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Switching from one fixed Pureplanet Tariff to another...


Userlevel 1

Hi 👋🏻 I’m considering signing up to the 24 month fixed energy tariff, & see the exit fees are £30.

Every supplier I have had in the past only charge exit fees if you leave the supplier, i.e. you can move around their own tariffs without penalty.

 

I can’t find if PurePlanet do this too ❓❔❓

 

So, if I signed up to 24 months here, would I be able to switch back to the variable tariff, or to an alternative fixed rate if one were on offer, without fees ❓❔❓

 

 

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Best answer by Angelabikerbabe 24 July 2021, 14:12

Hi

Yes you would have you pay the exit fees even if you changed to another tariff with PP.

This has already been brought up in the past as an issue.

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19 replies

Userlevel 7
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Hi

Yes you would have you pay the exit fees even if you changed to another tariff with PP.

This has already been brought up in the past as an issue.

Userlevel 7
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Yep, has been mentioned before, I still think you should be penalty free if you switch within the PP tariffs.  

Userlevel 7
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Yep, has been mentioned before, I still think you should be penalty free if you switch within the PP tariffs.  

Its probably to stop people switching if a cheaper tariff becomes available, but I know some suppliers allow this

Userlevel 1

Yep, has been mentioned before, I still think you should be penalty free if you switch within the PP tariffs.  

Absolutely. I thought perhaps I couldn’t find a FAQ topic because it was just a given in energy. Clearly not.

I’m on the PP variable currently, wanting a fixed tariff, & the PP 2 year fix on offer is much the same as a British Gas 3 year fix. I wouldn’t bother switching back TO BG if PP allowed movement within their own tariffs, but might think again for the extra freedom 😕

Userlevel 7
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@p0mme @Scubaseahorse @Duppy @Angelabikerbabe 

I’ve raised this many times, and many suggestions have been made.  It has to be fair both ways.

The issue of changing to a variable from a fix is very different to changing from one fix to another.

If PP allowed change to a variable from a fix without penalty the next step would invariably be a move  to another supplier from the variable tariff without penalty. (This is further complicated because the fix is (at the moment and usually) more expensive than the variable.)

HOWEVER...putting aside for the moment the 24 month option (I’ll get back to that in a moment) what I suggested was if someone wanted to change from one fixed tariff to another, what PP should do is drop the penalty charge and apply the penalty to the new tariff for the duration of the new tariff. This could apply after you’ve been on the existing tariff for say 2 (or 3 ?) months.

So for example you’re on a fixed tariff and 6 weeks go by, you would pay the penalty, but 2 months or more go by you can change tariffs to another fix without penalty on the old tariff, but the penalty on the new tariff will reset to the time you started. 

(In all of this I’m ignoring the last 50 days, take that as read)

for example

if your existing tariff end date is December 2021, you change to a new tariff in August 2021, the penalty on the new tariff runs from August 2021 to August 2022 if it’s a 12 month fix.

HOWEVER, if you are changing from a 24 month tariff to a 12 month tariff, instead of it being 2 months it would be 14 months when you could change without penalty 

BUT if it was between 2 and 14 months the penalty could be a pro rata amount for example, £20 per fuel 2 to 6 months after your start date , £15 from 7 to 10 months and £10 for 11 to 14months, after which as above no penalty.

The top and bottom of this whether or not you think it too complicated (it isn’t) is that it would be fair for both sides. Expecting to change to a variable tariff at any time without penalty makes a mockery of fixing in the first place if the variable is cheaper. Just stay on the variable until the price increases and then fix, you can’t have it both ways. 

I’m not saying any of this with a PP hat on, far from it, PP need to address this, because as you say it’s currently biased against the customer.

(I know for a fact that there are other small companies (not of the big 6) which allow this. They get round the problem of churn by just not informing customers of new tariffs, thus the customer constantly has to check. I’ve also complained about the same practice at PP. Every time a new tariff is released there should be a major announcement in the community but PP don’t want to do that, they just replace the tariff and wait until someone like me spots it.)

