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  • FIRST POST
    • MSE Guy
    • By MSE Guy 19th Aug 09, 4:59 PM
    • 1,628Posts
    • 1,255Thanks
    MSE Guy
    MSE News: Warning for Scottish Power customers on fixed rate deals
    • #1
    • 19th Aug 09, 4:59 PM
    MSE News: Warning for Scottish Power customers on fixed rate deals 19th Aug 09 at 4:59 PM
    This is the discussion thread for the following MSE news story:

    "Scottish Power is automatically locking customers on its popular fixed rate deal that ends this month onto an expensive capped tariff with high exit fees for those who want out.

    A high-spending household could be 270 a year worse off by lapsing onto the new deals ..."

    Last edited by MSE Guy; 19-08-2009 at 6:13 PM.
Page 1
    • withabix
    • By withabix 19th Aug 09, 5:01 PM
    • 8,959 Posts
    • 7,908 Thanks
    withabix
    • #2
    • 19th Aug 09, 5:01 PM
    • #2
    • 19th Aug 09, 5:01 PM
    Naughty Scottish Power.

    I'm OK until 2011 fortunately!
    British Ex-pat in British Columbia!
    • apemyr
    • By apemyr 19th Aug 09, 5:48 PM
    • 3 Posts
    • 3 Thanks
    apemyr
    • #3
    • 19th Aug 09, 5:48 PM
    When does termination penalty get triggered?
    • #3
    • 19th Aug 09, 5:48 PM
    Hi,
    I'm on a fixed energy tariff with Scottish Power which finished 31-Aug-09
    I asked them if it was OK to instigate a switch to another supplier.
    Apparently if the just get notice from a new supplier before 31-Aug that I intend to switch they'll charge me 30
    Seems excessive (is this even legal) since it will take at least 4 weeks before the switch over is complete!

    This is the amil I got from SP:

    "Your fixed energy tariff has a termination fee of 30 if we receive notice of you changing supplier before the 31/08/09."

    Cheers
  • Plushchris
    • #4
    • 19th Aug 09, 6:26 PM
    • #4
    • 19th Aug 09, 6:26 PM
    Hi,
    I'm on a fixed energy tariff with Scottish Power which finished 31-Aug-09
    I asked them if it was OK to instigate a switch to another supplier.
    Apparently if the just get notice from a new supplier before 31-Aug that I intend to switch they'll charge me 30
    Seems excessive (is this even legal) since it will take at least 4 weeks before the switch over is complete!

    This is the amil I got from SP:

    "Your fixed energy tariff has a termination fee of 30 if we receive notice of you changing supplier before the 31/08/09."

    Cheers
    Originally posted by apemyr

    Which completely goes against what the Scottish power rep said in the other thread.

    Scottish power should really get their act together and decide if people will or wont get hit with the cancelation fee if the instigate the switch before the 31st.

    Thats what I hate about energy companies, why cant the people you speak to give you the same answers, depends who you speak to as to what answer you get :rolleyes:
    Missing Tesco R&R since Feb '07 & now a "Tesco veteran" apparently!
  • dh05
    • #5
    • 19th Aug 09, 7:55 PM
    • #5
    • 19th Aug 09, 7:55 PM
    The email from SP did give a link offering the facility to decline the move to the new fixed tarriff with a link:
    "I want to opt out of Capped Price Energy September 2010"

    I will be taking them up on the offer and opting out!
    • tiamaria
    • By tiamaria 19th Aug 09, 8:35 PM
    • 1,455 Posts
    • 1,229 Thanks
    tiamaria
    • #6
    • 19th Aug 09, 8:35 PM
    • #6
    • 19th Aug 09, 8:35 PM
    Last year I went on the Fixed Price Energy 2009 deal & unless I let SP know differently i will be moved on to the Capped Price Energy September 2010.

    Martin's blog says the average customer will be paying about 150 more if they go on this. However, I'm paying 50 a month less with SP than what I was paying with my previous provider so i'm 600 a year better off with them so even an extra 150 means I've still gained 450!

