Prevent a penalty

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When do you pay a cancellation fee for energy?

You pay a cancellation fee for energy, also called a cancellation penalty, if you change supplier before your contract has expired. Suppliers do this because they miss out on income that they had taken into account on the basis of the contract. A cancellation fee can only be imposed if certain agreements are violated. As a result, agreements must be clear to both parties at the time of conclusion. Agreements are made about the amount of the cancellation fee for energy when the contract is concluded.

Paying a cancellation fee for energy

The payment of a cancellation fee usually takes place via the final settlement. On the final bill, the installment amounts are settled with the total consumption and the cancellation fee for energy. As a result, it may be that the total amount to be paid is higher than the cancellation fee, or that the amount to be received back is lower due to the cancellation fee. It is common for outstanding amounts to be paid before a refund is made. In the case of a welcome bonus it is often deducted because the contract is not completed.

Cancel fine energy and solar panels

Energy suppliers may charge a cancellation fee if you also have a contract for solar panels. This can be from the same or another supplier. The fine that you pay is related to the total amount of electricity that you purchase, which the solar panels yield is not taken into account in the fine.

How can the fine be avoided?

The fine can be avoided by canceling the contract within the notice period. Do you really want to cancel and do you need help with this? Then fill in the form on the right!

Prevent a penalty

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    Three criteria for a cancelling fine about the energy contract

    1. Up to 15% of the residual value

    The energy supplier may request a maximum of 15% of the remaining value of the agreement.

    2. Difference in market price and remaining value

    The difference between the market price at the time of termination and the remaining value of the contract, plus a fee of € 50.

    3. Up to €100,- each year

    The energy supplier is authorized to charge a maximum of € 100 per year for each year not served

    How is a cancellation fee calculated?

    To give you an idea of how the cancellation fine is settled, an example can be found below. Criteria 1 has been chosen for the example, as this is the most commonly used method by energy suppliers.

    Example:

    Metal factory Janssen bv. is committed for another 3 years to a contract with the following rates: € 0.065 per kWh and € 0.245 per m3 (these rates are fictitious) . Its consumption is 25,000 kWh and 5,500 m3 of gas per year. Fixed delivery costs are also included in the cancellation fine, this amount can also differ. For now we choose an amount of approximately € 6.20 per product per month.

    Janssen metal factory wants to switch to another supplier. His energy supplier calculates with the first way, in which the company must pay up to 15% of the remaining value of the agreement. His energy supplier charges 13%.

    The calculation for 1 year is then as follows:

    • (25,000 kWh * 0.065) + (12 * € 6.20) * 13% = € 220.92
    • (5500 m3 * 0.245) + (12 * € 6.20) * 13% = € 184.85

    In total, that is € 405.77 cancellation fine for one year. However, Janssen Metal Factory still has a contract that lasts 3 years, which means that they receive a cancellation fine of € 1,237.31 (see table below)

    Other contract durationElectricity termination compensationGas cancellation compensationTotal
    1 year€ 220.92€ 184.85€ 405.77
    2 years€ 441.84€ 369.70€ 811.54
    3 years€ 662.76€ 554.55€ 1,217.31
    4 years€ 883.68€ 739.49€ 1,623.08
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