I like very much the point that if you had left the contract early, you would have been penalised.

Are you sure that there is no provision for leaving a contract without penalty in the event that you move home?

I don't know I'm afraid, I'd need to find E.On's T&C's

If you sue, - and I think that you have a good chance of success, the court will only award you damages for your actual loss.

What is that now? If it is £40 then I am missing something because I don't understand why despite this dispute, you haven't now agreed a new tariff with them.

My understanding at the moment is that you are still paying their imposed rated for a deemed contract.

I will do my best to dispel the confusion

I was 3 months into a 12 month contract at my old address, when I was forced to move

I called E.On's moving team and asked them to transfer my account to the new address

At no point was I informed that my old tariff would be closed

When my first bill arrived I realised I was on the standard tariff

I called to ask what had happened, and I was told I cannot be put on my old tariff

As a last resort, I switched to their cheapest tariff, which was still more expensive than the one I was on when I moved

The point here is. E.On, while perfectly capable of transferring my tariff has refused to do so. Had I wanted to leave the contract early I would have been penalised, but it's alright for E.On to terminate it early, and get away with it because the size of the outstanding balance means I cannot move?

Well if you are actually only out of pocket by £40, then you won't be able to sue them for £243.

 

Why didn't you organise an agreed tariff as soon as you could?

I didn't organise one, because their Moving Home department never said I wasn't going to carry my old one to the new address. However I disagree with you. By the end of the year I will actually be £243 out of pocket in comparison to the contract I would have been on, had I not moved home.

So by how much were you actually out of pocket?

 

Why didn't you negotiate a contract earlier?

Around the £40 mark, but that's not what I'm aiming for, it's the yearly extrapolation I'm going to challenge them with. Negotiate a contract, how?

I've been keeping an eye on this thread although I haven't been following it very closely.

 

Earlier on you said that you were out of pocket to the tune of £243. Was this extrapolated for one years use? Or is this what you are actually out of pocket?

Extrapolated for a year

I think that Gareth Pierce's decision is wrong and I think that his reasoning is very flawed.

 

Apart from anything else, you can see that he is taking the industry corner when he says "eemed contracts are accepted in this industry".

 

All this confirms is that the industry have a way of doing things and that there is no reference to any participation by the customer and that is completely unilateral.

 

To my mind this is completely at odds with the supply of goods and services act and even at odds with the common law if you had to go there.

 

It cannot possibly be that a party can unilaterally impose a non-negotiated tariff on the other without some kind of agreement. In this case, because this is the existing supplier, you don't even have the opportunity to refuse the supply. You have to go along with it for at least the period of time that it takes you to move away.

 

You may have said this in the thread somewhere, but maybe you will be kind enough to tell us again: did you move away from the supplier or get a better tariff as soon as you could? Or did you stay with the deemed contract for longer than was necessary?

 

The reason I am asking this is because you have a duty to mitigate your losses and it would only be reasonable for you to be able to claim for the extra money you paid over the minimum – compulsory – period of the "deemed contract".

 

It would be great news for everybody to smash a blow against deemed contracts. They are disgracefully unfair. I'm quite sure that they are unenforceable but of course nobody wants to go ahead and do it.

 

So can you tell us a bit more about your losses. Why did the deemed contract go on so long?

It went on right up until I received my first bill (online). After that, I immediately switched to their cheapest tariff. The reason I wasn't able to move away from E.On is because of an outstanding balance. At this point I'm going to be taking them to court over the _projected_ loses I expect to incur over the year.

Ombudsman has responded

Thank you for your patience while we considered your representations to the investigation.

 

Whilst we appreciate that you believe E.ON has breached its contract, we have found no evidence to confirm this. We have acknowledged in our initial findings that it could have made it clearer to you about a change to a term in the tariff. However, it should be noted that we do not consider the change to the term in your tariff to have had any impact to your account.

 

You did not ask E.ON whether you could continue to use your tariff at the new address. Therefore, you would have been put on the deemed contract regardless. The terms and conditions of your tariff did state to contact E.ON to enquire if you can continue a tariff at a new address. It also did not provide any guarantee that you could continue the tariff at a new address.

 

As we have explained to you already, you did have the opportunity to switch suppliers when you moved into your new address. Therefore, there is no justification in applying any further goodwill gesture to cover the difference between the tariff you are currently on and the tariff you were on at your old address.

 

You have also raised new concerns and points relating to deemed contracts. However, deemed contracts are accepted in this industry. We do consider that deemed contracts are suitable for the majority of customers because a supply is ready for them straight away when they move into a new address.

 

Whilst we acknowledge your point about the rates of deemed contracts, it should be noted that it is the customers responsibility to agree and arrange a new tariff. You did have the opportunity to do this prior to moving into your new address.