    Unsure whether to stay with them or not now:confused:
  • oakhouse13
    • #7
    • 19th Aug 09, 8:53 PM
    • #7
    • 19th Aug 09, 8:53 PM
    I have only switched once ever. I was with British Gas on an old capped tariff that ended in April and all customers on that tariff were moved onto another long capped deal unless you asked for something else, which I did. I stayed with British Gas, after a few weeks on standard tariffs I moved to Web Saver 3 which lasts until December. I won't switch again before then as I have agreed a service. I did not use a price comparison service. I do not trust them, it means I have two businesses misleading me, one on commission which I would prefer went towards lowering the price for everyone. If you are switching a lot and taking out wine, cashback and promotions each time that is adding cost born by more vulnerable customers. Figures from Ofgem on churning in the market show commission has escalated to a plus 400 million market. Moneysupermarket was able to reverse a profits warning last year on the amount it earned from utility switches and the millions of consumers switching on what they were told were two forthcoming price rises are paying for that windfall. I want all the money being paid to price comparison sites off the standard price of energy for everyone. Scottish Power is doing the same, moving customers onto an expensive tariff and I would expect the same logic for all suppliers. To have a competitive price I should not have to switch, I should be able to understand the price I am paying, easily compare those prices myself to other suppliers.Ofgem seems to be alone in driving towards this goal, everyone else I don't trsut, they are all on commission and not going to put themselves out of business by supporting consumers having transparent pricing they can compare for themselves.
  • dh05
    • #8
    • 19th Aug 09, 9:40 PM
    • #8
    • 19th Aug 09, 9:40 PM
    ............... Scottish Power is doing the same, moving customers onto an expensive tariff
    Originally posted by oakhouse13
    I don't know if I am being especially obtuse but Scottish Power are proposing to move existing customers on to the new tariff UNLESS they decline the offer. This can be done simply by clicking the link in their email as I suggested in my message above.

    Why not decline the offer, avoiding future cancellation penalties, and look around for a cheaper tariff? If nothing better can be found (unlikely) a new application can be made to go onto the the capped tariff which will probably be available for some time.
    • Supernova
    • By Supernova 19th Aug 09, 10:11 PM
    • 705 Posts
    • 43 Thanks
    Supernova
    • #9
    • 19th Aug 09, 10:11 PM
    • #9
    • 19th Aug 09, 10:11 PM
    The precise wording of the email is:

    'If you don't want to protect your prices and would prefer to move to our standard monthly Direct Debit prices please tell us before 30th September 2009.'

    The link gives only that option.

    What are the Direct Debit prices and are there any penalties for ditching that?
    • cw18
    • By cw18 19th Aug 09, 11:12 PM
    • 8,037 Posts
    • 85,940 Thanks
    cw18
    Other than the 12 month 'tie in', I'm confused as to why this is such a bad deal (and yes, I'm impacted by this - and with income that means I can't afford to take a chance with fuel costs)

    As best I can tell by checking the tarrif rates they sent a link to in the email against their current variable rate, these are identical. I've been with SP for over 7 years now, and they've been great when I've had issues/concerns. On running a comparison based on my useage in the last 12 month I only get a couple that 'quote' lower figures - and it's not much..... certainly not enough to make me want to switch suppliers.

    So, assuming I don't want to leave the company just now, surely the only gamble I'm taking is that another company (which is one I'm happy to deal with) doesn't offer a capped deal at a significantly lower rate within the next 12 months :confused:


    Supernova - the 'standard' direct debit prices depend on the area of the county you live in, whether you fully operate your account on-line, and whether you pay a standing charge or not. You can get to them from the SP home page, but like I said - for me it appears to be identical to the capped rate they're offering me anyway...... If you're on the standard variable direct debit prices, then there's no cancellation penalty that I can see (nor would I expect there to be)
    Cheryl
    • duggo1
    • By duggo1 20th Aug 09, 8:51 AM
    • 176 Posts
    • 37 Thanks
    duggo1
    Is it just me, or does the Scottish Power Official Rep seem to be noticably absent from this board at the moment, when we are all trying to get clarification on the terms of this exit fee?
    • thingamaBob
    • By thingamaBob 20th Aug 09, 9:43 AM
    • 16,968 Posts
    • 988,980 Thanks
    thingamaBob
    I have had the email from Scottish Power which gives two options.
    1. Do nothing and be automatically transferred to the new fixed tariff.
    2. Opt out of the new fixed tariff and go on to the Standard monthly Direct Debit which currently has the same prices as the fixed rate deal.

