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Energy firms are raising early exit fees to £ 600

Energy companies raise early exit tariffs to £ 600 before prices rise in October

Exit fee: EDF Energy takes £ 300 to leave a two-year fixed deal, compared to £ 70 in June 2021

Energy companies have increased early retirement fees to £ 600.

A year ago, the average exit fee for a fixed deal on gas and electricity was 60 pounds, and the highest – 150 pounds, according to MoneySavingExpert.com. EDF Energy is now charging £ 300 to leave the two-year fixed deal, compared to £ 70 in June 2021. Outfox the Market has £ 600 to give up the annual deal early.

Martin Lewis, founder of MoneySavingExpert.com, says: “These huge, outrageous early exit fees are the final nail in the coffin of dying energy competition.

Many people try to decide whether to fix it or not. That no longer means getting cheaper, but whether to pay more now to prevent huge growth, probably in October. ”

The energy price cap set by the Ofgem regulator is expected to then rise to £ 3,000. Providers are allowed to charge for fixed-term contracts if they are “proportional”.

However, Mr Lewis says Ofgem does not define “proportionally”. He adds: “The lack of transparency makes it easier for companies to add these horrible penalties for early exit. The regulator must intervene. “

t.armstrong@dailymail.co.uk

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Energy firms are raising early exit fees to £ 600

Source link Energy firms are raising early exit fees to £ 600

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