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Outrageous lies from Scottish Power

joncombe
joncombe Posts: 320 Forumite
Part of the Furniture 100 Posts
I switched to Scottish Power "Online Energy Saver 21" for both Gas and Electricity around 10 months ago. I was sent an email by Scottish Power with subject "ACTION REQUIRED - Your current energy tariff ends on 31st May 2014" so I started looking into changing tariff. The email says if I do not switch before 31st May 2014 I will be moved to the standard tariff.

Using the "Change My Service" option in the Scottish Power website I was quoted that the cheapest tariff for me was "Fixed Price Energy June 2016 Online". The problem is this was 25% higher than I am currently paying.

I phoned up and supplied up to date meter readings and that my account was in credit by around £64. It was again confirmed that this is showing as the cheapest tariff for me. I was told the increase is due to the fact all tariffs now have a standing charge and this is what caused the large increase. The first lie I was told was that the standing charge meant that "If you have a problem with your meter we won't charge you to come and fix it, which you would have had to pay for before". I know this to be false, but let it go. I was given the usual that it is Ofgem rules to make things "simpler" and that all suppliers have to charge a standing charge.

I checked online before hand and was quoted 3 tariffs which are broadly inline with what I'm paying. These were Ebico (who have no standing charge), 1st Utiility ISave Everyday v2 (which has a standing charge of 2.34p per day for gas and 1.63 per day for electric) and Utilita Energy Saver (which like Ebico has no standing charge on either fuel).

When I told the advisor this when he told me before that all suppliers must have a standing charge that he didn't know about "all these small companies" and that he was only talking about the big 6. I said I was planning to switch away from Scottish Power and was then told the big whopper - that if I changed from one of the big 6 that they must not be bound by Ofgem rules and so I would not be protected by Ofgem in the event of a complaint. I know this to be nonsense so asked to speak to complaints but was denied because "they would only tell you what I just told you".

So I asked if I switched suppliers if I had to pay an exit fee on my current tariff. I was told I did, of £50 if I switched before 31st May. But he went on to say he could switch me now to "Fixed Price Energy June 2016 Online" this tariff did not have an exit fee and neither would I be charged a fee for switching and that I would then be able to switch to another supplier without paying the exit fee as of tomorrow. I agree to this.

However on putting down the phone I read the small print on the email I was sent by Scottish Power (I have quoted the entire email below if anyone wants to look), but the relevant part is:-
Switching Tariff or Supplier
Please consider what the move to our standard tariff means for you. If you are not happy with the standard tariff you are free to apply for another ScottishPower tariff, or you can end your agreement with us by switching to a new supplier without paying an exit fee.

I read this to mean that if I don't want to switch to the standard tariff then I can switch supplier and will not have to pay an exit fee. I would be interested in others interpretation, since it does not seems especially clear.

This being the case, it would be cheaper to remain on my current tariff until 31st May 2014 and start the switch now. I rang back but got put through to someone else. He told me that I was wrong and that I would have to pay an exit fee on my current tariff. I quoted from the email and he asked me when it was sent (18th April) but then said that the email was wrong and I did have to pay a fee. I asked to raise a complaint since the email I was sent seems to contradict this and was told to forward it on to their customer relations team by email, quoting my account number. In the mean time, I asked to cancel the switch to a new tariff with Scottish Power so I can remain on the current tariff until it is confirmed whether I have to pay the exit fee or not.

I then tried to call the complaints number but was told it was closed. So I intend to make a written complaint, since it seems to me Scottish Power give a load of lies (e.g. that other suppliers are not protected by Ofgem) to try to stop you switching.

Here is the email in full if anyone can advise as to whether it suggest I should be paying an exit fee or not to switch.
Date: Fri, 18 Apr 2014 15:31:28 +0100
On 31st May 2014 your current Online Energy Saver 21 tariff will end.

Take control of your future energy bills


We'd like to help you find our best new tariff for you.

Our tariff selector tool helps you choose a new energy tariff based on your personal preferences. Whether you'd like our best price today, long-term certainty on prices, or simple variable prices, it's up to you.

