How to cancel an energy contract?
Feeling dissatisfied with your current energy retailer? About to move to a new place? There might come a time, whatever your reason may be when you decide that you would like to cancel your energy contract with your current provider. If you are finding the service or contract incompatible, then take the following steps.
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.
Firstly, Contact your service provider either via phone or in writing to explain any problem that you are facing. If the provider cannot provide a solution in a reasonable time, then you can request for your contract to be canceled. Your provider will then organize a final meter read and service disconnection on a preferred date. If you have a traditional meter, a qualified technician will visit your property but in case of a smart meter, remote disconnection can be carried out.
A final Electricity bill will be sent to you based on the final meter read plus the disconnection fee.
What if you are on a 12-month contract, can you still cancel your plan?
Most Energy offers are on a two-year contract or benefit period. The offer stands from the day you sign up for it. However, once the benefit period expires, the customer is moved to another plan. 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.
Usually, there are exit fee in fixed rate contracts or offers with special perks. Exit fees in on-the-market offers are quite uncommon. Before signing on the dotted line for an energy contract, be sure to read it entirely and look for any exit fees which are usually found on the energy price fact sheet.
What is cooling off period?
When you sign up to an energy plan, you are entitled to a 10 day ‘cooling off period’. You can review, change your mind and/or cancel the contract without any charge within the 10 business days (i.e. From the date of signing the contract with your provider).
What are disconnection fees?
There might be a disconnection fee, which is the cost of disconnecting a property from the grid, which may be charged by the distributor.
What to do if planning to switch providers?
If you plan to switch retailers, then the new provider will take care of the formalities. You old provider will be contacted by your new retailer to cancel your plan and organize the transfer of the account, But don’t be alarmed, you will not lose power during this process.
A quick tip would be to wait until the end of the billing period, if you are switching providers and not moving house. There will be a final bill which you will receive from your old provider after you switch.
What if your old energy provider calls you after you cancel your contract?
These are Win back offers where your old provider contacts you again to let you know the market offers in order to win you back. You can ask for an energy price fact sheet or contract to check your options and shop around for the best prices available.