    I did a comparison with Energyhelpline, which, according to the MSE article "Is Your Capped Tariff Ending" takes into account the proposed new tariff after a fix ends. This showed that my best deal would be Scottish Power's Online Energy Saver 6, saving 138 over a year.

    I couldn't find anywhere on Scottish Power's site any facility to say that I wanted to switch to Online Energy Saver 6 as from 1st September so have sent them an email saying that this is what I would prefer to do.
    If I get no satisfactory response to my email by 1st September, I will take the opt out option and then do a switch to the next best recomendation from Energyhelpline.
    Bob
    The Moving Finger writes; and, having writ,
    Moves on: nor all thy Piety nor Wit
    Shall lure it back to cancel half a Line,
    Nor all thy Tears wash out a Word of it.

    Omar Khayyam
    • cw18
    • By cw18 20th Aug 09, 9:58 AM
    • 8,037 Posts
    • 85,940 Thanks
    cw18
    I'm getting the same response on the comparison site, though my saving is less than 60.

    I found the details under 'product prices', but not under 'product information'. that deal only runs until the end of July 2010, so I'm wondering whether it's about to be closed to new sign-ups (unless it's still open on 1st September, we can't take it up without paying the cancellation fees on our current fixed deals!)
    Cheryl
  • Scottish Power
    Hi folks,

    As advised on previous threads, customers on the Fixed September 2009 Offer will only be charged a cancellation fee if they actually leave us before 31 August 2009. Sorry if this has not been made completely clear upon contacting us.

    The Capped Rate Sept 2010 Offer is based on the same prices as our current Standard Rates, these will vary depending on where in the country you live and what your payment method is. For individual customer-specific advice I recommend you call us directly on 0800 400 200.

    It is worth remembering that our Capped Sept 2010 Offer means that your prices cannot increase, however if our Standard rates decrease so will yours. It is a capped offer as opposed to a fixed rate. There is a cancellation fee of 30.00 for electricity and 20.00 for gas that applies if you leave before the end of the offer, so it is worth bearing that in mind when making your decision.

    For those not wanting to move onto the Capped Sept 2010 Offer, they have until 30 September this year to let us know. In doing so they will be moved onto our Standard rates, which are exactly the same but without the protection against any increases. There would be no cancellation fee if you leave us when on this tariff, so this may be the best option if you are looking to shop around.

    We do still have a range of other tariffs available and as above, for specific advice on this please call us on 0800 400 200.

    I hope this proves useful in helping you all decide what to do next

    Craig @ ScottishPower
    Official Company Representative
    I am the official company representative of Scottish Power. MSE has given permission for me to post in response to queries about the company, so that I can help solve issues. You can see my name on the companies with permission to post list. I am not allowed to tout for business at all. If you believe I am please report it to forumteam@moneysavingexpert.com This does NOT imply any form of approval of my company or its products by MSE"
    • duggo1
    • By duggo1 20th Aug 09, 10:19 AM
    • 176 Posts
    • 37 Thanks
    duggo1

    As advised on previous threads, customers on the Fixed September 2009 Offer will only be charged a cancellation fee if they actually leave us before 31 August 2009. Sorry if this has not been made completely clear upon contacting us.


