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Would I incur an early exit charge if I switch from OVO to Lumo?

  • 8 March 2018
  • 4 replies
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I am on a Better Energy (all online) tariff until May 6th 2018. Would I incur a penalty if I switched to Lumo now?
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Best answer by Nancy_OVO 21 March 2018, 13:20

Hi @BaildonBoy,

The simple answer to that one is yes.

It'd be considered "tariff hopping", which incurs exit fees. If you'd signed up to a specific fixed plan within OVO, and then wanted to move to a different OVO fixed plan, or the variable before the end of your exisitng contract, this would also incur exit fees.

Hope this helps,
Nancy
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Userlevel 7
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Hi @BaildonBoy,

I don't think so, but we might need a Moderator to confirm that. Lumo is a wholly-owned subsiduary of OVO Energy which operates under the same Ofgem licence. It may have a different name, with different Terms & Conditions, but it is effectively merely a change of tariff.

The Exit fees are required to compensate OVO for the extra administration work which is required in order to manage the switch to a different company. This is not just the notifications to the National Register, but the anti-fraud checks, ensuring that the switch-date has sufficient notice period, getting meter readings, confirming meter numbers and getting any arrears of payments from the customer.

Little of this is required if you're simply switching between sister-companies. Indeed, your switch is to the benefit of OVO/Lumo because you're taking out a fresh extension of a contract with them.

OVO already allow changes of contracts between tenants and landlords without imposing early-exit fees, even though this would require them to make ID checks of the new name on the contract. So it would be perverse if they charged you to make a switch when you are the same person and they already know enough about you!
I thought that I would see what happened by going on the lumoapp site and after a lot of questions I was informed that lumo couldn't supply me at the moment, so it's all been a waste of energy...:@
Userlevel 7
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Oh, sorry to hear that @BaildonBoy.

I had a brief look at Lumo's criteria several weeks ago. I'd agree that they are quite closely defined. Basically OVO are using Lumo for a clearly identifiable sub-group of customers who can benefit from lower prices purely because they all fit the same model. This means that the administrative overhead is low.

It's not for me... and it sounds like it wasn't right for you either.
Userlevel 6
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Hi @BaildonBoy,

The simple answer to that one is yes.

It'd be considered "tariff hopping", which incurs exit fees. If you'd signed up to a specific fixed plan within OVO, and then wanted to move to a different OVO fixed plan, or the variable before the end of your exisitng contract, this would also incur exit fees.

Hope this helps,
Nancy

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