Fixed Tariff Changed to Variable

jimmylad007

Hi. I signed up to a fixed rate duel fuel tariff early this year, which started mid July. When I signed up I was told that the unit price would remain the same. I have now received notification of a unit price increase for both fuels, which I wasn't expecting. And what was originally showing as a fixed rate tariff is now showing as a variable rate. Are they allowed to change it part way through like this, and because they've changed it can I leave without paying the exit fees? Thanks.

[Deleted User]

said:

Hi. I signed up to a fixed rate duel fuel tariff early this year, which started mid July. When I signed up I was told that the unit price would remain the same. I have now received notification of a unit price increase for both fuels, which I wasn't expecting. And what was originally showing as a fixed rate tariff is now showing as a variable rate. Are they allowed to change it part way through like this, and because they've changed it can I leave without paying the exit fees? Thanks.

The ‘short answer’ is no. Are you sure that you signed up to a fixed tariff? You need to check the Welcome Letter/email that you should have received when you signed up for the switch. The reason that I am being cautious is that some consumers get confused over the word ‘fixed’. 

jimmylad007

Dolor said:

Are you sure that you signed up to a fixed tariff? You need to check the Welcome Letter/email

Hi. Yes it says Tariff type: Fixed in the original email. The email I received today, stating that they're moving me on to "v2" of my tariff, it says Tariff type: Variable.

t1redmonkey

jimmylad007 said:

Dolor said:

Are you sure that you signed up to a fixed tariff? You need to check the Welcome Letter/email

Hi. Yes it says Tariff type: Fixed in the original email. The email I received today, stating that they're moving me on to "v2" of my tariff, it says Tariff type: Variable.

What's the name of the tariff/provider?

Reed_Richards

There is also the issue of compliance with terms and conditions.  One (electricity-only) company I can think of threatens to transfer you from a fixed-term tariff to their standard (expensive) variable rate tariff if you fail to comply with some aspects of their T&Cs.

jimmylad007

t1redmonkey said:

What's the name of the tariff/provider?

Shell Energy. Cap tracker March 2023.

t1redmonkey

jimmylad007 said:

t1redmonkey said:

What's the name of the tariff/provider?

Shell Energy. Cap tracker March 2023.

You're not actually on a 'true' fixed tariff then.  I can't find the Ts and Cs for your exact tariff, but I've found a very similar one from Shell and it says this in there:

During the Cap Tracker Period the standing charge and unit rate for your electricity and/or gas will be set by reference to Ofgem’s default tariff price cap for customers who pay by Direct Debit for your area and tariff type (e.g. Economy 7 or single rate) (“Price Cap Prices”).

The prices on this tariff will be set at a discount of not less than 6% to Ofgem’s Price Cap Prices. The Ofgem Price Cap Prices are reviewed twice a year by Ofgem and can go up or down. Changes to the Price Cap Prices take effect from 1st April and 1st October in any year. You will be notified of any changes to your prices at least 30 days prior to them taking effect. The initial prices for this tariff are set by reference to Ofgem’s Price Cap Prices that are effective as of 1st April 2021. 

jimmylad007

But are they allowed to change my tariff during the fixed term? I’m not referring to the price change, but they’re actually changing me onto a differently named tariff.

Gerry1

It's highly misleading for Shell to summarise this a 'Fixed' tariff because the vast majority of people would interpret the following as being a fixed pence/kWh price and a fixed standing charge price.

However, it's turns out that it's only a fixed term tariff and, despite the reassurance of 'March 2023' in the tariff name, the price is guaranteed only until 30 September 2021.  It tracks Ofgem's price cap, so it can go up or down accordingly. In Plain English, it's a variable tariff, but one with exit fees ! 

Not surprisingly, it's even confused the experts at Energylinx who describe it as Fixed Rate.

Shell wriggle out by going on to state:-

Source: https://imageassets.shellenergy.co.uk/tariff-guides-rmr/ISDFFXV881SR/ISDFFXV881SR1R_JDDPN.pdf

Make a formal complaint to Shell that you were mis-sold.  If no luck, go to the Ombudsman and / or the Adverising Standards Authority and Citizens Advice / Trading Standards.  It's also something that should be flagged up to MSE and' Which?'.

[Deleted User]

jimmylad007 said:

But are they allowed to change my tariff during the fixed term? I’m not referring to the price change, but they’re actually changing me onto a differently named tariff.

The Tracker tariff that I was on with Octopus was based on a fixed standing charge and variable unit rate. There is perhaps a clue in the word ‘Tracker’. As others have stated/implied, the detail will be in the terms and conditions attached to your contract/tariff.

bwelton

jimmylad007 said:

But are they allowed to change my tariff during the fixed term? I’m not referring to the price change, but they’re actually changing me onto a differently named tariff.

Did you manage to get this resolved with Shell Energy ?   I have also found that they changed the Tariff I was on to a completely different one and backbilled me at a higher rate.