Extra Energy

edited 30 November -1 at 1:00AM in Energy
13 replies 2.6K views
PaulbluenosePaulbluenose Forumite
4 Posts
edited 30 November -1 at 1:00AM in Energy
I have just transferred my energy account away from Extra Energy. My contract with them was due to end on the 30th September, but my switch was completed on the 4th September. When l received my final bill, they had deducted nearly 50 pounds as penalty for early cancelation of the contract. When l phoned them to say this was incorrect and referred them to the Ofgem notice giving up to 49 days exemption, they stated that l was correct and the automatically generated bill did not allow for the Ofgem ruling. How many people have they incorrectly charged the cancellation fee.
I would never use them again
«1

Replies

  • edited 30 September 2015 at 5:40PM
    footyguyfootyguy Forumite
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    edited 30 September 2015 at 5:40PM
    I have just transferred my energy account away from Extra Energy. My contract with them was due to end on the 30th September, but my switch was completed on the 4th September. When l received my final bill, they had deducted nearly 50 pounds as penalty for early cancelation of the contract. When l phoned them to say this was incorrect and referred them to the Ofgem notice giving up to 49 days exemption, they stated that l was correct and the automatically generated bill did not allow for the Ofgem ruling. How many people have they incorrectly charged the cancellation fee.
    I would never use them again

    When did you apply to switch away from Extra Energy?

    If the switch actually took place on 4th Sept, and with switches typically taking 3-5 weeks to occur, it sounds likely that you applied to switch before the exclusion window opened.
  • You only get charged a cancellation fee when you cancel the contract! Irrespective of how long you spend arranging your new energy supplier as long as the switch to your new supplier takes place in the 42 - 49 day window, the cancellation fees should be waived. This is clearly stated in the Ofgem document 'New Standards of Conduct for Suppliers and Consumers for Domestic Supplies' issued 22nd October 2013
  • naedangernaedanger Forumite
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    ... they stated that l was correct and the automatically generated bill did not allow for the Ofgem ruling.

    If there is not more to it to than this then, for the benefit of others, you should consider reporting this matter to ofgem (contact: [email protected]).

    Ofgem won't help with your specific case but they may decide to investigate if they consider Extra Energy are not complying with regulations.
  • edited 1 October 2015 at 1:07PM
    footyguyfootyguy Forumite
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    edited 1 October 2015 at 1:07PM
    You only get charged a cancellation fee when you cancel the contract! Irrespective of how long you spend arranging your new energy supplier as long as the switch to your new supplier takes place in the 42 - 49 day window, the cancellation fees should be waived. This is clearly stated in the Ofgem document 'New Standards of Conduct for Suppliers and Consumers for Domestic Supplies' issued 22nd October 2013

    [Why do I have the feeling I'm going to regret this? Anyway, I'll give you another chance :)]

    It's not the date the switch actually occurs (which you generally cannot control), but the date you apply to switch (or more probably the date the losing supplier is advised of your wish to switch)

    According to Ofgem
    You will receive a notice 42-49 days before the end date of your fixed term tariff to inform you that your tariff is coming to an end. Should you choose to switch after this point, suppliers can’t charge you a termination fee.
    https://www.ofgem.gov.uk/simpler-clearer-fairer/fairer-treatment

    Or from the article you reference:
    Customers will be given a 42-49 day window before the end date of their fixed term tariff to decide if they want to stay with the supplier or switch.

    You would appear to have chosen to switch supplier before this window, so please, what is the answer to the question I asked you in post#2
  • edited 1 October 2015 at 2:13PM
    naedangernaedanger Forumite
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    edited 1 October 2015 at 2:13PM
    footyguy wrote: »
    It's not the date the switch actually occurs (which you generally cannot control), but the date you apply to switch (or more probably the date the losing supplier is advised of your wish to switch)

    What Ofgem have said is:

    "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."

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

    It seems to me that the term "between this notification period and the end of the fixed term contract" refers to when suppliers will be banned from charging a termination fee (as the OP has said) and not to when the customer applied to switch (as you are saying).

    [If Ofgem meant your interpretation they should have said: Between this notification period and the end of the fixed term contract, should the customer apply to switch then suppliers will be banned from charging a termination fee. Or even: Should the customer apply to switch between this notification period and the end of the fixed term contract then suppliers will be banned from charging a termination fee.]

    It is also worth noting Extra Energy have already agreed with the OP.
  • SystemSystem Forumite
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    naedanger wrote: »
    What Ofgem have said is:

    "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."

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

    It seems to me that the term "between this notification period and the end of the fixed term contract" refers to when suppliers will be banned from charging a termination fee (as the OP has said) and not to when the customer applied to switch (as you are saying).

    [If Ofgem meant your interpretation they should have said: Between this notification period and the end of the fixed term contract, should the customer apply to switch then suppliers will be banned from charging a termination fee. Or even: Should the customer apply to switch between this notification period and the end of the fixed term contract then suppliers will be banned from charging a termination fee.]

    It is also worth noting Extra Energy have already agreed with the OP.

