Toto energy massive price increase

D_&_G_Hilton

[FONT=Arial, sans-serif]F.A.O. [/FONT][FONT=Arial, sans-serif]The Head of Licensing[/FONT][FONT=Arial, sans-serif] (Domestic Suppliers) [/FONT]
[FONT=Arial, sans-serif]F.A.O. [/FONT][FONT=Arial, sans-serif]The Head of Consumer Protection and Redress[/FONT][FONT=Arial, sans-serif],
[/FONT]
[FONT=Arial, sans-serif]OFGEM, (text removed by MSE Forum Team).
[/FONT]
[FONT=Arial, sans-serif]14 December, 2017.[/FONT]


[FONT=Arial, sans-serif]Dear Sirs,[/FONT]
[FONT=Arial, sans-serif]I need to respectfully draw your attention, please, as the Energy Regulator, to the behaviour of TOTO Energy Ltd, of Towerpoint, (text removed by MSE Forum Team)., a domestic supplier of electricity and gas under licence number 9256482.[/FONT]
[FONT=Arial, sans-serif]This should, I feel, call into question their suitability as a fit and proper company to continue operating in this field. [/FONT]
[FONT=Arial, sans-serif]Ofgem's licence conditions stipulate that every energy supplier must [/FONT][FONT=Arial, sans-serif]provide information that is[/FONT][FONT=Arial, sans-serif] easily understood and doesn't mislead customers.[/FONT]
[FONT=Arial, sans-serif]In all respects, [/FONT][FONT=Arial, sans-serif]licence holders must act in a professional manner. [/FONT]
[FONT=Arial, sans-serif]As stated in your [/FONT][FONT=Arial, sans-serif]'Licence guide - tariffs and contracts': [/FONT]
[FONT=Arial, sans-serif]'It is important that customers understand what they’re signing up to, their rights, and their responsibilities according to their contract.... so that a consumer can make properly informed choices about whether any given tariff is appropriate for them, they will need to be able to understand what the tariff means and involves. Clear and appropriate tariffs and contracts are vital to allow customers to grasp the details of their tariff or product.[/FONT]
[FONT=Arial, sans-serif]These are aimed at ensuring licensees (and their representatives in the case of domestic suppliers) treat each customer fairly. [/FONT][FONT=Arial, sans-serif]This includes behaving in a fair, honest, transparent, appropriate, and professional manner, and providing information that is complete, accurate and not misleading.'[/FONT]
[FONT=Arial, sans-serif]I believe that the attached account of my dealings with this company, and the supporting evidence, will show TOTO Energy to be in flagrant breach of their licensing responsibilities, and raises issues of either deliberately or negligently misleading customers by misrepresentation of their tariff terms, gross mismanagement and incompetence, and potential breaches of the relevant consumer protection law, including, inter alia,[/FONT]
[FONT=Arial, sans-serif]The Consumer Protection from Unfair Trading Regulations 2008[/FONT]
[FONT=Arial, sans-serif](by falling below the good-faith standards of skill and care that a trader in this industry would be expected to exercise towards customers, by misleading actions or omissions, and in providing material information in an unclear, unintelligible, ambiguous manner.)[/FONT]
[FONT=Arial, sans-serif]Yours truly,[/FONT]
[FONT=Arial, sans-serif]etc.[/FONT]
[FONT=Arial, sans-serif]c.c. to Citizens Advice consumer service (Energy)

(Text removed by MSE Forum Team). [/FONT]

