Exit fees query

dannynolan

Martin says exit fees are not payable if you exit within 50 days of the end of your contract.

My supplier's blurb says exit fees are payable right up until the last daye.

Anyone know where Martin gets his 50 days from?

TIA

NittyGritty

simple answer ofgem themselves


Summary of today’s reforms

1. Fixed term 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.

System

dannynolan wrote: »

Martin says exit fees are not payable if you exit within 50 days of the end of your contract.

My supplier's blurb says exit fees are payable right up until the last daye.

Anyone know where Martin gets his 50 days from?

TIA

From the Ofgem website:

In addition to the Standards of Conduct, we have also introduced the following measures:

Should you choose to switch supplier, you no longer have to inform your current supplier that you intend to do so. Where you switch in the case of a price increase, even if this is after the date the price rise comes into effect, as long as you decide to switch soon after the increase and your switch to the new supplier is completed in a reasonable amount of time, you will not have to pay the higher rates.*”

If you signed up to a fixed term deal, on or after 15 July 2013, your supplier will not be able to increase the price. So ‘fixed means fixed’**.

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.

If you choose not to switch at the end of your fixed term tariff, you cannot be rolled onto another fixed term tariff with a termination fee. Instead you will be rolled automatically onto the cheapest standard tariff with your supplier.

maryb

I am with Coop Energy on a fixed tariff with exit fees that is coming to an end on 31 March. They sent me an email on 9 February saying that my deal was coming to an end. I want to switch away from them because their online system is so awful.

However 9 February is more than 49 days from the end date. Am I at any risk that they will argue that a switch before the end of the tariff is not covered by Ofgem's terms which refer to a notice issued in the window of 42 to 49 days? Today is 49 days to go until 31 March but would it be safer to wait until 42 days?

footyguy

maryb wrote: »

I am with Coop Energy on a fixed tariff with exit fees that is coming to an end on 31 March. They sent me an email on 9 February saying that my deal was coming to an end. I want to switch away from them because their online system is so awful.

However 9 February is more than 49 days from the end date. Am I at any risk that they will argue that a switch before the end of the tariff is not covered by Ofgem's terms which refer to a notice issued in the window of 42 to 49 days? Today is 49 days to go until 31 March but would it be safer to wait until 42 days?

Check the email carefully to see if it says anything about early exit fees ... as it should do ( if they apply to your product).

maryb

The email makes no mention of exit fees. It states that they will enrol me onto the fixed tariff which runs to March 2017. This also has exit fees - which is contrary to Ofgem's terms

"If you choose not to switch at the end of your fixed term tariff, you cannot be rolled onto another fixed term tariff with a termination fee. Instead you will be rolled automatically onto the cheapest standard tariff with your supplier"

System

maryb wrote: »

The email makes no mention of exit fees. It states that they will enrol me onto the fixed tariff which runs to March 2017. This also has exit fees - which is contrary to Ofgem's terms

"If you choose not to switch at the end of your fixed term tariff, you cannot be rolled onto another fixed term tariff with a termination fee. Instead you will be rolled automatically onto the cheapest standard tariff with your supplier"

The supplier has provided the required notification and it cannot charge exit fees from this point onwards.

Switch now and I can assure you that there will not be a termination charge.

maryb

Thank you, I thought I was worrying unnecessarily but It's good to know you agree

footyguy

maryb wrote: »

I am with Coop Energy on a fixed tariff with exit fees that is coming to an end on 31 March. They sent me an email on 9 February ...

maryb wrote: »

The email makes no mention of exit fees. It states that they will enrol me onto the fixed tariff which runs to March 2017. This also has exit fees - which is contrary to Ofgem's terms...

Something strange going on here.

On 09 Feb 2016, Co-op launched Fixed April 2017 (Price fixed until 30th April 2017) ... and there are no exit fees for that product.

I would suggest you take all your paperwork along to the CAB and ask them to explain matters to you if you are unclear.

Edit:
In fact I can't find any trace of a 12 month Fixed March 2017 tariff from Co-Op.
There was a Fixed to March 2017 product, I think it was from their Pioneer range, but that was offered about November 2013, and there were no early exit fees.

8. You may cancel the March 2017 Fixed Price tariff and/or change supplier without incurring a cancellation charge at any time.

maryb

my apologies, they have a number of tariffs with confusingly similar names. Part of the email talks about a switch to "our fixed online tariff and fix your energy prices until March 2017" Elsewhere they refer to the Co-op Online March 2017 tariff. This is the t&c link to that tariff (link was in the email so I know it is right)
https://www.cooperativeenergy.coop/siteassets/pdfs/additional-terms--conditions---co-op-online--march-2017.pdf

Paragraph 10 refers to the exit fee.

footyguy

maryb wrote: »

my apologies, they have a number of tariffs with confusingly similar names. Part of the email talks about a switch to "our fixed online tariff and fix your energy prices until March 2017" Elsewhere they refer to the Co-op Online March 2017 tariff. This is the t&c link to that tariff (link was in the email so I know it is right)
https://www.cooperativeenergy.coop/siteassets/pdfs/additional-terms--conditions---co-op-online--march-2017.pdf

Paragraph 10 refers to the exit fee.

Still something strange going on here:
From term 3

...The Co-op Online March 2017 tariff will not apply to the supply of energy to the address unless and until: (i) you have requested this tariff;...

Have you requested it?
Or is the email simply offering you the chance to request it?