Like everyone else I'm just about to experience a rise in energy costs as my current tariff runs out today. Everyone's circumstances are different but I thought my experience might be of use to anyone trying to find the best deal.
I submitted my latest meter readings to my supplier (Scottish Power) last Friday, reasoning that phone lines & websites would be overloaded this week with people doing the same as they try to ensure they're not charged at a higher rate for energy used on their current agreement. They shouldn't be anyway. There should be x days at y tariff and x days at z tariff on bills but nevertheless people are rightly worried and sure enough the past couple of days has seen a lot of people struggle to get through. I reckoned that the possibility of one week being charged at a higher rate was worth the peace of mind of knowing twelve of the past thirteen weeks would be charged at the 'old' rate.
I thought it was probably for the best to move to the standard variable rate but explored the new fixed tariff options available anyway. These were all horrendous, the cheapest being a 250% increase. Yes, that's not a typo. TWO HUNDRED AND FIFTY PERCENT was the cheapest. So I decided to put in an official complaint about their offer based on the following criteria.
My direct debit had been paid in full each and every month. During the past twelve months they had increased the debit by almost 20% but despite that my account was in credit after my last payment last week. I said if they hadn't increased the debit I would only have been £20 in arrears over the year and that it should never have been increased. They were at fault and I deserved an apology. It's a point worth making if you come out ahead over the year.
I said that being in credit at the end of the year showed I was a good customer and asked how they could justify any increase being based on my current debit when that debit should have been around £11 pcm less if my account had broken even over the year and asked them to review their offer taking that £11 pcm into account prior to calculation.
I referred to the average increase being 54% and asked for an explanation and justification as to why they were offering me 250%.
I pointed out that I was (now) a pensioner and would be in receipt of £200 Winter Fuel Payment later this year and asked for this to be taken into account prior to calculation of a new offer. I also asked them to include the £140 Warm Homes Discount which I have been in receipt of for several years, the forthcoming £150 Council Tax rebate and the £200 energy 'loan' to be applied in the autumn. I said that was a total of £690 or £57.50 pcm I would be receiving that they do NOT take into account when calculating new tariffs and that it should be considered before calculation. I asked them to deduct that sum from their new fixed price offers and said I couldn't possibly afford to pay what they were asking.
This is, I think, an important point. Most people will be receiving at least the rebate and the 'loan,' - £350 or £29 pcm and that is NOT factored in to price increase calculations.
I informed them I was clinically extremely vulnerable to Covid and that as a consequence had spent much of the past two years at home, therefore consuming more energy than would otherwise be the case. I said this meant my actual consumption was at its peak and if anything would reduce as the health outlook, both general and personal, improved (fat chance now it seems) and that they should factor in at least a 10% reduction in consumption prior to calculating a new fixed rate.
In short I was asking them to make an offer based on PERSONAL CIRCUMSTANCES rather than an automated one calculated automatically on consumption and percentage price increases.
Now not all of the above mitigations will apply to everyone on here but they will for some and some will apply to all, at the very least the £200 'loan' will.
I ended by asking again for a justification of their offer based on the personal circumstances I had outlined, asked them to provide me with a new offer now they were aware of my personal circumstances and reminded them that if not satisfied I retained the option to pursue the matter further with the Energy Ombudsman. An important point. Having to justify such huge increases on individuals without taking all their circumstances into account risks not only risks the dispute being resolved in favour of the consumer but in unwelcome publicity for the supplier and that's the last thing they need right now.
I sat back and awaited their response, hoping to receive an offer in the region of the average 54% - say between 50%-60%.
I received the response overnight. They have offered me a fixed rate tariff based on the last twelve months consumption that comes out at an increase of 16.3% on what I paid over the past year. Again, not a typo. SIXTEEN POINT THREE PERCENT. Which is far lower than I expected and when compared to the original 250% looks an absolute bargain. I never thought I'd see the say when I was delighted to see my bills increase by 16% but this is where we are. My direct debit will increase by 4p pcm. Yet again, no typo. An increase of FOUR PENCE PER MONTH. And the deal is for sixteen months, to the end of July 2023, not just a year. Given the way things are going I have decided to take up this offer rather than move to the standard variable rate. When taking into account the Winter Fuel Payment, Warm Homes Discount and Council Tax Rebate (but NOT the £200 'loan) I expect to actually be around £200 BETTER OFF as a result. Comparing like for like - what I paid last year plus the Warm Homes Discount I expect my increase to be around £135 or 13% over the next sixteen months.
It costs nothing to complain but your time. The worst that can happen is for offers to remain the same. Everyone will have at least one of the factors outlined above that can be taken into account. The key thing is to get your supplier to make an offer based on YOUR circumstances, not their algorithm. So if you're facing a horrendous price rise I'd urge you to complain about it. I'd compare it to TV or broadband offers which many here will be used to dealing with. If you tell them you can't afford the new rate then they'll make you a better offer - six months reduced rate, keep your current rate for another year etc, etc, etc. They rely on people not complaining about increases and meekly accepting rises as 'inevitable.' They're not.
I hope my experience can be of some use to those facing these truly shocking increases.
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Originally Posted by nukecad
