Termination Fees/ Exit Penalties on Variable Price Contracts

backfoot

My current bee in the bonnet, is that termination fees are anti competitive for Variable Price Contracts. I thought it would be a good idea to have a separate thread as this discussion is cropping up a lot,but gets hidden in specific Supplier threads.

It would be good to hear from any of the Company Reps what the other side of the coin is? Or from anyone else who thinks they are justified. At the moment,I admit, I can't see any possible justification but I am happy to listen and learn if I am missing something.:)

My starting point is:

Following any upward price increase,you should have a right to free movement of your supply.

We currently have unbalanced Variable Price Contracts, where Suppliers can do all manner of price changes which affect customers in different ways.Where there has been a material change in the price of the Contract to the Customer's disadvantage, Customers should then have the right to switch supplier within the normal timescales without penalty.

Fire away.:D

MillicentBystander

I wonder how the pro-energy industry people can honestly claim that the UK energy industry is competitive when there are so many barriers to switching. And I STILL don't for the life of me know why it takes so bloody long to switch suppliers when you can switch your phone provider (and broadband for that matter) and the switch happens in a matter of minutes. Anyone from the industry care to give us the reasons?


Edit: Even worse, npower reportedly charge the exit fee even if the punter simply switches from one npower tariff to another. How bloody scandalous is that??