British Gas Pushing People to Fix

wittynamegoeshere

That would come down to a judge looking at the messages they're sending out and deciding whether they represent good advice or an attempt at persuading them to make a decision that will lead to them paying them more than they would otherwise.

The old legal phrase is "the man on the Clapham omnibus", in other words how the average person off the street would interpret it.

It seems obvious that this is a deliberate attempt to mislead.  I appreciate that they are obliged to offer a fix, but it can be done in a way that doesn't imply that it's the one and only option available, therefore signing up is mandatory.  Some people reading that may think the lights will go out if they don't agree to it.

And why have MSE removed the original story that was linked at the start of this thread?  Have BG been flinging their lawyers about?

bristolleedsfan

MWT said:

Like all the other suppliers, Octopus included, they are obliged by Ofgem rules to offer their best fixed tariff to existing customers who are nearing the end of their current fixed tariff.

Is it ethical for Octopus Energy to be advising via its quote page customers of other energy suppliers not to choose another tariff, instead default to energy capped tariff whilst at the same time promoting its own existing customer 12 month fixed renewal as "cheaper than anything available on the market" when it is/has been more expensive for typical average household than fixed rate tariffs being offered to existing customers by E.on Next ( no exit fee), Scottish Power ( exit fees), British Gas,O/P article indicated cheaper(exit fees) and/or advising its own customers to choose to fix rates more expensive than energy capped variable rate for October 1 - 31 March Winter period

https://forums.moneysavingexpert.com/discussion/comment/78822835/#Comment_78822835

A on Twitter: "@MartinSLewis In sept I re fixed my energy because I was told by @OctopusEnergy that if I didn't the prices were going to go up and it was cheaper, this was before the do nothing came in. Was paying £98 pm now wanting £180 (I pay £130 as can't afford). Help what can I do." / Twitter

A on Twitter: "@MartinSLewis @itvMLshow Unfortunately I went onto a new fixed rate before your do nothing show and now locked in to double the price a month £200, I have the heating on 2 hours a day max and still paying £175 per month. Working hard with kids and getting nowhere, depression is high 😭" / Twitter

Key point is Octopus advising customers of other energy suppliers not to choose a new tariff instead default to energy capped tariff whilst enticing/advising its own customers to choose a fixed rate, they advised me the same even though I did niot ask them for tariff advice,

15th September, note that I did not ask them for tariff advice, Octopus fixed rates then were more expensive than October 1 - 31 March energy cap variable rate - "Winter months"

"We don't know exactly how much the energy increase is for each customer in October, but we are advising for customers to lock their prices in with a fixed tariff instead of variable which will effectively safeguard you from price increases for the next 12 or 24 Months. I hope this helps, but let us know if you have any other questions or concern"

A on Twitter says was advised to fix at these rates for winter period as we know gas energy capped rates are around 4p-4.14p per kwh depending on region, compared with flexible variable Octopus about 62p more per gas meter unit coldest months of the year, plus higher standing charge and likely much higher electricity rate

DAY RATENIGHT RATE 27.71 p/kWh15.11 p/kWh STANDING CHARGE 24.10p/day Gas 5.83p/kWh, 26.10p/day

MWT

bristolleedsfan said:

MWT said:

Like all the other suppliers, Octopus included, they are obliged by Ofgem rules to offer their best fixed tariff to existing customers who are nearing the end of their current fixed tariff.

Is it ethical for Octopus Energy to be advising via its quote page customers of other energy suppliers not to choose another tariff, instead default to energy capped tariff whilst at the same time promoting its own existing customer 12 month fixed renewal as "cheaper than anything available on the market" when it is/has been more expensive for typical average household than fixed rate tariffs being offered to existing customers by E.on Next ( no exit fee), Scottish Power ( exit fees), British Gas,O/P article indicated cheaper(exit fees) and/or advising its own customers to choose to fix rates more expensive than energy capped variable rate for October 1 - 31 March Winter period

I'd certainly be happier if the renewal emails had a lot less 'sales pitch' in them at the moment.

