I'm moving into a new property, currently looking at utilities for the next 12 months. I've noticed that some contracts are longer but have no exit fees – for example, Simply Energy has greater discounts on electricity and gas with their Simply Extra and Simply RACV Plus 24 month plans and no exit fees.
Does that mean I can leave after 12 months with no extra fees but still get the discounts while I'm with them for 12 months? Or am I missing something?
They are mandated by law to not have exit fees.
They are allowed to and a some still do.
@FakeJames:
Interesting.
I think retailers should be allowed to charge exit fees, as long as they are disclosed.
Maybe this is all from constant lobbying by One Big Switch / Seven West media / News Corp.
They are all in cahoots and earn a commission when they get someone to switch using their deals.
Problem is their deals are not always as good as they make out.
http://www.abc.net.au/mediawatch/transcripts/s4277463.htm
You can leave anytime, there is no lockin or exit fees.
The benefit period of 24 months just means benefits, like the pay on time discount, are guaranteed for the benefit period.
If it says no exit fees, they normally thats a yes. You could always GASP ring them and ask, say you're looking at someone cheaper, will they match.
You will find that a lot of electricity providers don't charge exit fees these days.
I did some door knocking for Energy Australia back in 2010, and even then the exit fee was only $50.