Energy exit fees are charges imposed by a supplier when you leave a fixed-rate contract before the end date. Under Ofgem rules, these fees must reflect genuine estimated losses — not act as a penalty. Most fixed-rate tariffs carry exit fees of £0–£150 per fuel; variable tariffs typically have no exit fee at all.
Typical exit fees by supplier (UK Big 6)
| Supplier | Typical exit fee | Notes |
|---|---|---|
| British Gas | £0–£75 per fuel | Fee varies by tariff; some fixed deals carry no exit fee |
| EDF Energy | £0–£75 per fuel | Check your tariff confirmation letter for exact amount |
| E.ON Next | £0–£75 per fuel | Standard fixed tariffs; 0 fee on some promotional deals |
| Octopus Energy | £0 | Most tariffs have no exit fee; check Tracker/Agile terms |
| OVO Energy | £0–£75 per fuel | Varies by fixed-rate plan; green tariffs often fee-free |
| Scottish Power | £0–£75 per fuel | Check contract end date; within 49 days of renewal, often waived |
Figures are indicative. Always check your tariff confirmation letter for the exact fee. Fees quoted per fuel (gas and electricity charged separately).
Energy contracts are notoriously full of hidden exit fees. You might be quoted a competitive rate, but the fine print reveals a penalty if you leave before the contract end date — sometimes hundreds of pounds. The energy market is supposed to be competitive, and the regulator (Ofgem) has set clear rules about what exit fees are fair. But many suppliers still include clauses designed to trap you in contracts, with penalties buried in terms and conditions nobody reads.
What is a Exit Fees?
An exit fee is a charge imposed by an energy supplier if you terminate your contract before the end date. It's meant to compensate the supplier for lost profit. However, Ofgem rules require that exit fees reflect genuine estimated losses, not penalties. For fixed-rate contracts, suppliers must allow switching after 30 days (as of 2024) with reasonable exit fees. Variable-rate contracts now have lower exit fees. Your right to switch is protected by the Consumer Rights Act 2015.
Red flags to watch for
Ofgem requires exit fees to be transparent before you sign. If the fee is hidden in page 10 of small print, it suggests the supplier knows it's unfavorable.
A percentage-based fee is usually unfair. Ofgem expects exit fees to reflect actual costs incurred (typically lower). A 10% penalty is likely a punitive charge, not a genuine loss estimate.
Some suppliers apply higher fees if you leave in months 10–12 of a 12-month contract. This is a known unfair practice and may breach the Consumer Rights Act.
If the supplier fails to deliver service or breaches terms, you should be able to exit without penalty. A clause that denies this is unfair.
Since 2024, fixed-rate contracts must allow switching after 30 days. If your contract doesn't mention this, the supplier is non-compliant.
You have the legal right to switch providers without exit fees after installation of a smart meter. A contract charging a fee for this may be unenforceable.
Your legal rights
Ofgem rules (updated 2024) require that exit fees must be fair and reflect genuine estimated losses. The Consumer Rights Act 2015 prohibits unfair contract terms. Schedule 2 of the Act lists potentially unfair terms, including unreasonably high penalties. If an exit fee is deemed unfair, it is not binding. You have a legal right to switch suppliers; an exit fee cannot prevent this. If you fall victim to unfair charges, you can escalate to the Energy Ombudsman for free dispute resolution.
Questions to ask before you sign
- 1What is the exit fee, and how is it calculated? Is it a flat amount or a percentage?
- 2Can I exit without penalty within a certain period (e.g., first 30 days)?
- 3Do I have a right to switch after a smart meter is installed?
- 4If you breach the contract or fail to provide service, can I exit without paying the fee?
- 5What happens to the exit fee if I move house — can I transfer the contract or exit free?
- 6How is the exit fee presented in the headline price and key facts document?
Frequently asked questions
What are energy exit fees in the UK?
Energy exit fees are charges your supplier imposes if you leave a fixed-rate tariff before the contract end date. Ofgem rules require these fees to reflect the supplier's genuine estimated losses — they cannot be used as a punitive penalty. Most fixed-rate tariffs charge £0–£75 per fuel (gas and electricity billed separately).
Can I switch energy supplier without paying an exit fee?
Yes, in most cases. As of 2024, Ofgem rules require suppliers to let you switch without penalty within the final 49 days of your contract. Variable-rate tariffs typically have no exit fee. If your exit fee is disproportionately high or not clearly stated, it may be unenforceable under the Consumer Rights Act 2015.
How much are UK energy exit fees?
Typical UK energy exit fees range from £0 to £75 per fuel on standard fixed-rate tariffs — so up to £150 total (gas + electricity). Some premium or longer-term fixed deals may charge more. Octopus Energy is notable for offering most tariffs with no exit fee. Always check your tariff confirmation letter for the exact amount.
Are energy exit fees enforceable?
Exit fees are enforceable if they reflect genuine estimated losses and are clearly disclosed before you signed. However, fees that are disproportionately high, increase as you approach the end date, or are buried in small print may be unenforceable under the Consumer Rights Act 2015. If you believe a fee is unfair, you can escalate to the Energy Ombudsman for free dispute resolution.
Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Contract law varies by jurisdiction and individual circumstances. Always consult a qualified legal professional before making decisions based on this information.