OFGEMS new ruling is not working.

JRL_2-2

OFGEM introduced a new ruling in 2013/14 to allow residential energy users to switch their existing supplier to another, within 49 days prior to expiry of their fixed tariff - WITHOUT PENALTY...
IT DOSEN'T WORK, at least my two attempts to do so with British Gas failed. They would have applied a £60 duel fuel penalty.
I have complained to Ofgem who referes you to Consumer Advice who stated to me that I was in contract with BG and a penalty is correct. Even the new supplier checked this out and said they thought the same. I then had to cancel the switching process. I wrote to the Omubudsman and they didn't want to know. In turn I have emailed my complaint to MSE they simply said BG are wrong and referred to Ofgem WHAT IS THIS ALL ABOUT, CAN SOMEONE TELL ME
I started the process again today, simply because the takeover date will be after BGs fixed expiry date which is 31May 2015.
However we will have to pay premium Standard Rate for several days. I couldn't risk this penalty with BG and sadly no one really including Ofgem and MSE can tell me why I have been let down. HAS ANYONE ELSE EXPERIENCED THIS. Thanks JRL

naedanger

JRL wrote: »

OFGEM introduced a new ruling in 2013/14 to allow residential energy users to switch their existing supplier to another, within 49 days prior to expiry of their fixed tariff - WITHOUT PENALTY...
IT DOSEN'T WORK, at least my two attempts to do so with British Gas failed. They would have applied a £60 duel fuel penalty.
I have complained to Ofgem who referes you to Consumer Advice who stated to me that I was in contract with BG and a penalty is correct. Even the new supplier checked this out and said they thought the same. I then had to cancel the switching process. I wrote to the Omubudsman and they didn't want to know. In turn I have emailed my complaint to MSE they simply said BG are wrong and referred to Ofgem WHAT IS THIS ALL ABOUT, CAN SOMEONE TELL ME
I started the process again today, simply because the takeover date will be after BGs fixed expiry date which is 31May 2015.
However we will have to pay premium Standard Rate for several days. I couldn't risk this penalty with BG and sadly no one really including Ofgem and MSE can tell me why I have been let down. HAS ANYONE ELSE EXPERIENCED THIS. Thanks JRL

A minor point, I think (but am not certain) that the penalty free transfer period could be as short as 42 days as I think the period starts from when you get notification from your supplier, which can be from 42 to 49 days prior to the end date of the fixed period.

If you don’t get notice about the end of your fixed term contract, are charged a termination fee to switch or get rolled over to another fixed term contract without agreeing to this, you should first complain to your energy supplier and if you're still not happy with the outcome you can complain to the Energy Ombudsman.

If any suppliers are systematically not issuing the notices at the correct time (or levying exit penalties when they shouldn't) then Ofgem ought to investigate, however they are (in my view) very lax, hence the abysmal service levels in the industry generally. (Ofgem however don't help with individual complaints - you have to go via your supplier and then the Ombudsman or courts).

JRL_2-2

:AThank you for that. All what you say is generally correct.
However, having questioned BG on two lengthy telephone conversations I could have possibly then stared sending official letters before initiating a switch. Then isn't Ofgems directive flawed in the first place. Why should one have to go through a drawn out process to fight an unlawful charge (if it is unlawful?), when the energy supplier should be aware in the first place, unless of course you are the Consumer Advice service who told me I was in 'contract' with BG. As I have said even the potential NEW supplier considered I was in contract when this issue was posed to them.
Surely considering Ofgems ruling in 2013 and 14 there should be no ambiguity. The energy supplier should implement the ruling without question. And furthermore when notifing the customer of the impending tariff end, they should clearly remind us of the penalty in the letter or state Ofgems ruling so that the consumer is absolutely clear BEFORE one ends up spending weeks persuing a claim. The whole ruling is simply being flaunted and most consumers would find this totally confusing.

System

The rules are these:

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).

It follows that if you decide to switch at the 49 day point BEFORE the supplier has issued a letter etc, then you COULD be liable for early exit fees. My guess is that the IT system is not updated until the letter is issued. All that said, I would agree that OFGEM is probably one of the weaker regulators and that they try to avoid customer contact at all costs.

