Failure to cancel dual fuel contract on request (F/2004/11)

Mrs A complained that her gas retailer had moved her electricity account away from her electricity retailer without her consent. Her gas retailer had spoken with her husband about duel fuel contracts in late 2003. Mr A had not agreed to a contract with it, but he did agree to be sent further information. Mr and Mrs A subsequently received a letter from the gas retailer congratulating them on taking up its dual fuel contract, and advising them to let it know within seven days if they changed their minds. They exercised this option and returned the paperwork within the timeframe. In the meantime, Mrs A signed a dual fuel contract with their electricity retailer.

She then found that her gas retailer had already transferred her electricity account to itself, so her dual fuel contract of choice (with her electricity retailer) could not proceed. Despite approaches to the gas retailer, she had been unable to resolve the issue and was told it could take some months. At this point she contacted EWOV for help. She was also concerned to avoid the gas retailer charging an exit fee on the contract they hadn’t ever entered into.

Following EWOV’s investigation, Mrs A’s electricity account was transferred back to her original electricity retailer, and her gas account was also transferred to that retailer’s gas business. The original gas retailer confirmed that no exit fees would be applied.

It’s not surprising that problems arise when customers agree to receive information about contract options, and then find they have been ‘signed up’ to that contract without their explicit informed consent. Electricity, gas and dual fuel providers need to ensure that requests for information are not mistaken for explicit informed consent to enter into a contract.