Exit fees: EDF Energy charges £300 to leave a two-year fixed deal, up from £70 in June 2021
Energy firms have hiked early exit fees to as much as £600.
A year ago, the average charge to quit a fixed gas and electricity deal was £60 and the highest was £150, according to MoneySavingExpert.com. EDF Energy now charges £300 to leave a two-year fixed deal, up from £70 in June 2021. Outfox the Market has a £600 fee to ditch its one-year deal early.
Martin Lewis, MoneySavingExpert.com founder, says: ‘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. That no longer means going cheaper, it’s about whether you should pay more now, to forestall the huge rise likely in October.’
The energy price cap, set by regulator Ofgem, is expected to rise to £3,000 then. Providers are allowed to charge exit fees on fixed-term contracts if ‘proportionate’.
However, Mr Lewis says Ofgem does not define ‘proportionate’. He adds: ‘The lack of transparency makes it easier for firms to add on these hideous early exit penalties. The regulator needs to intervene.’
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