The best energy deals with no cancellation fees

Although most consumers tend go for the cheapest deals, more than a third opt for flexibility over better pricing

Close to a third of consumers are choosing to go for flexible energy plans

Close to a third of consumers are choosing to go for flexible energy plans

At the moment, the energy best buy table is almost entirely made up of fixed price plans, from independent energy suppliers.

These represent the cheapest options on the market and are by far the most popular choice for switchers using uSwitch’s energy comparison service. These plans allow consumers to fix their energy rates for a relatively short length of time, usually 12 months, however, most of them carry cancellation fees.

In contrast, about one third of switchers decide to go for more flexible fixed price energy plans, which do not carry cancellation fees.

Which type of plan should you go for?

Fixed price plans freeze your energy rates for a set period of time. If during this period your suppliers’ rates increase, you will be shielded from any price rises. Having said that, if your supplier drops its energy rates, then you are unlikely to benefit from the new lower rates.

If energy rates fall and you decide to switch, but your plan has exit fees, then you will have to pay them in order to change to a new energy supplier. With cancellation charges of close to £60 for many dual fuel plans, this could well wipe away any potential savings.

There are, however, a selection of fixed price plans which do not carry cancellation fees. These tariffs freeze your energy rates and give you the freedom to switch without paying cancellation fees.

Fixed plans with no exit fees

The most popular fixed price plan with no exit fees is EDF Energy’s Blue+Price Promise February 2016 tariff, which fixes rates until February 2016 and will cost the average home £1,049 per year.

Other plans include ScottishPower’s Online Fixed Price Energy September 2015, which locks in rates until September 2015 at an average cost of £1,063 per year. The cheapest plan with no cancellation fees is independent supplier Flow Energy’s Thames Online Fixed September, which costs £1,010 on average.

Cheapest fixed price tariffs with no exit fees

Supplier

Plan Name (POR)

Average Bill Size

Tariff type

Cancellation fee

End date

Flow Energy

Thames Online Fixed September

£1,010

Fixed

No cancellation fee

31.08.2015

EDF Energy

Blue+Price Promise February 2016

£1,049

Fixed

No cancellation fee

29.02.2016

ScottishPower

Online Fixed Price Energy September 2015

£1,063

Fixed

No cancellation fee

30.09.15

Npower

Online Price Fix October 2015

£1,067

Fixed

No cancellation fee

31.10.2015


* Based on a medium usage customer using 3,200 kWh of electricity and 13,500 kWh of gas paying by direct debit with bill sizes averaged across all regions.

How do cancellation fees work?

Cancellation fees, also known as exit fees, are typically set at between £20- £30 per fuel and are charged to consumers who sign up to an energy plan and then decide to leave before it ends.

That means that if you select a cheap 12-month plan with cancellation fees and then decide to switch six months in, you will have to pay your supplier the exit fees.

There are circumstances in which some suppliers waive cancellation fees. Depending on your supplier, you may not be liable to pay fees if you are moving house, for example.

It is also worth noting that according to Ofgem’s regulations, your supplier should inform you that your plan is ending 42-49 days before it finishes, at which point you can switch without incurring any early exit fees.

Read more

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Join the conversation

  • Mike

    I tried to get the recognised best deals for my electricity supply but could not find a company other than the Big Four who would supply me because I have an Economy 10 meter

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