Can Energy Suppliers Not Honour Fixed Contracts?

UKSBD

I haven't read the small print of my contract but assume the fixed rate was based on 6 monthly cap reviews.

Now this has been changed to 3 months, can our energy suppliers use that as a reason to not honour our fixed rate contracts?

I'm currently on a Eon Next fixed contract until April  so will avoid the October and January rises (assuming they honour the contracts)

MattMattMattUK

UKSBD said:

I haven't read the small print of my contract but assume the fixed rate was based on 6 monthly cap reviews.

Now this has been changed to 3 months, can our energy suppliers use that as a reason to not honour our fixed rate contracts?

The only way the energy providers can "get out" of the fixed deals you are on, is by going bust. The cap is for the SVR, which is not a fixed rate.

UKSBD said:

I'm currently on a Eon Next fixed contract until April  so will avoid the October and January rises (assuming they honour the contracts)

Then your fix will apply until April, at which point you will go onto the SVR, or another fix if that is what you choose to do. 

UKSBD

MattMattMattUK said:

UKSBD said:

I haven't read the small print of my contract but assume the fixed rate was based on 6 monthly cap reviews.

Now this has been changed to 3 months, can our energy suppliers use that as a reason to not honour our fixed rate contracts?

The only way the energy providers can "get out" of the fixed deals you are on, is by going bust. The cap is for the SVR, which is not a fixed rate.

UKSBD said:

I'm currently on a Eon Next fixed contract until April  so will avoid the October and January rises (assuming they honour the contracts)

Then your fix will apply until April, at which point you will go onto the SVR, or another fix if that is what you choose to do. 

Thanks.
I was wondering if the suppliers thought about things like this and added something in the small print to allow for it.

With the SVR cap changing 3 monthly it must make it trickier for them working out fixed rates

MattMattMattUK

UKSBD said:

MattMattMattUK said:

UKSBD said:

I haven't read the small print of my contract but assume the fixed rate was based on 6 monthly cap reviews.

Now this has been changed to 3 months, can our energy suppliers use that as a reason to not honour our fixed rate contracts?

The only way the energy providers can "get out" of the fixed deals you are on, is by going bust. The cap is for the SVR, which is not a fixed rate.

UKSBD said:

I'm currently on a Eon Next fixed contract until April  so will avoid the October and January rises (assuming they honour the contracts)

Then your fix will apply until April, at which point you will go onto the SVR, or another fix if that is what you choose to do. 

Thanks.
I was wondering if the suppliers thought about things like this and added something in the small print to allow for it.

With the SVR cap changing 3 monthly it must make it trickier for them working out fixed rates

The fixes are not in any way connected to the cap, they are connected to the price that they can buy gas futures at and the margin that they are willing to accept on those, as well as the general state of the market. 

UKSBD

Yes, but if they can increase the SVR twice as many times a year, it makes the fixed rate people took out back in march/April look far more attractive

We've not only avoided the October increase which we knew we would, we've also avoided the January increase

pochase

@MattMattMattUK

What about the changed T&C for example EDF and as far as I remember SP have? They are stating that the supplier can terminate the contract.

I don't think they could get away with it in court, but fact is that it is at least for EDF in the T&C. I believe @QrizB (or anotherregular) was warning earlier this year about SP.

UKSBD

pochase said:

@MattMattMattUK

What about the changed T&C for example EDF and as far as I remember SP have? They are stating that the supplier can terminate the contract.

This is one of my concerns.
At the moment our fixed contracts look too good to be true

What_time_is_it

At the moment, as things stand, the energy companies have to honour your fixed price agreement.
Who knows where we will be in 3 months time though.
It's very possible that the whole market will have to be restructured and we could see radical change in how we pay for our energy.

pochase

UKSBD said:

Yes, but if they can increase the SVR twice as many times a year, it makes the fixed rate people took out back in march/April look far more attractive

We've not only avoided the October increase which we knew we would, we've also avoided the January increase

It does not really matter how many increases you avoided, you were fixing for a time frame, not a number of cap increases.

UKSBD

pochase said:

UKSBD said:

Yes, but if they can increase the SVR twice as many times a year, it makes the fixed rate people took out back in march/April look far more attractive

We've not only avoided the October increase which we knew we would, we've also avoided the January increase

It does not really matter how many increases you avoided, you were fixing for a time frame, not a number of cap increases.

No, but it matters to them
My fear is that if we are doing too well out of it, they have something tucked away in the small print that they can cancel the contracts

pochase

Yes at least EDF seems to have something in their T&C, but I seriously doubt that they can get away with it. They cannot have exit fees for customers, but not for themselves.

This would be also a very surprising term, so I would stick with it will not happen, and I have seen the T&C while I was still in the cool off.