Scare tactics email from Yorkshire Energy - differs from the MSE Cheap Energy Club suggestions

smipx013

Hi All.  I recently switched to Yorkshire energy variable tariff as it was nice and cheap.  I am on "Yorkshire Energy Variable to 10/05/20".  When I do an up-to-date comparison, the energy club is telling me that this is the best tarrif currently - by quite some margin.  I realise this is a variable tariff and will fluctuate.  The best predicted saving is currently -£102pa on a fixed 12 month tariff (minus £102).  Normally I would not have worried and I do expect some price rises during the colder months but I got a rather alarmist email from YE that says the following:

As a valued Yorkshire Energy customer, we want to ensure you're getting the fairest deal possible. You are currently on our Standard Variable Tariff. The rates of this tariff are set to increase on 28th November by 31% on average.** This is due to wholesale energy market prices increasing over winter, but prices do then drop again in spring.  Other suppliers simply increase the price of their variable tariffs without providing another option. That's not what we do. Remain on your current tariff Happy as you are? Put your feet up! Remaining on our Variable tariff requires no action from you. Seasonal changes in the wholesale market mean variable rates are expected to drop again in Spring. You can rest assured we will lock in the best possible price for you when this happens. Whilst we’re confident you won’t need this, if you wish to leave our Variable tariff at any point, you won’t pay exit fees. Fix onto our Green Brimham tariff* and enjoy a £140  average annual saving!** Choose the security of a fixed tariff before the winter and avoid any nasty price hikes. To thank you for your ongoing support and fixing with us, we’ll credit your account with £50 in January 2021 to put towards your energy bills.* We've made moving onto our fixed tariff completely hassle-free. There's no need to call or email us - simply head to your Online Portal and fix today. As we head into the winter months and are at home more than usual, the amount of energy you use is likely to go up. Have a read through our Energy Saving Tips to help keep your bills low.   *Subject to availability. Terms and Conditions apply. **Based on OFGEM averages.

I have done some fag packet calculations (because I am very mistrusting) and they are saying that on 28th november the tariff is going to increase by 31%. they don't mention that it could drop by 10% in December and/or January (or indeed go up more).  Lets say the 31% rise lasts for 4 months and in the spring it drops back to the pre-rise levels that is around 8% annualised increase of my annual bill (around £75 in total). so ....... by my reckoning I am better to stay variable. I will also avoid the £60 early exit fees if the prices drop a lot (although they are offering a £50 credit if I go to it and stay until January 2021). I appreciate that no-one can predict price changes but I did find the YE email a bit misleading to say the least.  I completely get the variable versus fixed tariff arguments - I made my choice fully informed - I just didn't like the YE email that might scare folk into fixing by giving what I feel is a misleading impression in the opening paragraph and only explaining things further down (and mot explaining it properly either). Most folk might well only read that first paragraph and panic.  Further down it states "Fix onto our Green Brimham tariff* and enjoy a £140  average annual saving!".  Now I really do think that is misleading. On the Cheap energy club it is not addressing this "baked in" increase if this statement is true.  If there are accurately predicted price increases of 31% in November then why is not the Energy Club taking this into account and warning me that I should switch to a fixed tariff urgently??   Someone is either being economical with the truth (YE) or else the price comparison sites like MSE Cheap Energy Club are not sophistocated enough to account for this pretty much "cast in stone" 31% increase coming down the line on 28th November.    What do others think???  

cheers
Paul

Petriix

~75% of your usage will be over winter. With a variable tariff you run the risk of prices increasing. I would be looking for the cheapest fix you can find. Although there are usually better prices available in the spring, no one can predict the impact of Brexit. 

smipx013

The other thing that is a bit confusing with Yorkshire Energy is that if you look at all their previous tariffs they seem to have multiple Variable Tariff's. My variable tariff started on 7th May 2020 and is hilighted below - you can see 3 other varaible tariff's in the list of old tariffs below in addition.:


This hilighted tariff is as follows (I assume this is changed frequently as the market dictates):

My last bill dated 2nd October states that its currently: 
Electricity                                                            Gas 
13.771 Standing Charge and 12.576 p/kwh      11.857 Standing charge and 2.479 p/kwh
So that all adds up fine but...   I can't really understand how this relates to the table below which is their current Variable Tariff:

They both have an identical description yet are vastly different.
What is to stop them whacking up the one I am on to the same as the current?  Is this what they are alluding to on 28th November??  What makes my variable tariff different and why are their multiple variable tariff's.   

