Last updated: Saturday 26 September 2026 (Europe/London).
Next update: when Ofgem reprints the next quarterly price cap or typical exit-fee guidance for domestic switches changes.
By: Switch Editorial Team, Switch Squid Ltd
As of 26 September 2026, UK households weighing an energy switch into the October–December price-cap period should treat exit fees as a cash line item, not a scare story: Ofgem’s dual-fuel Direct Debit typical bill for 1 October to 31 December 2026 is £1,723 (about 4% above the July–September £1,663 level), and a fixed deal only “wins” if Year-1 savings after exit fees, standing charges and your real kWh still beat staying on your expected standard variable tariff (SVT). Primary Compare buttons use MoneySuperMarket’s residential energy journey via Awin — never SwitchSquid’s business-energy form on this page.
Source for the cap figure: Ofgem energy price cap unit rates and standing charges. We may earn a commission if you switch through our links.
Compare energy deals (including exit-fee maths) →
What an exit fee actually is
An exit fee (early termination charge) is what your current supplier can charge if you leave a fixed tariff before the end date. It is not a fine from Ofgem. It is a contract term you agreed when you fixed. Some fixeds have £0 exit fees; others charge a flat amount per fuel or a declining scale as you near the end date. SVT / default tariffs covered by the price cap typically let you leave without an exit fee — that flexibility is part of why people stay on SVT even when a fixed looks sharper on unit rates alone.
Always read your current contract or latest bill for the exact clause. Comparison sites can estimate savings, but they cannot invent your supplier’s exit schedule.
October 2026 context: the £1,723 sketch
Ofgem’s published Oct–Dec 2026 dual-fuel Direct Debit typical bill is £1,723. Average Direct Debit unit rates Ofgem cites for the period include roughly 26.32 p/kWh electricity with a 54.83 p/day standing charge, and 7.97 p/kWh gas with a 29.68 p/day standing charge (gas includes 5% VAT; electricity VAT is 0% from 1 October 2026 to 31 March 2027 under the published policy window). Your bill is not the national average — region, meter type, payment method and real usage move the cash.
| Scenario | What to add up | Switch if… |
|---|---|---|
| On SVT / default | Expected Oct–Dec SVT using your kWh + regional rates | A live fixed undercuts that sketch for 12 months with no exit fee to leave SVT |
| On a fixed with £0 exit | Remaining months × current fixed vs new fixed Year-1 | New deal clearly wins and you accept a new lock-in |
| On a fixed with exit fee | Exit fee + new Year-1 cost vs staying to end date | Savings exceed the fee with margin for standing-charge surprises |
| Within ~90 days of end date | Fee schedule (often lower) + renewal notice timing | Often wait unless a rare fixed smash-hit appears |
Run live quotes against your usage →
The blunt rule: fee vs Year-1 win
Pay an exit fee when a named fixed dual-fuel quote undercuts your expected next-12-months cost by more than the fee — after you replace Ofgem’s £1,723 national sketch with your region’s rates or your own kWh. Example shape (illustrative only): if leaving costs £75 and the new fixed is £180 cheaper over 12 months on your usage, the switch can still be rational. If the paper saving is £40 and the fee is £75, staying is cheaper even if a viral graphic says “switch now”.
We do not invent supplier-specific exit fees or fixed £/year tiles here. Those move daily. You can also check brands on MoneySuperMarket with your postcode and usage; refuse graphics without a timestamp.
Standing charges can erase a “cheap unit rate”
Ofgem’s Oct–Dec Direct Debit averages put electricity standing near 54.83 p/day and gas near 29.68 p/day. Two single-fuel fixeds can look cheap on unit rates and still lose to one dual-fuel bundle once daily standing stacks — or the reverse. Always compare standing charges and unit rates together. Low users feel standing charges harder; high users feel unit rates harder.
Direct Debit, prepay and Economy 7
The £1,723 sketch is Direct Debit dual-fuel typical. Prepayment and Economy 7 have different Ofgem presentational levels. If you are on a prepayment meter, confirm whether the fixed you like is actually available for PPM and how any exit terms work for that payment method. If you are on Economy 7, compare multi-rate fixeds and watch peak/off-peak share — a cheap overnight rate is useless if your heat pump or storage heaters charge at the wrong clock.
Cooling-off, renewal notices and “end date theatre”
Domestic switches usually include a cooling-off window on the new deal — use it if the welcome pack does not match the quote. Separately, when your fixed nears its end date, suppliers send renewal notices; do not ignore them and drift onto a poor default without running a fresh comparison. Exit-fee panic in week one of a 24-month fix is a different problem from calm shopping at month 22.
If you are within three months of the end date, ask your supplier whether the exit fee has stepped down, and diary the exact end date before you pay to leave early for a thin saving.
