Dyce Energy reneges on all fixed price energy contracts, leaving businesses in the cold.

by | Nov 3, 2021

Dyce Energy reneges on all fixed price energy contracts, leaving businesses in the cold.

Dyce Energy has written to both its customers and broker network this morning. The letter’s stated goal is to outline Dyce Energy’s current position, but it asks a lot more questions than it answers.

Current Dyce Energy business customers, who have contracted with them on a fixed rate, fixed term contract as far ahead as 2024, will now be moved onto a standard variable rate of £4 a day standing charge and 16 pence per kWh from the 1st of December 2021.

What this means in real terms is; thousands of small businesses will see  increases on their gas bills of around 600%, this side of Christmas. These very same businesses have been paying a premium in gas rates to Dyce, to secure a fixed rate, fixed term contract and protect them and their businesses from market volatility.

What is raising eyebrows amongst  energy professionals is the fact that Dyce Energy is inviting their broker network to recontract the same businesses, on hugely increased rates through a company with a very similar name and shared directors to Dyce Energy.

I am assuming that this is legal, otherwise Ofgem would be stepping in. However how on earth is this ethical, never mind fair?

Furthermore, customers are rightly confused by the two opposing statements made by Dyce Energy within the same letter.

“Dyce Energy has acted responsibly since entering the market in 2017 complying with industry regulation. Furthermore, all the gas we purchase has always been protected for the duration of the contracts we put in place.”

And 

“Unfortunately, the current crisis has left Dyce Energy exposed on the open market to a 400% to 500% wholesale gas price increase in some circumstances. As a result, it is with sincere regret that we are writing to inform you that we are no longer able to supply gas to our customers after 30th November 2021.”

How can these two assertions made by Dyce Energy both be right? What does Dyce Energy exactly mean by “all the gas we purchase has always been protected for the duration of the contracts we put in place.” Because the gas purchased for the customer’s fixed price, fixed term contract is not protected for the duration of their contract. So, will Dyce please explain what and who is protected? Because it isn’t the customer.

Digital Energy Revolution is a business built on transparency, best value and ethical business practices.

We would advise all customers to think twice before choosing Dyce Energy or any of its subsidiaries for future energy contracts.

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