1st April price change hacks

jbuchanangb

I had an other little chat with SSE:

JB: My fixed tariff ends on 1 April. If I switch supplier before 20 April will you hold me on the current tariff until the date of the switch?

SSE Energy: If you switch after the 1st of April you will revert to standard after that date until you switch.

JB: I refer to the following paragraph of the Standard Conditions of gas supply licence under the Gas Act 1986:

Circumstances where increases to Charges for the Supply of Gas or Disadvantageous Unilateral Variations are ineffective or unenforceable

23.6 The licensee must treat the increase in the Charges for the Supply of Gas and/or the Disadvantageous Unilateral Variation as ineffective and neither enforce nor take advantage of it where –

(a) no later than 20 Working Days after (but not including) the date on which the increase in the Charges for the Supply of Gas and/or Disadvantageous Unilateral Variation has effect, the licensee received Notice under the Network Code by way of the Relevant Gas Shipper that another Gas Supplier will begin to supply the Domestic Customer’s Domestic Premises within a reasonable period of time. 

I ask you again. If I arrange to switch my gas supply to another supplier before 20 April, will you continue to charge me at my current rates until the switch takes place?

SSE Energy: This doesn't apply as you are on a fixed rate until 01/04 and the terms and conditions state by the end if you do nothing you revert to standard so after the 01/04 if you switch and it is after that you will be on the standard rate

JB: I consider that to revert to the Standard tariff would be a Disadvantageous Unilateral Variations under the terms of this paragraph, and that because of this you should neither enforce nor take advantage of it.

Is this not the case?

SSE Energy: These are the terms and conditions of your tariff https://sse.co.uk/v3/assets/blt09078e271abddd45/blt4349a7201370dc4c/60462094c7198e3af48f7e58/energy-sse-online-energy-v10-terms-and-conditions.pdf

SSE Energy: This states after the fixed term you will revert to standard.

JB: Please let me know which paragraph says that.

SSE Energy: Paragraph 12

JB: I see that. However I do not think that this term in your Ts&Cs entitles you to break the terms of the Gas Supply License which states that if I switch to another supplier less than 20 days after you impose a price increase for any reason, then you may not enforce that increase. How have I misunderstood clause 23.6 of the gas Supply Licence?

SSE Energy: It is not a price increase, the increase in rates is due to your fixed rate ending which as it clearly states means you will revert to standard unless you choose another fixed rate. We cannot keep you on a fixed rate longer than the agreed term.

JB: I find it hard to work out how a 120% upward change in your charges would not be described as a price increase. I will take further advice and in the event that I decide to switch supplier in the 20 days after my fixed tariff ends, and you do opt to impose the increase unilaterally contrary to clause 23.6 of the Supply License, I may have to seek adjudication from the Energy Ombudsman.

MWT

Unfortunately I do see this from the same perspective as SSE..

The price change is not the result of your contract being altered, it is the result of your contract ending on the agreed date.

If you were already on the standard variable tariff then yes, those terms would apply, but as you are not moving onto the variable tariff before the rates have changed the protection would not apply to you as you were not on the same tariff with cheaper rates before 1st April...

You are ending one contract and starting a new one, not having the price change on your current contract.

So if you want the protection you would need to start the switch before your fix ends...

jbuchanangb

I got the distinct impression that even if I start the switch - let's say - on 20 March (fix ends on 1 April) and the switch itself takes 3 weeks, so becomes effective around 10 April, SSE would still sting me with the new SVR for the 10 days after the end of the fix. All a bit hypothetical really, as I doubt if I can find anyone to switch to who will beat the SSE SVR. 

MWT

jbuchanangb said:

I got the distinct impression that even if I start the switch - let's say - on 20 March (fix ends on 1 April) and the switch itself takes 3 weeks, so becomes effective around 10 April, SSE would still sting me with the new SVR for the 10 days after the end of the fix. All a bit hypothetical really, as I doubt if I can find anyone to switch to who will beat the SSE SVR. 

The difference is that they are not supposed to change the tariff once your switch notification reaches them so that is much easier to implement and control.

It is a different part of the terms and doesn't depend on there being a detrimental change like the parts you were relying upon.

... but agreed, it is a somewhat moot point.

jbuchanangb

As there is no difference in SVR rates between suppliers, I was considering switching my gas supply over to the same supplier as my electricity. (If they'll take it at SVR) My current gas unit rate per kWh is 3.11p and the SVR rate from 1 April is 7.34p. Last April my daily consumption was about 40kWh so even a couple of weeks extension would be worth about £25!

[Deleted User]

jbuchanangb said:

I got the distinct impression that even if I start the switch - let's say - on 20 March (fix ends on 1 April) and the switch itself takes 3 weeks, so becomes effective around 10 April, SSE would still sting me with the new SVR for the 10 days after the end of the fix. All a bit hypothetical really, as I doubt if I can find anyone to switch to who will beat the SSE SVR. 

What the SLCs say is that tariff protection can kick in provided the existing supplier is notified that there is a transfer in progress VIA INDUSTRY DATA FLOWS no later than end of fixed contract plus 20 days. If the existing supplier was notified on day 19 then tariff protection kicks in. That said, by then, the existing supplier will most likely have moved the account to its standard variable tariff. The supplier should though make an account adjustment when the transfer actually goes through. If I recall about 3 years ago, one of the Big suppliers got itself into trouble by not taking onboard tariff price protection. CS was adamant that it didn’t apply and posted as such. Conversely, the E.oN reps posted frequently that there was tariff protection.

superkoopauk

Actually it was 18 suppliers who were getting it wrong (of which SSE was one of the top offenders) - only confirmed last year

https://www.ofgem.gov.uk/publications/18-suppliers-agree-pay-ps104-million-redress-price-protection-failings

jbuchanangb - judging by your dealings this issue hasn't been briefed to SSE customer services!  I am still convinced that their billing engine wouldn't get this wrong again and if they do an complaint to the Ombudsman would be in order.

jbuchanangb

I quoted them clause 23.6. I see that I should be quoting clause 24.9. I think I will have another go at them. Watch this space.

superkoopauk

Yes sorry if I inadvertently misled you jbuchanangb - I only posted the variable SLC on here in response to another post

I see point 3 has now made a MSE article. 

https://www.moneysavingexpert.com/news/2022/02/prepay-for-your-energy--you-could-keep-today-s-cheaper-rates-for/

Good to see it reach a wider audience (would of been nice to get credit for it though!).  Hopefully there will be another article nearer the time advertising points 1 and 2.  Although IMO Ofgem should also be publicising this protection.

Marvel1

Number 3 has been posted:
https://www.moneysavingexpert.com/news/2022/02/prepay-for-your-energy--you-could-keep-today-s-cheaper-rates-for/