Glowpower has increased prices by 50% but I am stuck in a contract with them!

I switched to Airtricity last week - their per unit rate is 13.53 as opposed to Glow's 18.29. Based on our usage last year it would make a difference of about €500.

Airtricity's pricing is after the increase so I should be safe for a while.

Haven't had a final bill, or any contact from Glow as yet so I don't know if they will charge the termination fee. If they do I will challenge it on the basis that their contract (which they wrote) states:

6. Your rates as outlined in your agreement will be applied from the date that Glowpower is
registered as your supplier and will continue for a period of one (1) calendar year from that date

Does anyone know whether they are precluded from charging more than €50 as a termination fee? It seems easy enough to save that amount when prices increase dramatically.
 
Mrs Vimes said:
Airtricity's pricing is after the increase so I should be safe for a while.
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Not necessarily.
Several electricity providers have made more than one price increase in the last year.
Mrs Vimes said:
6. Your rates as outlined in your agreement will be applied from the date that Glowpower is
registered as your supplier and will continue for a period of one (1) calendar year from that date
Click to expand...
Where exactly do you see that?
Mrs Vimes said:
Does anyone know whether they are precluded from charging more than €50 as a termination fee? It seems easy enough to save that amount when prices increase dramatically.
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Their early termination charge should be itemised in the terms & conditions.
I have never seen any provider charge more or less than €50.
E.g. it's mentioned here for the tariff that I am on:

Glowfest Saver – Glowpower

glowpower.ie glowpower.ie
 
I should have said "safer", I know there are no guarantees.

That line is in the contract they sent me when I joined.

I was wondering why they all charge exactly €50 termination fee.
 
Mrs Vimes said:
I switched to Airtricity last week - their per unit rate is 13.53 as opposed to Glow's 18.29. Based on our usage last year it would make a difference of about €500.

Airtricity's pricing is after the increase so I should be safe for a while.

Haven't had a final bill, or any contact from Glow as yet so I don't know if they will charge the termination fee. If they do I will challenge it on the basis that their contract (which they wrote) states:

6. Your rates as outlined in your agreement will be applied from the date that Glowpower is
registered as your supplier and will continue for a period of one (1) calendar year from that date

Does anyone know whether they are precluded from charging more than €50 as a termination fee? It seems easy enough to save that amount when prices increase dramatically.
Click to expand...
I can't see how, with that wording, Glow can charge you higher prices within the 1 year period.

I've used Bonkers regularly over the years and it's only now, as I'm switching again, that I've noticed all alternative tariffs with all suggested providers is " variable " so basically they can do what they like after I sign up ! In previous years that I switched the tariffs were fixed for the sign up period which was always one year.

BTW where did you get that rate from Airtricity and does it include VAT?
 
demoivre said:
I can't see how, with that wording, Glow can charge you higher prices within the 1 year period.

I've used Bonkers regularly over the years and it's only now, as I'm switching again, that I've noticed all alternative tariffs with all suggested providers is " variable " so basically they can do what they like after I sign up ! In previous years that I switched the tariffs were fixed for the sign up period which was always one year.

BTW where did you get that rate from Airtricity and does it include VAT?
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I think Glow probably did say variable on Bonkers, etc but they then included that term in their contract so I intend to rely on it (or try anyway).

I have found that as well as Bonkers, you need to check the websites of each provider. Bord Gais also had better rates on their website. Both rates I quoted are ex-VAT.
 
Mrs Vimes said:
have found that as well as Bonkers, you need to check the websites of each provider. Bord Gais also had better rates on their website. Both rates I quoted are ex-VAT.
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I've noticed that from time to time specific providers claim that the "best rates" are only available directly.
 
Mrs Vimes said:
Haven't had a final bill, or any contact from Glow as yet so I don't know if they will charge the termination fee. If they do I will challenge it on the basis that their contract (which they wrote) states:

6. Your rates as outlined in your agreement will be applied from the date that Glowpower is
registered as your supplier and will continue for a period of one (1) calendar year from that date
Click to expand...

