Collective switch timing fear of exit fees

farfromexpert

My parents fix with Scottish Power ends on 31st March, that is 51 days after the 8th Feb collective switch end date. In the FAQ's it says the switch will not start for 14 days due to regulatory cooling off period. Does this mean they can apply for the switch 51 days and not be charged early exit fee from scottish power, your advise would be appreciated

System

farfromexpert wrote: »

My parents fix with Scottish Power ends on 31st March, that is 51 days after the 8th Feb collective switch end date. In the FAQ's it says the switch will not start for 14 days due to regulatory cooling off period. Does this mean they can apply for the switch 51 days and not be charged early exit fee from scottish power, your advise would be appreciated

This comes up time and time again. Your parents are on a fixed term contract with exit fees. However, Ofgem has stated:

Quote: Suppliers will be required to notify customers that their current fixed-term is coming to an end between 42 and 49 days before the contract ends.

Between this notification period and the end of the fixed term contract, suppliers will be banned from charging a termination fee should the customer decide to switch. Unquote

It is worth pointing out that most suppliers these days are signed up to 17 day switching. To achieve this timeline, suppliers will initiate the transfer process during the 14 day cooling off period. Part of this process is industry notification to the losing supplier that a transfer of supply has been started. In my view, if the losing supplier is notified of a transfer request BEFORE it has issued the 49/42 Day notice then it is legally entitled to charge exit fees.

It is also worth pointing out that there are cheaper deals on the market than those offered under the MSE Collective Switch banner. Octopus also has a fixed tariff which is a couple off £s more expensive than the Collective Switch but it is possible to claim a £50 referral fee. (Look at the Referrals Board)