Energy Exit Fees in the UK: Avoid Early Termination Charges

Know when suppliers can charge exit fees, how the UK \u201849-day rule\u2019 works for domestic customers, what businesses need to watch for, and the smartest ways to switch without penalties.

What is an energy exit fee?

Exit fees (also called early termination charges) are costs some energy suppliers charge if you leave a fixed-term tariff before it ends. They are most common on fixed-rate deals for both electricity and gas. Exit fees help suppliers recover costs for energy they have already bought to cover your usage.

Domestic customers (households)

  • Exit fees typically range from \u00a315\u2013\u00a330 per fuel, sometimes higher on premium fixes.
  • Under Ofgem rules, suppliers cannot charge exit fees in the final 49 days of a fixed-term domestic tariff.
  • You also have a 14-day cooling-off period after you agree a new domestic deal to change your mind without penalty.

Business & microbusiness

  • Exit fees and notice terms depend on your specific contract; they can be a set charge or based on estimated losses.
  • No automatic 14-day cooling-off right for businesses; some suppliers voluntarily offer one \u2014 check your contract.
  • Most business contracts allow penalty-free switching only in a defined renewal window once notice has been served.

How much are exit fees?

There isn\u2019t a single UK-wide price cap on exit fees, but suppliers must state them clearly before you sign.

  • Domestic electricity or gas: commonly \u00a315\u2013\u00a330 per fuel; some deals may be higher. Dual-fuel deals often just charge per fuel (so leaving early could be \u00a330\u2013\u00a360).
  • Business energy: varies by contract and usage. Charges can be a flat fee or a calculated \u201closs of bargain\u201d based on remaining term and forecast consumption.

Energy Plus can check your tariff\u2019s small print for you and confirm whether leaving now would trigger a charge \u2014 and whether the savings from switching outweigh any fees.

UK rules and your rights

Domestic customers

  • 49-day rule: You can start a switch in the final 49 days of a fixed-term domestic tariff without paying exit fees. Your current supplier can\u2019t charge an early termination fee during this window.
  • 14-day cooling-off: After you agree a domestic contract, you can cancel within 14 days without an exit fee. If you used energy during this period, you\u2019ll just pay for what you used.

Business and microbusiness

  • Contract-led: Exit fees depend on the contract. Many business fixes require notice and only allow a switch at end of term without penalty.
  • Transparency: Suppliers must present key terms clearly. Always keep your contract, renewal window dates and notice requirements handy.

Unsure which rules apply to you? Our advisors can review your plan and give clear next steps.

How to avoid paying exit fees

Timing your switch

  • Domestic: schedule your switch within the last 49 days of your fixed term.
  • Business: note your contract\u2019s renewal window and required notice period; set reminders 90, 60 and 30 days before.
  • Ask your supplier if they\u2019ll waive the fee if you upgrade to another of their tariffs or due to a price rise (where terms allow).

Check for fee exemptions

  • Cooling-off: Domestic customers can cancel within 14 days. Some business contracts include a voluntary grace period \u2014 check yours.
  • House move: If you\u2019re moving home or premises, many suppliers won\u2019t charge an exit fee when you provide proof of move-in/move-out.
  • Contract changes: If your supplier changes key terms mid-contract, you may be able to leave without penalty.

Energy Plus can line up a new tariff to start as your old one ends, helping you avoid exit fees while keeping costs competitive.

Business energy: contracts, notice and exit fees

Business energy agreements vary widely. Here\u2019s what to check:

  • Contract end date: When does your fixed term end? Is there an automatic rollover?
  • Notice period: How far in advance must you serve notice (e.g., 30\u201360 days)? What\u2019s the accepted method (email, portal, post)?
  • Termination charges: Is it a flat fee, per-MWh formula, or \u201closs of bargain\u201d calculation?
  • Microbusiness protections: Check that key info appears on your renewal letters and that broker costs (if any) are clear.
  • Moving premises: Most suppliers allow termination on proof of move. Keep your lease or completion documents handy.

Our team negotiates with suppliers every day. We\u2019ll check your contract, compare renewal options, and manage notice so you don\u2019t get caught by avoidable fees.

Frequently asked questions about exit fees

Yes, when they\u2019re clearly disclosed in your contract. For domestic customers, exit fees can\u2019t be charged in the final 49 days of a fixed-term deal.

Often no, provided you give your supplier the required notice and proof of moving. Terms vary by supplier and contract, so always check.

Yes. If the saving from a new tariff exceeds the exit fee over your remaining term, switching can be worthwhile. We\u2019ll run the numbers for you.

If your supplier changes key terms, you may be able to leave without penalty. Contact us quickly so we can confirm your options and switch you in time.

Most prepayment tariffs don\u2019t use fixed-term exit fees in the same way as fixed credit-meter deals, but always check the tariff info provided by your supplier.

Avoid exit fees and lock in a better rate

Whether you\u2019re a household or a business, our experts will confirm your rights, check for any penalties, and line up the best tariff to start as your current one ends.

Quick glossary

Exit fee: Charge for leaving a fixed-term tariff early.

Cooling-off period: 14 days for domestic customers to change their mind after agreeing a contract.

Fixed-term tariff: Price per kWh and daily standing charge are locked for a set period.

Renewal window: Period near contract end when you can switch or renegotiate without penalty.

Notice period: Time you must inform your supplier before ending a business contract.

Dual fuel: Both gas and electricity supplied by the same supplier.

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