Outfox the Market are trying to move me to 'Green Standard Variable Tariff' to circumvent Price Cap

shawz007

The price cap does not have to apply to Green Standard variable Tariff. Outfox the Market are trying to force me onto that because I ceased paying them by Direct Debit, given the account was heavily in credit and I alerted them that I would like to start paying on a per bill basis. They have cited as I am on the 'Spring 21 Variable' tariff (which is subject to the cap and of course now set at it) its terms require a Direct Debit. Fine perhaps, those are the terms. But surely I cannot be forced off it onto something worse and outside the Price Cap? Surely all they can do is put me on the standard variable tariff, also subject to the cap, and pay the bill as it comes in. 

I obviously see why they don't want this, but this feels illegal. 

[Deleted User]

If you were on a fixed tariff and did nothing, then the legal default tariff is the Ofgem Cap. However, if you were on a variable tariff, the supplier can decide which, if any, of its tariffs to offer you. Many suppliers are not offering the Ofgem Capped tariff to new customers because it will cost them to do so.

phillw

shawz007 said:

The price cap does not have to apply to Green Standard variable Tariff. Outfox the Market are trying to force me onto that because I ceased paying them by Direct Debit, given the account was heavily in credit and I alerted them that I would like to start paying on a per bill basis. They have cited as I am on the 'Spring 21 Variable' tariff (which is subject to the cap and of course now set at it) its terms require a Direct Debit. Fine perhaps, those are the terms. But surely I cannot be forced off it onto something worse and outside the Price Cap? Surely all they can do is put me on the standard variable tariff, also subject to the cap, and pay the bill as it comes in. 

I obviously see why they don't want this, but this feels illegal. 

You would be far far far better off leaving the DD in place and complaining that they won't refund you. Take it to the ombudsman and you might even get compensation.

If I were them then the only tariff they have that doesn't require a DD would be one that is uncapped.

I treat my balance as savings and the interest is the difference between what I pay them, to what I would pay to have no balance. It can be quite a bit better than what savings accounts are offering.

BobT36

Ask them very explicitly for a copy of the terms regarding the DD, and if it just says 'A' DD, tell them "ok! Set one up for £1 then".  
You should be under no obligation to lend the company money. 

Uxb1

Well if the OP wants to pay by per bill basis every quarter then they are getting the company to lend them money as they are supplying energy and only getting paid in arrears at the end of the quarter.
So just as you say you should be under no obligation to lend them perhaps they are under no obligation to lend you money either
That leads to the end result that we should be perhaps paying every day for the amount of  energy used that day?

MWT

shawz007 said:

But surely I cannot be forced off it onto something worse and outside the Price Cap? Surely all they can do is put me on the standard variable tariff, also subject to the cap, and pay the bill as it comes in. 

The cap for a non-DD tariff is different and higher than the cap for a DD payment method, are you sure that the tariff they propose is above the correct cap for the payment method?

bristolleedsfan

The other thing is are OFTM sticking by benchmark capped rates on its SVR or have they reduced standing charge so as to charge higher kwh rate both fuels, posts on another OFTM thread suggest that is the case......

aoleks

I understand your concerns and you are right, but there’s one fundamental thing I disagree with:

you NEVER cancel a direct debit without informing the company first and getting this in writing, unless it’sna fraud or you settled a debt and have a bulletproof legal defence.

MWT

bristolleedsfan said:

The other thing is are OFTM sticking by benchmark capped rates on its SVR or have they reduced standing charge so as to charge higher kwh rate both fuels, posts on another OFTM thread suggest that is the case......

That would still meet the requirements of the cap though, as long as the total bill cost was within the allowed cap...