One (or 2) for the ideas or feedback section but it’s already been raised although not necessarily in either section - I cbb/cba looking)

I’m on the PP variable currently, wanting a fixed tariff...

Yup @p0mme, you can change to the fixed without penalty if you’re currently on a variable tariff; there is no exit fee. The fixed has an exit fee if you wanted to escape that.

Userlevel 7
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I do think you should be able to move from 1 fix to another without being charged exit fees, that's only my opinion. 

Userlevel 1

I’m on the PP variable currently, wanting a fixed tariff...

Yup @p0mme, you can change to the fixed without penalty if you’re currently on a variable tariff; there is no exit fee. The fixed has an exit fee if you wanted to escape that.

I did realise that, thanks. I’m asking questions before signing up to a fixed for 2 years, & was thinking I should be able to move around PP’s own fixed tariffs at any time (like Scottish Power/Eon/Brit Gas allow one to), but helpful people have told me that’s not the case here.

Indeed, not without paying the exit fee @p0mme. Pleased it is clear… 😊 

To me it seems fair to both sides that a deal should be a stay a deal. 

Tangent alert: Unlike TalkTalk, where repeatedly they agree to a fixed deal and then try to put the price up half way through! This time my £24 fibre 65M, 18 month deal was half way through and they tried to put it up to £26! I rebelled, haggled, and got a new 18 month identical deal for £22! I see it’s on offer today for £25.

That’ll teach ‘em for trying it on!

(well clearly it won’t teach ‘em. It’s a business model that obviously pays off for them!)

PS Did you know, they’d taken gullible out of the dictionary?

Userlevel 7
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Indeed, not without paying the exit fee @p0mme. Pleased it is clear… 😊 

To me it seems fair to both sides that a deal should be a stay a deal. 

 

@25 quid 

 

I disagree.

 The deal part of the equation is staying with the supplier and agreeing to pay a penalty in circumstances where you don’t. Perfectly fair if you’re deemed to have gained some sort of advantage BY COMMITING TO THE SUPPLIER.

There are lots of other scenarios and reasons they should change it and the irony is  (I believe) it will benefit their churn rates too.

If PP can incentivise people to join up at their new property when they move then they can change this too and  still retain customers. I’m of the opinion that not allowing the flexibility will hurt PP,  but perhaps they are of the opinion that they have more to gain than to lose by sticking with the present policy. If so it doesn’t sit well but to be fair maybe  someone has analysed this and there are business factors we aren’t aware of?

I’d very much like to see the counter argument as to why something like I posted in my earlier post (apart from maybe implementation issues - but keep it simple) isn’t being considered.

Also worthy of consideration is the fact that prices are now so high the penalty is rapidly becoming less significant, and when that happens and a tariff comes along with another supplier maybe slightly cheaper than PP and a new fix with PP because prices have fallen (they do go up and down), PP will be less likely to retain the customer by not allowing  the penalty to migrate to their new tariff.

I think we will have to beg to differ on this one, and regarding TalkTalk (who I dislike intensely after the way they dealt with the data breach), when you signed up was there a clause in the small print saying they could increase the prices by inflation? If so, to quote your own words, a deal’s a deal

(except when it isn’t and it’s skewed towards the supplier.)

 

 

 

 

Yup, with 3 (the mobile operator) there is an explicit term in the contract for an inflation + x% annual increase. TalkTalk hasn’t made that part of the deal; they were just trying it (£2) on!

If PP offered these in-contract switches, there is a risk of it degenerating into a TalkTalk style hagglefest, with the ensuing bitterness as the inevitable edge-cases play out. As you say, we’ll have to agree to disagree on this topic… 😊 

PS How may extra returns at the end of a post is the right number? 😉 

Userlevel 7
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3±3

 

 

 

Indeed, not without paying the exit fee @p0mme. Pleased it is clear… 😊 

To me it seems fair to both sides that a deal should be a stay a deal. 

