When to switch - timing is everything?

hoopertr0n · 4 March 2018 at 5:52PM

Hi there,

I am currently on a fixed tariff that expires on 31 March, at which point i will be automatically switched to a new fixed rate with the same supplier.

Currently, it would cost me £60 to switch out of my deal, but there are no exit fees after 31 March.

I wish to switch supplier, but don't know when to do this - if I apply for a switch today (as of 4 March), will I be charged by my current supplier. How do I ensure that the switch happens so that I am with a new supplier on the 1 April?

Many thanks,

Chris

editor1 · 4 March 2018 at 6:06PM

Chris,

i don't get where you are coming from?

If you are on a fixed term contract OFGEM states you can Switch supplier without penalty 49 days before your actual contract expires - it takes 21-28 days to Switch usually, unless bumps in the road shall we say.

As such, you legally could have begun changing your supplier in mid-February, and, if your account was in credit, actually stop your Direct Debit payments if enough funds were in credit to cover all charges incurred before the handover.

I'm on a First Utility fixed contract that ends on 30 April and can begin switching on 12 March - I shall be changing to Outfox the Market, namely to its 18 month fixed deal, which means my next switch will be around August 2019, which means avoiding the usual final quarter price increases most suppliers impose on us.

editor1 · 4 March 2018 at 6:16PM

Chris,

Forgot to add, as your contract expires in less than 50 days time you can begin Switching now - quite a number of good fixed deals are on offer, so just do the MSE price comparison and see who offers the best deal and good service, also, check cash back sites as you can get up to £100 cash back if you go via a cash back site such as TopCashBack or Quidco.

hoopertr0n · 5 March 2018 at 4:22PM

Thanks, that was a great help.

System · 5 March 2018 at 4:39PM

It is also worth pointing out that provided your present supplier is notified via industry flows that a transfer is in progress by the end of contract date plus 20 days, then you will remain on your present tariff terms until the transfer goes through (usually no later than 35 days from application to switch). It follows that if you applied to switch on, say, the last day of your current contract and your new supplier took no action for the first 14 days and then started the transfer process you should have tariff protection.

The danger of leaving it to the very last minute is that the good deal that you had your eye on may have been replaced with a more expensive tariff.

Anthorn · 5 March 2018 at 5:11PM

I don't agree with the foregoing posts. Timing a switch is speculation: You are attempting to look into the future to decide whether energy prices will be higher, lower or static. The only accurate time to switch is when your current contract is due to end.

Consider this: During the recent cold snap we were told that gas was running out and businesses were ask to reduce their consumption to leave enough gas for households. We were also told that the cost of wholesale gas has increased dramatically but not to worry, when the cold snap is over the cost of wholesale gas will return to the level it was before the cold snap. So in your opinion is that going to be true or not? Should you switch or not? Well, maybe or maybe not. It's your choice!

System · 5 March 2018 at 6:55PM

Anthorn wrote: »

I don't agree with the foregoing posts. Timing a switch is speculation: You are attempting to look into the future to decide whether energy prices will be higher, lower or static. The only accurate time to switch is when your current contract is due to end.

Consider this: During the recent cold snap we were told that gas was running out and businesses were ask to reduce their consumption to leave enough gas for households. We were also told that the cost of wholesale gas has increased dramatically but not to worry, when the cold snap is over the cost of wholesale gas will return to the level it was before the cold snap. So in your opinion is that going to be true or not? Should you switch or not? Well, maybe or maybe not. It's your choice!

I agree 100% that switching is a personal decision. I do not agree that switches should only be made at the end of a fixed tariff period. I have switched my electrical supply 4 times in the past 14 months. Each time, I have been able to switch to a similarly priced deal and I have accrued over £200 in cashback. I have just switched my electricity supply to a fixed deal with £50 cashback.

I switched my gas in Dec 16, and again in May last year. Why? During the period Dec to May, I use about 80% of my annual projected consumption. It made sense to switch to secure a fixed deal for the coming Winter. Exit fees were not a factor.

When to switch - timing is everything?

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