UK residents have many choices when it comes to energy suppliers, but that doesnt mean that switching is always easy. Even when a new deal crops up that is better than another, a customer has to worry about exit fees. These can include fees also called cancellation and termination fees. These fees are assessed whenever a buyer tries to opt out of a previous energy contract before the actual period of service is over. They can range from as little as 5 to up to 50 per fuel type. Due to the simplification of the UK tariff structure, you may find yourself suddenly signed up to a more expensive tariff once your old tariff is no longer available. This automatic enrolment can also oblige you to pay an exit fee if you want to switch after the period for enrolment is over. Its the wise consumer that keeps an eye out for fees and asks about them before switching, even when the switch was not of their own doing.
Fixed rate plans
Fixed rate agreements usually carry early termination fees, and they tend to be more expensive than other plans. This can make it difficult to switch from one type of plan to another, as the fee will offset any savings in cost. Even if you have a change of heart in the middle of the winter season, you might find youre stuck with your deal, unless the utility will allow you to switch without a fee. If you have a fixed tariff, you will need to see what types of fees are associated with terminating the account before you actually decide to make that decision. You may find that you can still switch, even if it costs you, or that the company will waive the fee as long as you remain with them and not some other utility. The costs to terminate a fixed rate plan also depend on how far along you are in it.