Five sneaky fees energy firms are hitting customers with – and how to avoid them

All the sneaky fees energy firms are hitting customers with – and how to avoid them - have been revealed. The price most households pay for gas and electricity will rise by 1% on average from 1 January 2025 as energy regulator Ofgem has announced the latest Energy Price Cap rates.

Ahead of the price cap, British Gas, OVO, EDF, EON Next and Octopus customers have been warned by Laura Purkess, the Sun newspaper reporter, who has outlined ways energy firms are slapping these hidden costs on customers.

Discussing early exit fees, Laura explained most suppliers charge these if you switch providers before the end of your fixed term. Fiona Waters, from Warm This Winter, said: “Yet again energy suppliers are letting customers down with many stuck in fixed rate deals they can’t get out of because of extortionate exit fees.”

READ MORE: DWP issues big update over 'sanctions' coming for people who claim two benefits

READ MORE: DWP imposes 'cruel' state pension 'freeze' on thousands of people

READ MORE UK tourists warned 'another' country is set to impose higher tax on them

Another is energy broker fees. Energy suppliers can allow brokers to set very high levels of commission, and this increases the price per kWh on your energy contract. Broker commission usually starts at 0.05p per kWh and are usually capped at 1p or 2p per kWh by many energy suppliers.

Another is standing charges which BBC and ITV star, and consumer champ­ion, Martin Lewis has called the charges an “unfair energy poll tax” that “dis—incentivises people from cutting bills”. The Money Saving Expert has long campaigned for a standing charge overhaul.

Now, it has emerged some customers could be hit with hidden fees for receiving paper bills - with OVO introducing a charge recently. Ovo said: “We send digital communications to most customers. We still offer paper communications to anyone on the Priority Services Register, those who receive adapted communications, and anyone needing financial support.”

Customers may be charged extra fees if they use a government scheme called the Green Deal, too, the Sun reports. You have to pay any costs covered by the scheme back through your energy bills, and some customers have complained they are paying more than they are saving.