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A guide to Energy Contract Termination & Renewal
When do we need the customer to serve termination?
Generally, termination must be served when the customer is switching supplier, it’s not required for renewals. Termination is always served to the current supplier.
If the customer is in a contract, when can they serve termination?
Customers can serve termination at any time, without penalty, up until the last 30 days of their current contract. For example, if my contract ends 30/11/2019, then I would need to serve my termination by 30/10/2019, i.e. 30 days before the end of the current contract.
What happens if the customer is within the last 30 days, is it too late to serve termination?
If the customer has already entered the last 30 days, then they have missed their time to serve without penalty. The customer can still serve termination but the way to think of it is that you usually have to give at least 30 days’ notice to leave. If we take the same example above, my contract ends 30/11/2019, but let’s say I’ve left it until the 15/11/2019 to serve termination. This means my fixed contract ends in 15 days and after that I go ‘out-of-contract’ (OOC). But I have to give the full 30 days’ notice before I can leave. So, I will have 15 more days on my fixed contract, but then I will have 15 days OOC paying those higher rates. Paying those 15 days’ worth of higher rates is my punishment for not serving on time.
Does a customer always have to serve termination if they want to leave?
Usually yes, but there are some times when it’s not required. If the customer has just moved in as a new tenant, (change of tenancy = COT), and they want to switch, they don’t need to serve termination, but they do need to go through the COT process (which itself terminates the current contract). Customers also do not need to serve termination if the are OOC on ‘deemed’ rates. A customer is usually on deemed rates when they have taken possession of a premises but haven’t yet agreed a new contract. As long as the current supplier is aware of the COT, they a free to leave without serving termination.
How do customers serve termination?
This is different for different suppliers, for most it’s via email. Some have a specific online portal and many suppliers will accept termination via recorded delivery.