Following the recent round of energy price rises, thousands of consumers found themselves either trapped in expensive energy deals or being forced to pay exit penalties in order to switch utility companies.
But energy suppliers have been flouting Supply Licence Condition 23, under which customers can switch energy companies without penalty, as long as they inform the provider that they wish to do so between the time when they announced a price rise and the time at which it is implemented.
According to a recent article in The Daily Telegraph Suppliers have obligations to write to customers at least 30 days in advance if they intend to increase the charges or make other changes to a contract that would leaves the customer significantly worse off. In these circumstances, if a customer is on a fixed-term deal they can switch without having to pay an exit fee provided they notify their supplier on or before the date the increase or change is due to come into effect.
So if you recently were forced to pay a penalty when switching out of a fixed term deal, ahead of a price rise, then you can claim it back! It is worth remembering for the future that if your gas or electricity deals have an associated exit charge that these are negated in the face of future price rises.
Were you forced to pay an exit penalty? – If so let me know using the comment box below:
Looking for a financial adviser near you?
Do you need financial advice? An independent financial adviser can show you how to make the most
of your money. Find your nearest qualified and regulated adviser using this VouchedFor search tool.
Alternatively, Hargreaves Lansdown, one of the UK’s largest firms providing restricted financial advice, is offering a £200 John Lewis voucher* to new clients.