Octopus Energy under fire as 'sickening' exit fees raised from £0 to £75 'all in one week'

Following President Donald Trump's military action against the Islamic Republic, the price of Brent oil has surged to $74 per barrel in a move that is expected to see energy bills and inflation spike.

As a result, the fees for leaving a fixed-rate tariff has gone from zero to £50 and finally £75, which is applicable to new customers

One Octopus Energy posted on X: "Incredibly poor customer service from Octopus Energy to put the exit fees up from £0 to £50, then to £75 all in one week for customers looking to switch tariffs."

Another customer added: "I’ve also had this. £0 exit fee today and now £75 this evening for both gas and electric when I’ve gone to swap. Sickening. As a single parent, this is really worrying times

The official Octopus Energy X account responded: "These are changes we genuinely dislike making. With a fixed tariff, we buy 12 months of energy upfront at the prices available that day, which keeps your bills steady regardless of how the market changes later.

"We typically don't do exit fees and instead just absorb the cost if customers leave early, but the current, super volatile market makes that trickier.

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"To keep giving customers the best price possible, we need to introduce an exit fee for new fixed tariff sign-ups. We're here to help and can chat through options."

The online outrage provoked a response from Octopus Energy CEO, Greg Jackson, who highlighted that his energy firm rarely charges exit fees compared to their competitors.

Mr Jackson explained: "We are introducing now only for new fixed tariffs. This is because when you buy a fixed tariff now, we are buying a year's worth of energy for you, in a very challenging market. Other company's aren't offering fixed tariffs at all."

He noted that it is the choice of customers as to whether they want to leave a deal before the end of their fixed rate, and no fees are changed on flexible tariffs, which are also protected by Ofgem's price cap.

Mr Jackson clarified that there are no exit fees being "retrospectively" charged when they were not already included in the initial tariff.

Referring to the Middle East conflict, the energy boss CEO stated: "This is the scale of the cost increases we face when we go to market to buy for new fixed tariffs.

"So, we'll keep offering fixeds for as long as we can, with full customer choice, and totally transparent terms."