Are energy companies acting dishonestly?

Mstty

I have experienced and been told by friends and family that when they contact their energy suppliers they are actively pushing their very expensive fixed rate deals with little to no mention of the standard variable tariff that is price capped.

I predict Martin and the team are already putting together the standard letter for all these poor soles that have been mis-sold fixed tariffs instead of suggesting they go on the SVT.

QrizB

Mstty said:

I have experienced and been told by friends and family that when they contact their energy suppliers they are actively pushing their very expensive fixed rate deals with little to no mention of the standard variable tariff that is price capped.

As you'll know from reading the other threads, the energy suppliers are *required by OFGEM* to write to customers when their fixed-rates end, offering them the cheapest-available new fixed-rate tariff.

To do otherwise would get them into trouble with OFGEM.

Mstty

So in this instance most of my friends and family are on the SVT but most have been contacted this week to fix on the "best deal"

This is the issue I have and the mis-selling and mis-leading of customers especially a call specifically to my nan today where she nearly signed up to a one year fixed deal at 57p per kWh for electricity !!!

Chrysalis

Someone who works for one of the suppliers informed another community he was told off for telling customers about variable direct debits.

End of the day they are a business and shareholders do come first.

Mobtr

Not necessarily shareholders coming first, they just want to stay in business & not go to the wall like do many have done already 

Mstty

Mobtr said:

Not necessarily shareholders coming first, they just want to stay in business & not go to the wall like do many have done already 

It's a fine line between staying in business and fleacing existing customers hiding SVT and pushing double the price cap fixed rates.

But yes I get your point I just feel they are going too far and this will cause them trouble long term with mis sold legal claims.

Ultrasonic

Personally I think it's a big issue if companies are only telling people about fixed tariff options and essentially hiding the SVT option. If current OFGEM rules somehow encourage this then it needs addressing ASAP.

MWT

Ultrasonic said:

Personally I think it's a big issue if companies are only telling people about fixed tariff options and essentially hiding the SVT option. If current OFGEM rules somehow encourage this then it needs addressing ASAP.

As far as renewal emails go, the Ofgem rules require the supplier to offer the cheapest tariff that matches the type they are currently on (fixed or variable) and the cheapest tariff of any type.

So if the customer is on a fixed tariff the email will lead with the cheapest current fixed tariff, but should also mention the capped standard variable tariff as that will be the cheapest.

When customers phone in to ask about a renewal or a change in tariff they need to be careful what they ask for, if they ask for the cheapest fixed tariff then that is what the CS agent is going to tell them about, if they ask for the cheapest tariff then they should be told about the capped variable tariff and failing to do so would open them up to a legitimate complaint.

Ultrasonic

MWT said:

Ultrasonic said:

Personally I think it's a big issue if companies are only telling people about fixed tariff options and essentially hiding the SVT option. If current OFGEM rules somehow encourage this then it needs addressing ASAP.

As far as renewal emails go, the Ofgem rules require the supplier to offer the cheapest tariff that matches the type they are currently on (fixed or variable) and the cheapest tariff of any type.

So if the customer is on a fixed tariff the email will lead with the cheapest current fixed tariff, but should also mention the capped standard variable tariff as that will be the cheapest.

When customers phone in to ask about a renewal or a change in tariff they need to be careful what they ask for, if they ask for the cheapest fixed tariff then that is what the CS agent is going to tell them about, if they ask for the cheapest tariff then they should be told about the capped variable tariff and failing to do so would open them up to a legitimate complaint.

I think it's pretty clear from multiple threads here than huge numbers of customers are are not seeing the SVT as an option. This is a major problem IMHO.

MWT

Ultrasonic said:

MWT said:

Ultrasonic said:

Personally I think it's a big issue if companies are only telling people about fixed tariff options and essentially hiding the SVT option. If current OFGEM rules somehow encourage this then it needs addressing ASAP.

As far as renewal emails go, the Ofgem rules require the supplier to offer the cheapest tariff that matches the type they are currently on (fixed or variable) and the cheapest tariff of any type.

So if the customer is on a fixed tariff the email will lead with the cheapest current fixed tariff, but should also mention the capped standard variable tariff as that will be the cheapest.

When customers phone in to ask about a renewal or a change in tariff they need to be careful what they ask for, if they ask for the cheapest fixed tariff then that is what the CS agent is going to tell them about, if they ask for the cheapest tariff then they should be told about the capped variable tariff and failing to do so would open them up to a legitimate complaint.

I think it's pretty clear from multiple threads here than huge numbers of customers are are not seeing the SVT as an option. This is a major problem IMHO.

If it isn't in the emails then I agree, that would be a breach of the rules, but when I've looked at some of the posts on here, the problem is the customer not actually reading the email as they are pre-conditioned to just look at the fixed tariff rates...

Ultrasonic

MWT said:

Ultrasonic said:

MWT said:

Ultrasonic said:

Personally I think it's a big issue if companies are only telling people about fixed tariff options and essentially hiding the SVT option. If current OFGEM rules somehow encourage this then it needs addressing ASAP.

As far as renewal emails go, the Ofgem rules require the supplier to offer the cheapest tariff that matches the type they are currently on (fixed or variable) and the cheapest tariff of any type.

So if the customer is on a fixed tariff the email will lead with the cheapest current fixed tariff, but should also mention the capped standard variable tariff as that will be the cheapest.

When customers phone in to ask about a renewal or a change in tariff they need to be careful what they ask for, if they ask for the cheapest fixed tariff then that is what the CS agent is going to tell them about, if they ask for the cheapest tariff then they should be told about the capped variable tariff and failing to do so would open them up to a legitimate complaint.

I think it's pretty clear from multiple threads here than huge numbers of customers are are not seeing the SVT as an option. This is a major problem IMHO.

If it isn't in the emails then I agree, that would be a breach of the rules, but when I've looked at some of the posts on here, the problem is the customer not actually reading the email as they are pre-conditioned to just look at the fixed tariff rates...

I think there is a point about how prominent and easily understood information is rather than simply focusing on whether the information is technically provided somewhere. It's like all the people confused by April price cap prices appearing to be current over the last month, despite there being some 'small print' on the site to indicate this wasn't actually the case.