Rip-off tricks by Outfox The Market

smiledotcom

I am about to say goodbye to this supplier for the following reasons:

They lead me to believe that monthly membership fees would be based upon electricity usage. The more used, the higher the monthly membership fees.

So,at the point of signing up they asked me to estimate my annual electricity consumption so that my monthly membership fees could be calculated.

Based upon my estimated consumption I should have been paying membership fees of around £7.51 per month.

Since joining however I have been charged membership fees of £13.22 per month!

When I queried this with OTM I was informed that they had obtained data from my previous suppliers - from the previous 2 years - and had based my membership fees upon that, historical, usage. Not upon my estimated annual usage, and not upon my actual usage - which is now very low since I switched from heating my house by electricity to heating it by gas central heating.

I explained all that to OTM but they won't budge. They are going to continue to charge me almost double what I should be paying in membership fees. They also calculated my monthly direct debit upon that historical usage so I now have more than £100 credit built up in the account although my electricity usage is very low.

Just to add salt into the wound they also informed me that they will NOT refund the excessive membership fees that I am currently paying. They are just going to pocket my money!

Just to add more salt to the would OTM won't refund the credit that has been built up on the account. OTM won't refund credit until it reaches the £250 mark!

I don't know about outfoxing the market, but they sure know how to outfox their customers.

VoucherMan

smiledotcom wrote: »

They lead me to believe that monthly membership fees would be based upon electricity usage. The more used, the higher the monthly membership fees.


had based my membership fees upon that, historical, usage.

not upon my actual usage -

Welcome to the club. I am not affected to such a degree, but it still grates that OFTM hide this small detail in the 'small print' instead of being upfront with it.


How many other suppliers can hit you with 3 different price increases whenever they choose (with the appropriate notice period for some of those charges) ? It makes it worse that the first you are likely to know of this increased charge is when you view your bill. They do not tell you, just increase your estimated usage figure, and your fee along with it.


I find it disappointing (dare I say misleading?) that MSE don't mention this or, at least for now, even acknowledge this detail.

Norman_Castle

From their perspective, whats to stop customers giving low estimates to reduce the monthly fee? Customers also often underestimate. Historical usage is normally a good measure of ongoing use but obviously for a few usage can change.

Merlin139

I am more than happy with them. Signed up to an 18 month fixed rate deal so I have had no price increases. I gave them my estimate based on the last 4 years of readings.

I was not put on the lowest membership fee when I joined but after 4 months I contacted them and they agreed that my flow rate for the last 2 years showed that I should be on the lowest rate. They then amended my bills for this time.

Since 28/02 my DD of £61.38 means I have paid them £429.66

Based on my last statement from 28/08 my account is £212.44 in credit. Looking at my readings for Gas and Electric this morning that credit will increase to an excess of over £250

The vast majority of customers of any supplier would be expected to build up a credit during the summer months so I would not want or expect this credit to be returned.

An_average_plonker

Norman_Castle wrote: »

Historical usage is normally a good measure of ongoing use but obviously for a few usage can change.

They do not base it on historical usage. It is based on an estimate (EAC).



Is the EAC figure available to the property to which it applies? I mean directly not from the energy supplier. What is to stop the energy supplier submitting their own figures to this database instead of the customer's? How else can they be using an EAC so much higher than the actual usage?

Organza_Lace wrote: »

Then i was asked to review my service on Trustpilot..... err, i dont think so! They wouldnt like what i would have put.

So you won't add a review because they won't like it? Maybe if enough people commented they would be more open and helpful.

Norman_Castle

An_average_plonker wrote: »

They do not base it on historical usage. It is based on an estimate (EAC).

From the op.

smiledotcom wrote: »

When I queried this with OTM I was informed that they had obtained data from my previous suppliers - from the previous 2 years - and had based my membership fees upon that, historical, usage.

An_average_plonker

Norman_Castle wrote: »

From the op.

From OFTM terms and conditions


The monthly membership fee is based on your estimated annual consumption. (EAC)




From an OFTM rep



Regular meter readings will make the EAC more accurate but this can take some time. The EAC is an industry provided figure and out of our control. If the EAC changes and moves you into a different band then your membership cost will change.



So by their own admission the EAC is not a usage figure, it is an estimate. It may be based on previous usage, but it is in no way an actual average usage.


The harder you look there are many people who have been caught out by this. People are saying their EAC is higher than their usage has ever been! How can this be anything but an inflated estimate?

VoucherMan

Norman_Castle wrote: »

From their perspective, whats to stop customers giving low estimates to reduce the monthly fee?

They would have to do it for 2 years effectively lower their EAC. Until I switched to OFTM my supplier would periodically send a meter reader to take a reading which would counter customers giving false readings. Many people will have smart meters that send readings automatically.

Another problem with basing bills on the EAC is they're linked to the property. If someone moves out of a property, having been a heavy user with an annual 5000KWh usage, with the new resident having a usage of 2000kWh, they could potentially sign up to OFTM thinking they'd be on the lowest fee, after all MSE repeatedly say that

Outfox the Market charges a monthly membership fee depending on your level of usage

but clearly this is not correct. The unlucky person in my example above would have to wait 2 years for the historic figure to drop, and even then there's no guarantee it would match their actual usage.




My current issue is not with OFTM, although I do think they should be more upfront about their charges, instead of hiding it the T&C. My concern is the well known money saving website that is failing to highlight this small, but significant detail. Who knows how many have signed up thinking that they would be on a cheap rate, only to be charged a much higher amount the following month?