Mid contract price rise on fixed price, fixed term contract

duff_man

In sort I signed up to a 4 year fixed term fixed price contract for my micro business with D-Energi which went live on the 30-10-2018. I received an e-mail from D-Energi on the 27-11-2018 advising that they are changing the unit rate by 20% just 3 weeks into a 4 year contract.

There is a term in the contract that says that "D-energi may, at any time, amend this agreement and the contract price as a result of changes in the wholesale energy markets"

D-energi are blaming the price increase on the wholesale market rates despite the contract only being live for 3 weeks. They are offering cheaper prices than I have received in the e-mail through price comparison websites.

They have said if I find a cheaper deal in the next 30 days then they will try and beat it or I can switch. If I don't the new prices will be applied to the account.

I have put a written complaint together and sent it over. I am awaiting a complaint reference number and I intend to go to the ombudsman if this is not resolved.

I just need to know where I stand. Is this legal what they are doing or is it a breach of their electricity supply licence?

My understanding is that Ofgem outlawed this practice in 2013.

Thank you in advance.

JJ_Egan

Business contract as per your T&C as opposed to a consumer contract.

duff_man

Ofgem have made

"a guide to the rules that apply to the terms and conditions of the tariffs and products that suppliers offer. It also covers rules relating to contracts. It’s relevant for suppliers of domestic and non-domestic customers"

Please see the link below.

This suggests that there are some rules in place for none domestic contracts?

ofgem.gov.uk/system/files/docs/2017/11/tariffs_and_contracts.pdf