How to cancel an energy contract?
Not happy and not satisfied with your existing energy retailer? About to move to a new place? Whatever your reason is, a time will come you have to cancel your energy contract with your current seller. These are the things you need to know about cancelling your energy contract.
How to cancel?
Inform your energy retailer over the phone or through online if you want to end your plan. Be ready with your basic information in order to cancel, including your account number, address and form of identification.
Most retailers request at least three days notice, so you can organize yours in advance. Your Energy retailer will organize a final meter read and disconnection on the preferred date. Customers with smart meters disconnection can be done remotely while customers with the traditional meter still require someone to physically attend to their property.
You will still receive one last Electricity bill from your retailer based on the final meter read plus any extra fees for the disconnection.
If on a 12-month contract, can the plan still be cancelled?
Most retailers offer is on a one or two-year contract or benefit period. The deals remain in place for a certain period from the day you sign up. Once a benefit period is over, the customer is moving on to another plan with the same retailer. Just remember even if you’re in a contract you’re free to move out whenever you like, subject to exit fees.
What are exit fees?
Some energy deals include an ‘exit’ or ‘termination’ fee if you leave the contract within a year or two after sign up. The fee ranges from $20 to $150, vary from every retailer.
The exit fees are most likely found in fixed-rate contracts or deals with special perks. On the other hand, on the market offers exit fees are increasingly uncommon. The exit fees should be on the energy price fact sheets, be sure to read this thoroughly before you sign up to an energy product.
What is cooling off period?
Once you signed up to an energy plan, you are entitled to a 10 day ‘cooling-off period’. You have ten business days (from the date on which you signed the contract with your new retailer) to change your mind and cancel the contract at no charge.
What are disconnection fees?
A disconnection fee is a fee that reflects the cost of disconnecting a property from the grid, charged by the distributor. The rate varies per location, which ranges from $10 to $90.
What to do if planning to switch providers?
If planning to switch providers, the new retailer should take care of everything for you. They’ll contact your old provider to cancel your plan and organize the account to be transferred. You will not lose power supply during the process.
If you’re switching retailers and not moving house, wait until the end of the billing period before the new retailer takes over. There’s one more bill you’ll receive from your old retailer after you switch.
What happens if old energy company calls after cancellation?
Your old retailer may contact you again and entice you with offers just to win you back. In case this happens, ask for an energy price fact sheet or contract to compare your options and ensure you’re still getting the best price available.