Advice on fix

Swipe

So what they are saying is, switch back to the standard variable first rather than switching directly to a new fix to avoid the fees?

Swipe

It will be interesting to see whether or not the announcement tomorrow affects any new fixed rates on offer. In theory, they shouldn't change if have already done their sums for the next 12 months but who knows? 

ArbitraryRandom

gj373 said:

cook0891 said:

manic37 said:

ArbitraryRandom said:

Erm... this might be a silly thing to say (and a bit late) - but if you take the fix today (in case it's pulled after the announcement) then you can cancel at any point within 14 days without paying the exit fees. 

So you can fix now AND keep an eye on any other offers/predictions over the next couple of weeks.  

Not according to EON Next.

Looks like depends who you speak to….

According to their contract terms the 14 day cooling off only applies when switching supplier

Their terms and conditions don't really have anything to do with it.

It's UK consumer law that if you enter into a new contract by phone or online (or on the street/in your home/by mail order) you have 14 days to cancel, even if you have already paid over money or the service has started. There are exemptions (such as accommodation), but none would apply in this situation. 

Cancelling during this period voids the contract, so your use should be recalculated and be due at the rate you would have been on if you hadn't switched. 

https://www.legislation.gov.uk/uksi/2013/3134/made

And 

https://www.ofgem.gov.uk/sites/default/files/docs/2014/10/cooling_off_background_paper.pdf

The 'confusion' here might be that, for some people, the tariff start date is further away than the 14 days? 

If anyone tries to cancel and are told they can't, then I'd suggest they make a complaint and escalate it to the ombudsman (if needed, in due course) rather than take the agent's word for it... 

ArbitraryRandom

Swipe said:

So what they are saying is, switch back to the standard variable first rather than switching directly to a new fix to avoid the fees?

Yes, if you are seeking to cancel a fix during your cooling off period then you should cancel your fix THEN sign up to a new fix. 

In practice it shouldn't make a difference, but if the supplier is looking for a reason to charge you exit fees then that's the way to avoid it happening. 

smipx013

Now that the price cap has been announced does this affect the discussion?  I switched to the new tarrif 10 days ago and am wondering now if I should cancel it (with no penalty) under the 14 days cooling off period and revert to the price cap tarrif.  Maybe then looking at taking out a fix nearer January when hte prices are predicted to go up a bit.

On the other hand....  If it is about parity then I am thinking that, for the sake of certainty, it might be wise to stay on this tarrif just in case there is some "incident" in the world that makes the prices rocket (i.e. Putin, Australia strikes).  For the sake of £30 or so pounds a year I might be protected from £300+ shock if that were to happen.


Thanks
Paul

Swipe

smipx013 What makes you think the fix will be cheaper nearer January? The only reason I would cancel my fix over the next 12 cooling off days is if a better fix appears.

matt_drummer

smipx013 said:

Now that the price cap has been announced does this affect the discussion?  I switched to the new tarrif 10 days ago and am wondering now if I should cancel it (with no penalty) under the 14 days cooling off period and revert to the price cap tarrif.  Maybe then looking at taking out a fix nearer January when hte prices are predicted to go up a bit.

On the other hand....  If it is about parity then I am thinking that, for the sake of certainty, it might be wise to stay on this tarrif just in case there is some "incident" in the world that makes the prices rocket (i.e. Putin, Australia strikes).  For the sake of £30 or so pounds a year I might be protected from £300+ shock if that were to happen.


Thanks
Paul

Isn't that the point of fixing?

So you know what you will be paying over the course of the fix and protect yourself from any large price rises that you would prefer to avoid?

Unless your attitude to risk has changed since you accepted the fix then there is no point giving up the fix unless a better one is available.

Do you think a cheaper fix will be available in January in view of the expected price rises at that time?

Mstty

I do think some cheaper fixes are on their way but again it's fractions of pennies given the latest CI forecasts for Q1/2/3/4 next year.

Sometimes it better to have a deal in the bag than wait for something that may not appear.

smipx013

All fair ponts.

ArbitraryRandom

I can see the logic if the new rate is any significant amount lower than your recent fix... but you would then be accepting a risk that the fixes available later in the year could be higher. 

Looking at the current predictions and based on knowing my expected winter usage, I'd probably say if my fix was maybe 4% higher than the new announced rate (aka ~3% lower than the current rate) it's probably worth risking but everyone will have their own point where the surety of the fix isn't worth the risk of paying more over the period.