What does exit fee mean?

funnelweb

I'm looking to change from prepayment to a normal credit meter. I saw on some tariffs that it says prices are fixed until a certain month (eg March 2016) next year BUT there is an exit fee.

I was just wonder what this exit fee means? Does this mean:

a) If I leave before before the fixed month (eg March 2016), I will have to pay the exit fee?
b) If I leave them at any point ever in the future, I will have to pay an exit fee?

I know this is a dumb question but just wanted to make sure before I sign up to anyone.

Thanks.

molerat

a) ........................

FLAPJACK

I would say that point (a) would be correct, point (b) would be applicable if the tariff details once again stipulate again that an exit fee would apply.

Think of it as going to the cinema and the ticket says if you leave before the end of the film you will have to pay to leave the cinema.

macman

It's payable if you leave before the end of the minimum term or the stipulated tariff end date. In your case 3/16.

Bark01

The Tariff T&C's will tell you the cancellation period.

Under RMR legislation a supplier can only charge you a cancellation fee up until the start of the switching period. The switch period starts 49 calendar days before the tariff ends.

Its section 2.38 of this pdf https://www.ofgem.gov.uk/ofgem-publications/39350/retail-market-review-final-domestic-proposals.pdf

In the example above if the tariff ends on the 30th March 2016 no cancellation fees will be applicable from 11th of Feb 2016.

However a supplier can remove the cancellation fees earlier if they want. It will be stated in the T&C's.

funnelweb

Thank you all very much for the help.