Dual fuel loop hole early termination fee

donaldtramp

I've left EDF to go to Eon after getting a letter telling me about price rises. (Not using the links that "help Martins website". I switched using Quidco, massively helping MY bank account, NOT Martins)
Much as the article in MSE below.

The only problem is that I've now been hit with a £25 "online saver version 3 dual fuel termination fee".
This is despite that EDF changed the contract and the Ts and Cs. I tried phoning them today to speak about it but all their computers were down.
So folks the "loophole" might end up costing you money!
I'm not going to let them away with it, just letting you guys know that it might happen.

How the loophole works
Energy regulator Ofgem allows customers to reject price rises as long as they inform their supplier within 20 working days of receiving notification of the increase.
Ofgem suggests you write or email so there is a record of your request.
Users must then initiate the switch within 15 working days of informing their existing supplier they want to leave.
It normally takes six to eight weeks from applying for a new tariff before the switch happens but where the process stalls, it will take longer.
As many power firms are hiking prices, your new firm may also up its charges but you would at least be shielded from the general industry hike for a few weeks or months.
Mark Todd, from comparison site Energyhelpline.com, says: "Anyone hit with a price rise should get their pen or keyboard out and let their supplier know they will be moving."

KimYeovil

I'm not sure I understand what you mean. If the tariff is a variable price tariff with an early termination fee then you pay the termination fee to leave early. It is only a change in unit price that you avoid.

What do you mean 'not let them get away with it'? - that is what you signed up for.

donaldtramp

The very reason I am allowed to walk away from their contract is because they changed the pricing.

Energy regulator Ofgem allows customers to reject price rises

Why should I pay a termination fee because of them changing the deal that I signed with them?
How in Earth is that Fair?:question:

Trow

donaldtramp wrote: »

(Not using the links that "help Martins website". I switched using Quidco, massively helping MY bank account, NOT Martins)

I'd just like to take issue with this comment. The money raised from the links goes towards running the website (he has paid staff that man it, overheads etc), which means that the website is free and ad-free for us to use. They also donate a significant amount of money raised from the site to the Charity fund - see http://www.moneysavingexpert.com/site/mse-charity-fund for more details.

I rather suspect Martin has enough money coming in from his various tv and radio slots to not have to worry about taking money from the website too!

Now I use quidco where I can, don't get me wrong - I'm not daft - but after the money I have managed to save through the hard work of Martin and his team but I have no objection to the mse website taking the income from the links I use when the website I use isn't on quidco.

Mini-rant over!

Pincher

What prices rises?

http://www.moneysavingexpert.com/news/utilities/2010/11/edf-promises-not-to-hike-prices-before-march

Not until March, isn't it?

Trow

EDF raised their prices in October

donaldtramp

I'd just like to take issue with this comment. The money raised from the links goes towards running the website (he has paid staff that man it, overheads etc), which means that the website is free and ad-free for us to use. They also donate a significant amount of money raised from the site to the Charity fund - see http://www.moneysavingexpert.com/site/mse-charity-fund for more details.

I'd like to take issue with your comment. I'm sorry, I don't think Martin is doing the best possible for the people who use the site. In this case, I think he's stuffing his pockets with cash. He admits himself that he "makes a VERY good living from the website"
The very best you can do for yourself (and not Martin) is to make sure you use Quidco, topcashback or the likes and NOT Martins links.
Do yourself a massive favour.


I'm sure the lifestyle Martin maintains is at a much higher level than 99.9% of the people who receive his monthly e-mail and follow his click-through, MSE cash generating, links to switch elecy and gas.

He always says that revenue generating links will not affect his advice.
They CLEARY DO in the case of energy switches, you can trounce the cash back offered through links on Martins website and every second e-mail he sends out to millions of customers.

backfoot

I think you will be stuffed on the Termination Fees.

However, this is another case, where the Regulator allowed over time, changes to the 'competive' Energy Market,which are actually anti competitive. If we were dealing with Fixed Price Contracts at competitive rates then I might think it was fair.With variable contracts where higher and higher exit penalties have become the norm,we are once again over a barrel.

It borders on Unfair Contract Conditions.

In any event,I believe it should be outlawed along with other shady practices, like offerring the same essential product at lower prices to new Customers while raising prices to existing Customers.Especially when they use these same Exit Penalties to tie you into the old variable product.

p.s.rubbish rant about MSE.

donaldtramp

Yup think I will be stuffed on the termination fees but worth a bash to see what happens....
Sorry about the rant, but I don't need to make Martin wealthier.

echoecho_2

I'm not sure how much more transparent Martin can be?!

His switching guide DOES mention cashback and the alternatives to the comparison site and he even explains WHY he has picked certain sites over other (i.e cashback sites) when making recommendations).

If you feel he is trying to mislead you then why even use this forum?