Why energy exit fees are suddenly on everyone’s mind
The price cap went up again on 1 July 2026, and for a lot of households the only thing standing between them and a cheaper deal is a worry about energy exit fees. Ofgem now puts a typical dual fuel bill paid by direct debit at around £1,862 a year, roughly 13% higher than before. That’s more money for exactly the same gas and electricity, and your supplier is quietly banking on you doing nothing about it.
The obvious move is to switch to a cheaper fixed deal. The thing that stops a lot of people is one nagging worry: energy exit fees. Will leaving my current tariff cost me a penalty, and if so, is switching even worth the hassle? This guide explains what energy exit fees are, how much they usually come to, when you can walk away without paying a penny, and how to work out whether paying one is the right call.
The numbers at a glance
Checked July 2026.
| What | The figure |
|---|---|
| Price cap, typical dual fuel home, direct debit | £1,862 a year from 1 July 2026 (Ofgem) |
| Typical exit fee | Around £25 to £75 per fuel |
| Dual fuel | Charged per fuel, so double it for gas plus electricity |
| Penalty free window | The final 49 days of a fixed deal (Ofgem rules) |
| Standard variable tariffs | Normally no exit fee at all |
What are energy exit fees?
Energy exit fees are a charge some suppliers apply when you leave a fixed deal before it ends. They exist because a fixed tariff locks in your unit rates for a set period, usually 12 or 24 months, and the supplier prices that promise on the assumption you’ll stay for the whole term.
Not every tariff has them. If you’re on a standard variable tariff, the kind you drift onto when a fixed deal ends and you do nothing, there’s normally no exit fee at all. You can leave whenever you like. Exit fees are a feature of fixed deals, and even then some are now sold with no exit fee written into the terms.
How much are energy exit fees?
Energy exit fees are typically somewhere around £25 to £75 per fuel, though the exact figure depends entirely on your supplier and how long is left on your deal. Some are lower, a few deals have none, and the number is set out in your tariff terms rather than left to guesswork.
The word “per fuel” matters. If you take gas and electricity from the same supplier on a dual fuel deal, you can be charged separately for each, so a rough estimate of the total means adding both together. Always check the figure for your specific tariff before you make a decision, because the ballpark above is a guide, not a promise about your account.
When can you leave without paying?
You can often leave a fixed deal penalty free in its final weeks. Under Ofgem’s rules, you’re allowed to switch without an exit charge in the last 49 days of a fixed tariff, so if your deal is close to ending you may not owe anything at all.
It’s worth marking the date your current deal finishes and lining up your next move about a month before. Switch inside that window and the exit fee question usually disappears. Leave it too late and you roll onto a standard variable tariff at the capped rate, which is exactly the outcome the do nothing default is designed to produce.
Is it worth paying the exit fee to switch?
Sometimes yes, sometimes no. The only way to know is to run the numbers for your own home. The question isn’t simply “is there a fee?” but “does the money I’d save over the year comfortably beat the fee I’d pay to leave?”
A quick example of the thinking, not a promise about your bill: if a cheaper fixed deal would save you a fair bit over a year and your exit fee is a one off charge of, say, £30 per fuel, many households find the switch still comes out ahead. But if you’d only save a small amount and you’re being charged £75 per fuel to leave, paying to switch early can wipe out the benefit. If your deal ends soon anyway, it’s often worth simply waiting for the penalty free window rather than paying to jump early.
The honest answer is that it depends on your usage, your current rates and what’s actually available today. The quickest way to see where you stand is to compare energy deals for your postcode and weigh any saving against the fee before you commit. You can also read the detail on the latest cap on Ofgem’s website.
How to switch without getting caught out
Switching itself is usually quick and you keep the same gas and electricity, just at a different price. The trick is doing the boring five minutes of checking first so an exit fee doesn’t surprise you. Our full walkthrough on how to change energy providers covers the steps, and it pairs neatly with the checks below.
Before you switch, check these
- The exit fee on your current deal, per fuel, from your tariff terms or online account.
- The date your current fixed deal ends, so you know if the penalty free window is close.
- The estimated yearly cost of the new deal for your usage, not just the headline rate.
- Whether the new tariff itself has an exit fee, in case you want flexibility later.
If the sums point to switching, doing it is the easy part. For more ways to trim what you pay beyond the tariff itself, our guide on how to cut your home energy bills in 2026 is a good next read, and it’s worth understanding the difference between a fix and the cap in fixed price energy tariffs explained.
Doing nothing has a price, and right now that price is the capped rate. Working out your exit fee is the small bit of homework that tells you whether the off ramp is open.
Frequently asked questions about energy exit fees
- Do all energy tariffs have exit fees?
- No. Standard variable tariffs normally have none, so you can leave whenever you like. Exit fees mainly apply to fixed deals, and even some of those are now sold with no exit fee in the terms.
- Are energy exit fees charged per fuel?
- Often, yes. On a dual fuel deal you can be charged one fee for gas and another for electricity, so check both figures and add them together when you work out the total.
- Can I avoid an exit fee if my fixed deal is nearly over?
- Usually. Ofgem’s rules let you switch penalty free in the final 49 days of a fixed tariff, so timing your move for that window often means paying nothing to leave.
- How do I find out my exit fee?
- Check your tariff’s terms and conditions, your online account or your annual statement, or ask your supplier directly. The amount is set out in writing rather than decided at the point you leave.
