Extra Energy - Exit Fees

Reedee

I have just escalated to the Ombudsman a problem that I am having with Extra Energy. They really are a totally useless company and their capacity for inefficiency is frightening. Because of the fact that I have lost all confidence in their ability to manage my account, I have switched to another company before the end of my fixed deal. They have acknowldeged their shortcomings and offered me compensation of £60 to cover the cost of the exit fees. I have tried to make them see that the compensation they owe me is for all the inconvenience they have caused and the effort on my part to address it; that exit fees are in place to stop, for example, 'rate tarts', not as an obstacle to prevent customers like me moving on from an organisation that is not fit for purpose. They don't agree, so let's see what the Ombudsman says!

footyguy

Reedee wrote: »

I have just escalated to the Ombudsman a problem that I am having with Extra Energy. They really are a totally useless company and their capacity for inefficiency is frightening. Because of the fact that I have lost all confidence in their ability to manage my account, I have switched to another company before the end of my fixed deal. They have acknowldeged their shortcomings and offered me compensation of £60 to cover the cost of the exit fees. I have tried to make them see that the compensation they owe me is for all the inconvenience they have caused and the effort on my part to address it; that exit fees are in place to stop, for example, 'rate tarts', not as an obstacle to prevent customers like me moving on from an organisation that is not fit for purpose. They don't agree, so let's see what the Ombudsman says!

Welcome back to MSE after almost 7 years :cool:

Just to let you know, and avoid waiting months for, but the ombudsman doesn't usually award compo, particulalarly as some kind of penal award against a supplier,

The ombudsman may award costs, i.e. those you actually and reasonably incurred, and have evidence in support of, caused by the sole failings of a supplier.

However, that does not extend to your time and/or your efforts in complaining.

Imo, you were luckyto have the early exit fees effectively waived. However, as you did not accept that proposed resolution, the supplier is under no obligation to hold that offer open ... nor is the ombudsman obligated to award such by way of a resolution.

Good luck!

Reedee

Thanks for that, it's very helpful. I'm happy that the Ombudsman will have sufficient evidence from me to make an award in relation to justified costs rather than as a penalty. Actually I'm not seeking to punish EE, I just think that someone, and maybe it isn't the Ombudsman, needs to address the role of exit fees in contracts which aren't just about price but also relate to wider service delivery. Otherwise, the efforts by the Government to persuade people to regularly seek the best available deals will be frustrated.

phillw

Reedee wrote: »

in relation to justified costs rather than as a penalty.

What are your justified costs? Compensation from the ombudsman seems to be around £30.

You left before you gave them the chance to have your case heard by the ombudsman (that is going to cost them a couple of hundred pounds to deal with).

Exit fees aren't just there for rate tarts, they buy their energy up front. If everyone left (for whatever reason) then they'd have a lot of energy that they already paid for that they would need to sell to someone else (probably for a lower price as everyone would know they were desperate).

Reedee

I agree entirely that there's no doubt at all about the validity of exit fees; they are in place to dissuade customers from leaving for 'whatever reason' occurs to them. But, in my opinion, there's also absolutely no doubt about what they are not designed to do; to hold customers to a poorly performing organisation. Of course I expect Extra Energy to act efficiently when it comes to buying energy. But what it can't then do, is use that foresight as an excuse for treating customers like **** and expect them to tolerate that or pay exit fees to escape! My contention is that if Extra Energy thinks, as it did, that it should pay me £60 compensation, in addition to £25 that it paid me last year, because they're so very bad at what they do, it's completely illogical for it to also think that I don't have a very good reason for switching. If I do have that very good reason, then exit fees are inappropriate and that's just another cost that Extra Energy will have to bear for its dreadful performance!

phillw

Reedee wrote: »

But, in my opinion, there's also absolutely no doubt about what they are not designed to do; to hold customers to a poorly performing organisation.

That is your opinion, but I disagree. You were being supplied with energy but you wanted to leave. It doesn't matter whether it was because you could get a cheaper deal, or whether you could switch to a company that offered better customer service.

Reedee wrote: »

My contention is that if Extra Energy thinks, as it did, that it should pay me £60 compensation, in addition to £25 that it paid me last year, because they're so very bad at what they do, it's completely illogical for it to also think that I don't have a very good reason for switching. If I do have that very good reason, then exit fees are inappropriate and that's just another cost that Extra Energy will have to bear for its dreadful performance!

You accepted the compensation as full and final settlement of those complaints. You haven't given any further indication of what your lack of confidence was triggered by, but they offered to pay your exit fee.

On the face of it they seem to be acting very reasonably in dealing with you.

teddysmum

It's just like the case of an internet provider letting you leave penalty free before the end of your term, because your speed is too slow. They don't owe you any money, but remove any barrier affecting your leaving.

Reedee

I waited until the Ombudsman decided before I updated. Looking back at phillw's last comment, 'Extra Energy' and 'behaving reasonably' in the same sentence is not something I though I'd see in print! Maybe he works for them? So the Ombudsman agreed that EE could charge the £60 exit fees as that is a statutory right. However, they also decided that their compensation offer should be increased to £100! So I guess they've maintained the fundamental integrity of Exit Fees but EE are almost having to pay them. I can live with that!