Exit Fees on Headline Grabbing Tariffs - A worrying trend?

1carminestocky

They must be getting fed up of sending that email, lol, I just got the exact same! The answer is probably as puzzling as the T&C, TBH. If you switch away you can't ever go back on online 5?? Big wowee. It's a nonsensical T&C IMO.

epsilondraconis

1carminestocky wrote: »

They must be getting fed up of sending that email, lol, I just got the exact same! The answer is probably as puzzling as the T&C, TBH. If you switch away you can't ever go back on online 5?? Big wowee. It's a nonsensical T&C IMO.

Hopefully it will all work out okay. I'm normally one of the consumers that take the cashback for switching, but switch to a fixed / capped rate. This is the first time I've gone for a variable rate tariff - partly because the general concensus is that that prices will go down rather than up.

It'll be interesting to see how it pans out. Hopefully it'll all work out okay. If nothing else, it brings a little adventure / excitment to my somewhat tedious life!

epsilondraconis

Carmine, you indicated you also sent an e-mail to EDF, is that because you are thinking of switching to EDF and moving away from your current supplier? I won't name the current supplier for obvious reasons...

1carminestocky

epsilondraconis wrote: »

Carmine, you indicated you also sent an e-mail to EDF, is that because you are thinking of switching to EDF and moving away from your current supplier? I won't name the current supplier for obvious reasons...

:eek: Good God, no Reason is I got in a bit of a dispute with mech regarding that particular T&C and wanted to know exactly what the craic was with it.

alared

The other thing to look at is some companies,NPower comes to mind,pays you a discount at the end of your 13th month with them.
Which relly means if you want your £60 duel fuel discount,you`re tied to them for 13 months.

Is ofgem asleep?

1carminestocky

Dead, more like...

epsilondraconis

1carminestocky wrote: »

:eek: Good God, no Reason is I got in a bit of a dispute with mech regarding that particular T&C and wanted to know exactly what the craic was with it.

Phew. I thought there must be good reason...

Joyful

1carminestocky wrote: »

As a BG employee, any views on what Cardew, myself and Gerrard_8_lfc have been been discussing, Joyful?

I can see it from both sides. If I accept a special deal which I may save money on why should I then not have to pay an exit fee ie I have been saving hundreds of pounds for FP2010 so I would accept to pay a charge to leave this early. It gave me peace of mind but worked out to my benefit although for the first year I was paying more than the standard rate .

From the other side the Company will obviously want to retain customers and hopefully have something good to offer whenever a Fixed Price ends. By putting in a penalty it is only asking that you keep to your agreement till the time you signed up to it.

I would do my sums to see if I have saved more than the exit fee and also what I may save on the next tariff. If I have saved enough I would pay to change. Many of the variable tariffs are charging a % under the normal rate. I would say you can't have it both ways.

SwanJon

1carminestocky wrote: »

it's very worrying when they are now placing exit fees on variable tariffs. Meaning there's nothing stopping the supplier upping the prices.

From what know the websaver series are all trackers - you are guarenteed a fixed discount below standard until a certain date, unlike the click series which could be moved at any time.
So, yes they can up the price, but only at the same time as their standard tariff. Not sure how this would play with the whole 65 day thing if the price does change though...

1carminestocky

Joyful wrote: »

I can see it from both sides. If I accept a special deal which I may save money on why should I then not have to pay an exit fee ie I have been saving hundreds of pounds for FP2010 so I would accept to pay a charge to leave this early. It gave me peace of mind but worked out to my benefit although for the first year I was paying more than the standard rate .

From the other side the Company will obviously want to retain customers and hopefully have something good to offer whenever a Fixed Price ends. By putting in a penalty it is only asking that you keep to your agreement till the time you signed up to it.

I would do my sums to see if I have saved more than the exit fee and also what I may save on the next tariff. If I have saved enough I would pay to change. Many of the variable tariffs are charging a % under the normal rate. I would say you can't have it both ways.

That was a fixed rate. You knew it wouldn't increase. Fixed deals, I suspect, involve some form of risk for the supplier hence the exit fee. Websaver is variable and involves absolutely zero risk for the supplier. Huge difference. Worrying trend. Anti-competitive. Thankfully not for me (so far, lol).