Many utility providers charge a fee when their customers opt to switch to a different provider. These exit fees can be prohibitive for many people. Adding an extra cost to the process of switching energy supplier which they can’t or don’t want to afford.
It is usually fixed contracts which incur an extra charge. This is sometimes called a termination fee. If the customer wishes to end the contract early, the best way to avoid such charges is to avoid the kind of contracts that include them. If you are already stuck on a fixed term contract, you will likely have to tough it out. Making the switch once the current contract has run its course, though not necessarily.
Ending Fixed Contracts Early
Be sure to check the fine print of your fixed contract and keep a note of exactly how long you have remaining on the contract, as suppliers cannot legally charge their exit fees when the contract nears its end, though they may actively try to hide this fact from you despite a legal obligation to inform customers when contracts are nearing their end.
Energy suppliers in the UK cannot charge their customers an exit fee if the contract has entered its final 49 days, so you should be able to get out of it before the full course has run without paying the termination fee.
Is It Worthwhile Paying the Exit Fee?
In many cases, it can definitely still be worthwhile to pay the exit fee to switch suppliers. To find out if that is the case for you, simply conduct some research into which supplier you would like to change to. Calculate the savings you would make from making the switch, and then simply deduct the exit fee from those savings.
In many instances, the savings made from switching energy supplier more than cover the exit fee, thus making it still a better option than simply seeing out the current fixed term contract.
Exit Fee Costs For Switching Energy Suppliers
Depending on the supplier and the tariff you are currently on, the exit fee will likely range somewhere between just £5 and up to £30, although this will likely cover just one fuel source. If you have a duel-fuel deal then the exit fee will be double. Not all energy suppliers charge such fees though. So if they are likely to be a problem, then seek out the suppliers who forego such additional charges.
Many of the newer, smaller and often greener energy suppliers offer tariffs that do not incur extra costs to switch tariffs, relying instead on the tariff itself being favourable enough to the client to maintain their continued custom. A lot of energy suppliers will also waive the exit fee entirely if you switch to another one of its own tariffs. You may have to ask them directly to do this, but often they will be willing to do so in order to keep you as a customer.
If you want to learn more about the different tariffs offered by the UK’s growing number of energy supplier and whether they incur exit fees or not, get in touch with Business Save’s team of highly experienced energy experts.