British Gas Exit Fees & Switching Guide

April 2nd, 2025
British Gas Exit Fees & Switching Guide

Switching energy suppliers can help you save money. But, you may face exit fees if you leave a fixed tariff too soon. To choose wisely, it’s key to understand how British Gas handles these fees. You should also learn how to compare energy tariffs and find out when is the best time to switch.

British Gas Exit Fees: What You Need to Know

Exit fees are charges you pay when you end a fixed energy tariff before the contract finishes. These fees can vary depending on the type of tariff you have and whether you are switching to a new energy supplier.

Exit Fees by Different Tariff Type

Tariff Type Exit Fee Can You Switch Without a Fee?
Fixed Tariff £50 per fuel Yes, during the last 49 days of the contract (renewal window)
Standard Variable Tariff (SVT) None Yes, at any time
  • Fixed tariffs – If you leave before your contract is over, you may have to pay an exit fee. You can skip this fee if you switch in the last 49 days of your contract. This period is called the renewal window. It allows customers to move to a new tariff without any penalty.
  • Standard variable tariffs (SVT) – There are no exit fees here. You can switch to a better energy supplier anytime if you find a cheaper deal.

British Gas allows customers to switch their fixed tariffs without paying an exit fee.

Factors That Can Affect Your Exit Fees

  • Energy price cap changes – If Ofgem’s price cap increases, people with variable rate tariffs may need to pay more for energy. It might be better to switch to a fixed tariff.
  • New energy supplier incentives – Some energy suppliers could cover your exit fees when you switch. This helps customers change plans without extra costs.
  • Smart meter usage – A smart meter can give you a more accurate quote when you switch. It tracks your electricity energy consumption values in kWh of electricity.
  • Dual fuel customers vs. single fuel customers – Dual fuel customers, who use both gas and electricity, might have higher exit fees than single fuel customers. This happens because they need to pay exit fees for each type of fuel.

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Fixed vs. Variable Tariffs: Which One Is Better?

Choosing a fixed tariff or a variable tariff depends on how you use energy. It also depends on your budget and whether you want stable prices or more flexibility.

Fixed Tariff vs. Standard Variable Tariff (SVT) Comparison

Tariff Type Pros Cons
Fixed Tariff Locks in a fixed rate for the contract term Exit fees apply if you leave early
Protects against price rises caused by Ofgem’s price cap increases May not benefit from future price drops
Provides budget certainty by keeping annual energy costs stable Less flexibility if you find an even better fixed tariff later
Standard Variable Tariff (SVT) No exit fees – switch anytime to a new energy supplier Prices change based on the energy price cap
If energy prices fall, your rates could drop automatically Harder to budget due to price fluctuations
Works well for prepayment meter users who may not want a long-term contract Can become more expensive if the price of energy rises

On 1st April 2025, Ofgem’s price cap will increase by £111, bringing the average annual energy bill to £1,849. This 6.4% rise means that customers on a standard variable tariff may see higher energy costs, depending on their energy usage and supplier rates.

Who Should Choose a Fixed Tariff?

  • People who own homes or rent in a new home looking for steady energy costs.
  • Dual fuel customers who want one reliable price for gas and electricity.
  • Customers who choose not to keep up with energy market price changes.
  • Owners of electric vehicles using new plans to lower their EV charging costs.

Who Should Stay on a Variable Tariff?

  • Customers believe that energy prices may go down. This might make their electricity and gas bills cheaper.
  • Single fuel customers feel positive about finding a better deal.
  • People want flexibility in case they move to a new home or need a short-term energy tariff.

A fixed tariff can help you control your yearly energy costs. This is especially true if you use a heat pump or other high-energy appliances.

How to Switch from British Gas & Save Money

  1. Review Your Current Tariff

    • Log in to your British Gas online account. Check if you are on a fixed or variable tariff.
    • Look at your contract end date to see if there are exit fees.
  2. Compare Energy Deals

    • Use a price comparison website. Find the best deal for your kilowatt hours (kWh) and yearly energy costs.
    • Consider suppliers that provide renewable electricity or have discounts for dual fuel.
  3. Check Exit Fees & Potential Savings

    • If you have a fixed rate tariff, check if switching now can save you more than the exit fee.
    • Find fixed tariffs that do not have exit fees.
  4. Start the Switching Process

    • Your new supplier will take care of the energy switch guarantee. They will inform British Gas.
    • This process usually takes about 21 days. There will be no interruption to your energy supply.
  5. Receive Your Final Bill

    • British Gas will give you a final bill. This will be based on your meter reading.
    • Any unpaid debt or exit fees will be added to this bill.

You can avoid exit fees if you make a change when it’s time to renew.

Common Customer Complaints About British Gas Exit Fees

British Gas has gotten a lot of complaints from customers. They are upset about high exit fees and issues when changing their service.

  • In 2018, British Gas gave back £2.65 million to fix mistakes. They misinformed 2.5 million customers about exit fees. They also charged almost 100,000 customers too much. (Ofgem.gov.uk)
  • In 2024, British Gas received 1.4 million complaints in only 18 months. Many of these complaints were related to billing issues and delays in changing tariffs. (Telegraph.co.uk)

If you have issues with exit fees, British Gas customer service can help you. But, the best way to avoid extra charges is to read your contract terms first.

Common Customer Complaints About British Gas Exit Fees

Switching & Saving on British Gas Tariffs

If you want peace of mind and a consistent energy bill, a fixed rate tariff could be a good option. If you prefer flexibility and want to avoid exit fees, then a variable tariff might suit you better.

Before you renew your contract, you should check energy tariffs. This will help you ensure you have the best deal.

FAQs About British Gas Exit Fees & Switching

Do I have to pay an exit fee if I switch from British Gas?

Exit fees apply only if you are on a fixed tariff and choose to leave before your contract is over. If you have a standard variable tariff (SVT), you can switch plans at any time without paying any fees.

When is the best time to switch energy suppliers?

The best time to find a better deal is during your contract renewal window. This period lasts for the last 49 days of your contract. You can also check when a better deal could be available.

How do I check if I’m on a fixed or variable tariff?

Log into your British Gas online account. Look at what kind of tariff you have. Also, find out when your contract will end.

Will I have to pay a standing charge if I switch?

Most energy plans have extra fees, called standing charges. This is true even if you switch suppliers. However, some companies provide plans that do not have these standing charges.

Can I switch suppliers if I have a prepayment meter?

Yes, some prepayment tariffs have higher rates. If you change to a Direct Debit plan, you might find a better deal.

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