Should I switch to a no exit fee energy tariff in the UK?

Key takeaways

• Exit fees apply to some fixed tariffs; many variables have none, but check the T&Cs.
• Moving home: you can often take a fixed tariff with you, but it’s not guaranteed; a no-fee option can reduce hassle.
• Ofgem rules: suppliers must allow you to switch without an exit fee in the last 49 days of a fixed term.
• Always compare the full cost: unit rates + standing charges + any discounts + any fees.

It often suits you if…

• You might switch again within the next 3–12 months
• You’re renting or planning to move (or you’re not sure)
• You value flexibility more than absolute lowest price
• You’re trying a new supplier and want an easy way back out

It may not suit you if…

• You want to lock in a competitive fixed deal for longer
• A fixed tariff with an exit fee is materially cheaper for your usage
• You’re unlikely to switch again before the fixed term ends
• You’re on a complex setup (e.g., legacy multi-rate) and need to confirm tariff compatibility

Step 1 — Check what you’re on now

Are you on a fixed tariff?

If yes, your contract may have exit fees per fuel. If you’re within the last 49 days of the fix, you can typically switch without an exit fee.

Are you on a variable tariff?

Many variable tariffs have no exit fee, but confirm in the tariff information — “variable” doesn’t always guarantee “no fee”.

How do you pay?

Direct Debit tariffs can be cheaper than standard credit or prepayment options, but eligibility varies.

Step 2 — Estimate your “break-even” flexibility value

If the cheapest fixed deal has an exit fee, ask:

• How likely am I to switch again before the end date?
• What exit fee would I pay if I switched early (gas and electricity)?
• Is the no-fee tariff more expensive per month, and by how much?

Step 3 — Check practical constraints

• Meter type: prepayment and some multi-rate setups can have fewer deals available.
• Smart meters: smart-only tariffs may require a working smart meter in smart mode.
• Moving home: you might be able to transfer a fixed tariff, but new address eligibility can differ.
• Debt: energy debt can restrict switching, especially for prepayment meters.

Scenario A — you expect to move in 6 months

Assumptions (illustrative): 2-fuel home; fixed tariff has exit fees of £60 electricity + £60 gas if you leave early; no exit fee tariff costs ~£7/month more than the fixed tariff for your usage.

• Extra cost of no-fee tariff over 6 months: £42
• Possible exit fees avoided if you need to switch due to moving: £120
• Outcome: no-fee tariff can be the lower-risk choice if moving makes an early exit likely. You may still be able to transfer the fixed tariff — but if that’s uncertain, flexibility has value.

Note: Some suppliers let you move a fixed tariff to a new address; others may require a new tariff depending on availability and meter compatibility.

Scenario B — you plan to stay put for 18 months

Assumptions (illustrative): you don’t expect to switch mid-term; the no exit fee option is ~£5/month more than a comparable 18-month fix with an exit fee.

• Extra cost of no-fee tariff over 18 months: £90
• Exit fees you pay if you don’t switch early: £0
• Outcome: if you’re confident you’ll stick with the tariff, a cheaper fixed deal (even with an exit fee) may offer better value overall.

Important: prices can change, and fixed deals vary; always compare based on your postcode, payment method and meter.

Choose no exit fee if most are true

• I might move or change household set-up soon
• I’m likely to switch again if prices improve
• I don’t want to worry about end dates and fees
• The price difference vs an exit-fee fix is small for my usage

Choose an exit-fee fix if most are true

• I want to set-and-forget for the full term
• I’ve checked the exit fees and I’m comfortable with them
• The fixed deal is meaningfully cheaper for my usage
• I’m close to the 49-day window, so fees may not matter anyway

Before you switch, verify

• Exit fee amount per fuel and when it applies
• Tariff end date and your personal 49-day fee-free window
• Whether the tariff requires Direct Debit or a smart meter
• Any discounts that depend on payment method or billing options

1) Higher standing charges can outweigh flexibility

If you use relatively little energy (e.g., a small flat), a higher standing charge can make a “no-fee” tariff cost more overall even if unit rates look similar. Always compare the estimated annual cost for your usage.

2) Direct Debit vs prepay availability

Some of the most competitive tariffs are available only to Direct Debit customers. If you’re on prepayment, your choice may be narrower and you may need to check whether a no-fee option is actually available for your meter.

3) “No exit fee” doesn’t mean “no conditions”

You can still have terms around billing, smart meter requirements, or eligibility. Also check whether any intro discounts are removed if you change the way you pay or how you receive bills.

4) Switching with debt or prepayment

Outstanding debt can prevent or delay switching in some cases (particularly with prepayment meters). If you’re unsure, check your balance and speak to your supplier or get independent advice first.

5) Watch for tariff end dates and renewal moves

If you do choose a fixed tariff with an exit fee, set a reminder for the end date. Many customers move onto a default tariff if they take no action at renewal, which may not be the best value for them.

Important caveat

Exit fees, rates, and availability vary by supplier and tariff and can change. Always confirm details in the tariff information and contract summary before you switch.

What is a “no exit fee” energy tariff?

It’s a tariff that doesn’t charge you a fee for leaving the tariff early. It does not automatically mean the tariff is variable, cheaper, or the best fit — you still need to compare unit rates, standing charges and eligibility.

Are exit fees legal in the UK?

Yes — exit fees are commonly used on fixed tariffs. However, rules apply (including a period near the end of a fixed term where you can usually leave without paying an exit fee). Terms must be set out clearly in your contract information.

Can I switch without an exit fee if my fixed tariff is ending soon?

Often, yes. In the UK, suppliers must allow you to switch without an exit fee during the final 49 days of a fixed-term contract. Check your tariff end date and confirm the supplier’s terms before you start the switch.

Do gas and electricity exit fees apply separately?

They can do. Some tariffs charge a separate exit fee per fuel, so dual fuel customers may face two fees. Always look for wording like “£X per fuel” or separate fees for gas and electricity.

Is a no exit fee tariff always a variable tariff?

No. Some fixed tariffs also have no exit fees. Likewise, some variable tariffs may have conditions that affect leaving (less common, but always check the tariff information).

If I move home, do I have to pay an exit fee to leave my tariff?

Not always. Some suppliers let you transfer your tariff to your new address, but it can depend on availability, meter compatibility, and whether they supply that region. If you can’t transfer, you may have to end the contract — and an exit fee may apply unless your tariff has no exit fee or you’re within the fee-free window.

Can I get a no exit fee tariff with a prepayment meter?

Sometimes, but options may be more limited and can vary by supplier, region and meter type. If you’re in debt or your meter setup is complex, switching may be restricted — it’s worth checking eligibility before you apply.

Will switching affect my energy supply?

In most domestic switches, your physical supply stays on — the change is mainly administrative (billing and who you pay). Keep taking meter readings if asked, and check your final bill from your old supplier for accuracy.

Page details

Written by

EnergyPlus Editorial Team

Reviewed by

Energy Specialist

Last updated

March 2026

Our methodology (and limitations)

When we explain whether a no exit fee tariff is “worth it”, we focus on total expected cost and practical switching risk — not just whether a fee exists.

• Total cost factors: unit rate (p/kWh), standing charge (p/day), tariff length, payment method, and any discounts/credits.
• Flexibility factors: likelihood of switching within term, moving home, eligibility constraints (e.g., Direct Debit-only, smart-only).
• Exit fee treatment: we consider fees per fuel and the impact of the 49-day fee-free switching window before a fix ends.
• Illustrative scenarios: the numbers on this page are examples to show how to think about the trade-off; your actual quotes will vary by region and market pricing.