An energy exit fee is a charge a supplier may apply when a customer leaves a fixed-term energy tariff before it ends. It is set out in the contract, applies per fuel, and does not apply to standard variable or deemed contracts.
In one line: An energy exit fee is the penalty for leaving a fixed-term energy tariff early, charged per fuel as set in the contract.
How an energy exit fee works
Fixed tariffs lock rates for a set term, and an exit fee compensates the supplier if the customer leaves early. The fee amount is stated in the contract and is charged separately for gas and electricity on a dual-fuel deal.
If a fixed dual-fuel tariff carries a 25 GBP exit fee per fuel, leaving early costs 50 GBP in total. A customer weighing a switch compares that 50 GBP against the saving a cheaper tariff would deliver.
Ofgem rules let customers switch penalty-free in the final weeks of a fixed term, and standard variable and deemed contracts carry no exit fees at all.
Exit fee vs a deemed or variable contract
An exit fee only attaches to fixed-term tariffs, while standard variable and deemed contracts can be left at any time without charge.
Switching away in the protected window before a fixed term ends avoids the fee, so timing a switch can remove the penalty entirely.
Primary source: Ofgem: Get help with energy