Anyway of minimising/avoiding Cancellation Charges

tiffa

Hi

I have had a letter my current Gas and Electric contract terminates on the 31 December. There is a £60 cancellaton fee if I terminate early. However I was wondering if I can avoid this. Does anyone know what classifies as the termination date?

As switching takes around 6 weeks I was thinking if I start the process of switching in the next couple of weeks then the actual switch over is unlikely to happen before the 31st December. If for example the atual date was the 7th January, is this then classified as the "terminaton date"? If so, am I right in thinking the early cancellation fee might will not apply?

I could switch after 31 december but as switching can take up to 6 weeks I could end up with 6 weeks on the tarriff my existing supplier suggests, which I don't want.

Thank you

jalexa

tiffa wrote: »

I have had a letter my current Gas and Electric contract terminates on the 31 December. There is a £60 cancellaton fee if I terminate early. However I was wondering if I can avoid this. Does anyone know what classifies as the termination date?

As switching takes around 6 weeks

In that case the liability for a "cancellation fee" ends on 31 December but make sure you understand what is the default termination option for your particular contract.

A few points. Regarding the "6 weeks", 4-6 weeks is the how the timeframe is normally described, therefore 4 weeks might be "safer". Up to you whether you think the "savings" over a few weeks is worth the £60 risk.

Next point, which supplier (and *exact* tariff) are you with? Is there a remaining "deferred discount":eek: to forfeit?

There is another avenue. Have you checked whether your current supplier has an equally competitive tariff? Or perhaps a competitive "maturity" offer? Ask and make them sweat.

tiffa

jalexa wrote: »

In that case the liability for a "cancellation fee" ends on 31 December but make sure you understand what is the default termination option for your particular contract.

A few points. Regarding the "6 weeks", 4-6 weeks is the how the timeframe is normally described, therefore 4 weeks might be "safer". Up to you whether you think the "savings" over a few weeks is worth the £60 risk.

Next point, which supplier (and *exact* tariff) are you with? Is there a remaining "deferred discount":eek: to forfeit?

There is another avenue. Have you checked whether your current supplier has an equally competitive tariff? Or perhaps a competitive "maturity" offer? Ask and make them sweat.

Thanks for you reply. I am currently with EDF on-line energy saver 7. There is no remaining deferred discount, as far as I am aware. The alternatives they have offered is switching to standard tarrif or fixed 2014, both of which would be much more expensive. I am currently thinking of switching to somethng like Scottish Power fixed 13, which according to USwitch is £50 more expensive over the year than my existing tarrif but will be cheaper than the alternatives EDF are currently offering for after 31 December.

jalexa

tiffa wrote: »

I am currently thinking of switching to somethng like Scottish Power fixed 13, which according to USwitch is £50 more expensive over the year than my existing tarrif but will be cheaper than the alternatives EDF are currently offering for after 31 December.

I see you predicament. The longer fixes are frighteningly expensive.

Here is a test, which tariff has the longer fix, Scottish Power Online Fixed Price January 2013 or Edf Fix 2012 Dual Fuel?

Have you not been offered the Edf 2012 tariff, which is very similarly priced?