It only takes a few minutes to help make sure you get our best tariff for you.



See below for more information on the changes to your prices including the changes to our tariff structures.








Unless you choose another option on or before 31st May 2014, we will automatically move you to our standard tariff1 on 1st June 2014. Please see below for more important information on what this means for you and your options.

Remember - it might be worth thinking about switching your tariff or supplier.






Your new energy prices



Going forward, all of our tariffs will now include a Daily Service Charge in addition to a charge for each unit of electricity and/or gas consumed. Please see the Important information section below for more details.



Electricity Prices
Current tariff* Standard tariff*

Online Energy
Saver 21 Standard Monthly Direct Debit prices1

Daily Service Charge
(Standing Charge) 27.39p

First 225kWh used each quarter 25.426p

All/Day remaining kWh 15.149p

All/Day Units kWh 16.378p

Night Units per kWh 6.192p 6.695p



Gas Prices
Current tariff* Standard tariff*

Online Energy
Saver 21 Standard Monthly Direct Debit prices1

Daily Service Charge
(Standing Charge) 27.39p

First 670kWh used each quarter 7.336p

All/Day remaining kWh 3.885p

All/Day Units kWh 4.201p


Your
Annual
Discounts Current tariff* Standard tariff*

Online Energy
Saver 21 Standard Monthly Direct Debit prices1

Gas & Electricity Offer £10.50 £10.502

Online Energy Discount £10.50 £10.503



Please read the Principal Terms for our standard tariff compared to your current tariff.

* All prices include VAT at the appropriate rate which may change. Your bill or statement will show any VAT charged as a separate item. Prices correct at 28th March 2014.

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Important information

Your Direct Debit
Please be aware that your monthly Direct Debit payments may vary, depending on how much energy you use. To try to make sure you're not paying more than you should be, we'll look at your energy use in the next three months and advise you of any changes to the amount you have to pay.

What do you need to know about our standard tariff?
You can find your prices in the section called 'Your new energy prices'. Our standard tariff can change at any time, but we will give you at least 30 days' notice before any price increase comes into effect. Once you move to our standard tariff no exit fee will apply1.

All of our tariffs now have a unit rate and a Standing Charge (called a Daily Service Charge). This is a simple and straightforward way to display our energy prices. The Standing Charge covers the fixed costs to service your account and is applied on a daily basis regardless of how much energy you use.

Please note that if you are a low consuming customer (using less than the threshold of 900kWh of electricity or 2,680kWh of gas per year) this will have an impact on your annual bill going forward. This is because you will now pay the full Standing Charge every day instead of only once the energy you consume reaches the threshold level. Please see above for details of the impact on your bill. If this will cause you difficulty in paying your energy bill, please contact us, as we may be able to help.

Switching Tariff or Supplier
Please consider what the move to our standard tariff means for you. If you are not happy with the standard tariff you are free to apply for another ScottishPower tariff, or you can end your agreement with us by switching to a new supplier without paying an exit fee.

If you decide to switch to another ScottishPower tariff:
If we receive a request from you to move to another ScottishPower tariff on or before 27th June 2014, and if you are moved to that other ScottishPower tariff, you will not move to our standard tariff. Instead, you will stay on your current tariff until you move to that new tariff. Otherwise you will move automatically to our standard tariff on 1st June 2014.

If you decide to switch to another supplier:
If we receive a request for a change of your supply from another supplier on or before 27th June 2014, and your supply transfers to your new supplier within a reasonable period of time (normally 20 working days) from the date we receive that request, you can leave us without moving to our standard tariff. Otherwise you will move automatically to our standard tariff on 1st June 2014.

If you have an outstanding debt, we may object to your supply leaving us, but we will give you 30 working days from the date we tell you that we are objecting, for you to pay us the debt in full. If you do that, you can then leave us without moving to our standard tariff.

For free, independent, confidential and impartial advice on consumer issues visit Citizens Advice or call the Citizens Advice consumer helpline on 0845 404 05 06.

The steps described above are changes to the process set out in our supply terms and conditions, and they are to your benefit. We will be writing to all customers shortly with updated terms and conditions and these will include the above steps.

