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Case studies - 10 business-day cooling-off period

Gary signed an energy contract with XYZ Energy on Thursday 15 November. Over the weekend, Gary's landlord told him that when the remaining three months on his lease were over he would not be able to renew the lease. Gary decided that the energy contract he signed was not ideal because, under its terms and conditions, moving house was regarded as a 'termination' and he would be charged a termination fee if he moved location within the contract period, even if he remained with XYZ Energy.

Gary rang XYZ Energy on Wednesday 27 November to cancel his contract. Because Gary signed the contract on 15 November, he was still within the 10 business-day cooling-off period which was due to end on Friday 30 November. Gary was told that he could cancel his contract without being charged a cancellation fee but he had to make his cancellation in writing. See Gary's sample cancellation letter for more information.