Forum: Electricity retailer exiting market should compensate customers

I have two contracts for electricity supply from iSwitch, one for me and the other for my mother.

On Wednesday, we received e-mails from iSwitch saying that it will be ceasing its electricity retail operations from Nov 11 because of current electricity market conditions.

The e-mail said: "You will not be required to pay any early contract termination charges." Of course we will not need to pay anything as we did not break the contracts, but since iSwitch broke the contracts, doesn't it need to compensate us?

Both our contracts are on a fixed-rate plan as we foresaw that electricity charges would go up.

I can only conclude that iSwitch had miscalculated when it priced its fixed-rate plans as electricity rates have gone up.

It would not be exiting the business if it were profitable.

By terminating our contracts, iSwitch will cause us to incur greater cost when we switch to other providers, as electricity charges by SP and other providers have gone up quite a bit.

Hence, it is only right for it to compensate consumers.

Wong Kwok Wai