At least Octopus has no exit fees on their fixes so people shouldn't feel 'trapped' unlike BG with £75/energy type.

The 'cheaper than anything ... ' may still be accurate if those other tariffs you mention are only available to existing customers, but again, I do feel that now is not the moment to be over selling the fixes.

I've had that sort of renewal email from Octopus in the past and they do always make it clear that doing nothing will just mena that you go on to the standard variable rate so nobody should ever get the feeling that they had to take a fix, but as usual, people do not always read everything that is in front of them.

I would greater prefer it if Ofgem didn't require the fixes to be offered to those currently on a fix in the first place, it would be better if the suppliers were allowed to just offer the cheapest tariff, regardless of the one they were currently on. 

EssexHebridean

MWT said:

Like all the other suppliers, Octopus included, they are obliged by Ofgem rules to offer their best fixed tariff to existing customers who are nearing the end of their current fixed tariff.

If Ofgem would like to change the rules then they wouldn't need to do it, but until the rules change these emails will have to keep on going out...

This is beyond that obligation though - as it is clearly designed to make customers think it is their best option, rather than just being "on option". In fairness, it's not just British Gas either is it, it seems that the majority of suppliers are doing something along the same lines at the moment, albeit perhaps not in quite such a pushy way. 

@wittynamegoeshere I commented to my OH a week or so ago that I could see this being the next mis-selling thing - it really wouldn't surprise me. 

MWT

EssexHebridean said:

MWT said:

Like all the other suppliers, Octopus included, they are obliged by Ofgem rules to offer their best fixed tariff to existing customers who are nearing the end of their current fixed tariff.

If Ofgem would like to change the rules then they wouldn't need to do it, but until the rules change these emails will have to keep on going out...

This is beyond that obligation though - as it is clearly designed to make customers think it is their best option, rather than just being "on option". In fairness, it's not just British Gas either is it, it seems that the majority of suppliers are doing something along the same lines at the moment, albeit perhaps not in quite such a pushy way.

In the past at least, when you look at the whole of the email not just the highlights that get pulled out in the reports, it has been rather less open to misunderstanding, but the problem right now is that while the general tone of the emails has always been the same, the default advice has flipped 180 from what it was.

So while the email may be entirely accurate when it suggest that this is the best fixed tariff available to the customer, it is not necessarily the best choice to remain fixed.

The other problem is that if the prices do not actually come down by April, some of these fixed tariff offers may actually turn out to have been the best deal and dropping onto the SVT was not the best advice, especially if you are a customer with Oil fired heating for example...

So it could turn out that following Martin's advice was not the best idea either...

wild666

Any energy company that sends a LINK to customers to go to a new tariff must not have the LINK say you have accepted the new tariff just because the customer clicks the LINK. 
The LINK should be to the page that gives them details of the tariff like standing charges, kWh prices and exit fees for the tariff. It would be then up to the customer to either close the page or accept the tariffs offered by accepting the deal offered.

Many customers might click the LINK to see what the prices are and exit fees, if they don't like the offer they would then close the page without accepting the deal offered. 

QrizB

Speaking of links, the article link in the OP:

Read the full story here:

'British Gas customers take issue with emails 'pushing' them onto fixed energy deals that would lose them £100s a year'

... now goes to a 404 "Whoops" page.
MSE Towers seem to have pulled the article!

EssexHebridean

Interesting. I wonder whether BG have agreed to change the way they present things in return for the item being pulled? 

Gerry1

The Wayback Machine is wonderful...

MSE_Helen_K

QrizB said:

Speaking of links, the article link in the OP:

Read the full story here:

'British Gas customers take issue with emails 'pushing' them onto fixed energy deals that would lose them £100s a year'

... now goes to a 404 "Whoops" page.
MSE Towers seem to have pulled the article!

Apologies. We took down the article while we added some more information. It is, however, now live again and the gist of it remains the same (but with some added info). Thanks.