Changing tariff with same supplier mid-contract

Money_Saver

They want to charge me £60 exit fee to switch to a cheaper tariff. I could understand if I was switching supplier. So the total savings would be £17.00 after the £60 exit fee.

Does this sound right?

Thanks

[Deleted User]

@money saver

You haven't given any details so how can we tell? You need to list all the information such as tariff details (cost per unit, name, supplier), yearly usage of both the new and current tariffs. Also where are you getting the price comparison from?

Then you may get some help.

Money_Saver

It was noted on my bill. It said there was a cheaper tariff and I would save I think £78 per year but will charge £60 exit fee

[Deleted User]

Still no details given.

So how can we tell?

How did the company (who you will not name) calculate the savings? There are multiple ways to do this and the OFGEM recommended way will tend to show inflated savings for those on a fixed tariff. This may result in no savings in real money.

Hence details are required

If you don't wish to give them then take your bill to the local Citizens Advice Bureau and ask for help. They will keep your details private but as you will have to show them the bill, then they can help you.

Please note I will not be replying to this topic but if you decide to post details then I'm sure some else will help you.

NineDeuce

In other words, they are offering you a fantastic saving of less than £1.50 per month to prevent you switching when you would probably be better off even today moving to another supplier and saving more, or just waiting until your contract ends and making the savings then.

dogshome

Whoa !
If this cheaper tariff is being offered by notice on a bill, chances are the quoted saving is bo**acks.

Ofgem have laid down a crazy formula, where for Fixed Tariff customers, suppliers can offer 12 month forecasts of future costs.
But these figures are achieved by adding the cost of the months remaining on the present Fix, to the following months on their expensive Variable Tariff.

Look at the price detail on this newly offered tariff and do the maths for yourself

SummerFun

Money_Saver wrote: »

They want to charge me £60 exit fee to switch to a cheaper tariff. I could understand if I was switching supplier. So the total savings would be £17.00 after the £60 exit fee.

Does this sound right?

Thanks

Money_Saver wrote: »

It was noted on my bill. It said there was a cheaper tariff and I would save I think £78 per year but will charge £60 exit fee

Sounds right to me based on the limited information supplied.
Your only option now is to refer to the terms and conditions you agreed to abide by when you took out the deal and see if they differ from what you are now advised.

If you are going to pay early exit fees anyway, why not consult a comparison site?
Not only will you be able to double check the costs involved, but balso wiulol be able to see if there is a chaeper option from the whole of market.

If you join the MSE CEC, you will be notified as soon as any cheaper deal becomes available to you (from the whole of market) - subject to any alert limits you may set.

footyguy

SummerFun wrote: »

Sounds right to me based on the limited information supplied.
Your only option now is to refer to the terms and conditions you agreed to abide by when you took out the deal and see if they differ from what you are now advised.

If you are going to pay early exit fees anyway, why not consult a comparison site?
Not only will you be able to double check the costs involved, but balso wiulol be able to see if there is a chaeper option from the whole of market.

If you join the MSE CEC, you will be notified as soon as any cheaper deal becomes available to you (from the whole of market) - subject to any alert limits you may set.

Or the OP could contact the supplier to double check the accuracy of the information supplied.

[Deleted User]

Money Saver -
Some suppliers do make that charge and some don't, for example Eon allow you to change tariff without any penalty - I know because I've done it three times including just last month after rejoining them following two and a half months with Robin Hood Energy..

System

There is a clue in the word ‘contract’. All contracts come with terms and conditions which are worth a read so that there are no surprises. Many suppliers DO charge exit fees for in contract tariff changes but some don’t. Some suppliers will also re-imburse new customers their exit fee when a transfer to them is complete.

Cardew

Deleted_User wrote: »

Money Saver -
Some suppliers do make that charge and some don't, for example Eon allow you to change tariff without any penalty - I know because I've done it three times including just last month after rejoining them following two and a half months with Robin Hood Energy..

Most companies(in my experience) allow you to change tariff, within the company, without invoking the penalty.

However a problem occurs if you change to a tariff without penalty and then immediately switch to another supplier.