 

@25 quid

Also worthy of consideration is the fact that prices are now so high the penalty is rapidly becoming less significant, and when that happens and a tariff comes along with another supplier maybe slightly cheaper than PP and a new fix with PP because prices have fallen (they do go up and down), PP will be less likely to retain the customer by not allowing  the penalty to migrate to their new tariff.

This is how I see it as well @woz, I’ve signed up to the 24 month fixed, but prices only have to drop by 3% for it to be worth me moving during the deal.

I guess the problem for Pure Planet is that they are also signing up to buy a given amount of energy at an agreed price during the next two years - should a reasonable number of the people taking out those fixed-term contracts which back that agreement with the generators then decide to either change tariff or leave Pure Planet - Pure Planet are left facing a loss, possibly a quite considerable one.

Userlevel 1

I think my expectations are in comparison to other energy suppliers deals, not telecoms ones.

None of the energy companies I’ve encountered haggle on tariffs, like most phones/internet/tv do, & all let you move around their own tariffs (in so doing re-starts the minimum term of (around) a year.

 

I don’t see why one should expect a supplier to waive early release fees if changing tariffs within the same provider. For fixed price contracts the provider also is committing itself to a supply at a price for a period of time. It has to budget for its own cost of supply and enter into agreements based on what it’s own contractual commitments are. Remember that a supplier buys well ahead. A supplier also plans its own financial future based on what contracts it  has with customers. Therefore perfectly reasonable to charge an exit fee. They cannot of course within the last month or so of the contract. Of course, if you wanted to enter into a new fixed price contract with them at a higher price I am sure there will be no objections!

Remember two parties are entering into a contract. Why should one be allowed to get out if something cheaper comes along whereas conversely the other cannot put its prices up if buying in costs become greater. It works both ways. A fixed price contract is a two way vehicle.

No different to other suppliers of many other different products. I have been offered full fibre to my house for £22 per month. It is not viable to change as I would have to pay a large amount to EE to whom I am contractually committed until February. EE after a lapsed time in a contract do offer upgrades with no penalty but an upgrade means paying more!

All this is made quite clear when entering into the contract.

Userlevel 7
Badge +9

Indeed, not without paying the exit fee @p0mme. Pleased it is clear… 😊 

To me it seems fair to both sides that a deal should be a stay a deal. 

Tangent alert: Unlike TalkTalk, where repeatedly they agree to a fixed deal and then try to put the price up half way through! This time my £24 fibre 65M, 18 month deal was half way through and they tried to put it up to £26! I rebelled, haggled, and got a new 18 month identical deal for £22! I see it’s on offer today for £25.

That’ll teach ‘em for trying it on!

Excellent ! 

Userlevel 7
Badge +9

Indeed, not without paying the exit fee @p0mme. Pleased it is clear… 😊 

To me it seems fair to both sides that a deal should be a stay a deal. 

 

@25 quid

Also worthy of consideration is the fact that prices are now so high the penalty is rapidly becoming less significant, and when that happens and a tariff comes along with another supplier maybe slightly cheaper than PP and a new fix with PP because prices have fallen (they do go up and down), PP will be less likely to retain the customer by not allowing  the penalty to migrate to their new tariff.

This is how I see it as well @woz, I’ve signed up to the 24 month fixed, but prices only have to drop by 3% for it to be worth me moving during the deal.

I guess the problem for Pure Planet is that they are also signing up to buy a given amount of energy at an agreed price during the next two years - should a reasonable number of the people taking out those fixed-term contracts which back that agreement with the generators then decide to either change tariff or leave Pure Planet - Pure Planet are left facing a loss, possibly a quite considerable one.

Good point 👍

Hello @p0mme 

Thank you for posting and welcome to the Community!

Cool avatar :sunglasses:

Really fab advice from everyone here - thank you all for helping @p0mme!

Would be fab to see you join our fixed tariff (not that I am biased :wink: ), keep us updated on what you decide too! 

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