One of the biggest reasons people stay on an expensive plan is the fear of being charged to leave. For the large majority of residential electricity plans in Australia, that fear is unfounded. Standard market offers generally have no exit or cancellation fee, which means you can switch retailers whenever a better deal appears, without a penalty for leaving.
This matters because it removes the main risk of switching. If a cheaper plan comes along, you are usually free to take it. You are not locked in the way you might be with a phone contract. The default assumption for most households should be that leaving is free, not that it costs money.
When a fee might still apply
Fixed-benefit or fixed-term plans
A minority of plans lock in rates for a set term and may charge an exit fee if you leave early. Always read the term.
Bundled hardware deals
Plans tied to solar, a battery or an appliance can carry a break cost if you exit before the arrangement ends.
Embedded networks
In some apartments and estates you buy power through an embedded network with less freedom to switch. Check your situation.
Solar feed-in bonuses
A special high feed-in tariff offer may be conditional; leaving can forfeit it, which acts like a soft cost of switching.
Final bill charges
Not an exit fee, but a final bill (and any credit refund) is settled when you leave (normal, and usually small).
What to check before you switch
Read your current plan’s terms (the Basic Plan Information Document or your welcome pack) for any mention of exit, cancellation or early-termination fees.
If you are inside a fixed term, weigh any exit fee against the savings. A small fee is often dwarfed by a cheaper plan over a year.
Check you are not in an embedded network, where switching options can be limited.
Confirm any solar feed-in or hardware bonus you would give up by leaving.
Compare on total annual cost, not just the fee. EnergySorted flags what you are on and costs the alternatives on your real usage.
Frequently asked questions
Do electricity plans in Australia have exit fees?
Most residential market plans do not. Leaving is usually free. A minority of fixed-term or bundled plans can carry an exit fee, so it is worth checking your specific plan’s terms, but the default for most households is no penalty for switching.
How do I find out if my plan has an exit fee?
Check your plan’s Basic Plan Information Document or welcome pack, or your online account, for any mention of exit, cancellation or early-termination fees. If you cannot find it, your retailer can confirm. EnergySorted also reads your plan details from an uploaded bill.
Is it worth switching if there is an exit fee?
Often yes. A one-off exit fee is frequently much smaller than the annual saving from a cheaper plan. Compare the fee against the yearly saving. If the saving is bigger, switching still pays off, sometimes within a couple of bills.
Will I be charged a final bill when I leave?
You will receive a final bill settling your usage up to the switch date, and any credit balance is refunded. That is normal account settlement, not an exit fee, and is usually small.
Are no-exit-fee plans a special type of plan?
Not really. Having no exit fee is the norm rather than a special feature. Rather than search specifically for "no exit fee" plans, it is more useful to compare the whole market on cost and simply check the terms of anything with an unusually good bonus.
How do I actually switch if there is no exit fee?
You choose a cheaper plan and the new retailer handles the changeover; there is no interruption to your power. Our guide on how to switch electricity retailers runs through the few details you need to have ready.
Do fixed-rate plans lock me in with an exit fee?
Some do, in exchange for rate certainty for a set term. Whether that certainty is worth the restriction depends on where prices are heading; our comparison of Amber-style market pricing versus fixed-rate plans covers the trade-off.
Does switching retailers hurt my credit rating?
No. Switching energy retailers is a routine account change and does not affect your credit score. Opening a new account may involve a basic identity check, but simply leaving one plan for another carries no credit penalty.
How often can I switch without a fee?
As often as it pays to, since most plans have no exit fee. The main thing to watch is not giving up a conditional bonus too early; our guide on how often you should switch energy plans helps you time it.
Is switching free when I move house?
Moving is one of the easiest times to switch, because you are opening a new account anyway with no exit fee to worry about. See connecting electricity when moving house so you start on a competitive plan rather than a default.
General information only, current at the time of writing. Not financial advice. Rebate schemes and rules
change; always confirm details with your retailer or state government energy site.
We use cookies to understand how the site is used and improve it. Analytics stays
off until you accept. See our Cookie Policy and
Privacy Policy.
