Underhand Switching to Variable - Possible?

wittynamegoeshere

A potentially mad idea, but if an energy company is currently offering a variable tariff to its own customers that's not available to new customers then is it possible to switch to one of their fixed tariffs then immediately tell them to switch you to their variable tariff instead?

Obviously you'd need to choose one where the exit penalty is low or ideally zero.

Would this work?  Are energy companies required to allow anyone on a fixed tariff to switch to their standard tariff at any time, even if still within the tariff period?

MWT

It is not mad, but you should check the T&C's of the contract with the new supplier as if you cancel the new fixed contract too soon they do have the right (and obligation) to switch you back where you came from, so I'd make sure you are out of that period (usually 14 days) before trying it.

I imagine Octopus are going to be a likely target for this strategy as they have no exit fees and a SVR set a little below the cap, along with a tradition of letting existing customers switch to any current tariff.

Clearly this is an unwelcome strategy though from a supplier perspective as they are losing money on SVR customers for at least the next 6 months.

Ultrasonic

What current situation would lead to anyone wanting to do this? Anyone on an older fixed would surely be better off sticking where they are, and once the fix ends they can revert to an SVT anyway.

(I'd expect the answer to the question to be no but it will depend on the specific terms and conditions. It seems moot though.)

MWT

There are some out there with a principled objection to some suppliers like BG for example, and may have been dumped there as SoLR.

savers_united

Would be careful as many suppliers have pulled their variable to new customers there may now be addtional terms attached to their variables if still in a fixed term deal, even though octopus allow you to switch tariffs without charge they may have something in their terms where you cannot move tariff for x days and moving to one of their fixes even for 30 days is going to be costly looking at the rates of current fixes. 

Streaky_Bacon

As other have indicated, it won't give you a good result, because even if you are switched to a variable tariff, it won't be their SVR and so won't be price capped. Being on a non-capped variable at the moment is not a good position to be in.

dbks

wittynamegoeshere said:

A potentially mad idea, but if an energy company is currently offering a variable tariff to its own customers that's not available to new customers then is it possible to switch to one of their fixed tariffs then immediately tell them to switch you to their variable tariff instead?

Obviously you'd need to choose one where the exit penalty is low or ideally zero.

Would this work?  Are energy companies required to allow anyone on a fixed tariff to switch to their standard tariff at any time, even if still within the tariff period?

A suppliers variable tariff is not necessarily their default tariff.
But their default tariff must be variable.

Default tariffs only need to be made available to those customers on deemed contracts, hence why it is known as a default tariff.

Only a supplier's default tariff is price capped by Ofgem, to protect those customers who have not agreed any other tariff.

A much better solution (where a default tariff is not available to you)  is to move to British Gas, and grab their zero standing charge tariff, as so many other MSEers claim to have done.
https://forums.moneysavingexpert.com/discussion/6303163/electricity-only

It's fixed for 12 months, with no standing charges and no exit fees (and quite remarkable unit prices)
After 12 months, if nothing else good is available, (and you do nothing) you will fall onto British Gas default tariff anyway.

Not just win-win, but win, win, win!

wittynamegoeshere

Streaky_Bacon said:

As other have indicated, it won't give you a good result, because even if you are switched to a variable tariff, it won't be their SVR and so won't be price capped. Being on a non-capped variable at the moment is not a good position to be in.

As far as I know, all variable tariffs are capped.  Only fixed ones can exceed it.

Do you know of a variable tariff that's higher than the cap?

QrizB

wittynamegoeshere said:

Streaky_Bacon said:

As other have indicated, it won't give you a good result, because even if you are switched to a variable tariff, it won't be their SVR and so won't be price capped. Being on a non-capped variable at the moment is not a good position to be in.

As far as I know, all variable tariffs are capped.  Only fixed ones can exceed it.

Do you know of a variable tariff that's higher than the cap?

Ecotricity, among others.

MWT

wittynamegoeshere said:

Streaky_Bacon said:

As other have indicated, it won't give you a good result, because even if you are switched to a variable tariff, it won't be their SVR and so won't be price capped. Being on a non-capped variable at the moment is not a good position to be in.

As far as I know, all variable tariffs are capped.  Only fixed ones can exceed it.

Do you know of a variable tariff that's higher than the cap?

Yes, there are many, take a look at Octopus with both Agile and Tracker for example.

Every company has to have a standard variable tariff that is limited by the cap and is used as their deemed or default tariff but they can have others.

Historically there were plenty of variable tariffs below the cap, it was the SVT that people were told to avoid... how things have changed