exit fees for switching tariffs within same co?

jbenmore

I was disappointed to find out that First Utility were going to charge me £60 for switching to a cheaper fixed tariff. The tariff was only £10 a year cheaper but I was under the impression that I have always been ok to switch within the same company, and have done this numerous times in the past. I telephoned them to confirm I would be charged as in the tariff change confirmation this information was very vague and only stated 'I may be charged, in certain circumstances'.

A girl told me this was a ruling introduced by Ofgem- that all energy providers had to charge exit fees for fixed tariffs unless they are within 49 days of expiry- but I sense this may be a twist on the actual ruling, which is that energy companies AREN't allowed to charge exit fees within the last 49 days of fixed period.

Do ALL energy companies now do this? If not, please let me know which don't as I find it a very poor policy to start introducing.

Many thanks

James

System

No they do not work the same way. E.oN, for example, allows customers to switch fixed tariffs without penalty. Ovo doesn't charge exit fees but it doesn't allow penalty-free 'tariff hopping'. It will allow tariff switches but the customer loses the online discount of £30 per fuel per year. There is no OFGEM directive on this. Suppliers do not have to charge exit fees but, if they do, they cannot be enforced within 49/42 days of contract end.

Suppliers will state their policy on exit fees and tariff hopping in the contract terms and conditions.

Swipe

FUtility normally waive any exits fees from fixed tariff as long as you change to another fixed tariff with a longer expiry date.

matelodave

I'm with FU and changed to another tariff whilst still in a fix last year. No exit fees were charged. I got a refund of some £200 of credit and reduced my DD at the same time.

I'm still with them and just today reduced my DD from £77p.m to £25 p.m as I'm managing to ramp up a fair amount of credit for my April 2016 fix due to the exceptionally mild weather last year.

They don't seem to have anything very competitive at the moment so I'm not contemplating staying with them unless they come up with something better by the time my fix finishes.

Nick_C

They are free to do this. Its important to check the T&Cs when you agree to a fixed tariff.

I had a fixed tariff with BG, but I was free to leave at any time.

Each package will be different.

Blackbeard_of_Perranporth

BoP is with Scottish Power and I do tariff checks every month. And switch for nought.

Time to give your supplier two fingers.

KDH_2

Swipe wrote: »

FUtility normally waive any exits fees from fixed tariff as long as you change to another fixed tariff with a longer expiry date.

I can confirm this, as I have done this several times in the last year moving to a cheaper 1 year tariff each time......all without any exit fees.
The OP must have moved to a cheaper but shorter fix .

The_Reaper

I have also changed tariff multiple times with First Utility and never been charged exit fees. This is one of the reasons I have stayed with them so long and managed to stay close to market leading prices without paying exit fees to switch.

I have just switched from a Dec 16 Fix to Feb 17 V2 Fix, for a small saving of about £10 per year. This time I did not notice any information saying "you will not be charged to switch to a tariff with a longer fix period" which makes me worry that they may now charge exit fees for these internal switches.

I may try their CS but they have proved pretty useless in the past.

The_Reaper

OK just spoke to CS and they confirmed that from Jan 1st they will apply exit fees on internal switches.

Time to find a new provider. Thanks FU, was good for a while.

Swipe

The_Reaper wrote: »

OK just spoke to CS and they confirmed that from Jan 1st they will apply exit fees on internal switches.

Time to find a new provider. Thanks FU, was good for a while.

That's unfortunate. Must be to pay for its super league sponsorship deal :mad: FU, FU!

System

The_Reaper wrote: »

OK just spoke to CS and they confirmed that from Jan 1st they will apply exit fees on internal switches.

Time to find a new provider. Thanks FU, was good for a while.

This is one to argue about. The ts and cs applied to your contract are the ones that were in place when you took out the contract. FU has the right to revise its ts and cs for all contracts placed after 1 Jan but not before. In other words, ts and cs cannot be made retrospective.

Having said that, FU's wording is pretty vague on the subject of tariff hopping.