Exit fee - EDF

Macbeth77

Hi, I moved into a house in February. The gas supply was with EDF. I signed up to a tarrif, and subsequently changed my mind. I cancelled within the 14 days cooling off period. I have since moved to another supplier and EDF are saying that I have to pay the £200 early exit fee. Looking for advice - surely this can't be right.

MattMattMattUK

Macbeth77 said:

Hi, I moved into a house in February. The gas supply was with EDF. I signed up to a tarrif, and subsequently changed my mind. I cancelled within the 14 days cooling off period. I have since moved to another supplier and EDF are saying that I have to pay the £200 early exit fee. Looking for advice - surely this can't be right.

Read the contract, but there is a reasonable chance it can. 

MWT

Macbeth77 said:

Hi, I moved into a house in February. The gas supply was with EDF. I signed up to a tarrif, and subsequently changed my mind. I cancelled within the 14 days cooling off period. I have since moved to another supplier and EDF are saying that I have to pay the £200 early exit fee. Looking for advice - surely this can't be right.

Which tariff did you sign up to initially, and which one have you been on since you cancelled the one you signed up to?

The details should be on your account.

wild666

Surely the distance selling regulations apply and give a 14 day cooling off period applies?

MWT

wild666 said:

Surely the distance selling regulations apply and give a 14 day cooling off period applies?

Not worried about the 14 day part, that should not be in doubt, it is more about which tariffs were involved...

If it was say a fixed tariff they initially selected and when they cancelled that they dropped onto the standard variable tariff, then there should be no exit fee.

If they traded one fix for a different fix then their could be an exit fee...

...or if the cancellation was never actually processed then that would explain the fee, but it would be wrong given the cancellation.

[Deleted User]

My take on the situation is this but, given the amount involved, I would be having a chat with Citizens Advice.

The OP was in a deemed contract with EDF. He contacted EDF and at this point could have switched suppliers without penalty. However, the two parties agreed to what SLCs term a mutual variation of contract. The supplier is required to action the agreed contract variation within 5 working days.

Mutual variation of contracts is covered by SLC 23. The bit that is relevant is this:

Quote: in respect of a mutual variation which would increase the Charges for the Supply of Electricity or which would in any way be to the disadvantage of the Domestic Customer, in response to the Notice given by the licensee in accordance with sub-paragraph 23A.2(b), the Domestic Customer has contacted the licensee in Writing or by any other means and has expressly agreed to the mutual variation as part of that contact. Unquote

Arguably, a recorded chat with a supplier meets the condition  ‘by any other means’. It follows that a contract exists between the two parties. Looking back to the many tariff changes that I have made in recent years with my existing supplier, I have never been informed that I had a ‘cooling off’ period. This is something that needs to checked with Citizens Advice.

pochase

I have done a fixed deal with EDF (coming from an EDF fixed deal) in February and was offered a 14 day cooling off period.



The "welcome" document clearly states there is a cooling off period:


The T&C also state that there is a cooling off period, so I would have expected to be able to cancel within the 14 days without paying an exit fee.

7. Ending your contract

7.1 From the day after signing up with us, you have a 14

day cooling-off period during which you can cancel

this contract at no cost. You can also end this

contract with us at any other time by:

(a) asking another supplier to become your

registered supplier (your new supplier should then

formally contact us and this contract will end when

they become your registered supplier); or

(b) giving us notice as set out in clause 6.2. If you do

this, you will still be responsible for paying our

charges for the period we are your registered

supplier. If we continue to be your registered

supplier after you try to end this contract, unless you

agree a different contract, you will move onto our

deemed contract scheme.

Mobtr

pochase said:

I have done a fixed deal with EDF (coming from an EDF fixed deal) in February and was offered a 14 day cooling off period.



The "welcome" document clearly states there is a cooling off period:


The T&C also state that there is a cooling off period, so I would have expected to be able to cancel within the 14 days without paying an exit fee.

7. Ending your contract

7.1 From the day after signing up with us, you have a 14

day cooling-off period during which you can cancel

this contract at no cost. You can also end this

contract with us at any other time by:

(a) asking another supplier to become your

registered supplier (your new supplier should then

formally contact us and this contract will end when

they become your registered supplier); or

(b) giving us notice as set out in clause 6.2. If you do

this, you will still be responsible for paying our

charges for the period we are your registered

supplier. If we continue to be your registered

supplier after you try to end this contract, unless you

agree a different contract, you will move onto our

deemed contract scheme.

When did you cancel & how did you do it? 

pochase

I did not cancel, just showing that EDF offers a cooling off period where you can cancel without exit fees.

No idea of course if they would have honoured it...

Interesting is that Ofgem only talks about a cooling off period if you change supplier. I could not find anything about taking out a new contract with the same supplier and having a right to get a cooling off period.

Mobtr

pochase said:

I did not cancel, just showing that EDF offers a cooling off period where you can cancel without exit fees.

No idea of course if they would have honoured it...

Interesting is that Ofgem only talks about a cooling off period if you change supplier. I could not find anything about taking out a new contract with the same supplier and having a right to get a cooling off period.

Sorry, wrong poster, I’ll try again with the right one 🤦‍♂️

Mobtr

Macbeth77 said:

Hi, I moved into a house in February. The gas supply was with EDF. I signed up to a tarrif, and subsequently changed my mind. I cancelled within the 14 days cooling off period. I have since moved to another supplier and EDF are saying that I have to pay the £200 early exit fee. Looking for advice - surely this can't be right.

When did you cancel & how did you do it?