Home Q&A: Can I get out of an electricity deal after a week?

I signed up with a new supplier week ago, but I find the standing charges are too high 

QUESTION

Can I get out of an electricity deal? I signed up with a new supplier a week ago, but I find the standing charges are too high. 

ANSWER

Standing charges cover fixed costs associated with providing gas and electricity. They are not regulated by the Commission for Regulation of Utilities (CRU), as the Public Service Obligation (PSO) was zero this year, and apply to all customers regardless of their usage. 

They can be surprisingly high for rural smart-meter customers, climbing to €484pa in the case of electricity (€713 for Prepay Power) or €700pa-€800pa for gas and power bundles. 

Broken down to six bi-monthly payments over the course of a year, the figure for standing charges can vary wildly depending on both the supplier and the tariff. 

You have a 14-day cooling-off period for a distance transaction including signing on to any energy, gas or dual-fuel deal. 

You may change your mind almost immediately (no penalty within 14 days of sign-up) or want to escape the product before the contract is up. 

If the details turn out to be other than what you expected, or you find a better product, email your new supplier and follow their instructions on cancelling your application. 

Expect to receive a confirmation of your cancellation by email. 

Leaving an established energy contract before the term is over, will generally cost €50 per account, plus the return of any credit to your account received as a signing bonus. 

Ensure your new deal is worth jumping ship before it is over.

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