Exit Fees Eon Gas/Slectricity

Maz1974

Hello

I've seen on MSE if you switch suppliers within 49 days of your fixed contract end date you're not charged an exit fee if there is one payable. I'm having trouble getting Eon to confirm this in writing if this is in fact correct or not. I've also had no reply from Ofgem. Does anyone know where it states this.

Thank you.

System

Hi - welcome to the forum. From the OFGEM website: (NB you need to wait until E.oN contacts you before switching)

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.

Former_E.ON_Company_Representative:_Malc

Maz1974 wrote: »

Hello

I've seen on MSE if you switch suppliers within 49 days of your fixed contract end date you're not charged an exit fee if there is one payable. I'm having trouble getting Eon to confirm this in writing if this is in fact correct or not. I've also had no reply from Ofgem. Does anyone know where it states this.

Thank you.

Afternoon Maz1974

We definitely do this. To confirm what Hengus says, it's known as the Price Protection Window and kicks in when fixed term contracts are nearing the end. The window's open from the date on our renewal notice until 20 working days after the contract ends. Renewals are usually sent 49 calendar days before a tariff ends. During this time and provided we're told, we'll make sure you're protected against any price changes that aren't in your favour whilst a change of supplier goes through. Also, exit fees don't apply whilst the Price Protection window is open. Switching supplier usually takes about two and half weeks.

As Hengus says, if we don't hear from you or your chosen supplier, the account will automatically default to our standard plan once the fixed term contract ends. These tariffs have no tie-ins or exit fees leaving you free to switch supplier whenever you wish without penalty.

Sorry you've not had this in writing. Probably best to drop us an email. If you like, email me at the address in my Profile. I'll be happy to confirm the above.

Malc

Edit: Just remembered, price protection is in the terms and conditions too. For the Fixed 1 Year Tariff, it's section 14.2.

Consumerist

As mentioned above, you should receive a notice from E.on 42 days before the end of your contract. Generally, suppliers do not specifically mention in the notice that you can switch without paying exit fees but is a requirement of their supply licence to allow you to do so.

Have you received this notice?

matelodave

Can one assume that if the supplier has been delinquent and not actually sent his letter then you are safe to initiate a switch when you are down to 41 days.

Consumerist

matelodave wrote: »

Can one assume that if the supplier has been delinquent and not actually sent his letter then you are safe to initiate a switch when you are down to 41 days.

You don't need to wait for their notice. Providing the date of the switch is within, or after, the 49-day window, they cannot charge exit fees for a switch..

System

matelodave wrote: »

Can one assume that if the supplier has been delinquent and not actually sent his letter then you are safe to initiate a switch when you are down to 41 days.

It is treated as a supplier's licence default:

Where the licensee fails to comply with paragraphs 22C.2 to 22C.5 and extends the duration of an existing Fixed Term Supply Contract for a further fixed term period, the licensee may not charge or otherwise seek to enforce a Termination Fee in respect of that Domestic Supply Contract.

Consumerist

You really need to refer to Licence Condition 24.8

Termination of Fixed Term Supply Contracts

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;

(c) a Domestic Customer is not required to give any form of notice to terminate a Fixed Term Supply Contract or to switch supplier.

The above applies to electricity contracts but there is similar wording applying to gas contracts.

Former_E.ON_Company_Representative:_Malc

matelodave wrote: »

Can one assume that if the supplier has been delinquent and not actually sent his letter then you are safe to initiate a switch when you are down to 41 days.

Morning matelodave. As Consumerist and Hengus have said, customers on fixed term tariffs are protected from increases to their prices and exit fees once they've entered the Price Protection Window as above. This is regardless of whether or not they've received our renewal notice.

Can't speak for other suppliers but we've set up an automated system to send renewal notices once fixed term tariffs reach the Window. If, for whatever reason, there's a problem and renewals are late or not received, customers are still protected under the same terms as I spoke about yesterday.

Hope this explains matelodave.

Malc