Switching utility provider

healthandsafety

Unfortunately to switch utility provider to get a better tariff I am advised I would incur an extra £ 60 exit fee on top of the final bill. This is obviously a lot to pay out. I can't even stay with the same provider, ie first utility and go on a better tariff as I would still incur exit fees. This is not good customer service and no loyalty rewards.

Hoopie1

The exit fee is totally standard and something that was in place when you signed up. If you didn't like it, don't sign up.

When you and countless others put their tariff in place with FU, FU will go into the wholesale markets and purchase an approximately corresponding amount of electricity and gas in order to hedge itself (i.e. protect itself against market prices rising whilst your tariff remains fixed). There are costs involved in doing this. You have the right to exit, but if you exit (even to another FU tariff) this will also cost FU money.

Basically what you are looking for is a free option - if market prices move up, you want to keep your cheaper fixed tariff. If they move down you want to exit to a cheaper tariff at no cost. Allowing customers to do that is unsustainable in an already cut-throat market where you have to sweat like a pig to make a buck in the first place.

You can have no complaints.

dogshome

FU's policy on charging Exit Fee's whern changing tariffs from one of their own to another of their own, is somewhat akin to a reluctant virgin - First she will and then she won't - Keep phoning until they say they won't, and keep close written record of the call.

If you are changing to a different supplier within the term of your deal, then all providers who put an Exit Fee into their contract, will charge it.
The exception is that if you have 49 or less days to the end of your contract, you are entitled to move without penalty
BUT
This is FU - By the 49 day rule the supplier is supposed to send you a letter advising you of the contract end, which most suppliers do and offer you one of other their tariffs.
However there have been reports on this site of FU customers moving supplier with less than 49 days to go on their contract, but then being charged Exit Fee's -
FU's answer to quiries on this were:
The 49 day rule doesn't count because we forgot to send out the letter

macman

How much will you save annually by switching? If it's more than the £60 exit fee, then what's the problem? You knew the FU terms when you signed up.

Nathan94

dogshome wrote: »

FU's policy on charging Exit Fee's whern changing tariffs from one of their own to another of their own, is somewhat akin to a reluctant virgin - First she will and then she won't - Keep phoning until they say they won't, and keep close written record of the call.

If you are changing to a different supplier within the term of your deal, then all providers who put an Exit Fee into their contract, will charge it.
The exception is that if you have 49 or less days to the end of your contract, you are entitled to move without penalty
BUT
This is FU - By the 49 day rule the supplier is supposed to send you a letter advising you of the contract end, which most suppliers do and offer you one of other their tariffs.
However there have been reports on this site of FU customers moving supplier with less than 49 days to go on their contract, but then being charged Exit Fee's -
FU's answer to quiries on this were:
The 49 day rule doesn't count because we forgot to send out the letter

Really? Says it all really. Who would ever wish to use this supplier beats me.

Anyway, any supplier that fails to provide the required notice in the 49-42 day window is prohibited from applying any early exit fee to that account.

But they'll probably ignore that rule too.
(I doubt the ombudsman will though)

healthandsafety

It's so confusing who to switch to when every supplier is now offering a cheaper deal. Sounds like you are saying first utility aren't your favourite supplier.

cifpower

healthandsafety wrote: »

It's so confusing who to switch to when every supplier is now offering a cheaper deal. Sounds like you are saying first utility aren't your favourite supplier.

If the saving if you switch is less that your exit fee don't switch.