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Information notes

1 General Terms and Conditions for Domestic Customers will apply to the standard tariff and are available on request. Please download a copy or alternatively contact us on 0800 027 0072 (lines are open Monday to Friday 8am to 10pm, Saturday 8.30am to 6pm (free from BT lines – calls from mobiles and other networks may vary)). Please note our standard tariff can change at any time, but we will give you at least 30 days' notice before any price increase comes into effect.

2 If ScottishPower supplies your gas and electricity at the same address you'll get an annual Gas & Electricity Offer discount of £5.25 (incl. VAT) per fuel. This is shown on your bill as a daily amount.

3 If you manage your account online you'll get an annual discount of £5.25 (incl. VAT) per fuel. This is shown on your bill as a daily amount. For full details of ScottishPower's Online Energy Service Terms and Conditions, please visit https://www.scottishpower.co.uk

Why was I sent this email?
As a valued energy customer, you will occasionally receive messages about the service we provide you. This is just to keep you up to date and to help you get the most from your online energy account.

ScottishPower Energy Retail Limited
Registered Office: 1 Atlantic Quay, Glasgow, G2 8SP
Registered in Scotland No. 190287, Vat No. GB 659 3720 08

ScottishPower Energy Retail Limited
Cathcart Business Park, Spean St, Glasgow G44 4BE

Data for this mailing was generated on 28th March 2014 to communicate relevant tariff information to ScottishPower customers. If you have recently moved to a new ScottishPower tariff or different supplier, please disregard this email.

Comments

  • joncombe wrote: »
    If you decide to switch to another supplier: If we receive a request for a change of your supply from another supplier on or before 27th June 2014, and your supply transfers to your new supplier within a reasonable period of time (normally 20 working days) from the date we receive that request, you can leave us without moving to our standard tariff. Otherwise you will move automatically to our standard tariff on 1st June 2014.

    ^^The key bit from your email.

    Apply to switch suppliers, ensuring your switch date will be between 1st June and 27th June, and you'll pay your current SP tarriff charges up until the switch date, as well as avoiding paying an exit fee.
  • good_advice
    good_advice Posts: 2,653 Forumite
    1,000 Posts Combo Breaker Mortgage-free Glee! Rampant Recycler
    Hello jon, you seem a little confused.
    I am with Scottish power and on the fixed price online June 20016 tariff.

    You were on a tariff ending on 31/05/2014 - so on the first of June with contract ended you could have moved to a different supplier with no exit fee as you contract had ended.

    Instead - you agreed to move to a new tariff ending June 2016.
    With a tie in exit fee of £50 if you change from Scottish power.
    You can change tariff within Scottish power any time - no changing fee.

    All the big 6 now have to have a daily service charge.
    The smaller companies do not all have this charge yet.

    Your bill has gone up by 25%. Everyone's bill will go up at the end of a fixed contract.
    Fuel prices rise every Autumn, just before the cold of winter.
    Being on a fixed contract this rise will take affect as soon as you have to change tariff. (mine jumped up £200 for the coming years estimate).

    The rate of fuel bills goes up and all we can do is pay or cut our use.

    Take care, this is a money saving board. Walk around the home and unplug what you can.
    The secret to success is making very small, yet constant changes.:)
  • joncombe
    joncombe Posts: 320 Forumite
    Part of the Furniture 100 Posts
    Hello jon, you seem a little confused.
    I am with Scottish power and on the fixed price online June 20016 tariff.

    You were on a tariff ending on 31/05/2014 - so on the first of June with contract ended you could have moved to a different supplier with no exit fee as you contract had ended.

    Instead - you agreed to move to a new tariff ending June 2016.
    With a tie in exit fee of £50 if you change from Scottish power.
    You can change tariff within Scottish power any time - no changing fee.
    My old tariff had a £50 exit fee. The new tariff I was offered had none. As you say I can apparantly change tariffs with Scottish Power at any time with no exit fee. Which means to avoid the exit fee you just need to change from a tariff that charges such a fee to one that doesn't and then immediatly switch suppliers. Doesn't seem a very sensible system to me.

