Exit Charges

Jackthedog

If I initiate a switch more than 42 days before the current contract ends but the date of the switchover date is within 42 days will I get hit for exit charges (Eon)

matelodave

Probably - the date of the switch starts running from the time you initiate it and the gaining supplier informs the current supplier. Not the day they take over the supply.

Jackthedog

Darn thats what I thought they might do even thought the switch date is the start of the new contract in payment terms as that is when the meter switch over is...

E.ON_Company_Representative:_Helena

Hi Jackthedog,

Thanks matelodave,

It [FONT=&quot]depends when the new supplier applies for the account. The Price Protection window is open 49 calendar days before the end until 20 working days after. Applications during this period mean exit fees will be avoided.

This is the loss notification period. If they apply before this, exit fees will appy.

Thank you

Helena
[/FONT]

System

Jackthedog wrote: »

Darn thats what I thought they might do even thought the switch date is the start of the new contract in payment terms as that is when the meter switch over is...

This question come up time and time again. I agree 100% with MateloDave. You signed up to a fixed term contract which has exit fees. Ofgem became concerned that consumers needed some protection so they brought in the 49 to 42 Day notification rule. On receipt of this notification, consumers are free to switch without penalty and, moreover, have some price protection if the actual transfer occurs post the end of the fixed term contract date.

We then get alternative views that as the transfer takes a minimum of 17 days, then consumers should have no concerns about applying to switch at the 66 day point, or a clever move to a tariff change to avoid exit fees. The risk of the latter being that if the transfer of supply fails then you could have some months on the supplier's SVR. I had a transfer fail last year when, as a returning customer, the supplier's computer cancelled the transfer as it thought that my property was already being supplied by them.

For clarity, the switch date and the transfer of supply dates are not the same. If I apply to switch today, then my contract with the new supplier is in place despite the fact that they have up to 35 days from the date of the switch to transfer my supply. Contractually, I also have a 14 day following off period from the contract start date (the switching date) to cancel.

My view is that it is not worth getting embroiled into an exit fee argument with your supplier - given that it is probably sitting on your credit. The true difference in energy cost is going to be very small. I appreciate that this doesn't get around the feeling that by delaying the very good deals may get pulled.

FWiW, rather than wait 2 months, I jumped ship a fortnight ago and paid a £30 exit fee to secure a cheap offer which has since risen by 7%. I am probably not going to save anything - year on year - but I now have another 12 months of supply at a fixed price on a contract with no exit fees.

Jackthedog

Thanks for the replies. A switching exit of 60 quid is annoying as it eats much of my saving... however, if the svt or fixed price offers do drift up further it will be worth moving.

This game is getting complicated...