 

We have proposed a goodwill gesture of £30 for the shortfalls in customer service. We do consider this a fair and reasonable resolution for your complaint. We consider this to put you back in the position you would have been if the shortfalls in customer service did not occur.

 

We have now reached the end of our investigation process and there is no opportunity to appeal. You now have to decide if you agree to accept our decision in full and final settlement of the dispute.

 

 

The decision is that E.ON is required to take the following action to resolve your complaint:

 

• it should send you a letter of apology;

• credit your account with a goodwill gesture of £30; and

• ensure that you are on the most suitable tariff for your circumstances going forwards.

If you agree, I will contact E.ON and confirm that you accept this in full and final settlement of the complaint.

 

E.ON will have up to 28 days in which to implement the remedy.

 

If you do not accept this decision, or fail to respond, the decision will not be binding on E.ON. You will still be free to follow other routes to try to sort out the problems in a way that suits you better, but you will lose the right to the remedy set out above.

Please contact me using the details below to indicate your decision. You must confirm your response no later than 14 days from the date of this letter.

 

Yours sincerely

 

Gareth Pierce

 

Investigation Officer

It was my understanding that you should automatically be put on the cheapest tariff if no contact is made by the consumer to advise which tariff is required ?

If that's the case, it only adds to their level of failure.

Quick update, I've responded to the Ombudsman, curious as to what their next step will be.

I don't understand any of this

Apologies, I'll explain at length.

My previous tariff, the one I agreed to be put on, started in November 2014. The Tariff Comparison Rate (TCR) for that tariff was as follows:

Electricity 12.61p/kWh

Gas 4.04p/kWh

When I moved in March, for a brief period of time, I was put on the standard tariff. For simplification reasons we will ignore this. When I realised E.On would not put me on my old tariff I chose their cheapest one. The TCR for that is:

Electricity 15.11p/kWh

Gas 4.52p/kWh

Now, my projected consumption for 12 months, based on the data that E.On has gathered from me is

Electricity: 4342 KWh

Gas: 27843 KWh

Based on this projection, had I been allowed to stay on my old tariff my cost over 12 months would have been £1671. Since I've had to go with a tariff that's dearer than the one I started with in Nov 2014, my total cost over 12 months will be £1914.

Therefore, at the end of the 12 month contractual period, I will be £243 worse off.

Here's my calculations, feel free to rip them to shreds

Based on the old tariff, for 12 months of supply I would have paid (simplistically based on the TCR) £1671

Now that I've been forced to take another 12m tariff I would have to pay £1914 (a little less perhaps but still in the £1850-£1900 ballpark)

That would make me £243 out of pocket, based on the TCR between the tariffs *and* assuming the consumption projections hold.

You have a duty to mitigate your loss. This means that you have to do take advantage of renegotiating the deemed contract to go on to an established tariff.

 

I don't think that a court would accept that you deliberately continue to at a disadvantage rate for the entire period you are at the house.

 

I think we need to know how much you out of pocket between the time you lived in hand before the time you could reasonably have negotiated the new tariff.

 

Have you negotiated a new tariff yet?

Yes I have, the TCR's I posted are from my current (new) tariff.

With regards to your "compliance" question, the ombudsman has replied thus:

To confirm again, when E.ON is referring to compliance, it is basically referring to the way it manages an account. It has not referred to any specific regulation.

 

As mentioned in the findings, in order to remain compliant, it cannot automatically put a customer on a tariff when they move address. I considered this reasonable for a number of reasons, some detailed in the report. For example, the metering set up might be different, it might not automatically supply the property the customer moved into or the customer may not wish to be supplied by the supplier at the previous address at the new address. Therefore, to ensure it is compliant and manages the account sufficiently, a customer would need to agree to prices and terms and conditions at the new address. This is better practice than automatically putting a customer onto the same tariff they were previously on. It is also to ensure that it remains compliant with its own terms and conditions.

 

The terms for your tariff stated that it ‘may’ be able to transfer the tariff to the new address, it does not indicate any guarantee of this happening. Unfortunately, E.ON has taken a commercial decision to stop this regardless and it is in the process of updating the terms and conditions. This falls outside of our remit and we cannot require E.ON to put you on a particular tariff.

 

The terms for your tariff did state that you should contact a number for advice about this particular issue. Therefore, you did have the opportunity to query this prior to moving address. I do consider it likely that you would have been told that it no longer allows a tariff agreed at a previous address to be transferred to a new address.

 

I do not consider the impact of the shortfalls in customer service to be as significant as what you said to me on the phone. The outcome would always have been the same regardless as to whether or not you were told about this. Furthermore, as I explained in the findings, you did have the opportunity to switch suppliers if you were unhappy with this.