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[FONT=Arial, sans-serif]SUMMARY[/FONT] [FONT=Arial, sans-serif](1.) As a dual-fuel consumer, I have, for some years, only dealt with suppliers who can offer me guaranteed prices for an agreed period.[/FONT]
[FONT=Arial, sans-serif](2.) As my previous (guaranteed) tariff with Flow Energy was due to expire on 30 April 2017,
[/FONT]
[FONT=Arial, sans-serif]I decided to 'test the market' to see what other offers were available at that time.[/FONT]
[FONT=Arial, sans-serif](3.) I used for this purpose the comparisons provided by Money Saving Expert's (MSE) 'Cheap Energy Club'. I searched specifically for 'fixed' deals, knowing that this would give me the certainty of guaranteed prices for a fixed term, possibly with the proviso of an 'exit penalty' if I should decide to leave before the expiry of the agreed term (a perfectly understandable and straightforward contractual arrangement.)[/FONT]
[FONT=Arial, sans-serif](4.) Amongst the 'fixed tariff' results was an entry by TOTO Energy Ltd. Although the title had used the word 'Variable' the details supplied by the MSE listing were absolutely clear and unequivocal to me: To attract new business, the prices quoted were being guaranteed for a specified period (1 year), subject to 'early exit' penalties. On this basis (and this basis only) I agreed to switch to TOTO Energy.[/FONT] [FONT=Arial, sans-serif](5.) Naturally, as the tariff details had come via a third party (MSE), I made a mental note to check the tariff details carefully, as soon a notification arrived from TOTO Energy.[/FONT]
[FONT=Arial, sans-serif]This notification duly arrived in a 'Welcome Letter' reference KCI001 dated 11 April 2017, signed by (text removed by MSE Forum Team)., Managing Director (document marked 'A1' attached) in which[/FONT]
[FONT=Arial, sans-serif](text removed by MSE Forum Team). writes [/FONT][FONT=Arial, sans-serif]'...this letter forms part of your contract... here you'll find your Tariff information..'[/FONT]
[FONT=Arial, sans-serif](6.) The accompanying sheet, (marked 'A2') was headed [/FONT][FONT=Arial, sans-serif]'About your tariffs'[/FONT][FONT=Arial, sans-serif], and set out the unit rates and standing charges for electricity and gas respectively, exactly as had been offered via the MSE site. [/FONT]
[FONT=Arial, sans-serif]For each tariff, this document, which forms the heart of the contract, clearly states the [/FONT][FONT=Arial, sans-serif]special terms and conditions[/FONT][FONT=Arial, sans-serif] applicable to this contract:[/FONT]
[FONT=Arial, sans-serif]Tariff ends on: 02 May 2018[/FONT]
[FONT=Arial, sans-serif]Price guaranteed until: 02 May 2018[/FONT]
[FONT=Arial, sans-serif]Exit fees (if you switch before the end date): £10.00 per fuel (inc VAT)[/FONT]
[FONT=Arial, sans-serif](7.) To reinforce the impression that these quoted rates were to be fixed for the stated period of time, there was a footnote to the tariff information, stating:[/FONT]
[FONT=Arial, sans-serif]'If this tariff type does not have an end date then please note that prices are not fixed and may rise in the future.'[/FONT]
[FONT=Arial, sans-serif]The only sensible interpretation of the footnote is that, since this tariff [/FONT][FONT=Arial, sans-serif]does[/FONT][FONT=Arial, sans-serif] have an end date, the prices [/FONT][FONT=Arial, sans-serif]are[/FONT][FONT=Arial, sans-serif] to be regarded as fixed until that end date.[/FONT]
[FONT=Arial, sans-serif](8.) Accompanying the 'Welcome letter' and 'Tariff information' was a lengthy set of general, all-embracing 'Terms and Conditions' drafted by TOTO's lawyers, running to some 6,000 words. It is, however, a fundamental and long-established principle of contract law that a printed standard term must not be construed so as to defeat the main object and intent of the contract. (Glynn v Margetson & Co. House of Lords) [1893] AC 351)[/FONT]
[FONT=Arial, sans-serif]This point was recently reaffirmed by the Court Of Appeal in Alexander (as representative of the "Property 118 Action Group") v West Bromwich Mortgage Company Ltd. [2016] EWCA Civ 496. As stated therein "Where standard printed terms and conditions of a contract are inconsistent with its special terms and conditions, and cannot fairly or sensibly be read together, the special conditions will prevail." [/FONT]
[FONT=Arial, sans-serif](9.) In the [/FONT][FONT=Arial, sans-serif]Alexander[/FONT][FONT=Arial, sans-serif] case cited in the preceding paragraph, the Court also makes clear that: [/FONT][FONT=Arial, sans-serif]'What matters is the terms agreed, not the label attached.' [/FONT][FONT=Arial, sans-serif]Thus, merely labelling a tariff as 'variable' is of no legal effect, if, as in my case, the contractual terms clearly spelt out a [/FONT][FONT=Arial, sans-serif]fixed term[/FONT][FONT=Arial, sans-serif] and a [/FONT][FONT=Arial, sans-serif]guaranteed price[/FONT][FONT=Arial, sans-serif].
[/FONT]
