Octopus Energy - advice needed on Deadlock letter

timmi0000

Hi

I require some advice please - so I moved over to Octopus last year on the Price Promise tariff. I subsequently transferred my Electricity tariff to Octopus Go and left my Gas on the Price Promise tariff. On my welcome pack for Gas the tariff type said Fixed - furthermore there is also a section which says the Price is guaranteed until 30/09/2023 (unit rate = 3.16 pkwh)

So in my mind at all times my Gas tariff was fixed until the above date.

When the Ofgem price caps kicked in the prices went up naturally however I was under the assumption my prices were fixed. Only when I received subsequent emails in March of this year that the prices will be going up (unit rate = 6.82 pkwh) - this is when I realised that I wasn't on a fixed tariff despite the above mentioned.

I raised this around the end of March via Customer Service and basically got nowhere with the issue not being resolved - at no point did I receive a call and was only getting email responses with guarantees of call backs not materialising - until this week when I had enough and sent an email to greg@octopus.energy and issueresolution@octopus.energy. I finally got a call from a manager this week to advise they can offer to clear my outstanding debit (just over £120) - however I advised that as you made a promise to fix my prices as per price guarantee (as mentioned above previously) I was adamant that Octopus should honour the prices they offered me via the Price Promise tariff. The manager then advised that this wont be possible as the tariff has expired and will send me a deadlock letter (which i will post shortly) and if necessary take my complaint to the Ombudsman. I require some advice now - should i stick with my guns and take the complaint to the Ombudsman so that the prices I was promised via a Price guarantee or should I accept Octopus offer to clear my outstanding debt (plus a further £60) - however of course with Octobers price cap increases on the horizon the prices will be going up again no doubt

I look forward to your help and advice

Thanks

Timmi

timmi0000

Deadlock letter details:

Final Position/Deadlock Letter

I am sorry that we have been unable to resolve this matter to your satisfaction. We have however exhausted our internal complaints process. This is our final position and we are now at a deadlock.

What we cannot agree on and why

On July 23rd 2021 you signed up to Octopus energy to become your supplier. Following the sign-up process, you chose to switch to our Price Promise tariff.

This product stated it would guarantee to cap unit rates and standing charges at least £50 (based on the average household) under the Energy Price Cap at all times. This tariff was a two-year fixed term contract, i.e. we guaranteed to fix your rates at least £50 under the price cap for two years.

All Price Promise Customers have been given 30 days' notice that in line with recent changes to the Energy Price Cap, we would be raising the unit rates and standing charges (but still keeping those rates £50 under the Energy Price Cap as per the terms of the tariff).

As explained, the Price Promise tariff  is a two year fixed-length contract (ending Sep 2023). During this period, we guaranteed that customer energy rates would always be below Ofgem’s Energy Price Cap but not that rates would never change. The information explaining the terms and conditions of the tariff, where customers got a quote, and then signed up for it was very clear (undergoing significant user testing before it went live) that Price Promise was a variable rate tariff.

The tariff is variable by design to ensure customers are always getting a good deal, relative to Government set price cap levels - generally reviewed in April and October of each year. Like all of our tariffs, there are no exit fees so customers are free to switch tariffs or change energy suppliers at any time without penalty.

Unfortunately, a small amount of messages generated by our systems post-sign-up has confused you about the nature of Price Promise. In particular, the reference to the tariff being fixed - with specific reference to fixed unit rates - in customer welcome letters, and a welcome email titled “8 things to know about Octopus”.

These references were incorrect, and the result of a very specific error in how our comms messages are generated for the Price Promise tariff only. In this case, the product is set as variable priced, but the term length as fixed -- to reflect the “fixed” date-term length of the product until Sep 2023.

We have advised that even after the change in unit rates, the Price Promise tariff you signed up for was - and still currently is - the cheapest available energy-only product in the market, guaranteeing you savings against the price cap for a long period.

The only resolution you would be satisfied with, is to be re-billed to the starting rate of the Price Promise tariff until Sept 2023. We have informed you we are unable to do this, as the tariff rates have since increased.

Our final position

Based on the above correspondence information, we stand that the original sign-up process was clear in stating the tariff you signed up for was a variable tariff and fixed in the sense it was £50 below the government cap.

We do understand that the welcome back you received that stated ‘Fixed’ was misleading.

But we also understand that your first time hearing from us informing you the Price Promise tariff was a variable was 15th Oct 2021, when we explained how the price promise works now energy prices are increasing. We can also offer to credit £20 for every month this was not informed via a statement, which would be 3 months, this adds up to £60. For July, August, and September.

As explained we will not change the tariff to an expired tariff. But my offer to clear the outstanding debit of  -£124.22 and the credit of £60 stands as our final offer.

