If you sign up to a fixed term deal with an energy supplier, for example a 24 month fixed price tariff, then that provider may put an exit fee on the agreement that you have to pay if you want to leave before the end of the fixed term. This is usually in the region of £30-60, but varies based on the supplier and whether you are dual or single fuel. Any exit fee incurred will be added to the final bill your supplier sends you after you’ve switched.
Under Ofgem rules, suppliers cannot charge an exit fee if you have 49 calendar days or less left on your existing tariff.
When Bud shows you potential savings that could be made by switching to a provider we will have taken into account any exit fee due to your existing supplier (with one exception, outlined below). We calculate this by first looking at your historic transactions with your energy provider to see how long you’ve been paying them. Then we combine this with the details of the tariff you are currently on, which will have an end date associated with it, to determine how long into your agreement you are and how long is left.
Exception: Selecting ‘I don’t know my tariff’
There is one important exception to the above rule, and one instance where we will not be able to determine if you would owe an exit fee on your current deal. If during the switching process you select the option ‘I don’t know’ when asked for your tariff information, we will assume you are on your energy supplier’s standard variable tariff. This may be correct, but it may not be.
SVTs do not incur exit fees, and so any potential savings shown from new providers would be based on you not having an exit fee to pay from your current provider. If it turns out you are not on an SVT, but on a fixed tariff, you may incur an exit fee and that would mean the savings shown in the app would be inaccurate.
This is why we strongly recommend you get your tariff information to hand before going ahead with a switch. See the article relating to finding your tariff for more on that topic.