Exit fees explained: when you pay, when you don’t
A UK guide to energy exit fees (and how to avoid them) when you switch, move home, change tariff, or leave a fixed deal early.
- See the most common exit-fee rules for gas and electricity in the UK
- Work out whether paying an exit fee could still be worth it
- Compare tariffs with clear notes on fees and switching timing
Exit fees and rules vary by supplier and tariff. This guide is UK domestic energy only (not business) and uses examples for illustration.
Fast answer: what is an exit fee?
An exit fee (sometimes called an early termination fee) is a charge some UK energy suppliers apply if you leave a fixed tariff before the end date. It’s usually a set amount per fuel (electricity and gas can be charged separately).
Key rule to remember: In many cases you can switch without paying an exit fee in the last 49 days of a fixed deal (this is a common Ofgem protection). Your tariff’s terms still matter, so always check your account or welcome pack.
Key takeaways (UK homes)
Not all tariffs have exit fees
Variable and many tracker-style tariffs typically don’t, but fixed tariffs often do. Always confirm on the tariff details.
Fees are usually per fuel
If you have dual fuel, you might be charged for electricity and gas separately if you end both early.
Moving home is different
Some suppliers waive exit fees if you move, but not always. You may be able to “port” the tariff to your new address.
What to do next (2 minutes)
- Check your tariff end date and whether an exit fee applies (account/app, welcome email, or latest statement).
- If you’re within 49 days of the end date, you can often start a switch without the fee.
- If you’re outside that window, compare the likely savings vs the fee using the examples below.
Compare tariffs with exit fees in mind
If you’re thinking of switching, the right question isn’t just “is there an exit fee?”—it’s whether the new tariff’s estimated total cost outweighs any fee, based on your meter type, payment method, and usage.
UK detail that affects quotes: unit rates and standing charges vary by region (electricity distribution area and gas LDZ), and offers can differ by payment method (e.g., Direct Debit) and meter (credit, prepayment, smart meter).
Two realistic “is it worth paying the fee?” scenarios
Scenario A: Leaving a fixed tariff early
Assumptions (illustrative): dual fuel, outside the 49-day window, exit fee £60 per fuel (£120 total). Estimated saving vs current tariff: £18/month for 9 months.
- Estimated savings
- £162 (9 × £18)
- Exit fees
- £120
- Estimated net benefit
- £42
This could be worth it if your saving estimate is solid and you’re confident you’ll stay at the property for the full period.
Scenario B: You’re close to the end date
Assumptions (illustrative): you’re 40 days from the fixed end date (often within the no-exit-fee window). New tariff would save £10/month. Switch completes in ~2–5 weeks (can vary).
- Exit fee expected
- £0 (typical within 49 days)
- What matters most
- Start date & timing
If your tariff allows it, switching within the final 49 days can avoid the fee—focus on getting your end date right and starting the process in time.
Caveat: Exit-fee rules can vary by supplier and tariff. If you’re on a complex product (e.g., tracker, time-of-use like Economy 7, or bundled services), check the exact terms before switching.
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Exit fee comparison: what typically triggers a charge?
This table covers common UK domestic situations. Your supplier’s terms take priority, but these are the usual outcomes and what to check before you switch.
| Situation | Exit fee likely? | What to check | Good next step |
|---|---|---|---|
| Switching a fixed tariff early (outside final 49 days) | Often yes | Fee amount per fuel; end date; whether fee applies if only one fuel switches | Compare net cost: saving vs fee (see scenarios) |
| Switching in the final 49 days of a fixed deal | Often no | Exact end date; switching start date; any special product terms | Start the switch early enough for completion |
| Moving home mid-fix | Varies | Whether your tariff can be transferred; move-out process; final bill timing | Ask about “porting” the tariff; take meter readings on move day |
| Changing payment method (e.g., DD to on-receipt) | Usually no | Whether it forces a tariff change; any price differences by method | Check if you’ll be moved to a different tariff |
| Switching from prepayment to credit meter | Usually no | Any debt; meter exchange timing; eligibility checks | Clear any debt and ask supplier about meter change process |
| End of fix: rolling onto a standard variable tariff | No | What you’ll be moved onto; new unit rates & standing charge | Line up a switch or new fix before/at end date |
Decision checklist: who paying an exit fee may suit (and who it may not)
It may suit you if…
- You’re well outside the end-date window and the estimated savings exceed the fee by a safe margin.
- You expect to stay in the property long enough to benefit from the new rates.
- You’ve checked whether the fee is per fuel and accounted for both gas and electricity.
- You can provide up-to-date meter readings (or have a working smart meter) to reduce billing errors.
It may not suit you if…
- You’re within (or close to) the final 49 days—waiting could avoid the fee.
- You’re moving soon and aren’t sure if the tariff can transfer to the new address.
- Your current deal includes features you rely on (e.g., specific time-of-use rates) that aren’t like-for-like.
- Your usage is uncertain (renovations, new baby, working from home changes), making savings estimates less reliable.
