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Contract with no end date but early termination penalty

  • 10-01-2013 2:35pm
    #1
    Registered Users, Registered Users 2 Posts: 142 ✭✭


    Hi,

    I had a contract with my electricity supplier, which as far as I was aware (since there was no end date) was a rolling contract which I could terminate with reasonable notice. About a month ago they put my rates up by ~30%, explaining that they had made a mistake in the rate I was on, so I moved my account to another supplier. I just got my final bill which includes a €400 charge for early termination. I've looked at the small print of the contact, and in fairness it does call this out, but can this be valid if there's no end date on the contract? Does that mean I would have just had to stay with them forever?

    It's for a business account rather than a consumer account, if that makes any difference...

    Thanks for your help...


Comments

  • Closed Accounts Posts: 4,111 ✭✭✭ResearchWill


    One_Time wrote: »
    Hi,

    I had a contract with my electricity supplier, which as far as I was aware (since there was no end date) was a rolling contract which I could terminate with reasonable notice. About a month ago they put my rates up by ~30%, explaining that they had made a mistake in the rate I was on, so I moved my account to another supplier. I just got my final bill which includes a €400 charge for early termination. I've looked at the small print of the contact, and in fairness it does call this out, but can this be valid if there's no end date on the contract? Does that mean I would have just had to stay with them forever?

    It's for a business account rather than a consumer account, if that makes any difference...

    Thanks for your help...

    No advice can be given as per the charter, contact your solicitor or accountant.


  • Registered Users, Registered Users 2 Posts: 142 ✭✭One_Time


    Apologies - my bad. Should have read the charter first!


  • Registered Users, Registered Users 2 Posts: 14,681 ✭✭✭✭P_1


    Check your contract, there could be some clause in it that says you have to stay in your contract for a set period of time. If you break the contract before that time is up, you have to pay the termination penalty.

    EDIT: Not sure if this can be seen as legal advice, if it is feel free to snip away..


  • Closed Accounts Posts: 1,359 ✭✭✭ldxo15wus6fpgm


    Sounds to me like they changed the terms of the contract which would allow you to escape penalty free - contact a solicitor.


  • Registered Users, Registered Users 2 Posts: 27,257 ✭✭✭✭Peregrinus


    Does the contract stipulate a notice period for termination, and did you respect the notice period? The "early termination fee" could in fact be liquidated damages for failure to give the agreed notice of termination.


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  • Registered Users, Registered Users 2 Posts: 142 ✭✭One_Time


    Yeah, I've read through all the small print. There's loads of mentions of a termination date, but no mention of an actual date or duration. I think there was meant to be a date included, but they've left it out accidentally.

    I also discovered that I'm entitled to terminate it early if they change my rates, which they did, so I'm hopeful of a good resolution if I need to go to the CER.

    Thanks for your help everyone.


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