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What is the exit fee for business energy contracts?

There is no standard exit fee for a business energy contract. Whether a fee applies, and how much it will cost, depends on the agreement you have entered into with the supplier.

Most fixed-term business energy contracts do not allow a business to leave whenever it chooses. A contract may contain an early termination clause that sets out a specific charge or explains how the supplier will calculate the cost of ending the agreement early. Other contracts may not provide an ordinary early-exit option at all. Ofgem therefore recommends checking the existing contract before attempting to switch.

You may be able to change supplier without an exit fee once the contract reaches its permitted switching window or end date, depending on its terms. Gas and electricity may also be covered by separate agreements, so the termination position should be checked for each supply.

If you are considering leaving early, ask the supplier to confirm any termination charge and the contractual basis for it in writing before agreeing a replacement contract.

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