Fixing and Cooling Off periods

DE_612183

So I've read a few messages about people thinking about fixing now before the cap is announced, and then if it's not so bad they can back out of their fixed rate and revert to SVR or similar as they are within a "cooling off period"

The cap date is 26/8 ( for October I believe ) - if I want to use a cooling off period is that just 14 days - so anytime after the 12/8 I can fix with knowledge that I can back out during that cooling off period?

Thanks

MSE_Andrew

Hi DE_612183,

That’s correct, there is a 14-day cooling off period for switching, and the new price cap – which will take effect on 1 October – will be announced on 26 August.

As most of the cheapest fixes right now are existing customers deals, your cooling off period might start immediately, so if you do decide to do this, 13 August might be better for safety.

If you’re choosing a fix offered by your current supplier, you’ll likely be switched to the new tariff straightaway (and so you’ll pay those rates for a few weeks). If your switching supplier, some are starting to introduce faster switching, so it's possible you could be switched in around 7 days (previously it was around 21 days) – if this happens, you still have your cooling off period, but you may need to pay the supplier you switched to for a week or so of energy use. In this instance, if you cancel in your cooling off period, your supply will be returned to your previous firm.

Also, some suppliers, such as British Gas, don’t charge exit fees for internal switching – so it could be worth checking this with your supplier. It’s also worth checking with your provider if they let customers switch to its standard variable tariff (in case you want to switch back). We know some suppliers are reluctant in the current climate to offer their standard tariff as a ‘switchable tariff’.  

Hope that helps!