Collective MSe switch 1

mihaid

I have switched last year with the first collective switch. That switch has exit fees which will expire soon.
1.But what does the CEC do when comparing? Does it include these fees in the old supplier cost?
2. How far ahead of the exit fees expiration should I do a price comparison? bearing in mind the time for the switch to happen?

AndyPK

I doubt it takes into account exit fees.

There is a new collective switch starting tomorrow.

[Deleted User]

You can switch penalty free when you are within 49 days of the end of your current deal.

Once your current provider has been informed by your new supplier that you are switching then your current energy costs should remain the same.

mihaid

ok, what I meant was :
say deal finishes 19 dec, exit fees penalty stops on 1 Nov. How far ahead of 1 Nov should I switch via CEC so that by the 1 Nov the actual switch happens not much longer after 1 Nov?

System

If you apply to switch before the 49 day to end of contract point then you will be charged exit fees. Switches should take 17 days from application but a lot are still taking longer. Provided you apply to switch in the period 49 days to the end of your contract, you will remain on your present tariff until the switch goes through - even if the switch is after the end of contract date.

Ofgem rules:

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).

mihaid

Hengus wrote: »

If you apply to switch before the 49 day to end of contract point then you will be charged exit fees. Switches should take 17 days from application but a lot are still taking longer. Provided you apply to switch in the period 49 days to the end of your contract, you will remain on your present tariff until the switch goes through - even if the switch is after the end of contract date.

Ofgem rules:

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).

Thank you, that clarifies a few things.


I suppose what is not yet clear to me is: what determines if exit penalties apply?
What is the trigger point which needs to be 49 or less days from contract end date:
1. application to switch
2. date when old supplier is contacted by new supplier
3. actual date of switch
4. anything else

footyguy

mihaid wrote: »

Thank you, that clarifies a few things.


I suppose what is not yet clear to me is: what determines if exit penalties apply?
What is the trigger point which needs to be 49 or less days from contract end date:
1. application to switch
2. date when old supplier is contacted by new supplier
3. actual date of switch
4. anything else

As you would only have complete control over No.1, I would suggest you go with that

System

mihaid wrote: »

Thank you, that clarifies a few things.


I suppose what is not yet clear to me is: what determines if exit penalties apply?
What is the trigger point which needs to be 49 or less days from contract end date:
1. application to switch
2. date when old supplier is contacted by new supplier
3. actual date of switch
4. anything else

Its a fair question but there is no ambiguity. The trigger is the date on which your new supplier receives your application to switch* which to avoid exit fees must not happen before 49 days before the end of your present fixed tariff contract. Most people wait until they have received the notification from their supplier (i.e.; not less than 42 days before the end of the contract).

* if you are using a comparison site, it may take a day or so for the news supplier to receive details of the application to switch.

The new supplier then has a licence obligation to transfer your supply/ies with 35 days (17 day switching is still a target). Ofgem's rules also state that provided your present supplier is informed of the switch within a period of not more than 20 days after the end of the fixed term contract, then it is obliged to keep you on the same tariff terms until the switch actually goes through. I switched to Ovo in June and my gas supply has just gone across to them after 75 days. My present supplier continued to supply me on my old tariff terms.

In sum, Ofgem has built in protection to ensure that energy companies do not move a customer from a fixed contract to another fixed contract. It is not a get out of contract free card: in other words, if someone wants to move to a lower charging supplier then any attempt to switch before the 49 day point will result in exit fees (if they apply).

mihaid

Hengus wrote: »

Its a fair question but there is no ambiguity. The trigger is the date on which your new supplier receives your application to switch* which to avoid exit fees must not happen before 49 days before the end of your present fixed tariff contract. Most people wait until they have received the notification from their supplier (i.e.; not less than 42 days before the end of the contract).

* if you are using a comparison site, it may take a day or so for the news supplier to receive details of the application to switch.

The new supplier then has a licence obligation to transfer your supply/ies with 35 days (17 day switching is still a target). Ofgem's rules also state that provided your present supplier is informed of the switch within a period of not more than 20 days after the end of the fixed term contract, then it is obliged to keep you on the same tariff terms until the switch actually goes through. I switched to Ovo in June and my gas supply has just gone across to them after 75 days. My present supplier continued to supply me on my old tariff terms.

In sum, Ofgem has built in protection to ensure that energy companies do not move a customer from a fixed contract to another fixed contract. It is not a get out of contract free card: in other words, if someone wants to move to a lower charging supplier then any attempt to switch before the 49 day point will result in exit fees (if they apply).

I think the above makes it completely clear. I was trying to avoid being switched after the contract end and also make some savings by switching earlier on a possible cheaper supplier. The savings however may prove to be immaterial. Staying on the current deal is a lot more important in the overall picture.


New Question:
When do you count the 49 days?
1. from the end of the electricity deal which finishes say earlier?
2. from the end of the gas deal which let's say is later?


In other words what constitutes the date the contract begins?

System

mihaid wrote: »

I think the above makes it completely clear. I was trying to avoid being switched after the contract end and also make some savings by switching earlier on a possible cheaper supplier. The savings however may prove to be immaterial. Staying on the current deal is a lot more important in the overall picture.


New Question:
When do you count the 49 days?
1. from the end of the electricity deal which finishes say earlier?
2. from the end of the gas deal which let's say is later?


In other words what constitutes the date the contract begins?

I am in the same situation. Each contract is separate ( with the term based on x months from the date of the switch). To avoid an exit fee, you will have to work out 49 days for each supply contract.

mihaid

Hengus wrote: »

I am in the same situation. Each contract is separate ( with the term based on x months from the date of the switch). To avoid an exit fee, you will have to work out 49 days for each supply contract.

how screwed up this process is, eh? what objective causes can there be to switch from the same old supplier to the SAME new supplier and get different switch dates for gas and elec via the only one switch application?