When to switch?

guns4

Had notice from Scottish power my current deal ends 31st may done a check and there are less expensive deals out there with other companies.

When do switch to avoid leaving charges?

matelodave

It usually takes 4-6 weeks, so ideally you need to initiate the switch at the beginning of May.
Not all contracts have exit fees, so check your contract T&C's and if you haven't got any, do it when you like.

footyguy

guns4 wrote: »

Had notice from Scottish power my current deal ends 31st may done a check and there are less expensive deals out there with other companies.

When do switch to avoid leaving charges?

If there is a cheaper deal than your current fixed deal, SWITCH NOW!

You will not incur any early exit fees. Even if your tariff suggests otherwise, ofgem prohibits them in the situation you describe.

https://www.ofgem.gov.uk/press-releases/tougher-rules-fixed-term-energy-deals-come-force-ofgem%E2%80%99s-retail-market-reforms-begin-bite

[Deleted User]

matelodave wrote: »

It usually takes 4-6 weeks, so ideally you need to initiate the switch at the beginning of May.
Not all contracts have exit fees, so check your contract T&C's and if you haven't got any, do it when you like.

I recently tried switching a few days before the end of my fixed contract and they told me I'd have to wait until the end if I wanted to be sure of avoiding penalties.

[Deleted User]

footyguy wrote: »

If there is a cheaper deal than your current fixed deal, SWITCH NOW!

You will not incur any early exit fees. Even if your tariff suggests otherwise, ofgem prohibits them in the situation you describe.

https://www.ofgem.gov.uk/press-releases/tougher-rules-fixed-term-energy-deals-come-force-ofgem%E2%80%99s-retail-market-reforms-begin-bite

Ofgem are guaranteeing that your old tariff won't be rolled over onto a new fixed tariff without the chance of a penalty free switch, they're not prohibiting suppliers from charging penalties if you switch early.

footyguy

jack_pott wrote: »

Ofgem are guaranteeing that your old tariff won't be rolled over onto a new fixed tariff without the chance of a penalty free switch, they're not prohibiting suppliers from charging penalties if you switch early.

Did I mis-read the article? :huh:

• Suppliers will be required to notify customers that their current fixed-term is coming to an end between 42 and 49 days before the contract ends.
• Between this notification period and the end of the fixed term contract, suppliers will be banned from charging a termination fee should the customer decide to switch.

SnowMan

footyguy wrote: »

Did I mis-read the article? :huh:

Yes you did misread it, in particular you missed the bit that says

This new rule applies to any contracts entered into on or after July 15 2013.

Previous information has been that this applies to the 42 -49 day and exit charge bit as well although that isn't clear in that OFGEM press release.

It is highly probably that gun4's Scottish Power contract was entered into before 15th July 2013. If so Scottish Power could apply an exit fee (if their terms and conditions allow) if the switch happens before 31st May 2014. The switch can be initiated before 31st May but can't happen before then.

So switching too early could be a big mistake. Matelodave's suggestion to initiiate the switch at the beginning of May seems a good one.

Gratis

guns4 wrote: »

Had notice from Scottish power my current deal ends 31st may done a check and there are less expensive deals out there with other companies.

When do switch to avoid leaving charges?

If you want to avoid risk, ScoPo will probably offer you, now, the ability to move, without penalty, to its own 31st July 2015 fix. That one has no early cancellation penalties. From this, you could then switch to whatever you like, free, if it doesn’t suit you longterm.

[Deleted User]

footyguy wrote: »

Did I mis-read the article? :huh:

No, it's me skip-reading too quickly again! :doh:

footyguy

SnowMan wrote: »

Yes you did misread it, in particular you missed the bit that says

Previous information has been that this applies to the 42 -49 day and exit charge bit as well although that isn't clear in that OFGEM press release.

It is highly probably that gun4's Scottish Power contract was entered into before 15th July 2013. If so Scottish Power could apply an exit fee (if their terms and conditions allow) if the switch happens before 31st May 2014. The switch can be initiated before 31st May but can't happen before then.

So switching too early could be a big mistake. Matelodave's suggestion to initiiate the switch at the beginning of May seems a good one.

The Ofgem article gives several different dates, including one that says the rules apply from today (i.e.October 22, 2013 being the date of the article)

It all depends how you read the article. I would argue the date you refer to specifically relates to:

Suppliers will be banned from increasing prices, or making other changes to fixed term contracts which are to the disadvantage of a customer. The only exceptions to this are “tracker” tariffs that follow an independent index over which the supplier has no control, or structured price increases set out in advance which are fully in line with consumer protection law.

Irrespective of the other site (which I find equally confusing) I would say the rule I referred to was an extention of the 'fairer' rules which were first introduced in August 2013

Whatever the rules, I would say most suppliers in my experience are abiding with this rule today.

OP - could you tell us the actual tariff you are on so that perhaps we can find the actual answer to your query direct from Scottish Power?
Only I can't seem to find any SP tariff that ends 31st May 2014

:huh:


Edit: The CAB appear to agree with my interpretation of the Ofgem rules
i.e. the rule I was referring to applies now to all fixed price energy contracts.

If you’re on a fixed term contract, you’ll be given 42-49 days before your fixed term contract ends to decide if you want to stay with your supplier or switch. You’ll get details of the rates you’ll move onto if you stay with the same supplier and don’t agree to a different tariff.

You’ll be able to switch without having to pay any termination fees and you can’t be rolled forward onto another fixed term contract without your consent.

If you don’t get notice about the end of your fixed term contract, are charged a termination fee to switch or get rolled over to another fixed term contract without agreeing to this, you should first complain to your energy supplier and if you're still not happy with the outcome you can complain to the Energy Ombudsman.

http://www.adviceguide.org.uk/england/consumer_e/consumer_energy_supply_e/consumer_choosing_and_switching_supplier_e/switching_gas_or_electricity_supplier.htm

footyguy

uSwitch also appears to agree with me

My energy tariff is ending. When should I switch?

49 days before the end of your plan if it carries exit fees. If it doesn't have any exit fees, you can switch whenever you find a cheaper plan.

http://www.uswitch.com/gas-electricity/guides/energy-tariff-ending/

Also, importantly, it goes on

Your supplier should send you a letter between 42 and 49 days before your energy tariff is about to end. This letter should explain your options, including plans available and outline any exit fees.

So, OP, care to share what your notification says about exit fees (if any)?