[FONT=Arial, sans-serif](10.) As the year progressed, I became increasingly concerned that I had no statement of account. The online account was not properly recording the gas meter readings, and there was nothing by which I could check that my fuel was being properly charged, on the agreed terms. Repeated attempts to contact TOTO Customer Services were in vain, telephone calls not answered, requests for call-backs ignored, and my email dated 25 September (document marked 'B' attached) was also ignored. Finally, in exasperation, I served a Formal Notice by email dated 23 October (document marked 'C' attached) with an 8 week time limit, after which the matter would be referred to the Energy Ombudsman without further notice.[/FONT]
[FONT=Arial, sans-serif](11.) A first Statement of Account was finally issued to me on 08 November 2017 (letter reference 00018436). This Statement included the full tariff details (documents marked 'D1' and 'D2' attached), including the special terms which were unchanged, except that the end date was now stated to be 01 May 2018, which would be one calendar year from the switch date on 02 May 2017. So someone at TOTO must have consciously amended the end date from the previously stated 02 May 2018.)[/FONT]
[FONT=Arial, sans-serif]Once again, the prices were stated to be guaranteed:[/FONT]
[FONT=Arial, sans-serif]Tariff end on: 01 May 2018[/FONT]
[FONT=Arial, sans-serif]Price guaranteed until: 01 May 2018[/FONT]
[FONT=Arial, sans-serif]Exit fees (if you switch before the end date): £10.00 per fuel (inc VAT)[/FONT]
[FONT=Arial, sans-serif](12.) During the summer, we began to receive unsolicited telephone calls on behalf of TOTO Energy about accepting a 'smart meter'. I telephoned TOTO customer services 0333 210 7070 on 28 July, I managed to actually get an answer after several attempts, and I was transferred to their Smart Meter Installation team. I advised the lady that we did [/FONT][FONT=Arial, sans-serif]not[/FONT][FONT=Arial, sans-serif] want a smart meter. She confirmed that this had been noted on our account and we would not be contacted any further. In the event, alas, we continued to receive telephone calls. By 25 September, after receiving yet another unwelcome call, this time wrongly suggesting that smart meters were to be made compulsory, I sent a formal complaint by email together with a legal Notice (documents marked 'E1' and 'E2' attached). Alas, TOTO Energy persisted, by sending a representative who turned up, unannounced and uninvited, on our doorstep on 24 November, 'to arrange for your smart meter to be installed'. This pressure had now become a case of harassment, and a complaint has been lodged with the Energy Ombudsman, decision awaited. (case 01569625-01).[/FONT]
[FONT=Arial, sans-serif](13.) On 3rd December an email was received from (text removed by MSE Forum Team). CEO of TOTO Energy, enclosing a letter signed by (text removed by MSE Forum Team)., (document marked 'F1' and 'F2' attached) substantially increasing the tariff rates from 02 January 2018, in contravention of the previously stated fixed term and guaranteed prices, of which no mention was made.[/FONT]
[FONT=Arial, sans-serif](14.) Formal Notice of Complaint was given by email dated 06 December 2017. (document marked 'G' attached).[/FONT]
[FONT=Arial, sans-serif](15.) In a subsequent email dated 12 December, headed 'Changes to your TOTO Energy monthly Direct Debit plan' (document marked 'H1' and 'H2' attached) CEO (text removed by MSE Forum Team). made a rather strange matter-of-fact assertion, as if merely in passing, on Page 2, as follows:[/FONT]
[FONT=Arial, sans-serif]What’s a price guarantee and exit fees?[/FONT]
[FONT=Arial, sans-serif]A variable tariff terms and conditions means the price could be subject to change. Unfortunately, some welcome packs may have mistakenly included a reference to a “price guarantee”. We’re very sorry, this was a misprint.[/FONT]
[FONT=Arial, sans-serif](text removed by MSE Forum Team). should be advised of the legal position as outlined in paragraphs (8) and (9) above - 'what matters is the terms agreed, [/FONT][FONT=Arial, sans-serif]not[/FONT][FONT=Arial, sans-serif] the label attached.'[/FONT]
[FONT=Arial, sans-serif]Her attempt to explain the 'price guarantee' as a 'misprint' is not credible. A misprint occurs unknowingly when there is a typographical or mechanical error, typically a spelling mistake or such like. T seems to be confusing the terms 'mistake' and 'misprint' in her sentence.[/FONT]
[FONT=Arial, sans-serif]A Court would, I am sure, take a very dim view of any attempt to dismiss the essential terms of a contract as 'misprints' or 'mistakes'. A thorough investigation is requested, to find out how this supposed 'misprint' or 'mistake' arose, why it was not previously discovered, and, indeed, why the same 'misprint' or 'mistake' was made in the Statement issued to me in November, with a slight adjustment of the end date? Another 'misprint'?[/FONT]
[FONT=Arial, sans-serif](16.) In her email, (text removed by MSE Forum Team) poses the question: [/FONT][FONT=Arial, sans-serif]What’s a price guarantee?[/FONT]
[FONT=Arial, sans-serif](text removed by MSE Forum Team). should be advised that a 'guarantee' (as TOTO gave) means 'to provide a formal assurance, especially that certain conditions will be fulfilled relating to a product, service, or transaction; to promise with certainty.'[/FONT]
[FONT=Arial, sans-serif](16) In my submission, TOTO Energy has not behaved in the manner to be expected under the requirements of their operating licence. I trust the Regulator will investigate these matters and take appropriate action. [/FONT]

