Nearly 4 million UK households on fixed energy tariffs will face exit fees of up to £75 if they switch before the 12-month term ends. That is the warning from Martin Lewis, who says many consumers ‘do not know’ about the lock-in period buried in their contract terms.
As reported by Wales Online, the Money Saving Expert founder stressed that households who locked in a fixed deal last winter could now be paying more than those on the price cap, yet cannot leave without penalty.
How the 12-month threshold works, and why it matters now
Fixed energy tariffs typically run for 12 months. Sign one in October 2024 and you are tied until October 2025. Exit fees range from £30 to £75 per fuel (gas and electricity billed separately), meaning a dual-fuel household could pay up to £150 to leave early.
The catch is timing. Ofgem’s price cap dropped by 7% in April 2025 and is forecast to fall again in October. Households that fixed at a higher rate last winter could be overpaying by £80–£120 a year compared to the cap, but the exit fee eats into any saving from switching.
Lewis’s calculation is blunt: if your fix is £100 a year more expensive than the cap, and the exit fee is £75, you are only £25 better off by moving. Not worth the paperwork, he argues, unless the gap is wider.
What this means for eco-home upgrades
Homeowners planning solar panels, a heat pump, or better insulation often assume they can switch tariffs freely to match their new consumption pattern. Not so. If you are mid-fix, the exit fee applies even if your upgrade cuts your usage by 40%.
Energy Saving Trust data shows a typical 3-bed semi installing solar PV saves around £270 a year on electricity. But if your fix has a £75 exit fee, that first year’s net saving drops to £195. For a heat pump, which shifts your gas use to electricity, the tariff structure matters more: some fixes have higher day rates but lower night rates, and leaving early could mean losing a tariff that actually suits your new heat pump schedule.
Ofgem does not regulate exit fees, suppliers set them, though they must be ‘reasonable’ under licence conditions. The regulator told parliament last year that typical exit fees had risen from £30 in 2021 to £60 in 2024, with some as high as £75.
Who qualifies, and who doesn’t
Households on the price cap (standard variable tariff) have no exit fee and can switch at any time. So can those whose fix has ended and rolled onto the SVT. The trap is for those who fixed 8–11 months ago and now see a cheaper deal or want to retrofit.
The vulnerable get some protection. Ofgem’s rules say exit fees must be waived for customers in the Priority Services Register who are moving house or experiencing a bereavement. But for everyone else, the 12-month clock ticks from the day you signed, not from the day your tariff started.
Lewis advises checking your tariff end date on your latest bill or online account. If you are within 49 days of the end date, you can switch without penalty under the ‘switching window’ rule. Outside that window, the exit fee stands.
What to do now, and by when
Check your tariff end date today. If it is more than 49 days away, run the numbers: compare your current unit rates and standing charges against the best available fix or the price cap. Use Ofgem’s accredited comparison site or the Energy Saving Trust’s tariff checker.
If you are planning a major eco upgrade, solar, battery storage, heat pump, factor the exit fee into your payback calculation. It may be worth waiting until your fix ends before installing, or choosing a supplier that offers a green tariff without a long lock-in.
Households on standard variable tariffs can switch now with zero penalty. Those mid-fix should mark their calendar for 49 days before the end date and start shopping then. The next price cap announcement is due in August 2025; fixes taken out after that may lock in lower rates for winter 2025–26.
Frequently Asked Questions
Yes, but you will typically pay an exit fee of £30–£75 per fuel if you switch before the 12-month term ends. The fee applies to both gas and electricity if you have a dual-fuel fix. You can switch without penalty within 49 days of your tariff end date.
No, the exit fee only applies if you change supplier or tariff. Installing solar or a heat pump does not affect your current tariff. However, you may want to switch to a time-of-use tariff that better suits your new system, and that switch could trigger the exit fee if you are still in your fix period.