    I see where you are coming from but I don't agree - even if Extra Energy does. If you look carefully at the gas and electricity supply licences everything is based on the date of application - not the date at which the switch goes through. For example, licence holders are required to transfer energy supplies within 21 days of the RELEVANT Date with the RELEVANT date being 14 days after application. Contracts are often 12 months from application not actual switch.
  • naedangernaedanger Forumite
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    Hengus wrote: »
    I see where you are coming from but I don't agree - even if Extra Energy does. If you look carefully at the gas and electricity supply licences everything is based on the date of application - not the date at which the switch goes through. For example, licence holders are required to transfer energy supplies within 21 days of the RELEVANT Date with the RELEVANT date being 14 days after application. Contracts are often 12 months from application not actual switch.

    OK I have now looked at the licence conditions and I am more strongly of the view the OP and Extra Energy are correct.

    24.8 In relation to each Fixed Term Supply Contract, the licensee must ensure that:
    (a) a Domestic Customer is entitled to take steps to facilitate changing to any other Electricity Supplier (but not complete the process of changing supplier) at any time without having to pay a Termination Fee;
    (b) unless the Domestic Customer has already entered into a new Fixed Term Supply Contract with the licensee or paragraph 22C.5 of standard condition 22C applies, a Domestic Customer is entitled to switch to any other Electricity Supplier at any time during or after the Switching Window without having to pay a Termination Fee;


    Paragraph 24.8 (a) makes very explicit that the customer can start the transfer process at any time without penalty.

    Therefore in 24.8 (b) no termination fee can be charged if the customer started the process before the start of the window provided they did not complete the process until after the start of the switching window.
  • edited 1 October 2015 at 4:51PM
    Biscuit_TinBiscuit_Tin Forumite
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    edited 1 October 2015 at 4:51PM
    I have just transferred my energy account away from Extra Energy. My contract with them was due to end on the 30th September, but my switch was completed on the 4th September. When l received my final bill, they had deducted nearly 50 pounds as penalty for early cancelation of the contract. When l phoned them to say this was incorrect and referred them to the Ofgem notice giving up to 49 days exemption, they stated that l was correct and the automatically generated bill did not allow for the Ofgem ruling. How many people have they incorrectly charged the cancellation fee.
    I would never use them again
    You only get charged a cancellation fee when you cancel the contract! Irrespective of how long you spend arranging your new energy supplier as long as the switch to your new supplier takes place in the 42 - 49 day window, the cancellation fees should be waived. This is clearly stated in the Ofgem document 'New Standards of Conduct for Suppliers and Consumers for Domestic Supplies' issued 22nd October 2013

    It would appear that what you state is clear from Ofgem, is not quite so clear afterall. But then what do you expect from a quango?

    Have you referred to the terms and conditions you agreed to when you elected to take your energy from Extra Energy?
    https://www.energy.extraenergy.com/Uploads/SupplierDocs/Extraenegry%20All%20Tariffs%20Ts%20and%20Cs%2020150420.pdf

    Section 5 deals with Exit Fees, and says that switching to an alternative energy provider more than 49 days before the contract end date would incur an exit fee.

    Term 6.0d is even more specific
    If you initiate a switch to another supplier up to 49 days before the end of your tariff end date we will not charge you an exit fee...
    [My highlighting]

    Whilst not so applicable, I think term 6.0f deals with what someone else is wrongly interpreting something as
    You are entitled to initiate a switch to another supplier at any time during your fixed term contract. If you do not complete the transfer before the contract end date, or as outlined in 6.0c, you will not be charged an exit fee.

    For the sake of clarity, 6.0c deals with 20 working days after your contract end date, where you can still actually switch, or even initiate a switch and Extra Energy is notified (providing such switch then actually takes place within 3 weeks of that notification), then you will remain on the fixed term prices until the switch completes (and no exit fee will apply)

    I wouldn't place too much reliance on what some (probable minimum wage) phone jockey may have said over the phone.
  • edited 1 October 2015 at 5:55PM
    naedangernaedanger Forumite
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    edited 1 October 2015 at 5:55PM
    It would appear that what you state is clear from Ofgem, is not quite so clear afterall.

    Why do you say this when Ofgem's standard licence conditions confirm what he said?

    Is it because you think the supplier's terms and conditions take precedence over their licence conditions? If so can you provide a link as this seems surprising to me.
  • Biscuit_TinBiscuit_Tin Forumite
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    naedanger wrote: »
    Why do you say this when Ofgem's standard licence conditions confirm what he said?
    Because I do not see anything quoted by Ofgem (by footyguy, or you, the Ofgem website, or indeed within the SLC wording) that does confirm what the OP claims Ofgem clearly states.
    naedanger wrote: »
    Is it because you think the supplier's terms and conditions take precedence over their licence conditions? If so can you provide a link as this seems surprising to me.

    Perhaps in light of the answer I provided you to the first question, this is now superfluous?

    But, for the sake of clarification, of course the suppliers terms will not take precedence over their licence conditions. I believe the suppliers conditions in this instance are in accordance with the SLC, yet at the same time provide clear and unambiguous clarification to the consumer of those conditions :)
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