increase.Cannot switch because tied in ?

alggomas

I recently switched to EO-N through u-switch.
There is a "fine" if I switch within a year because of rising prices.
Is this unfair?
Suggestions please.

dogshome

Hi alggomas - You do have rights when a supplier ups the prices part way thro' a contract term.

From the day you are personally notified of the higher prices, be it by Email, letter or listed on a bill, you have 10 days to inform the supplier that you reject the new contract and are going to switch.
With this notification the supplier must continue to supply you at the old prices till the switch takes effect, and they cannot charge you exit fee's

macman

Although the 'fine' is a term of your contract that you knowingly entered into. Why is that unfair?
If you don't want ETC's, go for contracts that don't impose them.
An ETC doesn't prevent you switching anyway-if the saving is greater than the ETC (usually around £25 per fuel) then you are still ahead.

Nightowl

I have the same issue. I'm tied in with Scottish Power until 29th February 2012! Just rang them, it will be a charge of £30.64 to change the gas and £20.24 to change the electric. I think I'll do what the previous post said and change anyway.

echoecho_2

Has Ofgem or anyone else ruled on this? The reason I ask is because on Eons online tariffs they only guarantee to be 6% cheaper than their standard rate. So if the prices go up, as long as the tariff is still cheaper than their standard by atleast 6% they are holding up their end of the bargain.

Of course, I'm all for exit fees not having to be paid in situations where prices go up but i'm not sure that the 6 week grace period also includes exit fees.

alggomas

have just double checked contract and happy to report that even if they do put up their prices I will remain on the old contract until November 2011.
I wil decide then what to do.
Thanks for all comments.

imho

alggomas But by Nov 2011 you wont be able to get a fixed deal at the price they are now.Your have the new deals with the huge rises on it.

Ferr96

dogshome wrote: »

Hi alggomas - You do have rights when a supplier ups the prices part way thro' a contract term.

From the day you are personally notified of the higher prices, be it by Email, letter or listed on a bill, you have 10 days to inform the supplier that you reject the new contract and are going to switch.
With this notification the supplier must continue to supply you at the old prices till the switch takes effect, and they cannot charge you exit fee's

If you signed up for a variable tariff thats discounted, the company is well within there right to charge you an early exit fee.
They do have to charge you the old prices until the switch takes place, but you saying they cant charge you an exit fee is incorrect.
They most certainly will!

alggomas

Thanks for responses.
I did not say they cannot charge. I asked if it was fair or not in my original post if they upped the cost during contract. I checked this and found that they could only bill me under my original contract .

Ferr96

It isnt fair m8, but unfortunately it is legal.