When can I begin to switch from OVO without penalty?

djmikeyt

My current dual fuel tariff fixed deal from OVO is due to end in 2 months and 9 days from today (6th Feb 2015). There is a £60 penalty for switching 6 weeks before that (i.e.before approx. 4th March).

I know it takes time for a switch to go through so, if I begin to switch to a cheaper supplier today though the MSE Energy Club, does anyone know whether I am likely to incur the £60 charge from OVO please?

If I can't begin the switch today, when should I begin please?

I would be grateful for your advice.

System

Simples. Under OFGEM rules, OVO is required to inform you of the end of your fixed tariff in the period 49 to 42 days before the contract end date. You are then free to start the switching process and exit fees will not apply. Switching now takes place in 17 days; if, however, your actual switch is delayed you WILL remain on your present OVO tariff until the switch goes through. Do NOT cancel your DD until the switch is complete as this may be seen as a breach of the terms of the contract and you might be switched to OVO' s standard variable tariff.

I should have added. If you initiate a switch today you will probably get hit with exit fees.

System

Sorry to double post but as there are so many queries about this it is probably worth posting the actual rules from OFGEM:

1. Fixed term contracts

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

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.

Suppliers will be banned from automatically rolling a customer over onto a further fixed term contract.

Instead suppliers will be required to default customers to an evergreen contract if the customer takes no switching action before the end of their fixed-term contract (this default contract must be the cheapest evergreen tariff with the supplier from 31st March 2014).

matelodave

For the avoidance of confusion an "evergreen tariff" is not a fixed tariff but usually the supplier Standard Variable Tariff (SVT) and will not have an early termination fee.


It is also usually almost the most expensive of the suppliers tariffs