Switch Fix and Pay Exit Fee?

Krav

Hello,

I am with Ovo on a dual fixed tariff that ends in May 2015 with an exit fee of £60 in total. I am looking at switching and evaluating whether it is cost effective in switching now as the Cheap Energy Club tells me I can save £277 a year with The Co Op, or just waiting until my deal expires.

I can save £23/month with the cheapest fix. Given that it takes roughly two months to switch, I would be saving around 2.5 months of £23 which would be roughly £60. But I must pay £60 in exit fees for the privilege but I get £30 back as cash back, so it costs me £30 to save £60 with a net saving of £30.

Sounds to me that this is not worth the hassle, what do you think? Another risk is the best fixed deal I have now may not be available come what May as the winter ends.

To make this more interesting, Ovo have another tariff which could save me £200/year (fixed for 12 months), I may not have to pay an exit fee if I switch to another tariff with them (not checked yet).

Pincher

I am betting the price drop will continue, so it's better to wait.


What you can do is to switch within Ovo for free, and pay the £60 exit penalty for an even cheaper tariff later. In the mean time, you will save on the cheaper Ovo tariff for January to May.

matelodave

Are you really going to save all that money or is the calculation based on the premise that you'll be transferred to OVO's standard Variable Tariff when your present contract expires in May.

You will only save money if the new tariff is cheaper per kwh and/ or the standing charge is less than the one you are on at the moment.

The comparison sites suggest I can save £430 but in reality it's only about £30 as I'll be looking for a cheaper deal when my contract expires in April and the comparisons don't take into account my energy consumption profile which distorts their calculations.

You need to check the tariffs and do your own sums to see if you'll be better off.