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Early Termination Fees - Business Tariff

Just looking for advice on how energy companies work out the Early Termination Fee on a business account and if there’s any way of getting them reduced if you are looking at moving tariffs with the same company .

We are a small community sports club which is only open 6 months of the year so as you can imagine finances are particularly tight especially during the months we are closed. We are currently on a 2 fixed rate gas and electric tariff with EDF which is due to end in Dec for the gas and Jan 25 for the electric.

When we took the tariff out prices were high and we are currently being charged over 55p per kwh and during the months we were closed a balance has accrued on our account which we have a payment plan in place to pay off.

Going forward for the remaining term of our fixed rate the prices are financially crippling us so we have looked at alternative tariffs and EDF now have tariffs with prices at 23p a kWh which is more than half the price we are currently being charged.

We have been in contact with them but to be honest there customer service is appalling and they have advised if we want to change tariffs we would need to pay an ETC of over £5000 which is extortionate for a community sports club like ourselves.

We have asked for a written calculation on how this figure has been worked out but so far we haven’t received anything

Does anyone know if there is any help out there for community clubs to help with energy costs and if there’s a way of changing tariffs without paying the ETC because at the minute the energy costs we are encountering are putting the future of the club in jeopardy.

Comments

  • MeteredOut
    MeteredOut Posts: 2,422 Forumite
    1,000 Posts Second Anniversary Name Dropper
    edited 22 March 2024 am31 10:32AM
    Businesses do not have the same protection as consumers with regards to energy contracts so you are tied to whatever the business signed up for in the contract. What does it state with regards to early termination charges?

    Whoever signed up for the fixed tariff at 55p did so to give the business full visibility of future costs; that can't just be unwound because prices have gone down.

    The supplier won't care that your a small community sports club any more than a large manufacturer.
  • Robin9
    Robin9 Posts: 12,480 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Do you qualify for VAT at 5% ?
    Never pay on an estimated bill. Always read and understand your bill
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