August 29, 2018
There has been a victory for consumers today, as Ofgem orders British Gas to pay £2.65m. British Gas has paid the money directly to customers in refunds, compensation and redress.
The regulator found that British Gas had overcharged more than 94,000 customers who had switched to a different energy supplier and wrongly imposed exit fees on thousands of households.
Due to a system error, British Gas wrongly charged 94,211 customers its more expensive standard variable tariff rate after they decided to switch to a new energy supplier. Ofgem's investigation also found that British Gas provided 2.5m customers with incorrect terms and conditions, which stated that exit fees were payable.
Following Ofgem's findings, British Gas agreed to pay a further £244,770 in compensation to customers wrongly charged exit fees and the standard variable tariff and pay £1,050,229 into Ofgem's consumer redress fund.
Anthony Pygram, director of conduct and enforcement at Ofgem, said:
"British Gas failed its customers who were coming to the end of their fixed contracts and switched supplier by unfairly penalising them and applying charges in error. Many more customers could have been deterred from getting a better deal due to the incorrect terms and conditions.
"Ofgem put in place the switching window to help all customers switch before they are rolled onto their supplier's expensive default rate.
"Our enforcement action against British Gas sends a strong message to all suppliers that they must respect their customers' rights during the switching window and always treat customers fairly."
British Gas has since corrected its terms and conditions for customers to make clear they would not be charged exit fees during the switching window and changed its procedure for providing this information. It also agreed to appoint an external auditor to review the relevant policies and procedures.
A Centrica spokesman said:
"A system error led to a small proportion of customers being incorrectly charged. We've apologised to the customers affected. Those who were charged too much were promptly refunded as soon as we identified the issue and were paid an additional goodwill gesture.
"Some customers were provided with initial communications containing incorrect terms and conditions - but all other communications they received were correct."
Posted on August 29, 2018 at 08:29 AM
August 21, 2018
Tonik Energy has launched a new dual fuel energy tariff today (21/08/2018) called "2 Year Greenest Fixed".
Who is Tonik Energy
Tonik Energy is a renewable energy supplier who has the admirable goal of cutting energy bills by 50% by 2022. Tonik Energy plan do this by using smart technology to deliver affordable and sustainable energy to their customers' homes.
Tonik Energy is part of the Energy Switch Guarantee. This is a commitment that promises a speedy and safe switch from one energy supplier to another.
The product features of the new Tonik Energy price plan is as follows:
2 Year Greenest Fixed:
• 24 month Fixed Price tariff.
• Available for Dual fuel & Single Fuel Electricity; Unrestricted & Economy 7 metering.
• 100% renewable electricity + 10% green gas + offset the carbon dioxide emissions from the remaining 90% of fossil fuel gas used in the household - 'carbon offset'.
• No exit fees and 3% interest reward
2 Year Greenest Fixed is for sale on Energylinx. You can use our website to arrange a switch to one of these tariffs or call one of our lovely energy advisors on 01259 220000.
Posted on August 21, 2018 at 03:00 PM
August 7, 2018
Ofgem has increased its prepayment energy price cap due to rising wholesale prices. The regulator has said that as of October, its safeguard tariff will rise by £47 a year to £1,136 (based on average and typical use).
The prepayment price cap launched in April 2017 and was designed to protect the five million households who prepay for their energy from being overcharged. The price cap was initially set at £1,050 then lowered to £1,031 in October 2017, before being increased to £1,089 earlier this year.
Ofgem has stated that they are increasing the price cap due to rising oil prices which has led to an increase in wholesale gas prices.
Dermot Nolan, chief executive of Ofgem, said:
"Any price rise for customers is unfortunate. But while the level of the tariff will rise in October, these customers can be confident that this increase is justified and that their energy bill reflects the real cost of supplying gas and electricity. There are also better deals on the market for those who want to save even more money by switching."
2018 Energy Price Increases
The rise to the prepayment cap comes after a series of price increases from the energy suppliers over the summer, affecting millions of households.
All the "Big Six" energy suppliers have hiked energy prices this year; British Gas, EDF, E.ON, Npower, ScottishPower. So far this year a lot of smaller and mid-tier energy suppliers have also increased their energy prices including; Octopus, First Utility, Utility Warehouse and Co-operative Energy.
What does this mean for me?
If you are affected by the recent price hikes from the UK's biggest energy suppliers then our message to you is simple - it's time to compare energy suppliers.
Energylinx offers a free and impartial energy comparison and switching service. You can see what you could save on our website or by calling 0800 849 7077 and speaking to one of our energy advisors who will help you find the best energy prices for your home. Our call centre is open Monday to Friday 9am to 6pm and Saturday 9am to 3pm.
Posted on August 7, 2018 at 10:24 AM