricity).

Will give them a call during the week to see what happens...
Gopes

SteveRoffey

Well I changed to iSave v14 a year ago when they discontinued iSave v8.2 and wanted to switch me to iSave Everyday.
I e-mailed as follows
"I have been checking tariffs since you notified me that I will be switched to iSave Everyday DFD on April 1st.

That tariff would be considerably more expensive than my current iSave v8.2, therefore I wish to change to iSave v14 dual fuel, otherwise I will be changing supplier. Even with the v14 tariff you will be marginally more expensive than SWALEC or Scottish Power but not sufficiently so to counter the hassle involved in changing supplier."

They agreed to my requested switch without any conditions.

ps Just checked the First Utility website and the following tariff is available fixed until April 2015.
New Tariff (iSave v15)
Electricity S.C. 11.71
Electricity U.R. 14.553
Gas S.C. 11.71
Gas U.R. 3.938

Wonder why they didn't mention that in their letter?

Nada666

SteveRoffey wrote: »

As you say this gets even more interesting, my letter agrees with yours on the existing standing charges and the monthly average payments BUT everything else is different!
I am in Shropshire, out near the Welsh border, so it would appear that although there are now 'only four' tariffs, each one varies depending on where in the country you live.

There are about fourteen different regions for electricity pricing purposes. This is why you have to supply a post code when trying to find out prices.