Is it me, or is he actually telling me off?!

The previous occupiers may have been uncooperative, that had you actually fallen out with them?

 

If you hadn't, then you might try sending them a letter explain to them that you are being ripped off by E.on and might they be prepared to disclose what tariff they were on.

 

If you decided to do this, I would suggest that you send the letters through the agents – but also send it to them but at your own new address in the hope that the previous occupiers have used a redirection service.

 

You could start the letter with a friendly greeting and saying that you found the property in very good condition – thank you – and you hope that they are installed in their new address – blah blah.

 

You are not obliged to continue your complaint with the regulator. It is up to you. It won't do you any harm but on the other hand it will take up time.

 

They fell out with the landlord and the estate agent, to the point of them refusing to supply me with the alarm arming code.. saying that the property was in very good condition might be used against me, since they have some ongoing wrangling with the landlord about the state they left the property in.

With regards to the regulator. If I'm not obliged to continue, I can just let the 14 days lapse?

Frankly I think that the regulator's own findings are quite enough to ground a small claim.

 

[snip]

How much do you think you are out of pocket on this so far? It can't be a whole huge amount and it will be very come to be within the small claim and it would be very easy to challenge this at no risk to yourself.

You're correct it isn't an enormous amount, but I still wouldn't want to see it go to their pockets.

My previous tariff charges where (based on the TCR on the bill)

Electricity: 12.61p/KWh

Gas: 4.04p/KWh

Current

Electricity: 15.11p/KWh

Gas: 4.52p/KWh

I think that I should work out instead how much out of pocket I'll be by the end of the contract (using the TCR values as a projection) , would that be reasonable?

Frankly I think that the regulator's own findings are quite enough to ground a small claim.

 

[snip]

Personally I think that you should told to stuff their compensation. I think you should insist on receiving the supply at your previous tariff price.

 

I would like very much to know what was the tariff that the previous occupant was on. Are you able to get this information? How much were they paying?

 

If you wanted to challenge this, we would be very enthusiastic in our support of you because there is a huge principle at stake here. How much do you think you are out of pocket on this so far? It can't be a whole huge amount and it will be very come to be within the small claim and it would be very easy to challenge this at no risk to yourself.

 

Frankly I would expect that the energy supplier would bottle out rather than risk sacrificing the principle of deemed contract because if they lost on that principle, it would cost them a lot of money – and the other energy suppliers as well.

 

Finally, of course you are unhappy with the energy ombudsman, but you shouldn't be disappointed because this is what you expect from a limp wristed industry-friendly poodle and which simply wants a quiet life.

Your enthusiasm is infectious and I'm more than willing to give it a shot (as I was going to tell them to stuff their compensation anyway).

The only info I have from the previous tenant is that they where also supplied by E.On, but there is very little chance of every getting tariff information, as they where generally quite uncooperative, and I could only get in touch with them via the estate agent.

So first things first, I need to decline the compensation. Here's some additional weirdness from the regulator.

If you or E.ON do not accept my decision, then either of you can contact me, or email me, but must be able to:

 

show that there is a significant error in the facts which makes a material difference; or

produce significant new evidence which may make a material difference, along with an explanation of why that information was not previously made available.

So, I have to have a valid reason to decline this insult to my personal time This is something that I could possibly cobble together from your previous comments.

when it drops below 500 you can transfer

Useful info to keep in mind, thank you. Having said that, if I transfer I'll have to pay the account in full, something I can ill afford to do right now.

How much is outstanding?

Currently stands at £582.96. This will go down on the 15th to £472.96

Yes but... I would suggest changing supplier. Follow MSE Martin Lewis.

He always suggests changing around

I would have, but I have an outstanding balance with them, so any transfer to another provider would be blocked on that basis, wouldn't it?

Yes, I think that you have a good basis for a complaint.

 

I am very interested in the fact that EOn have used the word "compliant" and this word has been adopted by the regulator.

What do they mean? Compliant with what?

Very good point. I can email back and ask.

Hello everyone and apologies for the long post.

I have dual fuel from E.ON and was recently forced to move home. I called E.ON and informed them of the move, thinking that my tariff was going to move with me. When I received the first bill at the new address I discovered that I had been put on their standard tariff without any warning. I called E.ON to complain and ask to be put back on the tariff that I had signed up for, but I was told that it's "not possible". Naturally I took my complaint to the energy ombudsman which ,disappointingly, came back with the following:

Your complaint and the proposed resolution is summarised below.

 

My understanding of your complaint is that you contacted E.ON to state that you were moving house and to let it know that you would like E.ON to supply your new property. However, when you received your first bill, it had a tariff that you did not agree to as it put you on a standard tariff.

