Can an energy company cancel a fixed tarrif?

wild666

Exit fees should be capped at 1 months usage of each utility, Minus the DC. For example you use £50 of electric and only £8 of gas without the added VAT the exit fee should be £58 but a low user would pay a lot less and a high user would pay more.  

payless

Close comparison to fixed rate mortgages ( and issues Northen Rock and others) had. It’s is all about prudent risk management…. It is imprudent to offer a long term fixed price to consumer if buying at current( spot ) price, it is clearly a big gamble. ( boom or bust). 

if you price and hedge correctly ( less profit but stable) you then need to ensure your exit penalty ( early redemption fee on mortgages) covers you if everyone leaves for a lower rate, as you are left with the agreed price ( or more likely an unused costly derivative) 

payless

Consumers are also risk averse …. Hence over time the security of a fixed rate needs to be paid for, and may or may not be of benefit, and the exit fee should be expected if trying to jump ship. 

Currently ending a gas contract at 2p, and electricity one at 10.77p being taken off me early by the closure… last year  these seemed like no brainers.

My new gas ( starting today) is a 2.5yr fix, at approx same price  as cap ,( double old rate)  with no exit …no longer available , but again based on products around 2 weeks ago this was a no brainier , not sure the supplier is being prudent though.