Common costs, exclusions and pitfalls
Exit fees are only one part of the picture. These are the issues we see most often when people switch or end fixed deals.
1) Fees charged per fuel
A “£60 exit fee” may mean £60 for electricity and £60 for gas. If you only switch one fuel, you may only pay the fee for that fuel—check the tariff terms.
2) Timing vs billing
Switches can take a few weeks. If your end date is close, the exact timing can affect whether a fee is applied. Keep records and take meter readings.
3) Moving home complications
If you move, your supplier may treat it as ending the contract at that address. Some tariffs can transfer, others can’t. Always ask what happens before you exchange or move out.
4) Prepayment and debt
If you have an outstanding balance, switching can be restricted depending on circumstances. Citizens Advice has guidance on switching with debt and what to do if you’re struggling.
5) Economy 7 / time-of-use
Some deals look cheaper on headline unit rates but don’t match your usage pattern. If you’re on Economy 7 or an EV-style time-of-use tariff, compare like-for-like.
6) “No exit fee” isn’t “best value”
A tariff with no exit fee can still be more expensive overall. Always look at estimated annual cost, standing charges, and any discounts/conditions.
Practical tip: If you think you’ve been charged an exit fee incorrectly, ask your supplier for (1) the tariff name, (2) the contract end date on record, and (3) the reason the fee was applied. Keep screenshots/emails and meter reading evidence.
Exit fee FAQs (UK)
1) Do all UK energy suppliers charge exit fees?
No. Exit fees are most common on fixed tariffs. Many standard variable tariffs and some other products don’t have exit fees, but pricing and terms vary. Check your tariff’s “end date” and “exit fee” line in the contract summary.
2) What is the “49-day rule” for exit fees?
Ofgem protections commonly mean you can switch in the last 49 days of a fixed deal without paying an exit fee. You still need to follow the process correctly and rely on the supplier’s recorded end date. If in doubt, confirm the date with your supplier in writing.
3) Are exit fees charged per fuel on dual fuel tariffs?
Often, yes. Your contract may list one amount for electricity and one for gas. If you only switch one fuel, the fee may apply only to that fuel—your tariff terms will confirm.
4) Will I pay an exit fee if I’m moving home?
It depends on the supplier and product. Some suppliers waive the fee if you move; others may let you transfer the tariff to your new address (if they supply there and the meter setup is compatible). Always take move-in/move-out meter readings and tell your supplier promptly to avoid billing disputes.
5) Can my supplier add an exit fee later?
Your exit fee should be set out in your tariff terms. Suppliers can change prices on variable tariffs with notice, but adding a new exit fee to an existing fixed-term agreement would typically be inconsistent with how fixed contracts are presented. If something looks wrong, request the contract summary or welcome pack that applied when you agreed the tariff.
6) Do I pay an exit fee if I cancel right after switching?
There is usually a short period where you can change your mind (cooling-off arrangements vary and are explained during sign-up). Whether an exit fee applies depends on the product terms and timing. If you’re unsure, contact the new supplier promptly and keep written confirmation of what happens to any fees.
7) Can I avoid an exit fee by switching to another tariff with the same supplier?
Sometimes, but not always. Some suppliers treat an internal tariff change as ending the fixed deal early, while others may offer a no-fee renewal close to the end date. Ask the supplier: “Will I be charged an exit fee if I change tariff today?”
8) What if I’m on a prepayment meter—do exit fees still apply?
They can, depending on the tariff. Also, switching may be affected by any outstanding balance or meter type. If you’re struggling with bills, you may want to use support from Citizens Advice and check if you’re eligible for help such as the Warm Home Discount (where available) via GOV.UK guidance.
Trust, methodology and how we assess exit-fee decisions
- Written by
- EnergyPlus Editorial Team
- Reviewed by
- Energy Specialist
- Last updated
- February 2026
Our approach (plain English)
We treat exit fees as a net-cost decision. Instead of focusing on the fee alone, we compare:
- Estimated total cost on your current tariff for the remaining period
- Estimated total cost on a new tariff over the same period
- Any one-off costs, especially exit fees (often per fuel)
- Your timing (end date and whether you’re inside the final 49 days)
Assumptions and limitations (important)
- Examples on this page use illustrative numbers. Your actual rates, fees and timings can differ.
- Regional rates vary across Great Britain. Northern Ireland has different market arrangements and suppliers.
- Switching timelines can vary due to meter type (smart/prepayment), debt checks, and administrative steps.
- We recommend confirming exit-fee amounts and end dates directly with your supplier before making a final decision.
Sources and further reading (UK)
- Ofgem (UK energy regulator) — consumer rules, switching protections and supplier obligations
- Citizens Advice: energy — help with billing disputes, switching issues and affordability support
- GOV.UK: Warm Home Discount — eligibility and how the scheme works
- GOV.UK: energy guidance — general UK government advice and services
Editorial note: Supplier tariff terms change. If a supplier’s wording conflicts with this guide, rely on your tariff documentation and ask the supplier to confirm in writing.
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