Economy Energy 'to honour' fixed tariff after price hike blunder
Economy Energy has signalled it intends to honour the terms of a super-cheap tariff after an admin blunder saw scores of MoneySavingExpert readers told they were facing an average hike of £311/yr - though it has yet to officially confirm this with us in writing. Dozens of MSE readers were informed that despite believing they had a year-long fixed tariff, Economy Energy was hitting them with huge increases in the £100s. After MSE got involved, it told us it would backtrack - though we're still struggling to get full details off the supplier. The tariff, called Switch Saver, was available during May and June earlier this year, and was only available through our Cheap Energy Club and MoneySupermarket. Costing an average of just £811/yr for a typical household, it was second cheapest on the market at the time. Yet last week - just a few months after the deal was available - Economy Energy started emailing customers informing them of eye-watering increases. While on average it was a rise of £311/year on typical use - 38% - we've seen some hit with increases of up £460. Though it was listed as a variable tariff in our comparisons, meaning the rates can rise - Economy Energy had mistakenly told customers in their welcome packs that their rates would actually be fixed for 12 months (see below).
This led to scores of MoneySavers venting their anger in emails and on social media, as many were told of the hikes in emails.
They were stunned at not only at the size of the increase, coming so soon after signing up to the tariff, but also bemused as they believed their rates were fixed - according to information shown on the earlier 'welcome' emails.
When we found out, we urgently spoke to Economy Energy, and it told us it will honour the deal as a fix at the rates you signed up to as stated in your welcome pack, provided you can prove it.
However, despite chasing on numerous occasions they haven't been able to confirm this with us in writing or clarify exactly what proof you need. We also don't know if they'll be actively contacting customers - so check your emails and challenge the increase.
If don't want to stick with Economy Energy, the Switch Saver tariff has no early exit fees, so you can switch penalty-free. Use our free to find a new deal.
Do I need to do anything?
Though Economy Energy has told us it will honour the tariff as fix - it hasn't answered our follow up questions, or confirmed it in writing.
The best thing to do is to find your welcome letter that states the tariff is fixed, and shows you the date when the price is guaranteed until, and challenge the rise - through its complaint process if necessary.
Check your emails for this document. It was sent from 'Economy Energy' (noreply@economyenergy.co.uk) with the subject line 'Welcome to Economy Energy'.
We've seen at least one MoneySaver successfully challenge the hike. They were told by Economy Energy: "Please accept my apology, we will be honouring the variable switch saver tariff as a fixed rate specified on your welcome pack to you until the date specified, this is only fixed tariff rates not fixed direct debits."
To challenge the hike, you contact Economy Energy on 0333 103 9053, or email it via an online form on its website. If you need to complain, you can do it direct or via through the free Resolver tool.
Why was I told it was fixed?
The tariff, which was only available via our Cheap Energy Club or MoneySupermarket, was listed as a a variable tariff in both energy comparison results, so consumers should have known they were signing up to a tariff where the rates could go up at short notice.
However, after switching to the tariff some people were told in official welcome packs from the supplier that it was, in fact, a fixed deal with a specific end date.
Information from one MoneySaver, shows the firm told them it was a fixed tariff, with the price guaranteed until 4 June 2019 (see above) - and we've seen similar evidence from some others.
So, many Economy Energy customers were stunned when the firm began emailing about the price rise last week - particularly given the scale of the price hike.
Economy Energy haven't told us how or why this might have happened - when we asked it, it remained tight-lipped, and simply urged customers to contact it if they had any problems.
"Was my rate not fixed?"
What does Economy Energy say?
Economy Energy failed to answer a number of the questions we put to them - a spokesperson simply said: "If customers are experiencing any difficulty, we ask that they contact Economy Energy directly so that we may resolve them.”
We've also noticed that in last few days Economy Energy's social media feeds have been removed - so you can no longer seek help through Facebook or Twitter.
You can still contact it on 0333 103 9053, or email it via an online form on its website.
What does Ofgem say?
We also contacted Ofgem - prior of Economy Energy backtracking - to see what exactly consumer that were to hit could do.
Though it wouldn't comment directly on this, a spokesperson did say: "We carefully monitor the way in which suppliers treat their customers, and are aware of the ongoing billing issues with Economy Energy.
"While we're not able to comment on Ofgem’s ongoing compliance work, we routinely monitor suppliers’ compliance with regulatory rules. We typically liaise directly with suppliers where there is evidence of potentially widespread or serious problems."
GUY'S QUOTE BEFORE BACKTRACK
Before we even go into the complete cock up with its emails, this is a ghastly rise for thousands of customers.
The message is very simple, give Economy exactly what it deserves if you're hit, and that's a big fat boot.
You can save £260+/year by switching to the cheapest deals, and there's no exit fees for ditching it.
26 November 2024
Clever ways to calculate your finances
