Cooling off period

  • Hugo's Avatar
    Level 1
    Hi

    Good to be in the forum. I’am an E.on Next customer already. I think from memory opting for a change of tariff generates a whole new 14 day cooling off period. Considering the change to fixed v18 and whilst no exit fees if I change within the 12 months. and wanted to stay with the business. If there is a cooling off period it will end shortly after the Ofgem announcement and therefore could cancel within this period. If anyone has recently changed or knows for certain there is a new cooling off period I’d be grateful to hear from you. Thanks
  • 5 Replies

  • Andy65's Avatar
    Level 42
    Hi @Hugo

    Looking at the T&Cs here I can't see any reference to a cooling off period when changing tariffs (Section 11 onwards). As there a no exit fees then it would make sense not to have a cooling off period as there are no penalties.
  • Hugo's Avatar
    Level 1
    @Andy65 Thanks for the detail. No mention as you say. Understand about the zero exit fees. I just want to ensure that if I exit I can move to the Variable if needed.
  • Andy65's Avatar
    Level 42
    That does seem to be a bit of a grey area @Hugo, moving during a fixed deal back to the variable.

    I've just come off a fixed tariff and I opted for the variable but I have been tempted by V18. However, if I move to V18 my monthly payment would increase by 68.2%, so assuming that the cap does increase by 70% as forecast, I think in the short term I'm better off on the variable, particularly as I'll be making at least two payments on the variable before the cap increases.
    I'm also on E7 and even though I have gas central heating, I make E7 work for me. On the variable the Night Rate is 52.7% of the Day Rate, on the V18 tariff the Night Rate increases to 73.2% of the Day Rate, so I would be hit there as well.

    Because of the amount of households on a variable tariff, the Government is almost certainly going to have to do more, another reason why I'm staying on the variable.

    It's a difficult decision either way and more of a guessing game than being able to base it on pure facts.

    It might be worth asking Customer Services the question just to be certain although it seems that jumping from one fixed tariff to another mid term has no fees or penalties, the variable is just another tariff.
  • Hugo's Avatar
    Level 1
    Exactly that.. finished my fixed already and sitting on variable. For me I’d probably lose a small amount initially. But, with 70% Oct and then with predicted increases Jan onwards, I’d be slightly better off overall. If the 82% Oct, 19% Jan,4% April and -14% July happens, without doubt I’d be in a much better place with the fix. I’d get better odds and William Hill.
  • meldrewreborn's Avatar
    Level 90
    Personally I think working in "average" increases in the price cap is the wrong way to look at it.

    We're not average - any of us. The increases in the price cap tariffs apply to the two fuels separately and then the standing charges and unit prices for each. How we are affected by the price cap depends on the fuels we use and how much of them.

    I'm a below average electricity user, but nearly 50% higher user of gas (although gas usage varies much more than does electricity). From Cornwall's estimates you can work back to likely unit prices for the different periods.

    Figure 1: Cornwall Insight’s default tariff cap forecasts, £ per year including VAT (dual fuel, direct debit customer, national average figures)
    QUARTERLY Q4 2022 CI Forecast Q1 2023 CI Forecast Q2 2023 CI Forecast Q3 2023 CI Forecast Q4 2023 CI Forecast
    Electricity £1,686.04 £2,098.53 £2,073.91 £1,717.03 £1,744.79
    Gas £1,895.97 £2,167.95 £2,353.03 £2,093.17 £2,036.60
    TOTAL £3,582.02 £4,266.48 £4,426.94 £3,810.20 £3,781.40
    AVERAGE £3,924.25 £4,118.57
    Source: Cornwall Insight

    For me the key periods are q3 of this year and Q1 of next year because that's where the majority of my gas use is - my solar thermal panel greatly limits my gas use in the summer periods.

    Unit prices of 67p for electricity and 17P for gas in q1 2023 are the logical deductions from these forecasts if standing charges remain the same as they are now (i know of no reason why they should rise - but some switching of costs from electricity to gas remains a possibility).

    Working in averages to me misses the point - the devil is in the detail.
    Current Eon Next and EDF customer, ex Zog and Symbio. Don't think dual fuel saves money and don't like smart meters. Chronologically Gifted. If I offend let me know by private message, but I’ll continue to express my opinions nonetheless.