    Your bill has gone up by 25%. Everyone's bill will go up at the end of a fixed contract.
    Fuel prices rise every Autumn, just before the cold of winter.
    Being on a fixed contract this rise will take affect as soon as you have to change tariff. (mine jumped up £200 for the coming years estimate).
    Yes I expected prices to go up, but NOT by 25%. The tariff I was on was not a fixed price it was simply a discount on the standard prices (and certainly not 25%), I have already had one price rise in December 2013.
  • joncombe
    joncombe Posts: 320 Forumite
    Part of the Furniture 100 Posts
    ^^The key bit from your email.

    Apply to switch suppliers, ensuring your switch date will be between 1st June and 27th June, and you'll pay your current SP tarriff charges up until the switch date, as well as avoiding paying an exit fee.
    But my current deal ends on 31st May. So if I leave it until 1st June to switch I'll be switched to the standard tariff, which does not have an exit fee. To me the bit you have quoted simply suggests I have to begin a switch between now and 1st June and have the new supplier contact Scottish Power before the 27th June to be able to switch without a fee.
  • joncombe wrote: »
    But my current deal ends on 31st May. So if I leave it until 1st June to switch I'll be switched to the standard tariff, which does not have an exit fee. To me the bit you have quoted simply suggests I have to begin a switch between now and 1st June and have the new supplier contact Scottish Power before the 27th June to be able to switch without a fee.

    That's what I meant, apply to switch at a time when your switch date will be between 1st and 27th June.

    For example, in the past when my tarriff ended 31st Oct, I applied to switch on 8th Oct, giving me a switch date of 12th Nov, ensuring I paid my old/current tarriff until 12th Nov and avoiding having to pay the early exit fee that I would've been charged had I left before 31st Oct.
  • Cardew
    Cardew Posts: 29,048 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Rampant Recycler
    On timing of the switch, be aware that the switch process in future will(supposedly!) take far less time.
  • Hey Jon,
    I posted my similar experience with regards to the less than honest advice SP dole out. My sympathies for getting caught up in a battle of wills with the customer service team!
    Frugalblonde:A
  • Joyful
    Joyful Posts: 2,429 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Check this out as many things have changed from April 2014

    http://www.goenergyshopping.co.uk/en-gb/why-shop


    This is a link from the Ofgem website.
    Self Employed, Running my Dream Jobs
  • joncombe
    joncombe Posts: 320 Forumite
    Part of the Furniture 100 Posts
    That's what I meant, apply to switch at a time when your switch date will be between 1st and 27th June.

    For example, in the past when my tarriff ended 31st Oct, I applied to switch on 8th Oct, giving me a switch date of 12th Nov, ensuring I paid my old/current tarriff until 12th Nov and avoiding having to pay the early exit fee that I would've been charged had I left before 31st Oct.

    The quality of advice seems to vary hugely by who you speak to. I got hold of someone at Scottish Power and when I explained I want to stay on my current tariff for as long as possible and switch supplier before I get moved onto another Scottish Power tariff, without paying an exit fee. She advised (and I hope it is true) that there is no a 28 day "rollover" period. That is, I need to stay on my current tariff until it's end date, 31st May. Then I should apply to switch and provided Scottish Power are notified of the switch within 28 days, they will continue to charge me on my current tariff until the switch is complete, without any exit fee. If only they could explain that in the email and it would avoid all this confusion.
  • joncombe
    joncombe Posts: 320 Forumite
    Part of the Furniture 100 Posts
    Just had a new bill from Scottish Power. On page 2 it has the rather unhelpful "About you tariff" section. Unhelpful at least in my case, because it looks like this:-
    14125070474_2755475fa1_b.jpg
    But I Noticed the "Exit Fee" says only if you switch supplier more than 49 days before the tariff end date. Since every time I phone Scottish Power I get a different answer does anyone know the actual rules they have regarding an exit fee? I tried emailing also and got an automatic reply saying they would respond within 5 days, that was 11 days ago and still nothing :(
This discussion has been closed.
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