Petition To Ban Exit Fees Within Suppliers

Chrysalis

Exit fees arent nice, and I will avoid tariffs where I feel they add a imbalance to the combination of been mobile in the market and money I am saving.

But to be realistic here, they are openly disclosed, and if they were banned, the tariff cost would increase to compensate, they still going to get that revenue but it would be in some other way.
They also far better than what happens in the broadband market.  Where it can costs 100s to leave a provider.

Bendo

AH55522 said:

How can it possibly be leal to penalise a customer for changing to a cheaper tariff with the same supplier?

It's quite simple really. The supplier has hedged the energy you are forecast to use during your fix at a higher price.

If the costs of buying that energy come down and they can then offer a lower price, they have still already hedged your energy usage at the higher cost so you moving to a lower priced deal would cost them. That is the whole point of exit fees . 

Just because a limited number of people don't understand the basic concept of them doesn't make it unfair. All banning them for internal tariff switches would do is ensure costs are higher from the off to cover such scenarios . 

Qyburn

AH55522 said:

I, like I think most customers, assumed Exit Fees only applied if you change suppliers, but was shocked to find out EDF charged me £50 to switch to a cheaper tariff with them. 

I'd be amazed and disappointed if "most customers" made that same mistake.

debitcardmayhem

Qyburn said:

AH55522 said:

I, like I think most customers, assumed Exit Fees only applied if you change suppliers, but was shocked to find out EDF charged me £50 to switch to a cheaper tariff with them. 

I'd be amazed and disappointed if "most customers" made that same mistake.

According to St. MSE lewis most customers never switch/fix 

Grizzlebeard

AH55522 said:

How can it possibly be leal to penalise a customer for changing to a cheaper tariff with the same supplier?

If everybody switched from a fixed tariff to another fixed or variable tariff the moment a cheaper one is on offer it destroys the suppliers incentive to offer fixed tariffs.

Fixed v Variable is a gamble for both supplier and consumer. Odds/risks must be shared.

T&Cs must comply with current legislation, therefore they are legal whether the customer likes them or not. Customer must tick the "I have read the Terms & Conditions" box before being accepted.

I do agree rules on exit fees should be clearer and strict enough to stop suppliers "bamboozling" new customers into signing up for something they don't understand.

(edited for typos)

molerat

The big problem is that not all suppliers are the same.  Some do not charge when switching tariffs, some charge half fee and some charge the full fee.  With some it varies between tariffs.

powerful_Rogue

User error. Check what you are agreeing to before signing up for a fixed contract.

It's no different to many other contracts such as sim only contracts, broadband contracts and many mnay more.