Outfox the Market reviews: add your feedback

Like many people I was coming to the conclusion that the OFTM Whack January 18mths Fixed could be the tariff to switch to this year but one thing worried me, the use of a membership fee instead of a standing charge and the fact that is NOT fixed during the contract period.

I appreciated OFTM T&Cs state your membership fee per month can be raised during the contract if your electricity usage means you stray into a higher band i.e. low to medium or medium to high as that was undertsandable and in my case whilst I'm fairly confident my yearly usuage should remain around 3,200 kwh I am conscous we would only need to use another 299kwh during the year for OFTM to raise the membership fee from £8.99 pm to £10.99pm which of course adds £24 to the yearly tariff.

I asked OFTM how they review your usage and they replied the DD is reviewed every 3-6 mths using your monthly meter readings and if the readings indicte you will eventually go beyond the upper limit for your band then the DD will be increased to take that into account, they will give you 30 days notice but if you don't like it then all you can do is leave but you will have to pay the £50 exit fee.

I probably could have lived with that as control of the usage is in my hands except when I asked if OFTM can raise the membership fee for any other reason such as inflation then after some thought they admitted they can and in that case your only options will be to suck it up or pay the exit fee!

Thefore as far as I'm concerned this is not a Fixed Rate tariff as we would normally know it and I've decide not to go with OFTM.

Benboo wrote: »

...when I asked if OFTM can raise the membership fee for any other reason such as inflation then after some thought they admitted they can and in that case your only options will be to suck it up or pay the exit fee!
....

That is not what their terms state:

14.3
If we make changes to this contract that are disadvantageous to you, we will give you 30 days’ notice to let you know about the changes. If you do not agree with the changes, you can switch to another supplier without paying a termination fee.

Also to put this fully into context

14.4 Please be aware that none of following constitutes a disadvantageous change:
Changing your payment method.
Increasing additional charges.
Changing or withdrawing any benefits in accordance with this contract.
Increasing the VAT you pay.
Making changes to the contract if we are required by Ofgem’s rules to make them.

Benboo wrote: »

Regarding the contract question the raise of membership is in the contract under clause 3.7 and as it is a deemed contract then by signing up you agree to that so I don't think OFGEM could find against OFTM if they increased the fee under that but agree they would get a pasting on the reviews!

I see the bit you are talking about... the other thing is it's a 1 year fix and they have to give you 30 days notice. Thanks to Ofgem they have to allow you to leave 49 days before the end of the contract penalty free too!
Even if they notified you about a price rise the day you switched you would only be on it for just over 9 months before you could leave.
Finally I still don't think clause 3.7 gets around the Ofgem ruling about non defined price rises negating the exit fee.
I'd go for the tariff that's £31 cheaper and doesn't involve complicated cashback.
I don't work for OFTM I promise

Benboo wrote: »

Yes I saw all that and all I can say is OFTM confirmed they are not bound to maintain membership fees if a national trigger such as inflation meant it was unavoidable, so then it all comes down to whether that would fall under 14.3 or not as inflation is outside of OFTMs control? The impression I was given was in such a case yes you would be given 30 days notice and you can leave if you did not agree but the exit fee would still apply. Maybe an extreme situation and possibly a risk worth taking if the savings are that good but personally I don't like uncertainity such as this when the saving is not that great.

With those prices you’re a low user… so paying £6.99, it’s £31 cheaper than the next competitor, and you’d be paying that for 10 months maximum… so give or take £3 per month different.
(100/6.99)*3 = 43
Inflation would have to be 43% to justify a £3 monthly increase in the membership fee.

andyca wrote: »

With those prices you’re a low user… so paying £6.99, it’s £31 cheaper than the next competitor, and you’d be paying that for 10 months maximum… so give or take £3 per month different.
(100/6.99)*3 = 43
Inflation would have to be 43% to justify a £3 monthly increase in the membership fee.

No I'm over 2400kw pa so I'm in the medium user band and I would be paying it for 16 mths max as it's a 18mth fix. I don't see anything in OFTMs T&Cs which specifies what constraints they have on when or when not they can raise their membership fees but agree any increases will hurt them getting new customers, all depends on what pressures they are facing as a business and if they can afford to absorb them instead of passing them on.