Compare October switch options →
How to gather the numbers in twenty minutes
1) Find your current tariff name, end date and exit-fee clause on the bill or online account.
2) Export 12 months of kWh (or your best annual estimate).
3) Note payment method and meter type.
4) Sketch expected SVT using Ofgem’s published averages only as a starting point — prefer your region’s table.
5) Run at least three fixed dual-fuel quotes on MoneySuperMarket for the same usage.
6) Add the exit fee to the new deal’s Year-1 cost.
7) Switch only if the all-in figure wins; otherwise wait and diary the next Ofgem announcement window.
What SwitchSquid will not do on this page
We will not print unverified “save £400” headlines, invent exit fees for named suppliers, or send residential shoppers to a business-energy form. Further reading of our fixed-vs-SVT and when-to-switch October guides is fine — this URL is the exit-fee maths twin for October switch-season intent.
Final decision card
If you are on SVT: compare now; exit fees usually are not your blocker.
If you are on a fixed with a fee: switch only when Year-1 savings clearly exceed the fee after standing charges.
If you are near the end date: often wait unless a live quote is an obvious smash.
Compare deals and check the all-in cost →
Worked examples (illustrative shapes, not quotes)
Example A — SVT household: You estimate £1,780 for the next 12 months on SVT after applying your region’s rates to your kWh. A fixed dual-fuel quote comes back at £1,620 all-in with £0 exit to leave SVT. Switching is rational if the quote’s standing charges and term match what you typed.
Example B — fixed with £90 exit: Staying three more months costs about £420 on your current fixed. Leaving now costs £90 plus a new fixed that is £100/year cheaper than your current path. The early leave can still lose if you were near the end date anyway — do the calendar maths, not vibes.
Example C — low user, high standing: A “cheap” unit rate with a high standing charge can beat a flashy dual-fuel tile for a small flat. Exit fees do not fix a bad standing-charge fit. Re-run MoneySuperMarket with honest usage before you pay to leave.
Single-fuel, heat pumps and EV edge cases
Heat-pump homes, EV overnight chargers and Economy 7 clocks break dual-fuel assumptions. Price electricity-only and gas-only fixeds as well as dual-fuel. An exit fee on the “wrong” fuel while the other fuel sits on a sharp SVT is a classic October mistake. see also our Economy 7 and Octopus Go guides if that is your meter shape — then come back to the Compare button with the right profile.
If you are on a prepayment meter considering a move to Direct Debit fixed, ask how debt, key/top-up balances and any PPM-specific exit terms are handled. Do not assume a Direct Debit graphic applies to your meter.
Paper trail that survives a complaint
Keep screenshots of the quote, the tariff name, the exit-fee confirmation from your old supplier, and the welcome pack from the new one. If something does not match within cooling-off, use cooling-off. Exit-fee disputes are easier when you can show the clause you relied on dated before you switched.
Compare again with your real kWh →
Related October guides on SwitchSquid
For timing without exit-fee depth, see when to switch energy October 2026. For fixed-vs-SVT framing, use our fixed-vs-SVT October guide. For hunting the cheapest fixed execution method, use the cheapest-fixed October guide. This page exists so searchers asking about exit fees get the fee maths without cannibalising those URLs.
FAQ
Should I pay an exit fee to switch energy in October 2026?
Only if a live fixed quote beats your expected next-12-months cost by more than the fee after standing charges and your real kWh. Otherwise stay or wait for the end date.
Is the Ofgem price cap £1,723?
Yes for the Oct–Dec 2026 dual-fuel Direct Debit typical bill published by Ofgem — not a personal guarantee. See ofgem.gov.uk price-cap pages.
Do SVT customers pay exit fees?
Default / SVT tariffs under the price cap typically allow switching without an exit fee, but always check your own terms.
How do I find my exit fee?
Check your contract, online account or latest bill. If it is unclear, ask your supplier in writing before you switch.
Can standing charges wipe out savings?
Yes. Compare standing charges and unit rates together, especially if you are a lower user.
Why use MoneySuperMarket on SwitchSquid?
Home energy Compare buttons use MoneySuperMarket’s residential affiliate journey. Business sites belong on our separate business-energy form — not here.
What if I am on a prepayment meter?
Confirm the fixed is available for PPM and re-read exit terms for that payment method before you treat a Direct Debit graphic as your quote.
Should I switch before 1 October just because the cap rises?
Compare the maths. A cap rise alone is not a command to pay an exit fee for a weak fixed.
Affiliate disclosure: SwitchSquid may earn a commission when you use the MoneySuperMarket energy journey. Informational /energy/ hub links never replace the Compare button. Residential and business energy tracks stay fully separate.