Taking your complaint further

You now have the right to refer your complaint to Ombudsman Services if you want to. You have up to 12 months to do this.

The Ombudsman’s role is to help to resolve complaints. The service is free to use and is independent. It has the authority to resolve complaints by requiring; an apology; an explanation of what went wrong; a practical action to be taken to correct the problem; and, a financial award. If you accept the ombudsman’s decision it is binding on us and we must put in place any remedy that is required. You can decline the decision if you want to and you will not be held to it or charged.

The contact details for Ombudsman Services are given below. If you can, it is usually best to phone and you should say that you have received this deadlock letter.

Kindest Regards,

timmi0000

Welcome pack 

pochase

Do you have communication from Octopus that this is a fixed tariff? Email, screenshot or T&C

From the information I find on the net it is a variable tariff that guarantees a rate slightly cheaper than the cap until September 2023, but not a fixed tariff.

It’s a variable tariff that tracks the Ofgem price cap (the maximum rates a supplier can charge on its default tariffs) until September 2023. As well as including 100% renewable electricity, any gas you use is carbon offset.

Prices are updated in October and April and give medium energy users savings of at least £50 a year if they are dual-fuel customers, compared with how much they would pay at the level of the price cap.

Did you switch by phone or by web? If I remember correctly on the web it was explained clearly on the web site how the tariff works.

Alnat1

I'd accept the quite generous offer from Octopus, as you have failed to fully understand the terms offered by the tariff.

I can't see you getting any joy from the Ombudsman and you will probably end up losing out if you try and push it further.

bristolleedsfan

I have seen a few people report that after complaining offered 2 year fixed rate slightly more expensive then Price Promise available around the same time.

https://forums.moneysavingexpert.com/discussion/comment/79241117/#Comment_79241117

Another  https://forums.moneysavingexpert.com/discussion/comment/78690521/#Comment_78690521

 However I was offered a number of deals

1.  They could retrospectively change my tariff to what would have been their best 2 year fixed deal when I moved in August (but would increase my monthly payment by £20),
2.  I could stay with my current deal.
3.  I could move to their current variable deal with a £50 credit to my account.

MWT

They have been responding to complaints on this tariff for months now and what they have been willing to do has narrowed as time has past...

There was a post in this thread just today about having failed twice with the Ombudsman, and I suspect that is likely to be repeated with other cases, although you can still roll the dice and give it a try as the Ombudsman can be inconsistent at times...

https://forums.moneysavingexpert.com/discussion/6304465/fixed-price-deal-tariff-being-increased#latest

timmi0000

pochase said:

Do you have communication from Octopus that this is a fixed tariff? Email, screenshot or T&C

From the information I find on the net it is a variable tariff that guarantees a rate slightly cheaper than the cap until September 2023, but not a fixed tariff.

It’s a variable tariff that tracks the Ofgem price cap (the maximum rates a supplier can charge on its default tariffs) until September 2023. As well as including 100% renewable electricity, any gas you use is carbon offset.

Prices are updated in October and April and give medium energy users savings of at least £50 a year if they are dual-fuel customers, compared with how much they would pay at the level of the price cap.

Did you switch by phone or by web? If I remember correctly on the web it was explained clearly on the web site how the tariff works.

They sent an email after I moved over to Octopus as follows:

FYI: Here are 8 things to know about Octopus 🐙

3. The unit price of your energy (not your monthly payment) is fixed for the duration of your contract

You're on our fixed tariff, which means the unit price of your energy will stay the same for the duration of your contract.

Your monthly Direct Debit payment isn't fixed, and can change. You have a Direct Debit to top your Octopus account up with credit to cover the cost of the energy you use. Your DD amount is just our best guess at how much you'll need to stay on top of the charges debited from your energy account.

These energy charges will vary throughout the year based on how much energy you're using. We might suggest a change to your monthly Direct Debit payment if you're using more or less energy than we expected. That way, your account is still topped up to roughly the right amount to cover the charges, so you don't build up a lot of debt or credit.

We'll keep reviewing your monthly payment amount periodically. The first review will happen a little over a month from now, when we've received all your past meter readings from your previous suppliers, giving us a much better idea of how much energy you use.

-------------------------------

Above clearly indicating I was on a fixed tariff - albeit they have said this was an error and shouldn't have been sent

timmi0000

Another point to note is that on all of the gas invoices I have the above (Price Guaranteed Until Sept 2023) - so on the Welcome Pack and also subsequent invoices advising of Price Guarantee!

MWT

At this point, you really just have two options, roll the dice with the Ombudsman or take the offer they have made...

The_Fat_Controller

It was a price GUARANTEE on rates (minimum £50 below the SV cap) and not a fix.

Your post at 1631 states "Green Variable"

I would accept their offer and make plans on how to pay for the forthcoming October shockwave.