Yahoo Finance Toto Energy customers hit by double whammy of price rises
Hundreds of customers of startup supplier Toto Energy have been hit with a second price rise in just a few days.
The company, which only joined the market 18 months ago, has written to customers telling them of the introduction of a “seasonal direct debit” which will see some households’ bills jump by 50% over the winter.
It comes hard on the heels of a move to increase dual-fuel variable rate tariff by as much as 22% and sparked much anger on social media.
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According to an email sent to many customers and seen by consumer champion website MoneySavingExpert.com, Toto Energy says those households affected will see a 50% increase in direct debit payments between October and March, and then pay 50% less between April and September.
@MartinSLewis seasonal direct debit for gas??? £158 winter £56 summer !!!! Toto energy – it’s not for me!!!!!!
— Emma (@mumand3kids) December 12, 2017
In the same email, Toto Energy apologises for having mistakenly referred to a “price guarantee” in some welcome letters to customers.
Switched to Toto Energy and 5 weeks later they’ve whacked prices right up so now going to have to switch again. #Annoying
— Mike McCarthy (@Mikeymac29) December 12, 2017
Amanda Smyth, from Bedfordshire, told MoneySavingExpert: “It did say it had a price guarantee and that was one of the reasons I chose them.
“I am more annoyed about the actual increase by 50% in winter, and then the lowering in summer – that’s not good, it’s just not acceptable.
“I really didn’t want to change [energy suppliers] but I don’t want to pay £90 instead of £60 a month.”
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A number of energy suppliers ask customers to pay more during the winter and less in the summer, reflecting the amount of fuel used to heat homes in colder months.
Most do not, however, alter the terms for new customers who join during the winter and not existing ones.
@MoneySavingExp an incredibly dumb decision by TOTO energy- summer Direct Debit £28, winter £85. not exactly practical considering my salary doesn’t vary by season.
— Siobhan Marshall (@SiobhanErrey) December 12, 2017
Watchdog Ofgem says any changes to direct debits on standard variable tariffs and fixed-term contracts are allowed but do constitute a fundamental change to your terms and conditions.
As such, customers should be given a notice period of 30 days, during which they can switch penalty-free.
@paullewismoney TOTO Energy dramatically raising energy tariffs…standing charge up by nearly 25%. Gas rate up 10%
Only switched 2 months ago…price rise projected to cost us extra £675pa…more than last supplier.
The market is a joke pic.twitter.com/hvIzbb9ifQ
— Tevez & His Mum (@TevezMum) December 12, 2017
Earlier this month, Toto Energy revealed it was upping charges for its ‘Variable Saver’ tariff. Those who signed up before November 9 will pay £196 a year more, while a typical household which signed up after that will still pay an average £81/year more.
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Based in Brighton, it’s not known how many people have joined the firm since launching.
While it has yet to offer any comment on the latest direct debit developments, it said earlier on its website about the price rise: “It’s a step we have taken reluctantly and want to assure all our customers that we are working hard to be as efficient as possible, deliver great service, and help you keep your energy costs down.
“As a small supplier, we do everything we can to minimise cost and pass the savings on to customers. But wholesale energy costs have increased this winter, and unfortunately we have to keep up. You matter to us – we don’t take changing your prices lightly.”
