How do I avoid exit fees when switching energy?

You won't be charged if you switch within the last 49 days of your contract.


If you’ve been shopping around for a new energy deal you’ll have noticed that some suppliers require you to pay an exit fee. There is a certain time frame within your contract however in which this charge isn’t applicable. Read on to discover how you can avoid exit fees when switching. 

What are exit fees?

An exit fee is the amount that you’ll be charged by your energy supplier if you want to leave your contract early. 

If you have a dual fuel tariff, so you get both your gas and electricity from the same supplier, you unfortunately might have to pay an exit fee for both of them. 

How much will my exit fee cost?

Exit fees generally tend to cost around £25 to £30 per fuel but this does depend on which supplier you’re with. 

Certain suppliers both large and small may charge you more, particularly if you’re on a longer two year tariff, but some others don’t charge any exit fees at all!

How do I avoid exit fees when switching energy?

Industry regulator Ofgem has ruled that your energy supplier can’t charge you any exit fees if you switch within the last 49 days (or 7 weeks) of your contract.

Don’t worry about forgetting the end date of your tariff. Your energy supplier is legally obligated to inform you that your tariff is coming to an end 49 to 42 days before, which gives you plenty of time to find a great new deal using our expert comparison tool

Do I have to pay exit fees within the cooling off period?

The cooling off period refers to the 14 days after you sign up for a new energy deal within which you’re allowed to cancel that deal penalty free. 

If you do decide not to go ahead with your new deal, you won’t be charged any exit fees. 

Do all energy suppliers charge exit fees?

No, there are quite a few tariffs available which don’t require you to pay an exit fee. 

One type of tariff which falls into this category is the default tariff which is what you’ll automatically be placed on by your supplier if you don’t switch to a new deal when your current one ends. 

Although they might initially sound attractive, it’s important to note that they don’t charge a fixed amount per unit of energy meaning that the cost of your bills could potentially increase.

When shopping around for a new tariff with no exit fees definitely ensure that you opt for a fixed price deal so you’ve got a cheap price locked in for the rest of your contract. 

Do I have to pay an exit fee if I’m switching to a new tariff with my current supplier?

You might have to depending on which supplier you’re with. 

Should I still switch my energy if I have to pay an exit fee?

Don’t let the thought of an exit fee completely put you off switching early. If you find a cheaper deal using our expert comparison tool it’s a good idea to do some calculations on how much you’ll end up saving. It might make better financial sense in the long run to just pay the exit fee.

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