Leaving Fee

stevemcol

Hi

Do any savvy switchers have a rule of thumb to apply for when to ignore the leaving fee and switch anyway. I've had a couple of improved deals recently that outweigh the leaving fee, at face value, so I wrote it off and switched anyway.
I didn't sit down with a calculator; just went on gut feel. I suspect I could've been a bit smarter if I'd have thought more about time in contract v projected saving v leaving fee.

System

Your supplier will contact you 49 to 42 days before the end of your contract. You are then free to switch without any exit fees.

The rest is down to you as 'deals' are like London buses: miss one and another will follow. I check my tariff about once per month.

stevemcol

Thanks. I've just realised how pointless the comparison sites are. I had been indicated a saving of £160 which far outweighed by £60 exit fee. Seemed too good to be true so I just put all the figures into a spreadsheet. The bills came out roughly the same between the two suppliers so I would've paid the exit fee for no reason. I hadn't realised the comparison sites calculate on the assumption you'll allow the tariff to revert to the standard one at the end of the period. Completely unrealistic.

System

stevemcol wrote: »

Thanks. I've just realised how pointless the comparison sites are. I had been indicated a saving of £160 which far outweighed by £60 exit fee. Seemed too good to be true so I just put all the figures into a spreadsheet. The bills came out roughly the same between the two suppliers so I would've paid the exit fee for no reason. I hadn't realised the comparison sites calculate on the assumption you'll allow the tariff to revert to the standard one at the end of the period. Completely unrealistic.

That's the way Ofgem wants it. In truth, some assumption has to be made as to what happens at the end of a fixed deal and staying on the present tariff isn't an option. I agree though that artificially inflated costs leads to inflated savings.

If you are unhappy, then tell Ofgem at consumeraffairs@ofgem.gov.uk

stevemcol

Hengus, thanks.

I emailed Ofgem and got the bland response you'd expect; consumer group consultation, repeatable comparisons etc.

So that's off my chest. In the meantime, how do people on here, that presumably switch regularly, get a meaningful comparison, not based on false assumptions at the end of term?

It all seems a bit labour intensive now, having to manually look at kWH and standing charges.

If I rely on the comparison sites, I can see savings between £100 - £200 but worked out manually comes to next to nothing. Or do we all just stay full term with each supplier then switch?

System

stevemcol wrote: »

Hengus, thanks.

I emailed Ofgem and got the bland response you'd expect; consumer group consultation, repeatable comparisons etc.

So that's off my chest. In the meantime, how do people on here, that presumably switch regularly, get a meaningful comparison, not based on false assumptions at the end of term?

It all seems a bit labour intensive now, having to manually look at kWH and standing charges.

If I rely on the comparison sites, I can see savings between £100 - £200 but worked out manually comes to next to nothing. Or do we all just stay full term with each supplier then switch?

If you want a simple like for like comparison then use:

theenergyshop.com

website. It doesn't use the Ofgem comparison method.

notbritishgas

stevemcol wrote: »

So that's off my chest. In the meantime, how do people on here, that presumably switch regularly, get a meaningful comparison, not based on false assumptions at the end of term??

Energy helpline give you the option to compare the Ofgem way or to compare your present tariff at the present time. I am sure others do the same.

george1939

stevemcol wrote: »

Thanks. I've just realised how pointless the comparison sites are. I had been indicated a saving of £160 which far outweighed by £60 exit fee. Seemed too good to be true so I just put all the figures into a spreadsheet. The bills came out roughly the same between the two suppliers so I would've paid the exit fee for no reason. I hadn't realised the comparison sites calculate on the assumption you'll allow the tariff to revert to the standard one at the end of the period. Completely unrealistic.

When I use comparison sites I put in the tariff I am on now . The comparison site shows my cost for my given units per year and the cost per month If for the same units there is a saving with the new tariff plus any exit fee [if one applies] and the monthly figures from what I am paying now shows it lower per month and yearly for the same units I could switch and I would save. The Standard Tariff does 'not come into the equation'

molerat

george1939 wrote: »

When I use comparison sites I put in the tariff I am on now . The comparison site shows my cost for my given units per year and the cost per month If for the same units there is a saving with the new tariff plus any exit fee [if one applies] and the monthly figures from what I am paying now shows it lower per month and yearly for the same units I could switch and I would save. The Standard Tariff does 'not come into the equation'

The standard tariff always comes into the savings quoted by the comparison sites on the instructions of OFGEM. You obviously know the score and ignore the savings but these are usually in an overly large font and trap the unwary.

molerat

Hengus wrote: »

If you want a simple like for like comparison then use:

theenergyshop.com

website. It doesn't use the Ofgem comparison method.

notbritishgas wrote: »

Energy helpline give you the option to compare the Ofgem way or to compare your present tariff at the present time. I am sure others do the same.

I use EHL but they are not currently showing the MSE switch so I cannot do a true comparison, none of the sites that allow you to use the non OFGEM approved methodology seem to list it :mad:

Nada666

george1939 wrote: »

When I use comparison sites I put in the tariff I am on now . The comparison site shows my cost for my given units per year and the cost per month If for the same units there is a saving with the new tariff plus any exit fee [if one applies] and the monthly figures from what I am paying now shows it lower per month and yearly for the same units I could switch and I would save. The Standard Tariff does 'not come into the equation'

Except, as the OP now knows, (or noticed, rather) you have to know to ignore the headline savings figure on the results page and only look and compare the total cost of those tariffs.