Termination of fixed price contract

AlwynP

There used to be a rule that, once you had notified your energy provider of your intention to switch providers at the end of the term, the current energy provider was obliged to continue to charge at the same price if there was a gap, in this case 5 days, following the end of fixed price time period.

Is this still the case or does it mean automatically going onto a standard variable tariff?

System

Hi - welcome to the forum. You cannot notify your supplier of a switch. The gaining supplier is responsible for all aspects of the switch. Provided it notifies your old supplier that a switch is in progress BEFORE the end of your contract, then you should remain on your old tariff whilst the transfer goes through. If the notification is delayed, then the fixed contract comes to an end, and you will be transferred to the supplier's SVR.

Note: some of the newer suppliers are not signed up to 17 day switching and do nothing about starting the transfer process until your 14 day cooling off period has ended. It follows that if a consumer applies to switch say 7 days before contract end, they will default to the SVR.

The 'good news' is that the difference in cost for 5 days on the SVR will be very small.

footyguy

AlwynP wrote: »

There used to be a rule that, once you had notified your energy provider of your intention to switch providers at the end of the term, the current energy provider was obliged to continue to charge at the same price if there was a gap, in this case 5 days, following the end of fixed price time period.

Is this still the case or does it mean automatically going onto a standard variable tariff?

Welcome to MSE :hello:

The situation did change a few years ago.

Previously, where you agrred to a fixed term contract, you were obliged to remain on that fixed term contract until the specified end date, or face the consequences e.g. early exit fees.

Nowadays, you can apply to switch 49-42 days prior to the end of your contract. The supplier cannot apply early exit fees in such cases.

Switching can take as little as 17 days, but suppliers can take up to 5 weeks. Either way, if you apply 49-42 days prior to the specified end date of your existing contract, you should be switched prior to that date (and as I said, no early exit fees can be applied)

Essentially, the change brought the switching window to apply before your specified contract end date, as opposed to after it. The change occurred as previously many people were attempting to switch supplier before the specified date in an attempt to avoid a price change (not realising that the supplier was supposed to maintain prices as long as they were advised of the switch intention before the end date), and the customer was then surprised to be hit with early exit fees,

The change of process also altered who informed your existing supplier of your intended switch. In the past, it was the customer's responsibility - today it is the new supplier's responsibility as the customer can apply to switch 49-42 days before the end date safe in the knowledge that no early exit fees can be applied.