Finding a great deal on your energy tariff isn’t difficult, but you might be put off switching because of something called an exit fee.
Depending on your supplier, or the type of tariff you’re on you could be subject to an exit fee. If you don’t already know, an exit fee is a charge written into your contract which is charged in the event you exit your contract early.
For example, if you are on a fixed energy plan, it will most likely contain an exit fee clause. This is because fixed plans are designed around paying a fixed rate for your energy over a fixed term (typically 12 months). Depending on your supplier the amount charged does change, typically you’re looking at a £5-30 charge per fuel. So, leaving your plan early could cost you as much as £60 if you have a dual fuel tariff.
Is it possible to switch and not pay an exit fee?
Depending on your circumstances there are opportunities for you to switch and not pay an exit fee!
Standard variable rate tariff - if your fixed energy tariff has come to an end you have moved onto your supplier’s standard variable rate tariff, you’ll be glad to know there is no exit fee meaning you can switch your tariff or supplier at any point without charge. What’s more, variable rate tariffs are commonly the most expensive energy tariffs on the market. The sooner you switch the sooner you can save money!
Nearing the end of your fixed rate tariff - there is a window within your fixed rate tariff where you able to switch your energy deal without being charged an exit fee. In the 49 days before the end date of your contract you can switch without incurring a charge. Meaning, it pays off to start your search for a new energy deal early so you can start saving sooner and avoid being rolled onto a more expensive variable rate tariff.
If you’re having trouble with your current supplier, you can always refer them to Ofgem rules and regulations on the 49-day window.
Not near the end of your fixed rate tariff - if you’re at the start or in the middle of your contract and it is subject to an exit fee, it can’t really be avoided. However, if you’ve run the numbers and know you can still save money even after paying the fee it might be worth biting bullet and making the switch.
There is also the potential your energy provider doesn’t charge an exit fee. There are a select few providers in the UK who do not charge an exit fee such as Pure Planet.
It’s also worth noting that if you have moved onto your energy supplier’s standard variable rate tariff, you won't have been charged an exit fee when your fixed rate tariff came to an end.
If you’re looking to switch your energy deal, Monva can help you to switch smart and worry less. With an energy panel of over 50 suppliers, including the big 6 (British Gas, EDF Energy, E.ON, npower, Scottish Power and SSE), you’ll be spoiled for choice. What’s more you can tailor your search to make your results personal to you.
If you’re already registered with Monva, you could switch your energy in under a minute and we’ll let you know when you could be getting a better deal on your energy. Meaning you’re always in control of your energy bills.
Start your switch smart, worry less journey today.
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