Many of the cheapest gas and electricity deals on the market are fixed deals which often come with a termination fee attached. But you can get away with not paying an exit fee – we reveal how.
For most of us, leaving our supplier before the tariff ends means we have to pay a penalty fee. But not always – we tell you how to avoid paying an exit fee all together.
For example, did you know your energy supplier can’t charge you an exit fee in the last 42-49 days of your fixed deal?
Our experts have also uncovered the cheapest deals on the market with no exit fee attached. Read on to find out more.
Find out if you save £301* on your annual energy bill. This is the average amount saved by those who switched energy supplier using our independent comparison website Which? Switch.
How to avoid exit fees
If you want to leave a fixed-term tariff before the end of the contract, you will usually have to pay an exit fee. But don’t let this put you off. Here are some tips on how to get the best deals and avoid paying an exit fee:
- most fixed deals have exit fees of £25-30 per fuel, so it’s worth working out whether you could still be better off switching if there is a new deal on the market which would save you more than the exit fee
- some energy suppliers may waive the exit fee if you switch to another one of its tariffs. Check with your supplier
- you should not have to pay exit fees if you’re moving home, provided you keep your tariff but just change the address
- some of the cheapest deals available on the market at the moment have no exit fees despite being fixed deals – so why not switch? If prices go up, you are protected. But if they go down, you could always switch at any time at no cost.
Cheapest energy deals without exit fee
Here are the top three cheapest deals on the market which don’t have any exit fee attached. Click the links to find out more about each energy company:
- GB Energy Supply Premium Energy Saver at £899 a year
- Flow Energy Connect at £926
- Scottish Power Online Fixed Pried Energy May 2016 at £941
These annual prices are for a dual-fuel medium user on a credit electricity meter paying by monthly direct debit, paperless, averaged across all UK regions. Data from Energylinx correct as of 23 May 2015.
When suppliers can’t charge you an exit fee
Energy providers can’t charge you an exit fee when your fixed deal approaches its end, even if your tariff has one attached to it.
Your energy supplier should notify you that your fixed-term tariff is coming to an end 42 to 49 days before the end of your contract. From this point until the end of your contract, you cannot be charged an exit fee if you switch.
*(Average estimated annual saving for customers who applied to switch suppliers through Which? Switch between 1 January 2015 and 30 April 2015.)