Everything you need to know about energy cancellation fees

Though there are certainly benefits to long-term contracts, they also have their fair share of drawbacks, the chief among which, of course, is duration. There are few things more annoying for example, than seeing a great deal from another supplier advertised and not being able to jump ship because of a long remainder left in the agreed term with your current supplier.

It’s worse still when your provider, whether it be for energy, broadband, phone etc. isn’t living up to their promised standards and it feels like there’s nothing you can do about it. Or is there?  

In this article, we look at how to avoid energy cancellation fees and which supplier charges what. Let’s get to it!

How to avoid cancellation fees

It should almost go without saying, but as with contracts of any kind, to avoid energy cancellation fees all you have to do is wait until the end of your contract with your supplier and then you’ll be able to switch suppliers without worry of being penalised.

In general, the minimum contract period for gas and electricity deals is 12 months, although some suppliers do offer 24-month deals. 24 months is a long commitment, so always make sure you're fully aware of time commitments when signing up to a new supplier!

If I do want to end my contract early, how much can I expect to be penalised?

When we hear the terms “cancellation fee” or “early exit fee” the automatic perception is that the fee will be astronomically high to act as a strong deterrent for exiting out of a contract early.

This can be true for many services such as broadband where customers have been known to have to pay for the remaining months left in their contract as well as an early exit fee on top of that. Thankfully, when it comes to energy suppliers, the fees aren’t nearly so drastic!

You can expect to pay just a €50 early exit fee on single fuel deals (though there are exceptions) and €100 if you're on a dual fuel plan.

Can I leave my energy contract early if my supplier raises its prices?

In short, no.

With many services, such as broadband and phone, when a price increase is announced mid contract, customers are informed that if they're not satisfied with the changes, they are free to switch without penalty, so long as they switch within a 30-day period.

This isn't the case with energy suppliers because in the majority of cases, customers sign up to an agreed discount (usually expressed in percentage terms) off the standard unit rate, meaning that their contract is with the percentage discount rather than the price of the gas or electricity itself.

For example, a supplier offering a 30% discount could increase its standard prices but the customer would not be eligible to break their contract because they would still be getting a 30% discount - that hasn't changed - they're just getting a 30% discount off a higher standard unit price. 

What early exit fees does each energy supplier charge?

Early exit fees can vary from supplier to supplier. You can find out what each supplier charges in the table below.

Note that these fees are for standard, 12-month plans. If you signed up to a 24-month contract or a plan that gave you free equipment or 'goodies' as a sign-up incentive e.g. an Amazon Dot or Climote, a higher fee will usually apply. 

What if I received cashback as part of my energy deal?

Cashback deals have become very popular among energy suppliers in recent years. This is where you receive a cash bonus for switching, which is usually credited to your account within the first month of switching supplier. 

If you received cashback as part of your deal be warned that most suppliers reserve the right to claw it back if you cancel before the end of your agreed contract.

Do I have to pay exit fees if I move house?

If you're moving house you usually won't be liable to pay early exit fees.

However the best thing is to ring your supplier as soon as you know you're moving and discuss the situation with them.

Ready to switch now?

Switching suppliers is the quickest and easiest way to save money on your energy bills. Last year only 14% of Irish households switched electricity supplier and only 20% switched gas supplier, meaning that a huge percentage of households missed out on hundreds of euros worth of savings.

If you're currently out of contract you could make an average saving of over €500 by switching gas and electricity today using bonkers.ie. Our website makes it easy to compare the best deals across all of Ireland’s energy suppliers.

The great thing is you could switch in just minutes and only need a few things on hand to do so:

• A GPRN number if switching gas and an MPRN number if switching electricity
• A recent meter reading
• A good estimate of how much energy you use
• Some personal details

Read our helpful guide on what you need to switch suppliers for further information.

Looking for more information?

Before making the switch, you might want to take a look at the following:

• Here are 7 important things to consider when switching energy suppliers.
• We’ve compiled a list of the most common questions we get asked about the energy switching process here.
• Energy prices are on the rise and you may be wondering why. We’ve outlined the reasons for the price increases in this blog and also discussed them in this recent radio interview.

For more information and help on switching, have a look at our range of energy guides.

Get in touch!

Do you have any questions on energy cancellation fees or switching providers?

You can contact our customer service team on (01) 256 0500 who will be happy to help you, or reach out to us on social media. We’re on Facebook, Twitter and Instagram.