Ripped Off??

stevieb333

Hi All
I have a static holiday Caravan and have just had a notice from the site owners that the charge for our Electricity use from 29th November will increase from 0.1250p per unit to 0.8350p per unit and the availability charge with increase from 0.35p per day to 0.55p per day. This availability fee is charged 365 days a year even though the park is closed from 1st November to February 28th inc.
As I understand it re-sellers of electricity and gas are not allowed to charge more than what they pay for these utilities.
How can I check whether I am being ripped off and also whether the Site owner is, in fact, breaking the law by hiking prices to a level where they are profiteering from the resale of electricity. Also, what can I actually do about it?
Thank you
Steve

Keep_pedalling

Not sure how you check what they are paying but it will be a commercial contract with much higher rates than capped domestic rates. They will also be paying higher standing charges and will be paying them throughout the year. 

Aylesbury_Duck

stevieb333 said:

Hi All
I have a static holiday Caravan and have just had a notice from the site owners that the charge for our Electricity use from 29th November will increase from 0.1250p per unit to 0.8350p per unit and the availability charge with increase from 0.35p per day to 0.55p per day. This availability fee is charged 365 days a year even though the park is closed from 1st November to February 28th inc.
As I understand it re-sellers of electricity and gas are not allowed to charge more than what they pay for these utilities.
How can I check whether I am being ripped off and also whether the Site owner is, in fact, breaking the law by hiking prices to a level where they are profiteering from the resale of electricity. Also, what can I actually do about it?
Thank you
Steve

Ask them.  It's the only way you'll find out.

Standing charges apply all year round, so if that's what the 'availability fee' is, then there's nothing unfair about that.  It's no different to second homes and holiday let's where owners have to pay standing charges all year round.

p00hsticks

Aylesbury_Duck said:

stevieb333 said:

Hi All
I have a static holiday Caravan and have just had a notice from the site owners that the charge for our Electricity use from 29th November will increase from 0.1250p per unit to 0.8350p per unit and the availability charge with increase from 0.35p per day to 0.55p per day. This availability fee is charged 365 days a year even though the park is closed from 1st November to February 28th inc.
As I understand it re-sellers of electricity and gas are not allowed to charge more than what they pay for these utilities.
How can I check whether I am being ripped off and also whether the Site owner is, in fact, breaking the law by hiking prices to a level where they are profiteering from the resale of electricity. Also, what can I actually do about it?
Thank you
Steve

It's no different to second homes and holiday let's where owners have to pay standing charges all year round.

I'm not sure that that's a true comparison. While it;s true that owners of second homes and holiday lets still have to pay standing charges even if the property is empty, they aren't physically prevented from occupying or renting oout their property for three months of the year.

eskbanker

stevieb333 said:

As I understand it re-sellers of electricity and gas are not allowed to charge more than what they pay for these utilities.
How can I check whether I am being ripped off and also whether the Site owner is, in fact, breaking the law by hiking prices to a level where they are profiteering from the resale of electricity. Also, what can I actually do about it?

https://www.ofgem.gov.uk/sites/default/files/docs/2005/10/11782-resaleupdateoct05_3.pdf is the regulatory guidance that supports your point (which actually prevents profiting, never mind profiteering):

From 1 January 2003 the maximum price at which gas or electricity may be resold is the same price as that paid by the person who is reselling it ("the reseller"), including any standing charges. 

[...]

Purchasers can recover any amounts which they have been overcharged through the Small Claims Court. Interest may be payable on any excess charges which the Court might order the reseller to repay to the customer. In this situation the interest is payable to twice the average Barclays Bank base rate which applied during the period of the excess charging. 

Purchasers are also entitled to a reduction in the amount which they are paying if the reseller refuses to give them the information which they need. The stipulated rate of reduction is twice the Barclays Bank base rate which was applicable on the date when the information was requested. Once again, this matter would normally be settled through the Small Claims Court. 

