What is a tie in?

jillandandy

Can anyone tell me what a tie-in is? Last year we took out a fixed deal with NPower till 2011 and the USwitch site said there were no tie-ins. We now wish to change but NPower said although there is no tie-in there is a cancellation fee of £100 - what's the difference??!!

Premier_2

I suppose a tie-in is a restriction on you moving supplier, whereas a cancellation fee allows you to move but with a penalty.

For residential gas & energy I don't think suppliers are allowed to tie you in (but I might be wrong ) but can charge an early cancellation fee. They therefore amount to the same thing usually when people speak of residential supplies.

It's a shame that uSwitch appear to have misled you on this occasion, but remember that uSwitch (like all the other comparison site) only act as an agent in instructing the switch; your new supplier will contact you with details of the new tariff and their terms & conditions. It is important to read and understand them, and if you are not 100% happy, you should take advantage of the cooling off period they offer at that time.

monkeyspanner

jillandandy wrote: »

Can anyone tell me what a tie-in is? Last year we took out a fixed deal with NPower till 2011 and the USwitch site said there were no tie-ins. We now wish to change but NPower said although there is no tie-in there is a cancellation fee of £100 - what's the difference??!!

I am on this tariff and have just spoken to npower customer services. Not sure if they were right but operator said.
- There was no exit/cancellation fee for changing to another supplier.
- That end date for this tariff is July 2011 ( I was told 31.12.10 when I went on the tariff).
- If I wanted I could change to a cheaper tariff just for electric and retain the beneficial rate for gas and this would have no effect on the £100 DD yearly bonus. Suggested alternate electric tariff sign online 16.
- Overall suggestion "speak to our retention team on 0800 3160805 I'm sure they will be able to help you"

KimYeovil

With the pricing of their tariffs at about £100 more expensive than their close competitors to state there is no cancellation fee is a little moot (even if true.)

At least I see, unlike other suppliers, they are openly pointing out that their tariffs are more suited for high users ("Great rates for larger households").

SwanJon

I'm sure I'll be corrected if I'm wrong, but nPower pay a discount in the 13th month, so if you leave before then you won't get it This discount was included in the price you were shown by the switchg site.