Fixed Price ends 28th Feb but told I will be penalised with exit fees if I change now

CJL777

I just spoke to British Gas as I am looking to change supplier via the MSE energy club offers. My current fixed price ends on the 28th Feb 2015 so I am looking now as the idea was to change on that date but I have been told if I start the process now I will be hit with early exit fees. British Gas said I can't change without penalties until I am changed to the standard rate on the 28th and even if I state that I don't want to move until that date I was told it will not work as "they tell you the date".

Is this true?

System

No it's not true. Under OFGEM rules, BG is required to inform you that your fixed price tariff is about to end (usually in the period 49 to 42 days before the end of your contract). You are then free to switch without any threat of exit fees. You will remain on your present BG tariff until the switch goes through.

Richie-from-the-Boro

BG [call jockey] Lies.

On or after July 15 2013 [a whole 18 months ago] British gas and everyone else had their 'automatic rollovers' curtailed. It is as Hengus said if you are within 49 days before the end of your contract period you should be able to switch from your fixed term with no penalty. You are 19 days away from the 28th - personally I would never ever wait till the last moment on the last day - you can safety switch now.

macman

The only thing that is true is that you can't specify a precise switch date.

CJL777

I had my notification that my tariff is ending but the guy at BG I spoke to today was adamant that I will incur penalties if I try and do anything before the 28th. I did question him several times. Either BG have not trained their people or they are saying this to customers to try and prevent them from switching and to get another months money out of them.

I have not switched before and was ready to do it but after phone call to BG its made me feel very nervous about doing anything.

System

I should have said that you do not need to tell BG that you are switching. Your new supplier manages the switch. If BG cries 'foul' then here is the OFGEM policy:

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).

* evergreen in this case means Standard/Variable.

Nada666

Do you have the time and date of the call? I would write a formal complaint. (Write one, don't waste time on the telephone.)

Not only have they tried to fraudulently keep your custom for an extra three weeks, they have tried to gouge you by making you unnecessarily pay Standard tariff prices for a further four to six weeks. Outrageous.

Dave_save

Hengus wrote: »

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.

Could you clarify the above. I had a look on the OFGEM website and couldn't see the above rule on exit fees (I might have been looking in the wrong place). However it does say that suppliers may charge an exit fee if the switch is completed prior to the end of a fixed term contract.


I do know that a supplier cannot charge exit fees for merely instigating a switch. But could anyone clarify if a supplier is entitled to charge these exit fees if the switch is completed prior to the contracted end date. I think that's what the poster above was referring to.

System

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).

You will not be charged exit fees if your switch goes through in 17 days as per the latest switching rules.

Dave_save

Hengus wrote: »

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).

You will not be charged exit fees if your switch goes through in 17 days as per the latest switching rules.

Seems like a full set of rules. Presumably these are OFGEM rules. Can you point me to the document/website that displays the 'latest rules'.

naedanger

Dave_save wrote: »

Seems like a full set of rules. Presumably these are OFGEM rules. Can you point me to the document/website that displays the 'latest rules'.

Is this what you are after? (I have not checked the detail, I just did a google search on some of the text and the following was returned.)

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