Termination Charges

newks44

I signed up via Martin Lewis' Cheap Energy Club on January 5th to what was then the cheapest tariff for Gas & Electricity  on the Website - People's Energy 2 months upfront Winter 19 v2 tariff . Now  through the Cheap Energy Club I find that People's Energy 2 months upfront Winter 20 v3 tariff will save me £266 per year. However People's Energy tell me that I will have to pay £60 in termination charges- £30 for each commodity- which doesn't seem fair considering that I am remaining with the same Company. Comments please.

JGB1955

It's probably hidden in their terms and conditions ,and the £60 is likely to be £72 once 20% VAT is added on,. Phone them and ask for a definitive answer.

macman

It's a tariff change charge, not an early termination charge (the latter is when you change supplier)

Essmum

JGB1955 said:

It's probably hidden in their terms and conditions ,and the £60 is likely to be £72 once 20% VAT is added on,. Phone them and ask for a definitive answer.

VAT is only 5% on energy and pretty sure the VAT is already included in the exit fee.

DawnCrush

newks44 said:

I signed up via Martin Lewis' Cheap Energy Club on January 5th to what was then the cheapest tariff for Gas & Electricity  on the Website - People's Energy 2 months upfront Winter 19 v2 tariff . Now  through the Cheap Energy Club I find that People's Energy 2 months upfront Winter 20 v3 tariff will save me £266 per year. However People's Energy tell me that I will have to pay £60 in termination charges- £30 for each commodity- which doesn't seem fair considering that I am remaining with the same Company. Comments please.

As per the tariff information label for that tariff:
https://cms-server.peoplesenergy.co.uk/uploads/_/originals/pdf-peoples-energy-2-months-upfront-winter-tariff-19-v2-1-year-1.pdf

the early exit fees applies for leaving the supplier or switching to another tariff.

I can confirm the exit fees you have quoted are correct and include VAT at the appropriate rate (currently 20%)