OVO - Renewal of a contract question

[Surfer01]

For the past year we have been with Ovo Energy and earlier this month they sent me a renewal notice with prices to fix for another year. I looked at the prices, did a comparison and accepted their prices although slightly higher than a couple of companies.

I accepted Online however when I got the confirmation email the next day I noticed that the prices were excluding VAT which then made them even more uncompetitive. In fairness they do have the VAT charghe mentioned on the website, but it is not immediately obvious. Why exclude VAT for domestic customers as it is highly unlikely that a domestic customer could claim back VAT? Other suppliers include VAT in their prices.

I immediately contacted them and told them to cancel the renewal as I would prefer to shop around. It took several days for a reply and I was told that as it was a renewal I could not cancel.

I pointed out that in essence it was not a renewal, but a new contract as one of the conditions had changed as the unit price had increased and that under Distance Selling Regulations I was entitled to cancel. I also stated that if they disputed this then I required a deadlock letter from Ovo.

Nearly two weeks has passed and I have not had an answer. Am I right in thinking DSR apply to contracts. Really annoyed with Ovo at present as I would rather have £10 in my pocket than theirs!

[sequenci]

I can't see why it wouldn't be covered under the regs.

 

If they won't play ball your next step is these guys: http://www.ombudsman-services.org/energy.html

[Surfer01]

I can't see why it wouldn't be covered under the regs.

 

If they won't play ball your next step is these guys: http://www.ombudsman-services.org/energy.html

 

Before I can approach them I need the deadlock letter so show that all avenues have been used to get it resolved. If they don't respond , it causes a problem. If no reply by the end of the week, I will need to find out the name of the CEO and write to them.

[Surfer01]

They stated the following;

What rates can I get?

Supply number (MPAN): 14***********

They then supply the rates for the current and future. At the end they give an annual figure of about £950.

 

What would a fixed rate cost me for a year? (we’ve estimated this based on the energy that’s been used in your home before)

We guarantee our fixed prices for seven days from the date at the top (after 16 October 2013 we’ll happily re-quote for you), and our variable prices can change. The yearly costs we' ve estimated here include VAT (5% for domestic customers), but the unit prices and standing charges don't. To see more of our T&Cs, just go to http://www.ovoenergy.com/terms.

 

Why give an annual figure including VAT but unit prices without VAT unless they were hoping you would overlook the VAT issue? In their T & Cs they state the following;

2.8 When you renew your contract, you do not have a cooling-off period and you may have to pay a termination fee under clause 4.6.c if you later end the contract.

 

Surely the above is an unfair term as it conflicts with Distance Selling Regulations Act?

[Surfer01]

This is the response I have received from them;

 

I have spoken to our marketing department with regards to our Terms and Condition and the fact that we do not offer a cooling off period when customers renew with us. They have confirmed that as the Distance Selling Regulations state that 'contracts for services where you agreed to the service starting before the seven working days has expired - as long as the seller has provided all the information detailed above' are not covered we are not going against this as we state in your original Terms and Conditions and your renewal correspondence that there will not be a cooling off period. Therefore if you agree to renew with us you are effectively waiving the cooling off period.

 

With regards to your question as to why Ovo send the renewal information showing the unit rates without VAT and the annual figure including VAT is because on all of the correspondence that we send to customers, including statements their unit rates will be shown without VAT so we want the information to be consistent. We give the annual figure including VAT so that the customer is able to see a complete yearly spend including all charges to help with their decision.

 

I am not sure if they are correct about the DSR as one of the conditions of the their T & Cs changed, namely the increase in price. By moving to Scottish Power I can save over £90 per annum.

[Figgydoody]

Hi Surfer,

 

I am sure the unfair terms in consumer contracts regs 1999 would apply in this situation.

 

Regards,

 

Figgy.

[Surfer01]

Hi Surfer,

 

I am sure the unfair terms in consumer contracts regs 1999 would apply in this situation.

 

Regards,

 

Figgy.

We are on the same wave length as that was my impression. If none of the conditions had changed including price, then fair enough.

[Figgydoody]

Hi Surfer,

 

I think it would be worth going through the regs and seeing which of the provisions apply to your case, and write back with a very strongly worded letter. They are being utterly unreasonable, so keep on at them, and don't accept their self serving interpretations of the law! Best of luck!

 

Figgy.