Gas bills rise in fixed-rate tariff

Npower tried to raise pub's rate four times

A licensee is furious after hearing his gas bill would increase, despite being told he was on a fixed-rate contract.

Phil Jackson signed what he was told was a five-year fixed-rate contract with Npower in 2004 when he was already using the supplier. Npower said he would be put on the cheaper "business" tariff.

But Npower has tried to increase Jackson's rate on at least four occasions since he signed the five-year contract — and succeeded three months ago.

That means he would be paying inflated rates for 10 months.

Although the five-year contract did not allow Npower to increase the rate, a clause in his original contract does. "The representative from Npower told me to check my original contract, which says that they reserve the right to increase my rate," said Jackson, of Cameo in Blackpool. "Why couldn't they just be honest about rises from the start?"

An Npower spokeswoman said Jackson's contract is actually fixed term — where rates can increase during the period — rather than fixed rate.

"His account status should have been switched to 'fixed rate', but for some reason was not, so he was subject to another tariff increase."

She said his rates will be changed to the original unit prices and promised a "suitable offer of goodwill".

Energywatch comment

"It is quite common for business customers to assume that rates are fixed for the duration of the contract, which is highly unlikely.

"This is why suppliers should make it crystal clear before encouraging anyone to sign a contract that there is the provision for price increases built into the agreement.

"Even when the price is guaranteed, the contract terms and conditions usually allow for price rises.

"Licensees should read their contract very carefully or they could be in for a nasty shock."