You are here: Home - Household Bills - News -

Energy tariff exit fees cost up to £600

0
Written by:
23/06/2022
Billpayers already facing energy price hikes are now being met with fixed tariff exit fees which are up to 10 times more expensive than this time last year.

Customers on fixed tariffs typically paid £60 to exit their dual fuel deal within contract. But according to MoneySavingExpert.com, it found these costs are 10 times higher than they were this time last year.

Its research found Outfox the Market charges the highest exit fee at £600 on its one-year dual fuel deal, up from the £0 – £67 it charged in June 2021.

Ovo Energy maintains its £60 exit fee on its one-year fixed dual fuel tariff, but it has doubled the exit fee from £60 to £120 on its two-year fix.

British Gas, EDF and Scottish Power have ramped up their exit fees to £200 and £300. Meanwhile SSE charges £60 on its two-year deals, whereas a year ago it charged up to £150.

So Energy now charges £60 on its one-year fix and £120 for its two-year offering, up from the £10 it charged for its one-year fix.

Martin Lewis, founder of MoneySavingExpert.com, said these higher exit fees now make it more difficult for customers to decide whether to fix their energy deal.

He said: “These massive, outrageous early exit fees, are the final nail in the coffin of dying energy competition. Many people are trying to decide whether to fix or not at the moment. That no longer means going cheaper, it’s about whether you should pay more now, to forestall the huge rise likely coming in October.”

MoneySavingExpert.com added that in the case that people lock in to available tariffs and prices start to fall, the high fees “could wipe out any potential savings from switching”.

It reminds customers that they have a 14-day cooling off period and no exit fees can be charged for those within 49 days of the end of a fixed contract.

Under energy regulator Ofgem rules, suppliers are allowed to charge exit fees which customers are made aware of when signing up to a tariff. Suppliers are required to make this clear.

However, under the Consumer Rights Act 2015 which protects customers from unfair contract terms (which includes energy), excessively high early exit fees may be considered to be an unfair contract term.

An Ofgem spokesperson, said: “Our top priority is to protect consumers which is why just this week we’ve announced robust new measures to stop customer money being used like an interest free credit card by energy suppliers.

“In terms of exit fees, we fully expect suppliers to make sure charges are fair and equitable and rules are clear that termination fees are allowed but should be proportionate. The Citizens Advice energy shopping guide also provides essential information to help you know how to shop for the best tariff for you.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week