Energy Exit Fees 2026: When Switching Still Pays

Last updated: Thursday 29 October 2026

In short: An exit fee is worth paying only if the fixed deal you are moving to saves more than the fee over the next year, after standing charges and at your real usage. Ofgem’s cap for 1 October to 31 December 2026 gives a typical dual-fuel home paying by Direct Debit a bill of £1,723 a year, about 4% more than the £1,663 for July to September (Ofgem). If you are on a standard variable tariff, you can usually leave without an exit fee.

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What an exit fee is

An exit fee, or early termination charge, is what your supplier can charge if you leave a fixed tariff before its end date. It is a term of the contract you agreed, not an Ofgem fine. Some fixed deals have no exit fee; others charge a flat amount per fuel, or an amount that falls as you get closer to the end date. Standard variable (default) tariffs normally let you leave without a fee, which is one reason some people stay on them.

Check your contract or latest bill for the exact terms. Comparison sites can estimate savings, but they do not know your supplier’s exit fees.

The October 2026 figures

For October to December 2026, the Great Britain Direct Debit averages are 26.32p/kWh and 54.83p a day for electricity, and 7.97p/kWh and 29.68p a day for gas. Gas includes 5% VAT; household electricity carries 0% VAT from 1 October 2026 to 30 June 2027 (HMRC Notice 701/19). Your bill depends on your region, meter, payment method and usage.

Your situation	What to add up	Switch if
On a standard variable tariff	Your expected cost on the capped rates, using your kWh and regional rates	A fixed deal costs less over 12 months (there is usually no fee to leave a variable tariff)
On a fixed deal with no exit fee	Your remaining months on the current deal vs the new deal’s first year	The new deal clearly costs less and you are happy to fix again
On a fixed deal with an exit fee	The exit fee plus the new deal’s first-year cost vs staying to the end date	The saving is bigger than the fee, with some margin
Within about 90 days of your end date	The exit fee (often lower near the end) and your renewal notice	Usually wait, unless a quote is much cheaper

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A fix locks your unit rates and standing charges for the term
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Compare the yearly total against the price cap figures in this guide

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The rule: fee vs first-year saving

Pay an exit fee when a fixed quote costs less than your expected next 12 months by more than the fee, using your region’s rates or your own kWh rather than the £1,723 national figure. For example, if leaving costs £75 and the new fix is £180 cheaper over 12 months at your usage, switching can make sense. If the saving is £40 and the fee is £75, staying is cheaper.

Exit fees and fixed prices vary by supplier and change often, so check them for your postcode and usage on the day you decide.

Standing charges can cancel out a cheap unit rate

Ofgem’s October to December averages put the electricity standing charge at 54.83p a day and gas at 29.68p a day. Two single-fuel fixes can look cheap on unit rates but cost more than one dual-fuel deal once both standing charges are added, or the reverse. Compare standing charges and unit rates together. Low users feel standing charges more; high users feel unit rates more.

Direct Debit, prepay and Economy 7

£1,723 is the typical dual-fuel Direct Debit bill; prepay and Economy 7 have different figures. If you are on prepay, check that the fix you want is available on prepay and how its exit terms work. If you are on Economy 7, compare two-rate fixes and check how much you use at night.

Cooling-off and renewal notices

When you agree a new home energy contract, you have a cooling-off period; use it if the welcome pack does not match the quote. When a fixed deal is nearing its end, your supplier sends a renewal notice. Do not ignore it, or you may move onto a more expensive default tariff. If you are within three months of your end date, ask whether the exit fee has reduced, and check the exact end date before paying to leave early for a small saving.

How to gather the numbers

Find your tariff name, end date and exit fee on your bill or online account.
Find 12 months of kWh, or your best yearly estimate.
Note your payment method and meter type.
Work out the capped cost at your usage, starting from Ofgem’s averages and using your region’s rates where you can.
Get at least three fixed dual-fuel quotes for the same usage.
Add the exit fee to the new deal’s first-year cost.
Switch only if the total is lower; otherwise wait and note the next Ofgem announcement, due on 25 November 2026.

Worked examples (illustrations, not quotes)

Example A, variable tariff: you estimate £1,780 for the next 12 months on the capped rates at your usage and regional rates. A fixed dual-fuel quote comes to £1,620 in total, and there is no fee to leave your variable tariff. Switching saves about £160, as long as the quote’s standing charges and term match what you entered.

Example B, fixed deal with a £90 exit fee: staying on your current fix for its last three months costs about £420. Leaving now costs £90 plus a new fix that is £100 a year cheaper than your current path. Because you are close to the end date, leaving early could cost more than it saves, so check the dates before deciding.

Example C, low user: a deal with a cheap unit rate but a high standing charge may cost a small flat more than a deal with a higher unit rate and lower standing charge. Compare with your real usage before paying to leave.

Single-fuel, heat pump and EV homes

Heat pump homes, EV owners charging overnight and Economy 7 homes do not fit the typical dual-fuel figures. Price electricity-only and gas-only fixes as well as dual-fuel deals. If you are on prepay and thinking about a Direct Debit fix, ask how any debt and meter credit will be handled.

Keep a paper trail

Keep copies of the quote, the tariff name, your old supplier’s confirmation of the exit fee and your new supplier’s welcome pack. If anything does not match, you can use the cooling-off period, and disputes are easier when you can show the terms you relied on.

Decision summary

On a variable tariff: compare now; exit fees are usually not an issue.
On a fixed deal with a fee: switch only when the first-year saving clearly beats the fee after standing charges.
Near your end date: usually wait, unless a quote is much cheaper.

For timing, see when to switch energy.

Check dual-fuel deals for your address (MoneySuperMarket)

Gas and electricity from one supplier, with both standing charges in the total
Have your yearly kWh for each fuel ready
Suppliers should switch you within five working days, and your supply is not interrupted

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FAQ

Should I pay an exit fee to switch energy?

Only if a fixed quote beats your expected next 12 months by more than the fee, after standing charges and at your real usage. Otherwise stay until your deal finishes.

What is the price cap for October to December 2026?

£1,723 a year for a typical dual-fuel home paying by Direct Debit (Ofgem). It is a benchmark, not your bill.

Do standard variable tariffs have exit fees?

Default tariffs covered by the price cap normally let you leave without an exit fee, but check your own terms.

How do I find my exit fee?

Check your contract, online account or latest bill. If it is not clear, ask your supplier in writing before you switch.

Can standing charges wipe out a saving?

Yes. Compare standing charges and unit rates together, especially if you use less energy than average.

What if I am on a prepayment meter?

Check that the fixed deal is available on prepay and read its exit terms for that payment method before you rely on a Direct Debit quote.

Should I switch just because the cap is rising?

Not on its own. Work out whether the new deal saves more than any exit fee at your usage before you switch.