"Admin" charges for switching

tgon

I've noticed that using uswitch or switchwithwhich, etc are starting to show more energy companies with "admin" charges listed as penalty for moving on again to quickly. Reminds me a little of moving mortgages or credit cards, etc. Is this likely to curb people moving for better rates and service? How can I know if an "admin" charge is fair?

KimYeovil

Why would you think an admin fee is not fair? You think scum like me receiving up to £500 per year in cashback is fair? Anything that clamps down on serial cashbackers is surely completely fair and necessary. It does not affect customers switching because of price increases etc.

kai666

Maybe to stop people coming on to web sites like this and whining that they didn't know about the charges, it's unfair and how do they get out of paying?

macman

tgon wrote: »

I've noticed that using uswitch or switchwithwhich, etc are starting to show more energy companies with "admin" charges listed as penalty for moving on again to quickly. Reminds me a little of moving mortgages or credit cards, etc. Is this likely to curb people moving for better rates and service? How can I know if an "admin" charge is fair?

It's neither 'fair' nor 'unfair'. Certain tariffs have minimum term contracts, and if you want the benefits of that contract then you accept that breaking it will result in an early termination fee.

tgon

KimYeovil wrote: »

Why would you think an admin fee is not fair? You think scum like me receiving up to £500 per year in cashback is fair? Anything that clamps down on serial cashbackers is surely completely fair and necessary. It does not affect customers switching because of price increases etc.

kai666 wrote: »

Maybe to stop people coming on to web sites like this and whining that they didn't know about the charges, it's unfair and how do they get out of paying?

I really don't know what point either comment is making, if any? Banks are under scrutiny for excess fee's, so are mortgage lenders... why was my question any different? Is, say, £75 a reasonable fee for moving my energy business elsewhere, what is the fee actually for (admin?) and is it inhibiting people moving energy providers?

macman

tgon wrote: »

I really don't know what point either comment is making, if any? Banks are under scrutiny for excess fee's, so are mortgage lenders... why was my question any different? Is, say, £75 a reasonable fee for moving my energy business elsewhere, what is the fee actually for (admin?) and is it inhibiting people moving energy providers?

You don't seem to understand what this fee is-it's not an admin fee for switching. It's an early termination fee for breaking a contract! You sign up for a year minimum and you get a better tarrif in return. But if you then walk away early, you pay a penalty.
If you don't like it, you don't sign up to a minimum term contract tariff.

kai666

tgon wrote: »

I really don't know what point either comment is making, if any? Banks are under scrutiny for excess fee's, so are mortgage lenders... why was my question any different? Is, say, £75 a reasonable fee for moving my energy business elsewhere, what is the fee actually for (admin?) and is it inhibiting people moving energy providers?

And if you sign a mobile phone contract and want to take your business elsewhere, they charge you for the remaining line rental. they don't let you walk away

If you sign for a 12 (or whatever) month, to get cheaper energy, whats the difference? If you don't agree with terms and conditions don't sign up. Or if you do then stay for the duration...no fees then!