42 day exit fees

burgensteen

Hi.
My brothers British gas dual fuel tarrif runs out on 31st Aug 15 & a couple of weeks ago he started the switch to another supplier but British Gas keep ringing him saying he will be liable for the penalty fees from his move as his contract doesnt finsh until the 31st Aug.
I have rung them and quoted the 42 day rule but they say:

1. My brother entered into a contract with them and as such the exit fees apply (regardless of the new law)
2. The law came in to effect after my brother started his contract with British Gas and therefore it doesnt apply (only applies to contracts after the new laws date)

Could someone shed some light on this please as from what I have read ALL contracts have to apply to the new rule irrespective of when they were taken out.

Thanks for any advice given
Jon

footyguy

burgensteen wrote: »

Hi.
My brothers British gas dual fuel tarrif runs out on 31st Aug 15 & a couple of weeks ago he started the switch to another supplier but British Gas keep ringing him saying he will be liable for the penalty fees from his move as his contract doesnt finsh until the 31st Aug.
I have rung them and quoted the 42 day rule but they say:

1. My brother entered into a contract with them and as such the exit fees apply (regardless of the new law)
2. The law came in to effect after my brother started his contract with British Gas and therefore it doesnt apply (only applies to contracts after the new laws date)

Could someone shed some light on this please as from what I have read ALL contracts have to apply to the new rule irrespective of when they were taken out.

Thanks for any advice given
Jon

Don't worry about it - they have not charged you any early exit fee yet.

If, and only if, they do, that would be the time to question it.

Keep calm and carry on


Btw, have they not written to you with any indication that your current deal is coming to an end? If not, ask them why not. If they have, read it very carefully

System

Have a read of Standard Condition 22 in this link:

https://epr.ofgem.gov.uk//Content/Documents/Gas%20supply%20standard%20licence%20conditions%20consolidated%20-%20Current%20Version.pdf

BG are trying it on and should be reported to Ofgem at consumeraffairs@ofgem.gov.uk[/email]

ALL fixed price tariffs have the 49 to 42 day rule attached to them as it's a supplier's licence obligation. Has your brother received anything from BG advising him that his tariff is coming to an end?

Your brother does not need to tell BG that he is switching as the new supplier manages all aspects of the switch. It will notify BG and provided BG hear from them by the 20th of September (i.e.; within 20 days of the end of the BG tariff) then your brother will remain on his existing BG tariff until the switch goes through.

PS Do not complain to Ofgem as they will bounce it back. Just inform tham of what BG has said re exit fees. If your brother wants to complain about BG then should be done via BG's complaints process.

System

footyguy wrote: »

Don't worry about it - they have not charged you any early exit fee yet.

If, and only if, they do, that would be the time to question it.


Btw, have they not written to you with any indication that your current deal is coming to an end? If not, ask them why not. If they have, read it very carefully

I disagree. This is not the first report that we have had on this forum of BG giving its customers bad advice re exit fees. The OP needs to apprise Ofgem as the Regulator needs to be aware of what is going on. If the OP just complains to BG then eventually they will just try to suggest that it was all a big mistake etc etc.

Consumerist

In the normal course of events, a formal complaint could be referred to Ombudsman Services: Energy but it seems likely that BG will "resolve" the complaint within 8 weeks and the ombudsman will not then get involved.

You could take the issue to Citizens Advice who keep stats on issues raised and can refer the matter to Ofgem if it is seen to be common practice by BG.

System

Consumerist wrote: »

You could take the issue to Citizens Advice who keep stats on issues raised and can refer the matter to Ofgem if it is seen to be common practice by BG.

If you have got a lot of time on your hands then speak to Citizen's Advice. Their processes are very cumbersome, and they are reluctant to answer simple questions. I called them last year and, after 3 internal transfers, a supervisor confirmed that regulatory breaches can be referred direct to the Regulator (consumeraffairs@ofgem.gov.uk). They are clearly more used to dealing with consumer complaints.

burgensteen

Thanks for all the fast responses.
So can I conclude that they cannot infact charge the penalty fees as it is within the 42 days (irrelevant of when he took the policy out) & if they do my brother can take action to redeem it.

Thanks again, I really appreciate your input.
Jon

Consumerist

Hengus wrote: »

. . . I called them last year and, after 3 internal transfers, a supervisor confirmed that regulatory breaches can be referred direct to the Regulator (consumeraffairs@ofgem.gov.uk). They are clearly more used to dealing with consumer complaints.

I wasn't aware that the regulator would deal with individual complaints so thanks for the info.

System

Consumerist wrote: »

I wasn't aware that the regulator would deal with individual complaints so thanks for the info.

Ofgem won't deal with individual complaints which are a matter for the customer and supplier. As the Regulator, Ofgem is responsible for supply licences. I am still waiting for a switch to go through. If it goes through next Monday as planned, then the supplier will have breached the 35 day transfer requirement by 40 days. I have written to Ofgem and invited them to investigate the breach. How they take the matter forward is a matter for them. Ofgem cites that one of its principal aims is to protect the rights of present and future consumers. If anybody is looking for compensation, then the Ofgem route is not the way to go.

Bark01

burgensteen wrote: »

The law came in to effect after my brother started his contract with British Gas and therefore it doesnt apply (only applies to contracts after the new laws date)
[/LIST]

This may give them a loop hole, when did he sign up for the tariff. The oldest BG tariff that I can find that ends this month launched in Feb 2014.

The last of the RMR changes went live in March 2014, but I think the Fixed term cancellation fee (SLC 24.8) was amended in October 2013.

dogshome

The brother should send an Email headed Complaint to BG, asking why they have failed to issue a 42 day letter.

The 42 day rule was brought in to curb the exactly the kind of shennangans BG are trying on now -The rules also define that the date a Switch takes effect, is the day the new supplier actually starts the supply - Not the date the original supplier is advised that a Switch in process