MSE News: Energy firms forced to give 30 days' notice of price rises
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Former_MSE_Helen
Posts: 2,382 Forumite
This is the discussion thread for the following MSE News Story:
"Power firms that hike prices must give customers a month's warning, the industry regulator has said..."
"Power firms that hike prices must give customers a month's warning, the industry regulator has said..."
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Comments
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If this means you are no longer able to reject a rise if changing supplier then you can be faced with two to four weeks of higher prices - so this can mean a doubling or trebling of your bill with no escape if it coincides with a savage restructuring of the tariff (rather than a price bump.) Let alone the two to five months of cheaper power the current system gives you.
Plus, of course, with no rejection there is presumably no possibility of escaping any early exit fees (although that was always a dodgy out, despite Dogshome's advocacy!)0 -
A retrograde step for some keen MSE posters; will have little effect on many customers.
The difficulty is in many fixed term tariffs, with exit penalties, the T & Cs say they guarantee that the price will always be at least, say, 2% below the Standard rate. Yet when these tariffs are introduced they can be 20% below the Standard rate.
This means that the tariff can be increased by 18% and still remain within the 2% of Standard rate. If the Standard rate increases by, say, 6%, the fixed term tariff can rise by 24%!!!
So you get a 30 days notice and what? - you leave and have to pay the exit penalty!0 -
It all depends on how Ofgem re-draft the Standard Licence Conditions.
SLC 23 currently sets out conditions for refusing to accept a unilateral change which is going to be altered from 65 days to 30.
SLC 24 sets out the conditions for Termination of Domestic Supply Contaracts. At the moment SLC 24.3 states that in the case of a unilateral variation under SLC 23, a termination fee cannot be applied.
If they leave SLC 23- 24 as is, with the exception of the proposed change to 30 days advance notice, exit penalties cannot be applied.
Have to wait and see how it is couched. Couldn't find any details about it on their site, other than the press release.0
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