    Craig @ ScottishPower
    Originally posted by scottishpower company representative
    So can I just clarify that you mean as long as the actual date of the actual switching of suply is what you mean, not just taking out a contract with another supplier?
  • Scottish Power
    So can I just clarify that you mean as long as the actual date of the actual switching of suply is what you mean, not just taking out a contract with another supplier?
    Originally posted by duggo1
    It's if your supply actually leaves us, not if you make an application before that date duggo1.
    Official Company Representative
    I am the official company representative of Scottish Power. MSE has given permission for me to post in response to queries about the company, so that I can help solve issues. You can see my name on the companies with permission to post list. I am not allowed to tout for business at all. If you believe I am please report it to forumteam@moneysavingexpert.com This does NOT imply any form of approval of my company or its products by MSE"
    • thingamaBob
    • By thingamaBob 20th Aug 09, 10:25 AM
    • 16,968 Posts
    • 988,980 Thanks
    thingamaBob
    Hi spcr,

    As I said in my previous post above, I feel that when my fixed rate ends at the end of the month, the best thing for me would be to move to the Online Energy Saver 6 tariff but I can't find any facility on the Scottish Power website that will let me request this change. Is this because, as suggested by cw18, this tariff will not be available from 1st September?
    Why are you only giving the option for the new fixed tariff or the Standard rate and not making all your other tariffs also selectable options?
    I have been very happy being a Scottish Power customer for several years and don't want to move away just because of some administrative difficulty.
    Last edited by thingamaBob; 20-08-2009 at 10:27 AM.
    Bob
    The Moving Finger writes; and, having writ,
    Moves on: nor all thy Piety nor Wit
    Shall lure it back to cancel half a Line,
    Nor all thy Tears wash out a Word of it.

    Omar Khayyam
  • Scottish Power
    Hi spcr,

    As I said in my previous post above, I feel that when my fixed rate ends at the end of the month, the best thing for me would be to move to the Online Energy Saver 6 tariff but I can't find any facility on the Scottish Power website that will let me request this change. Is this because, as suggested by cw18, this tariff will not be available from 1st September?
    Why are you only giving the option for the new fixed tariff or the Standard rate and not making all your other tariffs also selectable options?
    I have been very happy being a Scottish Power customer for several years and don't want to move away just because of some administrative difficulty.
    Originally posted by thingamaBob
    Hi ThingmaBob,

    As we have such a wide range of tariffs, each of which have different rates depending on payment method and the area you live in I think it would be difficult to give every possible option to customers.

    We do welcome customers to contact us directly so they can receive specific and individual advice if they need this.

    I have heard no suggestion that Online Energy Saver 6 is due to be made unavailable.

    Craig @ ScottishPower
    Official Company Representative
    I am the official company representative of Scottish Power. MSE has given permission for me to post in response to queries about the company, so that I can help solve issues. You can see my name on the companies with permission to post list. I am not allowed to tout for business at all. If you believe I am please report it to forumteam@moneysavingexpert.com This does NOT imply any form of approval of my company or its products by MSE"
    • cw18
    • By cw18 20th Aug 09, 10:33 AM
    • 8,037 Posts
    • 85,940 Thanks
    cw18
    I have been very happy being a Scottish Power customer for several years and don't want to move away just because of some administrative difficulty.
    Originally posted by thingamaBob
    I'm with you on this one....

    I've been with SP since buying a new build property in May 2002 - and the only problem I've had to date was convincing the company they were providing both my fuels rather than just one (which was what we were informed by the builders). Took until September 2002 for it to be accepted by SP - which meant the first bill for the second fuel would have been really nasty if I paid as they arrived !!

    Means I don't have quite as much faith in administration as I could have though..... even though (as I said in an earlier post) any issues/concerns I've phoned about since then have been well dealt with - to the point I don't want to go through the hassle of changing and building up a relationship with another provider just to save a few quid a year. . I actually turned another provider away from my door a couple of days ago without hearing him out - something that stunned my son as he knows I'm watching the pennies!
    Cheryl
    • duggo1
    • By duggo1 20th Aug 09, 10:43 AM
    • 176 Posts
    • 37 Thanks
    duggo1
    Thank You Craig
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