Your "rate" is continuing for 1 year but your rate is a discount of the standard tariff. Your rate is not a fixed euro amount, it is a fixed percentage discount (eg 20%) of the tariff

This is not unique to Glow, all providers have the same or similar statements. They can all change the price of the tariff while in the contract period. There are no providers offering fixed tariffs, they all offer fixed discounts of the tariff

Personally I don't agree with it but really the fault lies with the CRU for allowing these pricing structures
 
Thanks @_OkGo_ that would likely explain it. I'll see if they say that, that's if they try to apply the fee in the first place.
 
ClubMan said:
Marginally high but not outrageously so. I don't see any evidence here of them deliberately over inflating the estimated readings to nudge me to submit an actual meter reading as alleged earlier.
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It was a tongue in cheek 'allegation'. However, it is a fact is that my first few estimated bills were off the wall, but I soon learned to ignore them and send in my own readings.
 
ClubMan said:
I've noticed that from time to time specific providers claim that the "best rates" are only available directly.
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Earlier this year, Energia offered a €30 credit to anyone who used its own site to switch, rather than using the well-known switching sites.

I discovered this thanks to a money guidance website that I am unable to name here; presumably because doing so isn't allowed?
 
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Shirazman said:
Earlier this year, Energia offered a €30 credit to anyone who used its own site to switch, rather than using the well-known switching sites.
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The switching sites receive commission for the sales they complete, so it's not surprising different offers are available directly, or through other channels.
 
ClubMan said:
I've noticed that from time to time specific providers claim that the "best rates" are only available directly.
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Thanks for this. I never think to check the websites directly. I will going forward. I'm with Flogas for gas and lecky for the last few years, and I like them. I pay a fixed amount monthly (you discuss this with them) and avoid high bills in the winter. What I really like is that you can pick up the phone and SPEAK to someone.
 
horusd said:
Thanks for this. I never think to check the websites directly. I will going forward. I'm with Flogas for gas and lecky for the last few years, and I like them. I pay a fixed amount monthly (you discuss this with them) and avoid high bills in the winter. What I really like is that you can pick up the phone and SPEAK to someone.
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Whereas I prefer to communicate by email as that way I have a written record of what I was promised!
 
I just think it's fundamentally unfair as a term that they can have a variable rate but a fixed term.

If you have a variable rate bank loan you can exit it at any time without penalty (unlike break costs in fixed rates).

If you have a fixed term mobile phone contract it is at a fixed rate and if the rate changes you can exit without penalty.

Why do customers of utility providers not get the same protections?
 
Mrs Vimes said:
I just think it's fundamentally unfair as a term that they can have a variable rate but a fixed term.

If you have a variable rate bank loan you can exit it at any time without penalty (unlike break costs in fixed rates).

If you have a fixed term mobile phone contract it is at a fixed rate and if the rate changes you can exit without penalty.

Why do customers of utility providers not get the same protections?
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I'd imagine its because the wholesale cost of energy is variable. Energy prices can spike because someone blows a pipeline up in Iraq or if Putin is in bad humour.
 
Had a message from Flogas to say rates increased by 8.9% from June with average bills going up 1.47 Euros. Quite a bit off the 50% increase from Glow.
 
Mrs Vimes said:
I just think it's fundamentally unfair as a term that they can have a variable rate but a fixed term.

If you have a variable rate bank loan you can exit it at any time without penalty (unlike break costs in fixed rates).

If you have a fixed term mobile phone contract it is at a fixed rate and if the rate changes you can exit without penalty.

Why do customers of utility providers not get the same protections?
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The Energy Regulator, CER, needs to act and ban exit fees if prices increase.

Comreg have banned applying exit fees if your price increases during your fixed term.

Banks obviously can't increase prices during your fixed mortgage term.

What energy companies are doing might be again EU consumer law.

Energy prices are variable but energy companies should have the right to increase prices but not apply exit fees in these circumstances.

If someone finds themselves in this situation, it would be very interesting to appeal the application of an exit fee with the provider and then with CER.
 
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