Colin's Cornucopia

Welcome to my world of discovery

Energy Con Job

Return to Letters 1

8th March 2011

Dear Sir,

About four years ago I was offered a deal by an energy supplier. If I accepted an immediate price hike of five percent they would fix my prices for four years. I figured this was a good deal and accepted and I have been very pleased with it.

Now the deal has finished and the same company has offered me a new deal: They will fix my charges for one year if I accept immediately their new tariff published on the back of the offer. The deal would only remain effective if the price of energy to them did not increase by more than nine percent. When I calculated the new tariff it turned out to be an immediate hike of nine percent. So there is no effective benefit and I would be letting myself in for an immediate hike of nine percent. Heads they win; tails I lose. The deal is in fact a con-job.

May I advise your readers not to accept any similar offer they may receive from their supplier. They will be better off to wait for the rises that will no doubt occur soon; but why sign up to an immediate rise for no benefit?

Yours sincerely

Colin Walker.

Return to Letters 1