I'm confused :-(

smipx013

Was there some kind of "special" "Variable" tariff on offer in May that was fixed for 5 months I wonder - I wish I could remember.

Stonesmike

Received the same email, and looks like the “special” “variable” tariff for me, like smipx013 I can’t remember seeing this before.
Not sure what to do, quickly looking at comparisons I possibly saving around £2-3 a month.

Gerry1

smipx013 said:

Was there some kind of "special" "Variable" tariff on offer in May that was fixed for 5 months I wonder - I wish I could remember.

https://energysuppliers.energylinx.co.uk/yorkshire-energy/

https://www.energylinx.co.uk/latest_energy_price_updates.htm

smipx013

Hi Gerry1,  Checked out https://energysuppliers.energylinx.co.uk/yorkshire-energy/ and guess what.  The only one of those tariff's that does not have a T&C is the "Yorkshire Energy Variable - to 10/05/20".  If you click "View Here" you get a 404 error
I also looked at all of my paperwork/emails from YE and can find no reference to this being a special deal or any special terms.  Still very confused :-(
Someting fishy is going on ??

smipx013

So I have just talked to YE and they have confirmed that I was on the standard variable tariff when I joined but they, without my knowlege, split this tarrif on and renamed it to "Yorkshire Energy Variable - to 10/05/20" and kept the price lower than the now new Variable Tariff.  They explained that they did this so they did not annoy all the people who recently switched with a massive price hike just after joining.  They have explained to me that the new fixed offering called Green Brimham tariff is to be launched tomorrow (28th October) and the email we have got is essentially a 30 day notice that all the people on the now newly named "Yorkshire Energy Variable - to 10/05/20" tariff will be moved again onto the "actual" variable tariff which is indeed 30% ish higher across the board.  

I think something really fishy is going on here and they are doing some very very odd things to presumably try and comply with the law.
Essentially I wa moved off the Variable Tariff and enjoyed a lower price since May but now they are bringing them back in line I will take a massive one off jump of 30%.   

As of today if you log in to your YE account the only switch available is to a tarrif called "Green Bradfield" but as of tomorrow the new new "Green Brimham" will be launched (the one mentioned in the email). At this point YE customer service could not even tell me what the pricing on this new tariff will be so we will all have to wait until 28th to see if it is worth sticking with them or whether we should move to a cheaper Fixed Tariff from another provider.

This all stinks a bit?? 

smipx013

So..   I have just sent this email to Ofgem and CheapenergyClub admins for a bit of clarification/potential investigation:

Hi Cheap Energy Club and Ofgem,

I don't want to make an actual complaint but I have observed some very unusual practices by the supplier Yorkshire Energy in respect of their "Variable Tariff".  I wonder if you could take the time to read this forum post and perhaps look into whether Yorkshire Energy are breaking any of the "rules" or breaking the law here. This is more of a sanity check rather than a complaint.  I have a sneaking suspicion that something is not right and may need some further investigation.   

This is the forum topic and my ID is smipx013.    Forum Post:  https://forums.moneysavingexpert.com/discussion/6206793/scare-tactics-email-from-yorkshire-energy-differs-from-the-mse-cheap-energy-club-suggestions/p1?new=1

Thanks so much.

Gerry1

No point in going to Ofgem, they don't deal with individual complaints.  You would need to raise a formal complaint with YE (use snail mail and get a free certificate of posting) and get a deadlock letter or have waited eight weeks, and then you can go to the ombudsman.

However, you'd need to make clear what you thought YE had done wrong (e.g. breach of licence conditions, or charging more than contracted) and how you had been adversely affected, e.g. financial loss.

smipx013

Agreed - This is why I have not made any formal complaint.  I have not been financially disadvantaged.  What I do suspect though is that YE may have been on an unfair customer fishing expedition by using shady tactics.  I'm not going to make a complaint as it would not lead to any material difference for me and would be a ton of work.  All I wanted to do was hilight to ofgem and to MSE energy club that something may be going on here that is sailing very close to the wind legally / morally.