Ath_Wat

p00hsticks said:

Aylesbury_Duck said:

stevieb333 said:

Hi All
I have a static holiday Caravan and have just had a notice from the site owners that the charge for our Electricity use from 29th November will increase from 0.1250p per unit to 0.8350p per unit and the availability charge with increase from 0.35p per day to 0.55p per day. This availability fee is charged 365 days a year even though the park is closed from 1st November to February 28th inc.
As I understand it re-sellers of electricity and gas are not allowed to charge more than what they pay for these utilities.
How can I check whether I am being ripped off and also whether the Site owner is, in fact, breaking the law by hiking prices to a level where they are profiteering from the resale of electricity. Also, what can I actually do about it?
Thank you
Steve

It's no different to second homes and holiday let's where owners have to pay standing charges all year round.

I'm not sure that that's a true comparison. While it;s true that owners of second homes and holiday lets still have to pay standing charges even if the property is empty, they aren't physically prevented from occupying or renting oout their property for three months of the year.

The park owners would still have to pay the standing charge.  Anyone signing up for one of these mobile homes knows that they will be inaccessible for 3 months and that they are going to have to cover the basic maintenance charges for that time regardless.

Aylesbury_Duck

p00hsticks said:

Aylesbury_Duck said:

stevieb333 said:

Hi All
I have a static holiday Caravan and have just had a notice from the site owners that the charge for our Electricity use from 29th November will increase from 0.1250p per unit to 0.8350p per unit and the availability charge with increase from 0.35p per day to 0.55p per day. This availability fee is charged 365 days a year even though the park is closed from 1st November to February 28th inc.
As I understand it re-sellers of electricity and gas are not allowed to charge more than what they pay for these utilities.
How can I check whether I am being ripped off and also whether the Site owner is, in fact, breaking the law by hiking prices to a level where they are profiteering from the resale of electricity. Also, what can I actually do about it?
Thank you
Steve

It's no different to second homes and holiday let's where owners have to pay standing charges all year round.

I'm not sure that that's a true comparison. While it;s true that owners of second homes and holiday lets still have to pay standing charges even if the property is empty, they aren't physically prevented from occupying or renting oout their property for three months of the year.

But that's known at the outset, and is presumably one of the reasons park living is cheaper than living in a permanent home.

TELLIT01

The site owners could easily increase the daily 'availability fee' charge to have it billed during the open season only.  That wouldn't affect the total charge.  They have simply divided the annual charge by 365 to get a daily rate.

[Deleted User]

For perspective, as a business customer I'm being offered £2.50 per day standing charge and energy at £1.13 pkwh from my current supplier.
If I change supplier, the best I can find is very close to the rates you're being offered. I can't imagine that the site owners are profiting from this.

Undervalued

stevieb333 said:

Hi All
I have a static holiday Caravan and have just had a notice from the site owners that the charge for our Electricity use from 29th November will increase from 0.1250p per unit to 0.8350p per unit and the availability charge with increase from 0.35p per day to 0.55p per day. This availability fee is charged 365 days a year even though the park is closed from 1st November to February 28th inc.
As I understand it re-sellers of electricity and gas are not allowed to charge more than what they pay for these utilities.
How can I check whether I am being ripped off and also whether the Site owner is, in fact, breaking the law by hiking prices to a level where they are profiteering from the resale of electricity. Also, what can I actually do about it?
Thank you
Steve

Have you asked them to demonstrate what they are paying per unit? If they are behaving correctly (which they may well be) then I can't see why they would object.

As for the facility fee / standing charge the principle you signed up to hasn't changed, only the price. As others have stated they could simply charge more for the open months which would come to the same thing. Also, they presumably have to maintain the cables to the individual caravans at their expense so it is not simply a proportion of the energy company's standing charge that you are paying.

stevieb333

Thanks for your replies to my query. As I understand it OFGEM says that the standing charge should be divided between all of the recipients of the resold electricity. The site owner will only be charged one standing charge fee. If as Tocosalamanca says, he is being charged £2.50 per day and for arguments sake our owner is paying a fee of around the same level then with 100 caravans on the site the owner is collecting £55.00 per day in standing charges when the fee should be around £0.025p per day for each Van. OFGEM say that resellers are allowed to make a small charge for maintenance etc. I, personally, wouldn't call £0.52 a day a small charge