Bark01

Switched without a problem

Hengus wrote: »

This new rule applies to any contracts entered into on or after July 15 2013.

OP when did you start your latest contract?

I'd be very surprised if BG were not adhering to this rule. Ofgem have been fining people left right and center over the last year.

C_Mababejive

An important point to note..if you write to your supplier to complain,,you MUST open the letter with the word COMPLAINT preferably in capitals and underlined otherwise it isnt a compliant and isnt registered as such. Its just correspondence.

naedanger

JRL wrote: »

:AThank you for that. All what you say is generally correct.
However, having questioned BG on two lengthy telephone conversations I could have possibly then stared sending official letters before initiating a switch. Then isn't Ofgems directive flawed in the first place. Why should one have to go through a drawn out process to fight an unlawful charge (if it is unlawful?), when the energy supplier should be aware in the first place, unless of course you are the Consumer Advice service who told me I was in 'contract' with BG. As I have said even the potential NEW supplier considered I was in contract when this issue was posed to them.
Surely considering Ofgems ruling in 2013 and 14 there should be no ambiguity. The energy supplier should implement the ruling without question. And furthermore when notifing the customer of the impending tariff end, they should clearly remind us of the penalty in the letter or state Ofgems ruling so that the consumer is absolutely clear BEFORE one ends up spending weeks persuing a claim. The whole ruling is simply being flaunted and most consumers would find this totally confusing.

I agree the rules should not be flouted. But if they are then you can obtain redress by complaining to the supplier then the Ombudsman and/or take your case to court. I agree in an ideal world this should not be necessary.

(I don't understand why you think the notification letter should need to mention the exit penalty because from the point you receive the notification letter you can switch without penalty.)

JRL_2-2

To clarify my point re a mention of exit penalties in a notification letter - firstly many customers may either be unaware there is an exit penalty or if they are the clarity and understanding of the Ofgem details on switching.
It took some finding in my online agreement with BGs fixed tariff to find the implications of and early exit. When I did, there was no mention or reference to the Ofgem ruling. Clarity and information of consumer options at the point of notification should be (in my view) a reasonable course to include. That leaves everyone in no doubt - one hopes?

System

JRL wrote: »

To clarify my point re a mention of exit penalties in a notification letter - firstly many customers may either be unaware there is an exit penalty or if they are the clarity and understanding of the Ofgem details on switching.
It took some finding in my online agreement with BGs fixed tariff to find the implications of and early exit. When I did, there was no mention or reference to the Ofgem ruling. Clarity and information of consumer options at the point of notification should be (in my view) a reasonable course to include. That leaves everyone in no doubt - one hopes?

You want a 'belt and braces' approach to a problem that YOU have had with one supplier. Firstly, exit fees are mentioned in the tariff that you signed up to. I was with Ovo last year, and now E.oN, and both show exit fees in the original contract. Clearly, these can be rescinded but not imposed during the term of the contract. The OFGEM rules have ben around for two years and I have never had an issue - either with not getting a letter/e-mail notifying me that my contract is coming to an end or being charged more if the switching date was after the end of my existing fixed tariff.

I am not sure how any of your suggestions would help if the supplier didn't send you a letter/e-mail if the first place.

System

JRL wrote: »

However we will have to pay premium Standard Rate for several days.

Just to clarify. If your switching date takes you beyond the end of your fixed term with BG, they will not switch you to their standard variable tariff. The important point is that you gave notice before the end of your contract. How do I know this? I am with an IGT for gas. The switching process which involves a third party can take months rather than weeks. I have never been put on my original supplier's standard variable tariff.

JRL_2-2

Thank you Hengus for your feedback. I have recently started the process again of switching to another supplier. I am told by them it will take 19 days for the actual handover. This would take me into several days beyond the expiry date of the previous BG fixed tariff. My understanding is that I will be put on their standard tariff but I intend to double check this particularly in view of your comment. However I do still think that for those not as well informed as you are, that a reminder of the conditions which you had entered into, be brought to the attention at the point of instigating a switch where applicable It's a matter of timing. Nothing to do with belt and braces. It allows the individual who is less ofay with the system to have a clear understanding before committing. Thanks.