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victor2

Like it D & G Hilton!
Please do keep us informed of the outcome.

System

If my responses from Ofgem are anything to go by they will push back on this part of the above submission:

Quote: This should, I feel, call into question their suitability as a fit and proper company Unquote

Included in one of Ofgem's responses to a breach of Standard Licence Conditions by a supplier was this paragraph:

Quote: With regards to due diligence checks there are a number of technical codes and standards new suppliers have to meet. Our guidance on licence application makes clear that being granted a licence does not mean that Ofgem have given any endorsement to the applicant or any associated person, their financial status or their business plan or methods. We do not give any guarantee or warranty that the licensee or any related person is 'fit and proper'. Unquote

Arnster

Yep, I've made exactly the same mistake as you. I'm in the middle of a switch to Breeze energy. Again they say their price is fixed......we'll see!
Have you seen a statement from Toto, because I can't get any response from them.
Regards

System

I am not a lawyer but is the Charge dated 20 October 2017 a worrying indication?

https://beta.companieshouse.gov.uk/company/09256482/filing-history

Or is it just security for wholesale goods supplied? I ask because I cannot find a similar Charge against the other smaller suppliers that I have looked at?

burnsbarber

If you want to leave Toto you can avoid the charge for leaving. As well as increasing the cost of fuel they have also increased the winter DD by 50% and reduced the summer DD by 50% and if you don't like that you can cancel WITHOUT PAYING THE LEAVING CHARGE.

4steve

I'm in the same position - when I called Toto to complain the operator spoke to her superior and then returned with "we've been told to say its the discount that was guaranteed ...not the tarriff"..

re. the suggestion it was a typo - the thing is that every statement also includes the Price Guarantee wording

Keith666

I'm leaving them because:
- Massive increases
- Failure to honour stated guaranteed prices until June 2018
- Failure to confirm change from previous supplier to Toto, which is the trigger for them paying the kickback to MoneySupermarket (who then give me half of it)
- Slow / unsatisfactory response (including the 'misprint' statement) to request for clarification of price increase.

I really hope they cease trading so others don't have to suffer as many here have done.

4steve

Just switched both properties to Breeze.
12 month fixed and the prices are lower than the original Toto - so a result all round.
Rang them and discussed the specific 12 month period and clause 2 of their standard conditions saying they can increase prices with 30 days notice - seems all is fine 😳.

re Toto - I suggest everyone copies the lawyer letter from above, modifies it as appropriate and send to all relevant authorities. Let's put them out of business.

D_&_G_Hilton

OFGEM have sent their standard acknowledgement, but the clear message is the MORE individual complaints they receive from other dissatisfied customers, the greater the pressure will be on the Regulator to start a formal investigation.
The email is from (text removed by MSE Forum Team), Consumer Affairs Officer, and reads as follows:
"...In response to your letter: Although we do not get directly involved in any issue you have about your energy bill or energy supplier. However, we will use the information you have sent us towards monitoring the energy market. For more information about what Ofgem does, visit our website.
It may be useful if I confirm how Ofgem investigates and takes action against energy companies after receiving information from consumers.
When Ofgem receives an individual complaint, we add the information to our intelligence database. Ofgem also receives information from consumer organisations and the energy Ombudsman. We analyse information received in accordance with our Enforcement Guidelines. We keep issues under review to help us decide if we need to take action.
Where an issue becomes the subject of a formal investigation, then that fact would generally be published on the Ofgem website and, subsequently, the result of any such investigation would also be published. Sometimes we take alternative action to deal with a problem – we might contact a company and ask them to put things right - and this action is not necessarily within the public domain. In such instances we are very limited as to what we can tell consumers, including the individual who may have raised the relevant complaint. It is helpful if a complaint to us is specific, well-reasoned, clear and supported by evidence. If we need any further information, we will contact a complainant and ask them for any further information we may require...".

(Text removed by MSE Forum Team)