Early exit fees — a deterrent for switching
You may currently be on the cheapest deal available, or perhaps your supplier / plan already offers no early exit fees; however, for many of us early exit fees attached to energy plans can be frustrating, and can outweigh any savings to be had from switching when a better deal becomes available.
When a fixed energy plan has 42 – 49 days left before its end date, exit fees can no longer be charged by the supplier. This Ofgem requirement means it’s often sensible to wait until this time frame before switching to a new plan, as switching away before this window can cost you around £30 per fuel in exit fees — and that’s on top of any energy you may still owe for.
Now new supplier to the market, Bulb, has acted on a community member’s suggestion to help reduce this barrier and offer a solution: they’ll refund your old supplier’s exit fees.
How Bulb’s refund idea works
When switching to Bulb’s tariff (vari-fair), the customer can simply send Bulb a photo or scan of their final bill showing any exit fees that may have been incurred. Bulb will then credit the member’s account with a balance reflecting these fees.
Bulb co-founder, Hayden Wood commented:
“We’re passionate about giving people the freedom to choose where they get their energy from. For years UK consumers have been getting a raw deal from their energy supplier.
“Fear of costly exit fees is a significant barrier for people who want to switch, locking them into expensive tariffs. One of our Bulb community members suggested we refund any fees from switching. We thought it was a fantastic idea and decided to make it happen.
“We don’t charge exit fees ourselves, and we’re now refunding members who were charged exit fees by their last supplier.”