Switching Suppliers - Cooling Off Period

ASavvyBuyer

I have just started the process again of switching suppliers. Mainly because E.on have adopted the policy of only offering the best value tariffs to new customers and I expect that the best tariff they offer when our fixed tariff ends will be a lot more expensive.
One point to take notice of when switching, if you are currently on a tariff with an exit fee, is to switch to a tariff without an exit fee, with the same company (if they allow that; E.on do), before switching to the new company.
However, a point to bear in mind, is that the new company will have a 14 day cooling off period. Therefore, if you are currently on a fixed tariff with lower charges than the tariff with no exit fee, you can delay the actual changeover to the tariff with no exit fees until just before the 14 day cooling off period ends with the new company.
That way, you only have to pay the higher charges (on the tariff with no exit fee) for a shorter time, before your actual switch occurs to the new company.

Logen

Not so, at least for E.On.
The E.On reps have repeatedly pointed out, on various threads, that once a request to switch is received by E.On the tariff is "locked" and cannot be changed.
Therefore, if exit fees were applicable, they would have to be paid.

System

The OP is correct. If a supplier allows its customers to switch tariffs without an exit fee then this is treated as a mutual variation of the supply contract which has to take place within 5 days according to the SLCs. From this point, the customer could initiate a switch without incurring a penalty other than up to 5 weeks on the higher tariff. I can well see this loophole being blocked if suppliers intend to bar existing customers from some favourable new tariffs.

ASavvyBuyer

Logen wrote: »

Not so, at least for E.On.
The E.On reps have repeatedly pointed out, on various threads, that once a request to switch is received by E.On the tariff is "locked" and cannot be changed.
Therefore, if exit fees were applicable, they would have to be paid.

But E.on won't receive the request from the new supplier for at least 14 days, because of the cooling off period. Therefore, no need to change E.on tariffs to one that does not have exit fees until just before the 14 day cooling off period ends. After that; yes you get locked in on whatever tariff you are on, until the new supplier takes over.

stewie_griffin

ASavvyBuyer wrote: »

But E.on won't receive the request from the new supplier for at least 14 days, because of the cooling off period. Therefore, no need to change E.on tariffs to one that does not have exit fees until just before the 14 day cooling off period ends. After that; yes you get locked in on whatever tariff you are on, until the new supplier takes over.

This used to be the case but not any more since faster switching came in to place. The transfer now takes place concurrently with the cooling off period (14 days + 3 working days). In your case E.ON would be notified of the transfer after 1-2 days of you initiating it and at this point your tariff with them would be looked.

Sufficient

There’s a Fourth Party involved in the switching process: you, losing and gaining companies and another hidden one, in my case Lowri Beck. The latter is in some sort of umpire or offical meter reading position and knows more about my meter readings than I do. If they say my meter readings are wrong, despite my photos of my meters to both companies the switch stops. You discover this all by yourself; the gaining company doesn't tell you until you ask why the switch is delayed! Who are these 4th Parties and why don’t we know more about them?

ASavvyBuyer

stewie_griffin wrote: »

This used to be the case but not any more since faster switching came in to place. The transfer now takes place concurrently with the cooling off period (14 days + 3 working days). In your case E.ON would be notified of the transfer after 1-2 days of you initiating it and at this point your tariff with them would be looked.

Strange then that the company I am switching too states that they don't send the request to switch to the old supplier until after the cooling off period has expired. However, to be on the safe side, I have now switched the e.on tariff to one without exit fees. Malc has previously confirmed that there is no minimum time for being on that tariff before switching to a new supplier. Thanks.

stewie_griffin

ASavvyBuyer wrote: »

Strange then that the company I am switching too states that they don't send the request to switch to the old supplier until after the cooling off period has expired. However, to be on the safe side, I have now switched the e.on tariff to one without exit fees. Malc has previously confirmed that there is no minimum time for being on that tariff before switching to a new supplier. Thanks.

That's odd. Did they give you an approximate start date and if so how many days in the future was that? I'm not sure if faster switching is compulsory especially with the smaller suppliers so it's possible in your case that the cooling off period is still separate to the transfer.

Or it could simply be the person you spoke to at the new company doesn't know the process very well.

ASavvyBuyer

stewie_griffin wrote: »

That's odd. Did they give you an approximate start date and if so how many days in the future was that? I'm not sure if faster switching is compulsory especially with the smaller suppliers so it's possible in your case that the cooling off period is still separate to the transfer.

Or it could simply be the person you spoke to at the new company doesn't know the process very well.

It is published on the Iresa website and included in the email confirmation. Expected completion of transfer is in about 28 days.