How to cancel your electricity or gas contract in 3 steps

Cancelling your current energy contract is a pretty straightforward process, but there are a few things to keep an eye out for.

This guide will take you through how to cancel, how to switch plans and what you need to know before cancelling.

How to cancel your electricity or gas contract

To cancel your contract, it's simple:

1. Contact your energy retailer. You can either do this over the phone or online.
2. Provide the right information. For example, you'll need your account number and proof of identification.
3. Pay an exit fee and any outstanding bills. Note: there may be a delay before the final bill comes in.

How to switch energy retailers

If you want to switch your energy retailer, simply contact your new provider and apply for the new plan. The new retailer will take care of the handover.

Here is what the steps usually look like:

1. Give your metering info (NMI) to your new retailer.
2. They make the switch for you.
3. You get a cooling-off period in case you change your mind.

Note: You can find your NMI on your bill or you can ask your existing retailer.

• Checklist: Before you switch

  • Find out what energy plan you're currently on. This includes your usage rates and any applicable discounts that you're taking advantage of.
  • Check for exit fees. If you've signed up to a long-term contract, you may have to pay an exit fee if you leave early. Be aware that the exit fee could cost more than your potential savings from switching.
  • Ring up your current retailer. If you tell them that you're switching to another provider, it's possible that your current energy retailer will offer you a better deal as an incentive for you to stay.
  • Compare your current plan with other plans. Our energy comparison engine should be able to help you find a plan that better suits your needs.

Finder survey: How many Australians have switched electricity supplier in the last 12 months?

Reconnecting to your existing retailer at a new address

If you're moving houses, but you plan on staying with your current retailer, don't cancel your plan straight away. Let your provider know (either over the phone or online) that you're moving.

You'll likely be able to organise a disconnection and reconnection. However, there may be some fees involved.

Have these details ready to go for your retailer:

• Your new address
• The date you need to get reconnected
• Your contact number and a form of ID

Fees to look out for

Exit fees (if you are still under contract)

Early exit fees may apply to electricity and gas customers who sign a contract for a set length of time and decide to leave before that period ends.

• Who charges exit fees? Fewer electricity retailers charge early exit fees these days since many energy contracts are offered on a no-lock-in, month-to-month basis.

Go further: You can call and speak to your retailer to find out if your contract has any early termination fees. How much the fee is typically varies depending on how long you have left on your contract. Contracts usually vary from six months to two years for residential and business customers.

Disconnection fees

Unlike early exit fees, disconnection fees are charged by your energy distributor, not your energy retailer. Energy distributors supply the electricity and sell it to your retailer, who in turn sells it to you. When you cancel your service, the distributor may charge your energy retailer a disconnection fee. This fee will then be passed on to you.

• Why am I charged a disconnection fee? Disconnection fees cover the cost of checking your energy meter outside of the typical schedule.

Less fees with a smart meter: If you have a smart meter, your retailer will be able to do this as soon as your contract is cancelled for a small fee. On the other hand, if you have a traditional meter, the company will need to send someone out to your property to read the meter, which can cost up to $100 or more.

Know your rights

When switching electricity plans, remember that you have a number of rights as a customer:

• Cooling-off period. All energy plans have a cooling-off period, in which you can back out of the plan with no penalty. New regulations state that the cooling-off period must be at least 10 days long.
• Be explicit. Make sure that when you ring up to enquire about a new energy plan, the retailer doesn't switch you over without your consent. They may take your interest as a desire to buy the plan.
• Don't get pestered. If you don't want to be bothered by telemarketers trying to sell you energy plans, you can sign up to the Australian Government's Do Not Call register.

Can your new retailer raise the price mid-contract?

This depends on what type of contract you have. The majority of energy plans are "variable rate", which means that usage rates can change at any time over the course of your plan, though your provider is required to give you some advance notice.

If you are on a "fixed rate" plan, where your usage and supply rates are frozen for a certain period of time (usually the first 12 months of your contract), your provider won't be able to vary the rates until the fixed rate period has finished.

Misconceptions

People sometimes get the wrong idea about what's involved in switching from one retailer to another, and it can convince them to keep paying too much for a bad energy plan. Here are three common misconceptions:

• You'll lose power when you switch. When you switch retailers, you won't lose power or gas during the handover for any period of time. This is because energy retailers are only responsible for the financial aspect of energy. You aren't switching distributors, or whoever is actually supplying energy to your property.
• Switching costs money. Simply switching from one energy plan to another is completely free. The only time you could be charged is if you're on a lock-in contract with an early exit fee associated with it.
• You'll need new equipment. In most cases, your new energy retailer will be able to use the exact same equipment as your old one. The main exception to this is that some plans, especially if you have solar installed, will require a smart meter for energy monitoring if you don't have one already.

Looking for a new energy retailer? Compare by state below

• NSW
• VIC
• QLD
• SA
• ACT
• NT
• WA
• TAS

Learn more about energy

Our energy guides can help you compare and understand what plan is best for you.

Best energy plans: 5 plans selected by our experts, assessed and updated regularly

Cheap energy plans: Find the cheapest energy plans available this month

Solar power plans: Got rooftop solar? Compare your options and save even more

Average energy bill: Find out how your energy bill compares to the rest of Australia

Frequently asked questions

• What is a reconnection fee?

  A reconnection fee or connection fee is what you'd pay to connect your property to power. If you're moving to a new home, you may need to pay a reconnection fee to access power in your home.

• What is a cooling-off period?

  When you sign up to a new energy contract, a cooling-off period applies. You can cancel your new contract at any time during the cooling-off period without having to pay a fee. This period is typically 10 days but may vary depending on where you live.

• Can I still cancel if my contract hasn't ended?

  Yes, though you may have to pay an exit fee. To find out if you'll have to pay an exit fee, check your contract or ask your retailer directly.

• What happens if I just stop paying my energy bill?

  If you stop paying your energy bill, a missed or late payment fee will typically apply. Your energy company can't switch off your power after one missed bill, but must first give you two written warnings. After this, your retailer will attempt to contact you to arrange a customised payment plan. If you fail to pay, you could be taken to court and potentially charged fees incurred by the provider.