When you sign up for electricity service with a provider, you are typically entered into a contract that outlines the terms of your service. If you decide to cancel your service, you will need to send your provider a termination letter. This article will outline what information should be included in your letter and provide tips on writing it and how the process would go.
What is a Notice of Termination
A termination letter for electricity is a letter sent by customers to the electric company stating they would like to terminate their service with the company. The letter should include the customer’s name, address, and account number, as well as the effective date of termination.
Guide-to-Guide Steps To Terminate Service
Step 1: Send Termination Notice to Utility Company
Determine the end date of your current energy contract as a first step. Because of this, you can send a termination letter during the “switching window” specified in your contract. A cancellation letter must be delivered to the provider to properly end a power agreement.
Delivering a termination letter either personally or via recorded delivery is highly recommended.
A ‘read receipt’ confirmation that your energy provider got your termination letter via email is a good idea.
Consider the following when writing your letter of resignation:
- The identification number associated with your account
- Signed by you or an authorized representative of your utility company
- A letterhead from your organization
Step 2: Search for new electricity companies
You can start looking for a new energy provider once you have submitted your termination request and received confirmation that it was received.
It is advisable to use a price comparison tool because comparing commercial utilities might be a time-consuming operation. This centralized approach makes it easy to compare utility rates. You may work with an energy broker to get the most cost-effective energy rates.
Step 3: Switch Utility Service Company
When you’ve settled on a new energy provider, it’s time to make the change official. Your new energy provider will manage the transition on your behalf, but they’ll need access to certain details like your energy meter readings, MPAN and MPRN numbers, and so on. As soon as the transition is finalized, your new contract will take effect and replace your prior one.
Can You Switch Before Its End Date?
Contracts for energy services can be terminated before their expiration date, although your provider may assess early cancellation costs. If a customer cancels their utility service with an energy provider before the end of their contract’s term, the customer will be charged a cancellation fee. As a result, even if you discover a more favourable tariff with another provider, you will be required to pay an exit fee to switch.
Leave prices might range from £5 to £30 per fuel type. A supplier may charge you up to £60 to terminate your energy contract early if you are on a dual fuel plan with them. In a positive turn of events, some U.K. energy providers don’t tack on exit fees. Because of this, changing energy providers is significantly less of a hassle.
When cancelling your service with an energy provider, the required notification period differs depending on who you work with. If you want to cancel your contract with one of the top vendors, you need to provide them with 90 days’ reminder notice in writing. The other vendors need either 60 or 28 days.
How Long Does Terminating Process Happen?
Ofgem reports that switching electricity providers takes 16 days and switching gas providers takes 18 days. And it doesn’t account for the “cooling off” 14 days that utility companies must give their consumers before the move goes into effect if they change their minds.
Could you get your money back if something went wrong with the switch?
As per Ofgem’s rules, your energy provider may be required to pay you £30 if any of the following occur during the switch:
- Your energy provider was changed without your knowledge or consent.
- As of the end of the 14-day “cooling off” period, you have not finalized your switch.
- Six months after switching providers, your old utility company still hasn’t sent you your final bill.
In a nutshell, this is what you need to know to cancel an energy contract and prevent automatic renewal:
- Calculate the duration of time during which the contract can be cancelled.
- Please notify your energy provider in writing that you wish to terminate your service agreement.
- Find out which provider gives the lowest rates using an online comparison tool.
- Seek expert advice.