Gas and Electricity Early Termination Fees

Robi35

Hi all,

I wondered if anyone has had experience with this issue.

I'm currently with Npower on their sign online 24 tariff (which was among the cheapest when I signed up). Unfortunately I've received a letter from them today informing me of how the prices will change.

It seems this sign online tariff has taken the brunt as I've calculated it at a 16% increase (nearly double the average were seeing in the media).

This has made the tariff incredibly expensive (I could save over £150 by switching)

Now my question is regarding the early termination charge on this tariff that applies until about feb I think.

Do you think I could use this significant increase to swindle out of it?
I'm aware people have gotten out of similar contracts (on mobile phones for example) after a supplier puts an excesssive price increase through.

Any thoughts would be much appreciated.

TIMMY85

Thanks to lots of effort by consumers and, for example Macman who posts here regularly, this is now regulated.

You receive notice of price rise (and on a variable tariff with ETC)
You arrange to change supplier for a cheaper deal.
You notify your current supplier of your intention to leave them due to the price rise.
Your new supplier advises your current supplier within 15 days.
You do not get charged the new rates or an ETC.

You would still need to ensure that any balance over 28 days has been paid.

No need to be crafty or swindle, just let you old supplier know in advance. If you do not then they can charge the exit fee.

Terrylw1

See Standard Licence Condition (SLC) 23 which covers your scenario.

If the material impact to the customer is classed as negative (such as a price increase) you are covered by the unilateral change condition.

Use the supplier .PDF's in this link to Ofgem's site.

http://www.ofgem.gov.uk/Licensing/Work/Pages/licence-conditions-consolidated.aspx

macman

Technically what you need to do is to reject the price rise as 'materially detrimental' in writing as soon as you are notified of the increase.
You must do this in writing and keep records, as suppliers have been known to ignore it when generating the final billing. SP tried that with me a few years back.