 

 

You state that you were not informed of this and asked to be put back on your old tariff. However, E.ON stated this could not be done.

 

 

 

Whilst I acknowledge that you state that you were not informed that your tariff would change when you move property, I can confirm that E.ON is correct to tell you that it cannot automatically put you onto the same tariff that you were on for your previous address.

 

There are a number of reasons why this cannot be done. One example is that when a customer moves into a different address, the metering set up at the new address may be different to the metering set up at the old address. Therefore, the tariff that you were previously on, may not be suitable for the meter at your new address. Furthermore, in some instances, it is not actually possible to use a previous tariff at all due to the type of metering set up that may be at the new address.

 

Although there is no evidence to suggest you actually had a different metering set up at your new address, E.ON has confirmed that in order to remain compliant, customers are unable to continue with a tariff when they move house. I do consider this reasonable because the customer has to agree to prices, and the terms and conditions again at the new address.

 

You automatically inherited E.ON as your supplier at [address removed] as it was already the supplier for this address. However, it is not unusual for a customer to move address and they inherit a different supplier when they move into the new address. This is another reason why it cannot continue a tariff for a previous address. This does highlight the importance of remaining compliant and the need for a customer to agree to a new contract.

 

However, I have reviewed the terms and conditions of the tariff you were previously on at your old address. Your previous tariff was the E.ON Energy Fixed 1 Year V12. The terms of this tariff cover the circumstances when a customer moves address. It states the following - ‘If you are on a fixed term tariff and you are moving into another Property you may be able to take your tariff with you when you move. There must be at least 90 days left on your fixed tariff after your move and, for your electricity supply, your new home must be in the same electricity distribution area as your old home. Your current area will be shown on your bill or statement, or call us for advice on 0345 303 3020’.

 

Therefore, the terms of your tariff do indicate that you may have been able to take your tariff with you when you move. It does indicate that there must be 90 days left on your tariff and your electricity supply must be in the same electricity distribution area as your previous address. The evidence suggests that you did have 90 days left on your tariff. The evidence also suggests that your electricity supply is the same area as the distribution area as you remained in East London.

 

I queried this with E.ON and it has stated that it has made a commercial decision to not offer this anymore. It has also highlighted that the word ‘may’ indicates that it is not a guarantee.

 

Whilst I appreciate that it states the word ‘may’ within the terms, I do consider it unreasonable for E.ON to not inform you of the change to the terms and conditions to your tariff. It is reasonable for you to have assumed that your tariff did continue at your new address based on the wording of the terms in your tariff. I would have expected any changes to the terms of your tariff to have been highlighted to you, particularly when you contacted it regarding a change of address.

 

Furthermore, E.ON has informed me that it did not send you a welcome pack on 10 March 2015. I can confirm that a welcome pack is sent to a customer at their new address. If E.ON had sent this welcome pack, I do consider it likely that you would have become aware of the standard tariff on the date you moved in and not the date of your first bill for the usage at your new address. I did consider this a further shortfall in customer service.

 

I do appreciate that your new tariff is more expensive than your tariff at your old address. However, I cannot require E.ON to put you back on the E.ON Energy Fixed 1 Year V12 tariff at your new address. I do consider that it should send you a letter of apology acknowledging any inconvenience caused. It should also credit your account with a goodwill gesture of £30 for the shortfalls in customer service.

 

I do consider this a fair and reasonable resolution because you did become aware that it could not put you on the E.ON Energy Fixed 1 Year V12 tariff on 25 March 2014. This was only 14 days after you moved into the new address. Furthermore, you did have the option to pay your outstanding balance and switch suppliers at your new address rather than stay at E.ON with the new tariff you are currently on. I also consider it likely that if you had contacted E.ON and asked the question about your tariff prior to moving address, you would have become aware that you could not use the tariff at your old address earlier.

 

In light of your complaint, it should ensure that you are on the most suitable tariff for your circumstances going forwards.

 

Following the investigation, my decision is that E.ON should:

 

 

send you a letter of apology;

credit your account with a goodwill gesture of £30 and

ensure that you are on the most suitable tariff for your circumstances going forwards.

 

 

What to do next

 

If you accept my decision in full and final settlement of your dispute, please contact me using the details below.

 

If you or E.ON do not accept my decision, then either of you can contact me, or email me, but must be able to:

 

show that there is a significant error in the facts which makes a material difference; or

produce significant new evidence which may make a material difference, along with an explanation of why that information was not previously made available.

 

You must confirm your response no later than 14 days from the date of this letter.

Needless to say I'm unhappy with this. Is there any scope in taking E.ON to small claims court, to force them to credit me with the projected difference between the two tariffs until my contract expires with them?

Thank you for reading this far!