Scottish Power Exit Fees

Alligator

Hi,

I'm hoping that someone may be able to help clarify the position if I leave my current supplier, Scottish Power, before the end of the fixed tariff term.

I am on the Online Fixed price Energy October 2014 which expires at the end of September so, in accordance with advice offered elsewhere on this site that these fees couldn't be charged if there was less than 49 days to go on my tariff, After receiving a letter from Scottish Power reminding me that my del was ending, I looked into leaving on the 19th of August but also contacted Scottish Power by email to ask if they would charge exit fees.

I would add here that I was aware of these fees when I signed up and my most recent statements have always stated that an exit fee of £25 per each fuel would be charged "If you switch supplier more than 49 days before the tariff end date", however the latest statement which was issued on the 19th August stated that these fees were "N/A"

On this basis I initiated a switch of supplier and am due to move later in September however, when Scottish Power responded to my email they advised me that they would apply the exit charges of £25 per fuel. I then queried the wording in their statement, particularly when considering the replacement of any mention of a £25 fee with the word "N/A" in my latest statement and that I would be moving supplier less than 49 days before the end of my tariff. However they responded again to state that the exit fees would be applied.

As a result I wrote back to them, indicating that I would seek advice from the Ombudsman if they applied these charges.

This resulted in a response stating that these fees are applicable, but that they would remove them on my final bill. They then went on to state that this represents their final offer in this matter and that they reserve the right to withdraw it if I do go to the Ombudsman.

While I am happy that I won't face these charges, I was surprised by the amount of email exchanges and their attitude.

Is anyone able to set out exactly what rights consumers have in this situation as, I'm sure that many people less belligerent than me may feel intimidated by their attitude.

Do consumers have the right to move within the last 49 days of their fixed tariff without incurring exit penalties? Or do we rely on the energy supplier's 'good will', as Scottish Power appear to think they have shown in my case?

System

There are many references to this:

http://www.which.co.uk/switch/energy-advice/energy-tariffs-explained

System

From the OFGEM website:

Summary of today’s reforms

1. Fixed term contracts

Suppliers will be banned from increasing prices, or making other changes to fixed term contracts which are to the disadvantage of a customer. The only exceptions to this are “tracker” tariffs that follow an independent index over which the supplier has no control, or structured price increases set out in advance which are fully in line with consumer protection law. This new rule applies to any contracts entered into on or after July 15 2013.

Suppliers will be required to notify customers that their current fixed-term is coming to an end between 42 and 49 days before the contract ends.

Between this notification period and the end of the fixed term contract, suppliers will be banned from charging a termination fee should the customer decide to switch.

Suppliers will be banned from automatically rolling a customer over onto a further fixed term contract.

Instead suppliers will be required to default customers to an evergreen contract if the customer takes no switching action before the end of their fixed-term contract (this default contract must be the cheapest evergreen tariff with the supplier from 31st March 2014).

Reading your post again, I think that your problem is that you have gone about it the wrong way. There was no need to tell your present supplier about the switch. That said, you should now wait for your final bill and if exit fees have been applied raise a formal Complaint citing non-compliance with OFGEM policy when switching at the end of a fixed term tariff.

Alligator

Thanks Hengus,

I did consider whether contacting SP was necessary, however I wanted to be as sure as possible of their position as, at the time, I wasn't able to find any definitive guidance online.

However with the web link and details you've provided I think what I've exposed is a situation where suppliers are prepared to be disingenuous with customers of their fixed tariffs and when they do concede the point are still prepared to present this as being down to their good will.

Hopefully others will avoid this situation.

Pincher

It is an insane refusal for the system to accept that you should be able to set a switching date at the customer's choosing. In fact, when tenants move out, that is precisely what happens.


I would even be happy to PAY for a meter reader visit when I switch, to stop the slimy old supplier from estimating the final bill when I have done and am willing to give more readings.

Quentin

With Scottish power you can avoid all this by switching to another of their new fixed price tariffs (which have no exit charges) at the time you set up your switch thereby when your switch is notified to them you are no longer bound by any exit fees.