£50 Cancellation Charge from Scottish Power

irvine

Hi All. I have just been on to Scottish Power (my current gas and electricity provider) to ask about capped rate deals. They only do fixed rate. The one they offered doesn'st start till July but they are taking a list of names of when people phoned and they will back date the fixed rate to that date? Oh and if you try and leave them before July 2009 they will charge you a cancellation fee of £50. Does any other provider do this? Is it even lawful?

tim_n

Most seem to charge now unless you chose a deal that er, doesn't. I've just signed up with E-on and they've got two offers, one comes with an 18month sign in and a device for measuring electricity and the other doesn't come with a device and no charge for leaving early. Since I have an electricity monitor I can borrow, I went for the latter.

Mobile phone & mortgage companies do it so I can't see why they can't.

Premier_2

I can't see any reason why it would be unlawful as long as it is clearly stated in the contract you sign up to.

nPower have something similar but less clear. They offer up to £84 in discounts paid yearly in arrears ... which implies to me if you leave mid-year (whatever nPower define as a year), you forfeit your right to any discount for that part of a year.

r_holmes22

The only option I can find when I try to change my Scottish Power account to a capped option ties you in until 2011 (that's three years) or pay that £50 penalty to switch before then.

irvine

Re: (The only option I can find when I try to change my Scottish Power account to a capped option ties you in until 2011 (that's three years) or pay that £50 penalty to switch before then.)

If you go on to SPs website and go into their prices and products you'll come across one which is only effective from 2 June 08 to August 2009. It's the Fixed Price Energy 2009 tariff. When I phoned the salesperson told me they were taking names, the tariff would be confirmed start of July but the scheme would be applied from the date you phoned and registered interest.

Hope this might help you. I didn't want to lock myself in to a deal until 2011. I thought that was just a bit too far ahead.

glasgow_DFW

you are not tied in until 2011, you are fixing your prices at the same unit rates as the 2009. It cost £3 for the 2011 per month and £6.50 per month for the 2009 and if you oped out of it you will be charged £50.
The 2011 cost less for the same prices lasts longer and you don't need to pay a penalty for leving the product, I know which one makes sence to me.

irvine

Cheers Glasgow. I spoke to one of the SP "customer advisers" on the phone coz I was totally confused about all the different "offers" and this was the one that she advised! I'll be phoning them again to get it amended.

glasgow_DFW

you need to change it on-line your self they can't do it for you. the product was withdraen on the 23/05/08 but is still avalbe for you to change yourself on to. She had to advise onthe 2009 becaues it is the only one avialbe to her to advise you on