Caitríona Redmond: Why is it so hard to change service providers in Ireland?

Breaking up with a service provider should be as easy as signing up. But it isn’t.

Thanks to the advent of rules and regulations around switching, moving from one utility service to another is far easier than before. Signing up to the new utility provider is easy but breaking up with the old one can be hard to do.

Summer is a great time to examine our utility bills and service providers. We all want to save money, and while the bills are low, this is our opportunity.

Thanks to the advent of rules and regulations around switching, moving from one utility service to another is far easier than before. Signing up to the new utility provider is easy but breaking up with the old one can be hard to do.

If you’re not outside of your contract’s minimum term (check your original contract signed when joining your service provider), an early exit fee may apply. 

The amount depends on your original contract and is per utility account. If you have signed up for a dual-fuel account, both natural gas and electricity, then there will be separate exit fees applied. 

This will range from €50 to €100 per account, so if you are moving to save money before the end of your contract, factor in the exit fee.

Then there’s the final meter reading, which can catch an awful lot of people out. 

While your account on leaving may be in credit, once the final meter reading has been taken, you can end up with an unexpected, nasty bill. This can be exacerbated by a series of estimated bills.

It’s always good policy to submit regular meter readings to your utility provider, whether or not you intend to leave. 

If you find it difficult to log into your account and submit those meters readings with your service provider, you can always log a reading directly with Gas Networks Ireland and ESB Networks on their respective websites.

When switching providers, there’s a 14-day cooling-off period and any perks or benefits you may have signed up to can be held in this time. Also, bear in mind that if you signed up for a cashback offer, but finish your contract early, you will have to pay back the cashback in full.

It’s notoriously difficult to say goodbye to an Irish person on the phone, the number of goodbyes can be numerous. Saying goodbye to a telephone or broadband service can require quite a few steps as well.

Mobile phone contracts tend to last for 12 to 24 months, and early termination of the contract can result in customers paying the full cost of the remaining months.

If you have a contract which includes the cost of your mobile phone, you may have to return it. Those terms and conditions and/or contracts can really catch you out.

Most phone companies require at least 30 days notice, but it also depends on the date that your bills is due. I recently got caught out by this and had to give my mobile phone provider 45 days notice, not 30. 

In general, while you can ring your service provider to cancel, I always recommend putting a cancellation in writing and preferably by post. It’s also good practice to request a breakdown of your charges before you leave so that you don’t get any unexpected surprises.

Sign-up offers that favour new customers but penalise existing customers feel inherently unfair. We’d prefer to be on the most beneficial rate at all times, but that’s not sustainable for providers.

Technically, Irish consumers are well protected in Ireland when it comes to contracts. If you’ve signed up for a service remotely — online, over the phone, or even through a sales rep on your doorstep — you’re covered by a 14-day cooling-off period. During this time, you can cancel without explanation or charge. Bear in mind you can’t move to another new provider during this period, though, as I hear some consumers have been caught out by this rule.

All of that said, I’ve received a considerable number of messages from dissatisfied customers of varying utility and service providers in Ireland. From TV to mobile phone to broadband, it seems that many service providers don’t make it as easy as it should be.

Take the example of our reader Jenny from Meath, who recently tried to change her TV service.

Jenny contacted her existing company by ringing them to ask them to get a better offer. As their offer was not good enough, she turned it down.

Within minutes, they sent her an e-mail confirming her new offer and, unbeknownst to her, renewed her contract for another year. This, despite her clearly saying that she wanted to cancel, and she was not agreeing to the new offer.

Unfortunately, Jenny’s experience is indicative of many other consumers in Ireland, and it’s a pity that signing off is not as simple as signing up.

The ensuing mess took her more than three weeks to resolve, with many phone calls and emails, and she eventually managed to deal with somebody via WhatsApp chat. She feels very let down by her old provider, especially after being with them for over 12 years.

Next week, I’ll have an update on a Cork consumer who can’t get out of her broadband contract because she has been unable to contact the service provider.

If you’ve got a recent issue with leaving a contract that you’d like me to investigate, please get in touch below.

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Whether you use a paper or digital diary, note the date you signed up to a contract and set yourself a reminder for 12 months’ time, or whenever your contract expires. I set an alert to receive an email when a contract is up for review. I paste all the information I need into the reminder, saving myself the effort of digging around for it.

Remember if you are out of contract with your gas or electricity provider you will be paying the standard rate. You could be paying as much as 30% more on your electricity or your gas on standard rates. Locking yourself into a contract with your utility provider to save a tidy pot of money.