Cancellation Fee waived???

Deepak.craig

The energy regulator Ofgem states that by raising their prices, a supplier is essentially altering a contract and therefore can't charge you any cancellation penalty. If you write to your supplier before their price rise comes into effect to tell them you want to switch tariff or supplier, they shouldn't charge you any fee......

backfoot

Fantastic news. Thanks !:beer:

Premier_2

Deepak.craig wrote: »

The energy regulator Ofgem states that by raising their prices, a supplier is essentially altering a contract and therefore can't charge you any cancellation penalty. If you write to your supplier before their price rise comes into effect to tell them you want to switch tariff or supplier, they shouldn't charge you any fee......

Do you have a link to the source please?

backfoot

Premier please pay attention.......;)

Deepak.craig

Im sorry, as im a newbie im unable to paste the link here.....

t0rt0ise

There's a thread on here

http://www.moneysavingexpert.com/news/utilities/2011/07/escape-energy-lock-ins-as-prices-soar

backfoot

Or better still follow all the recent posts which update the out of date MSE article.

https://forums.moneysavingexpert.com/discussion/3427121=

:wall:

backfoot

A bit of the background.

https://forums.moneysavingexpert.com/discussion/3412623=

and further debate


https://forums.moneysavingexpert.com/discussion/comment/46273197#Comment_46273197

Premier_2

Deepak.craig wrote: »

Im sorry, as im a newbie im unable to paste the link here.....

You can post a link by spacing out some of the characters (to avoid the link being active)

According to the MSE article:

...Technically, not all customers on variable deals are eligible to escape charges. However, British Gas and Scottish Power say they will waive fees on all variable tariffs. ...

Edit:
Ah, have now found the Ofgem site

Changes to SLC23
At the time of the Energy Supply Probe we committed to examining SLC23. Following a review and consultation, Ofgem changed SLC23 on 28 April 2011 so that energy suppliers are now required to notify customers at least 30 days in advance of ‘relevant variations’ taking effect. This means that domestic customers will receive advance notice of ‘relevant variations’ and will normally be able to switch without being affected by those variations (and without being charged a termination fee).

(My underlining) http://www.ofgem.gov.uk/Markets/RetMkts/Compl/pricechange/Pages/Noticeofpricechanges.aspx

backfoot

Premier wrote: »

You can post a link by spacing out some of the characters (to avoid the link being active)

According to the MSE article:



Edit:
Ah, have now found the Ofgem site

(My underlining) http://www.ofgem.gov.uk/Markets/RetMkts/Compl/pricechange/Pages/Noticeofpricechanges.aspx

The key point is the change contained in the Guidance note to the page quoted.Issued 16/8/11 following representations made to Ofgem.

http://www.ofgem.gov.uk/Pages/MoreInformation.aspx?docid=42&refer=Markets/RetMkts/Compl/pricechange

The MSE article is out of date. MSE also accepted the position being put forward by some Suppliers that discounted and guaranteed tariffs still attracted exit fees. I challenged that position and the Guidance note was issued.

No exit fees are payable following a price increase if you give notice within the prescribed timetable.No exceptions.