Policy Paper
Reference: C16-CEM-90-06

CEER Position paper on early termination fees

In its Position paper on early termination fees, CEER restates its view that energy suppliers should not charge a termination fee to customers who switch energy supplier. This is because charging a switching fee to customers would deter competition in the market and limits consumer choice.
However, early termination fees are different. These are supplier fees charged to customers who unilaterally end their energy contract earlier than the agreed termination date. These fees are not considered switching fees but rather are separate and legitimate charges covered under the contract between the supplier and the customer.