What are Early Termination Fees (ETFs)?
From cell phone contracts and gym memberships to apartment leases and credit cards, Early Termination Fees (ETFs) will likely be found in the fine print when you sign most long-term contracts. If you cruise around the internet, consumer reviews for contracted products or services will often include feedback from many disgruntled customers who’ve made a decision to end their contracts early and who are obviously pretty upset when the company slaps an ETF onto their final bill.
Early Termination Fees can help us protect your budget.
There is a legitimate reason we institute an ETF on our fixed price/fixed term contracts. When IGS Energy offers to sell you energy at a fixed price for a defined period of time, we purchase the commodity that allows us to fix our costs and, thus, take on the financial risk of the purchase. We take on these costs so that we can satisfy our commitment to you and, in turn, we ask that you satisfy your commitment to us.
At IGS Energy, we believe in transparency. Though we have a few products that do not have an ETF associated with them, it’s likely that you’ll face an ETF if you decide to cancel before the contract is up. We pride ourselves on excellent customer service, so we’ll do all we can to keep you satisfied throughout your contract. But we understand that we can’t keep everyone happy.
However, we do understand that many consumers feel a little uneasy about signing long-term contracts when there are fees associated with cancellation, which is why we offer both options. If you are uncomfortable with an ETF on your product, you may choose an option without one. Our non-ETF product probably will have a higher price, as we build more associated risk into those product.
We know contract language can be a little confusing, so we keep it simple.
To make sure we remain as transparent as possible, if you choose a product with an ETF, we place the amount in the Disclosure Box at the top of your IGS Energy contract. You can read more about the stipulations of the early termination fee – like rescission period (the duration of time where you can cancel without being charged any penalties) and potential fees administered by your utility – in the details throughout your contract.
Still have questions? We’re here to help.
Early Termination Fees are pretty common in electric and natural gas contracts, so it’s important for you to understand them before you sign any type of contract. Whether you choose to become our customer or not, we want to help you make the best decision for your budget when it comes to your energy purchases.
We’re happy to talk you through it and answer any questions you may have.