Your Guide to Early Termination Fees

An early termination fee (ETF) is a penalty for canceling your energy plan before your contract is up. As a general rule, if you signed a contract, your plan probably includes an ETF. However, there are a couple of exceptions that let you skip the fee. Check your plan’s Electricity Facts Label (EFL) or Terms of Service (TOS) document to find out if it includes a fee, and if it does, how much it costs.

Retail energy providers in deregulated markets can set their own ETF policy and amounts. Typically, the amount you pay depends on your contract length, which usually ranges from one to three years. Find out how much the top electricity companies on Choose Energy charge for ETFs in the following table:

Note: These ETF amounts were accurate at the time of writing, but may still vary by each plan. Check your EFL to confirm your plan’s details.

The good news is that there are a couple of ways to avoid paying an ETF. You may be able to skip the fee if any of these scenarios apply to you:

• You are moving outside of your current provider’s service area. Simply provide proof of your move, and most providers will waive the fee.
• Some providers will make an exception if you’ve recently experienced a hardship and need help paying your bills. Call your provider to discuss this option.
• Variable-rate plans do not include an ETF. If you choose this plan type, you can switch at any time with no fee.

If you’re unsure if your situation will require an ETF, give your provider a call to discuss your options.

If your energy bills feel too high, you might find yourself weighing the pros and cons of switching providers. In some cases, paying an ETF might be worth it to get out of an expensive plan. The answer depends on how much your ETF costs and how much you expect to save with a new plan.

Want some help making this decision? Call our team — we can assess your energy needs and estimate how much you could save with a new plan. If switching seems like the right choice, our team can help you sign up for a new plan in minutes.

What plans include early termination fees?

Any plan that requires a contract typically includes an early termination fee. These are usually fixed-rate plans lasting between one and three years. Month-to-month variable-rate plans are generally the only type of energy plan that does not include an ETF.

How do I know my ETF amount?

You can find your ETF policy and amount in your Electricity Facts Label (EFL) or Terms of Service (TOS) document. Review these important documents on our marketplace by clicking on “more details” and “plan documents” for every plan.

Will I be charged an ETF if I move?

If you’re moving outside your provider’s service area, your ETF will usually be waived. If you’re moving within your provider’s service area, you should be able to transfer your service to your new address with no fee. Give your provider a call and let them know you’re moving a few weeks in advance so you can discuss your options.