1st April price change hacks

jbuchanangb

I reverted to SSE and asked them about Clause 24.9:

JB: I am trying to find out what happens if I decide to switch supplier

SSE Energy: Let me have a look into this for you , can i start by taking your full name and date of birth please followed by your full address including postcode?

JB: *** DETAILS REDACTED ***

SSE Energy: In regards to changing supplier what information would you like?

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

JB: I mean if I start a switch on 20 march, for example , but it doesn't happen until 15 April, will my current tariff continue until 15 April?

SSE Energy: Your current tariff will end on the 01/04/2022, so if for example that switch doesn't happen until the 15/04/2022 from the 01/04/2022-15/04/2022 you will be charged on the standard variable rates.

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

Continuation of Fixed Term Supply Contract terms for interim period

24.9 In relation to each Fixed Term Supply Contract, unless the Domestic Customer has entered into a new Fixed Term Supply Contract with the licensee or paragraph 22C.5 of standard condition 22C applies, the licensee must ensure that where paragraph 24.10 applies a Domestic Customer will continue to be subject to the same Charges for the Supply of Gas and the same terms and conditions (but not any Termination Fee) that applied to that Fixed Term Supply Contract until they have changed their supplier.

24.10 This paragraph applies where one of the following conditions are satisfied:

(a) …*** REMAINDER OF 24.10 (a) & (b) QUOTED ***

JB: Surely this applies to my situation?

SSE Energy: Your contract ends on the 01/04/2022 so this wouldn't be extended, you would roll onto the standard variable tariff up till the point you leave our supply.

JB: On 2 March 2021 OFGEM published a document

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

which included a penalty of £983,334.45 to SEE for failings to 132,620 customers including failing to extend fixed rate tariffs when switching suppliers. Can you explain why you would not extend my fixed rates if I decide to switch?

JB: Correction, penalty to SSE. Another penalty was applied to OVO for similar failings.

SSE Energy: if you don't pick a new fixed tariff you will go onto the standard until you leave

22C.7 Where a Domestic Customer does not change supplier or does not expressly agree a new Evergreen Supply Contract, a new Fixed Term Supply Contract or a further fixed term period for a Fixed Term Supply Contract by the date the fixed term period of an existing Fixed Term Supply Contract is due to end, the licensee must ensure that the terms of the Fixed Term Supply Contract provide that the Domestic Customer will become subject to either the Relevant Cheapest Evergreen Tariff or, if the licensee considers it appropriate to do so, a Relevant Fixed Term Default Tariff.

22C.8 Without prejudice to paragraph 22C.2 of this condition and paragraph 24.9 of standard condition 24, if at the end of any fixed term period the licensee continues to supply a Domestic Customer, it must do so on the basis of:

(a) the Relevant Cheapest Evergreen Tariff or a Relevant Fixed Term Default Tariff which is provided for by the terms of the Fixed Term Supply Contract in accordance with paragraph 22C.7

SSE Energy: your fixed term tariff will not be extended, as you have already been advised the 2 other times you have contacted us

SSE Energy: if you switch  supplier that it will take up to 18 days so if you want to switch on a certain date bear that in mind too

JB: The OFGEM report specifically mentions:

"Customers on a Fixed Term Tariff who switched to another supplier but did not have their fixed term tariff protected during the switch (SLC 24.9)" I believe you are obliged to protect my tariff if I decide to switch supplier. Please confirm that you would do this.

JB: I am pleased that you have kept records of my previous contacts. I will look at the clauses which you have quoted and perhaps take further advice. It seems we may have to agree to differ. I may not like your response, but at least I understand it. Thank you for your patience.

JB: I believe the key phase is "Without prejudice to paragraph 22C.2 of this condition and paragraph 24.9 of standard condition 24,"

SSE Energy: we cannot confirm this due to your tariff ending on the 1st April 2022, if you are to change supplier and it happens after the 1st April 2022, then you will be charged the variable rates until you change. This tariff has an end date which is the 1st April 2022 and this is not something that any of us can change. I am aware that you have spoken about this over the last few days, I do apologise but we cannot extend a tariff after the expiry date has taken place.

JB: You have made your position clear. Once again, thank you for your patience.

They are very firm that they will not protect a fixed rate tariff when a customer has decided to switch supplier. I am considering asking EON.Next who currently have my electricity supply to add my gas supply on the Next Flex Tariff. If they will do this I would start the switching process as close to end March as possible in order to benefit from a couple of weeks extension of the SSE tariff, which could save me about £25. I suppose that if I do this, and SSE do not protect the fixed rate, I will have to lodge a complaint and eventually refer it to the Ombudsman.

superkoopauk

Like speaking to a brick wall 

Let us know how you get on with the switch

Gerry1

You can see why it's been decided that SSE are so bad that you can complain to the Ombudsman after six weeks rather than the usual eight.  Obviously they still haven't changed their spots.

jbuchanangb

EON.Next have confirmed that they are willing to take over my gas supply on SVR tariff. This is the capped tariff and is identical to SSE's SVR from 1 April. Obviously I want the SSE fixed to run all the way to 1st April, so I will delay starting the switch process until about 28 March. SSE should keep me on the rates of the current tariff until the switch happens, but they have made it clear that they have no intention of doing that. I am making the switch to combine my energy supplies with one provider, and to have monthly billing, not to save any money, but if SSE do not protect my fixed rates, I might seek advice from the Ombudsman.

jbuchanangb

To update on this. I successfully hacked £13.16. I switched from SSE to EON Next for gas with effect from 8 April. In the 7 days after my fixed rate ended and the end of my contract I used 294kWh of gas. At the new SSE Standard rate (which they billed) this would have been £23.46. At the fixed rate which ended on 1 April, that would have been £10.30. SSE handled it OK. They billed at the new rate £23.46 and then applied a credit adjustment "Tariff Change Rebate" £13.16, which was the difference between the two rates. So in spite of the Online chat being most emphatic that this wouldn't happen, it did happen.

superkoopauk

Bumping this given today's cap announcement. 

I still think points 1) and 2) are well worth considering although there are limited options for switching suppliers at the moment

We now know the PPM trick only works on electricity and is further complicated by the £400 rebate

Mstty

Aren't we now into 5 days or less switches now and that's if any are taking on new customers on the very low SVT that Ofgem have set for suppliers come Oct 1st v's current wholesale prices.

OC_66

Wow some great insights here, thanks!

BigBlueSky

Does point 2 definitely work ?

I've got the British Gas Zero Standing charge tariff that will finish at the end of October.  If I initiate a switch a day or two before it is due to end they will keep me on that tariff until the switch to another provider has completed ?

superkoopauk

BigBlueSky said:

Does point 2 definitely work ?

I've got the British Gas Zero Standing charge tariff that will finish at the end of October.  If I initiate a switch a day or two before it is due to end they will keep me on that tariff until the switch to another provider has completed ?

It should work if BG are compliant with the regulations!