MSE News: British Gas charges customer exit fees to switch tariff...
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Month - uhm. I wouldn’t put money on it. Suppliers are fighting for market share and positions on comparison tables.
As far as switching is concerned, the Supply Licence gives the responsibility of managing the switch to the gaining supplier. Part of the supply transfer process is informing the losing supplier and others via the Network that a transfer is in progress. For 17 day switching, this action is initiated during the cooling off period as there are many parties involved.
When you switch, you do not have to inform your old supplier that you are leaving nor do you need to send them meter readings. Your old supplier has 6 weeks from the date of the actual supply transfer to raise your Final Bill. Any credit will be refunded shortly afterwards.
Ask yourself this question. If BG is currently under investigation for allegedly trying to charge exit fees within the 49/42 day window, why wouldn’t it charge you exit fees if it received information from another supplier that a transfer process had been initiated on, say, day 51 before the end of your contract. Legally, in my view, it is contractually entitled to that fee as you have initiated a breach of contract. As a consumer, you have no control over the industry processes that are initiated once a supplier actions your request to switch.
For completeness, having read your post again, if you are saying that you will not initiate the switch until 2 days before the end of your present contract then this is fine. The losing supplier will be notified that a switch is in progress within the 20 day after end of contract period, and you will have tariff price protection until the transfer takes place.
At the same time Ofgem underlined the already existing policy, that the 'Switch Date' was the day the new supplier began their supply to the customer.
Amazingly despite the regulator initiating new rules to control BG, there many posts complaining that BG are still trying to charge Exit Fee's to customer's who have Switched within the rules
I can find no reference to this: I would be interested to see the source. Interestingly, the term ‘switch’ is not mentioned in the Supply Licence whereas the term ‘transfer’ is mentioned in SCL14A