Hundreds of households can now get a better deal on their gas supply thanks to a massive power change.
After an investigation by the Competition and Markets Authority (CMA), many families have been “freed” from contracts that prevented them from changing suppliers.
However, the set-up of households using liquefied gas is a bit different from that of most people.
Gas supplies can be one of the most expensive domestic fuels.
It is typically used for heating and cooking by people who cannot switch to mains UK gas.
And more than 700 homes have been captured in liquefied petroleum gas deals that the Competition and Markets Authority has now deemed “illegal.”
It has been found that BDS Fuels has illegally incorporated a clause in the contact that automatically renews specific contracts of over 700 families without their explicit consent.
Customers will have to pay a £350 fee if they want to break the contract and change providers.
This meant that hundreds of customers in Cumbria, North Lancashire and North Yorkshire were unable to switch to a new provider, which might have been able to offer them a cheaper or better deal without paying the BDS fee.
BDS has agreed to remove these terms from its LPG contracts and inform all affected existing customers that they can now switch suppliers without any penalty charges.
BDS has also agreed to refund customers who had already paid the fee to exit their contract.
Hundreds of customers in Cumbria, North Lancashire and North Yorkshire will be affected by the change.
Adam Land of CMA said: “We are facing a cost of living crisis, which means it is more important than ever that people are able to shop and choose the best possible deal for them.
“If we find evidence of businesses stopping this, we won’t hesitate to step in – as we have with BDS fuels.”
BDS Fuels declined to comment.
The CMA has said that it will continue to monitor the BDS to ensure that it carries out the action it promised.
It said it can initiate enforcement action if the agreement breaks down.
Millions of families are getting £150 off their council tax To help them cover the cost of rising energy bills.
Any person who is not eligible for exemption, for example families in council tax band EH, can apply for cash payment if they are struggling.
different £144m fund Also launched are what local councils can prepare for vulnerable and low-income families.
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