Why am I tied into a contract when you break the agreement by putting up the price?

bordesleygreen

Last October I called Electric Ireland to see if I could get a better price or switch. I was given a 6% discount and told what my new unit price was. In January Electric Ireland increased my unit price. As far as I see it that is breaking our agreement and I see no reason why I should be tied to a contract.

When I phoned customer service they said I am tied into a contract for a 6% discount not a unit price. This makes no sense and was not how I understood it from the original call and agreement. It is totally illogical - what I care about is the price I pay, not an illusory 'discount'.

This would not apply if I were an Electric Ireland customer in the North. This is from the Which site:
1. Don't pay increased prices or exit fees to your supplier
[font=Verdana, Helvetica, sans-serif]If your energy company raises prices you shouldn't have to pay a penalty for switching away from them, as the price change is effectively a change in the contract you originally signed up to. [/font]
[font=Verdana, Helvetica, sans-serif]If it tries to charge you an exit fee or says you will have to pay the higher rates until your switch goes through, then you should complain - refer your energy company to Ofgem's Standard Licence Conditions 23 and 24, which sets these rules out.[/font]
[font=Verdana, Helvetica, sans-serif]You need to tell your energy supplier you wish to leave by the date the higher prices come into effect. Also make sure that your new supplier contacts your old one within 15 working days to tell them you're switching.[/font]
[font=Verdana, Helvetica, sans-serif]http://www.which.co.uk/switch/energy-advice/5-tips-to-avoid-your-energy-company-overcharging[/font]
How you operate this contract tie in is taking customers for mugs. I would be pleased if you could explain how customers are obliged to stay in a contract that you break. I would also like the contact details for the ombudsman or Minister as this is an abuse of consumer rights.

EI: Aoife O

Hi bordesleygreen,

Thank you for contacting us with this query. The terms and conditions associated of our price plans must be agreed to before any changes can be made to an account. Our unit rate is subject to change, and this statement has to be confirmed on each call before a price plan can be applied.

As per the terms and conditions of the ValueReward price plan (which gives you a 6% discount off your electricity for Direct Debit and Online Billing), there is an exit fee of €50 applicable if you move to another supplier before the end date of your price plan. If you'd like me to review your account and the price plan in place, do please PM with your Electric Ireland account number, full name, address and contact number and I can look into this for you. Please also confirm if you are the account holder.

Kind regards,
Aoife

bordesleygreen

Electric Ireland: Aoife O wrote: »

Hi bordesleygreen,

Thank you for contacting us with this query. The terms and conditions associated of our price plans must be agreed to before any changes can be made to an account. Our unit rate is subject to change, and this statement has to be confirmed on each call before a price plan can be applied.

As per the terms and conditions of the ValueReward price plan (which gives you a 6% discount off your electricity for Direct Debit and Online Billing), there is an exit fee of €50 applicable if you move to another supplier before the end date of your price plan. If you'd like me to review your account and the price plan in place, do please PM with your Electric Ireland account number, full name, address and contact number and I can look into this for you. Please also confirm if you are the account holder.

Kind regards,
Aoife

Hi Aoife
I will PM you. From your answer though I assume that Electric Ireland ties me in to this contract because they can and they can because we are afforded less protection under consumer law than your customers in the North. Is that right?

EI: Aoife O

Hi bordesleygreen,

Thanks for your private message. I'll need to check your account, and the terms and conditions which were agreed on the call. There are different terms and conditions applicable for our various price plans. We have a different set of price plans in place for Northern Ireland customers but I can assure you that all our contracts are honored equally.

I have just responded to your private message, and look forward to your reply.

Kind regards,
Aoife

foggy_lad

Electric Ireland: Aoife O wrote: »

Hi bordesleygreen,

Thank you for contacting us with this query. The terms and conditions associated of our price plans must be agreed to before any changes can be made to an account. Our unit rate is subject to change, and this statement has to be confirmed on each call before a price plan can be applied.

As per the terms and conditions of the ValueReward price plan (which gives you a 6% discount off your electricity for Direct Debit and Online Billing), there is an exit fee of €50 applicable if you move to another supplier before the end date of your price plan. If you'd like me to review your account and the price plan in place, do please PM with your Electric Ireland account number, full name, address and contact number and I can look into this for you. Please also confirm if you are the account holder.

Kind regards,
Aoife

But if electric Ireland change the terms of the contract as they did in January by raising the unit price the customer must be given the opportunity to say no to the new contract and leave without penalty!

ukoda

foggy_lad wrote: »

Electric Ireland: Aoife O wrote: »

Hi bordesleygreen,

Thank you for contacting us with this query. The terms and conditions associated of our price plans must be agreed to before any changes can be made to an account. Our unit rate is subject to change, and this statement has to be confirmed on each call before a price plan can be applied.

As per the terms and conditions of the ValueReward price plan (which gives you a 6% discount off your electricity for Direct Debit and Online Billing), there is an exit fee of €50 applicable if you move to another supplier before the end date of your price plan. If you'd like me to review your account and the price plan in place, do please PM with your Electric Ireland account number, full name, address and contact number and I can look into this for you. Please also confirm if you are the account holder.

Kind regards,
Aoife

But if electric Ireland change the terms of the contract as they did in January by raising the unit price the customer must be given the opportunity to say no to the new contract and leave without penalty!

They didnt change the terms. it says in the terms and conditions of the price plan - the unit rate may vary during the contract but your percentage discount will remain the same.  you accepted this, you also accepted the exit fee.

so no, they dont have to give you any oppurtunity to leave without penalty!

ukoda

bordesleygreen wrote: »

Electric Ireland: Aoife O wrote: »

Hi bordesleygreen,

Thank you for contacting us with this query. The terms and conditions associated of our price plans must be agreed to before any changes can be made to an account. Our unit rate is subject to change, and this statement has to be confirmed on each call before a price plan can be applied.

As per the terms and conditions of the ValueReward price plan (which gives you a 6% discount off your electricity for Direct Debit and Online Billing), there is an exit fee of €50 applicable if you move to another supplier before the end date of your price plan. If you'd like me to review your account and the price plan in place, do please PM with your Electric Ireland account number, full name, address and contact number and I can look into this for you. Please also confirm if you are the account holder.

Kind regards,
Aoife

Hi Aoife
I will PM you. From your answer though I assume that Electric Ireland ties me in to this contract because they can and they can because we are afforded less protection under consumer law than your customers in the North. Is that right?

No, this is just a different contract to the one you signed up to. "fixed price" contracts are popular in the North and UK, but arent very popular here, it has absolutely nothign to do with consumer rights - You picked and signed a contract with Electric Ireland that has a "variable" unit rate.