Shell energy price hike horror

surelynot

3 months ago i used MSE comparison tool to decide whether to stay with OVO for my gas and electricity. 

After filling in the form I was given many lower quotes and decided on Shell as the Customer Service rating was good and they are a big company with excellent reviews.

The switch was smooth and efficient with very limited input from me. 

3 months in - Shell have changed my direct debit from the £46 that they quoted  to a staggering £80.  I am aware that energy prices have increased but not by nearly 100%.

I read their advice about why bills might go up and none of the situations applied to me. I always supply meter readings on the day requested, I have not bought an electric car and my solo occupancy of same house has not changed.

I contacted them to ask why the huge change and for information about how they arrived at the £46 quote which tempted me to leave Ovo. I have not had any satisfactory answer just "  You have been using a larger amount of energy than you originally stated you would " but if I provided information it can only have been from my Ovo statement.

I have emailed several times now but am getting nowhere. I have asked for clarification of how they reached the 'projection' which now means nearly doubling the monthly amount they quoted me.   I would leave but now face charge of £60 if I leave as I am unhappy with their price and service.

Please can you help me understand..

....am I the only person this is happening to?

.....is this a widespread trick used by companies to lure customers in to a fixed contract and then nearly double their charges?

How can your customers avoid this happening again? 

Like many, I applaud your support for customers and am so grateful for the many services you offer to help us numpties negotiate the bewildering financial world.

Robin9

surelynot said:

.................. - Shell have changed my direct debit from the £46 that they quoted  to a staggering £80.  I am aware that energy prices have increased but not by nearly 100%.

............

Your initial DD will have been based on the actual annual consumption figures you gave -  what were they ?


3 month's in what have they been.?


£46 for gas and electric -   highly unlikely,  £80 is far more realistic. What was OVO's figure ?


PS You posted on the wrong part of the forum - you should be under Energy .  You're not the first - a badly designed bit of the forum.

Reed_Richards

Anyone who is tempted by a DD quote is ... well in order to be polite I won't complete that.  What counts is the tariff(s) you pay per kWh and the standing charge(s).  All comparison sites will tell you that information although most do tend to hide it away.  But it is only knowing those numbers that you can tell if you are getting a better deal or not.

Gerry1

MSE DD advice

dunstonh

3 months in - Shell have changed my direct debit from the £46 that they quoted  to a staggering £80.  I am aware that energy prices have increased but not by nearly 100%.

Direct debit is a method of payment.  It is not an indication of the energy you use.

You could be using the equivalent of £80pm of energy but told the supplier to set the initial direct debit up at £46.  This would mean you are not paying enough and sooner or later they will need you to up your direct debit to pay for your actual use.  Not your incorrectly advised use.

 I have not had any satisfactory answer just "  You have been using a larger amount of energy than you originally stated you would " but if I provided information it can only have been from my Ovo statement.

It is the correct answer though.

Whenever you compare tariffs, you should never use the amount you are currently paying as an indication of the amount of energy you are using.    You should use the kWh you actually use over  a year.  Compare an actual reading covering exactly a year.   

The other issue you have is that you have built up no summer credit with the new supplier.   The bulk of your energy use is in the winter months.   In summer, you pay more than you use and puts your account in credit.     In the winter months you use more than you are paying but as you have built up credit over summer,  it averages out.     As you moved in January, you had no credit built up with the new supplier.  

.....is this a widespread trick used by companies to lure customers in to a fixed contract and then nearly double their charges?

Not at all.  It is a misunderstanding by you (and you are not alone).    You have the price you agreed to on the contract.  You just underestimated your usage and had no credit built up.

There is no wrongdoing here.  If the Shell tariff is cheaper then your costs will be cheaper.