Major energy suppliers SCRAP exit fees as 1.5million customers at risk of paying more than price cap
THREE major energy suppliers have agreed to scrap exit fees for customers on fixed energy deals.
The move will help protect hundreds of thousands of customers who face energy bill hikes from this month.
British Gas, Octopus Energy and Utility Warehouse have revealed to The Sun that they have ditched the penalty, saving customers anywhere between £50-£200.
It comes after Future Energy Associates warned that 1.5million households on 274 different fixed energy deals will see their bills spike by around £500 a year.
Customers are usually locked into a set price for a certain period, but many don't realise they got a discount from the Government's Energy Price Guarantee.
This capped average bills at £2,500 for 29million on standard variable tariffs until July 1, and has now been replaced by Ofgem's energy price cap, which caps typical bills at £2,074.
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The government is continuing to subsidise fixed energy bills after this date but at a lower level.
It means those on fixed deals face higher bills but have to pay a fee if they want to leave.
Scottish Power didn't respond to The Sun's request for comment.
We asked if it had plans to waive exit fees, costing up to £300, on all affected fixed tariffs.
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EDF, Ovo and Shell Energy have confirmed that exit fees will still be applicable to those wishing to leave their fixed energy deal.
That means customers with these energy firms face paying between £60 and £300 to move onto a cheaper variable price capped tariff.
Which tariffs can you leave without an exit fee?
Customers on the following 29 British Gas tariffs don't need to pay an exit fee if they choose to switch to the supplier's standard variable tariff:
- Fixed Sep 23v4 - usually £200
- Fixed Sep 23v2 - usually £200
- Fixed Sep 23v1 - usually £200
- Fixed Oct 23v4 - usually £200
- Green Future Oct23v3 - usually £200
- Green Future Oct23v1 - usually £200
- Exclusive Nov 23v2 - usually £200
- Fixed Oct 23v1 - usually £200
- Fixed Aug 23v3 - usually £200
- Green Future Jul 2023 - usually £80
- Fixed Aug 23v2 - usually £200
- Fixed Aug 23v1 - usually £200
- Exclusive Nov 23v1 - usually £200
- Fixed Price Jul 23v1 - usually £150
- Green Future Jul 23v2 - usually £200
- Green Future July 23v3 - usually £200
- Exclusive Fix Jul 23v1 - usually £150
- Fixed Jul 23v2 - usually £200
- Fixed Jul 23v3 - usually £200
- Loyalty Jul 23v1 - usually £200
- Green Future Jul 23v1 - usually £150
- Exclusive Jul 23v3 - usually £200
- Fixed Jul 23v1 - usually £150
- Exclusive Jul 23v2 - usually £150
- Exclusive Jul 23v1 - usually £150
- The Green One v15 - usually £150
- The Fixed One v15 - usually £150
- The Exclusive One v11 - usually £150
- Green Future Dec 2023 - usually £150
Octopus Energy customers choosing to exit the following 13 fixed deals won't need to pay a fee either:
- Super Green Octopus 12M Fixed August 2022 v1
- Arsenal Green 12M Fixed August 2022 v1
- Octopus 12M Fixed August 2022 v1
- Loyal Octopus 12M Fixed August 2022 v1
- Super Green Octopus 12M Fixed July 2022 v2
- Arsenal Green 12M Fixed July 2022 v2
- Octopus 12M Fixed July 2022 v3
- Super Green Octopus 12M Fixed July 2022 v1
- Loyal Octopus 12M Fixed July 2022 v4
- Arsenal Green 12M Fixed July 2022 v1
- Loyal Octopus 12M Fixed July 2022 v3
- Octopus 12M Fixed July 2022 v2
- Loyal Octopus 12M Fixed July 2022 v2
Utility Warehouse customers on the following eight fixed tariffs will also have any exit fees waived:
- Green Fixed 39 - usually £150
- Green Fixed 38 - usually £150
- Green Fixed 37 - usually £150
- Green Fixed 35 - usually £50
- Green Fixed 34 - usually £50
- Green Fixed 33 - usually £50
- Green Fixed 32 - usually £50
- Green Fixed 31 - usually £50
Which suppliers charge an exit fee?
Ovo Energy, which also managed SSE's fixed energy tariffs, charges customers between £60 and £120 to ditch their deal early.
EDF Energy customers on 81 fixed tariffs that charge more than Ofgem's price cap rate will need to pay between £60 and £300 to exit their deal.
Shell Energy customers are charged £150 to ditch a fixed energy deal early.
So Energy customers have to pay between £60 and £120 to leave their fixed energy deal.
Should I leave my fix?
This depends on how much your unit rates and standing charges have risen - but you'll also need to factor in any exit fees.
Since July 1, customers on the SVT tariff, which is protected by Ofgem's price cap, pay the following typical rates:
- 7.51p per kilowatt hour (p/kWh) for gas
- 30.11p/kWh for electricity
- A standing charge of 29.11p per day for gas
- A standing charge of 52.97p per day for electricity
It means that a household with typical usage can expect to pay £2,073.98 a year.
If your rates and/or standing charges have risen above this level, it could be worth exiting your current fix.
However, if you need to pay a hefty exit fee, you'll need to take this number into account when working out any potential savings from ditching your fix.
How do I calculate my bill?
To calculate how much you pay on your current fix, you will need to find out both your unit rate for gas and electricity and the standing charge for each fuel type.
The unit rate will usually be shown on your bill in p/kWh.
The standing charge is a daily charge that is paid 365 days of the year - irrespective of whether or not you use any gas or electricity.
You will then need to note down your own annual energy usage from a previous bill.
Once you have these details you can work out your gas and electricity costs separately.
Multiply your usage in kWh by the unit rate cost in p/kWh for the corresponding fuel type - this will give you your usage costs.
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You'll then need to multiply each standing charge by 365 and add this figure to the totals for your usage - this will then give you your annual costs.
Divide this figure by 12 and you'll be able to work out how much you should expect to pay each month from July 1.