Fees that weigh heavily when changing contract
With the end of ARENH, many French companies are reviewing their electricity and gas contracts. A better offer can nevertheless be costly to take up: the current contract often provides for fees if the company leaves before its end date.
Early termination fees (indemnités de résiliation anticipée, or IRA) are charges applied by some energy suppliers when a customer ends a contract before its agreed term. According to the French national energy ombudsman, they can apply to all non-residential consumers: companies, co-ownership buildings, property holding companies, associations and local authorities.
Suppliers justify them by the economic harm they suffer. They have bought or reserved energy on the markets for the full term of the contract. If the customer leaves earlier, that energy must be resold, sometimes at a loss.
The issue is not marginal. The national energy ombudsman notes that disputes over these fees account for half of the referrals from business and non-business customers. Amounts can reach several thousand euros and put a small business in difficulty.
What the legal framework says
French law does not treat electricity and gas in the same way. It also clearly distinguishes households from businesses.
| Situation | Early termination fees | Rule recalled by the national energy ombudsman |
|---|---|---|
| Business electricity contract, fixed-price and fixed-term | Possible | Proportionate, not exceeding the supplier's actual economic loss |
| Business gas contract | Possible | Not regulated, whatever the type of price |
| Household contract, electricity or gas | Prohibited | The law prohibits these fees for residential contracts |
| Leaving a regulated electricity tariff contract | None | No notice period or penalty may be applied |
Electricity: a European principle and a regulated exception
Directive (EU) 2019/944 of 5 June 2019 lays down the principle that a contract can be terminated at any time and free of charge. It allows an exception for fixed-term, fixed-price contracts. According to the national energy ombudsman, the text then requires that these fees are clearly communicated to the customer before the contract is concluded.
The fees must also stem from a contract entered into voluntarily and must not exceed the supplier's direct economic loss. In French law, the option of charging such fees has been limited to business consumers.
Gas: no specific framework
Neither EU law nor French law regulates early termination fees for gas. A gas supplier may therefore provide for them in any type of contract, whether the price is fixed or not. It is not required to limit them to the economic loss it suffers.
The regulated tariff: always free to leave
A company that leaves the regulated electricity tariff for a market offer has nothing to do. The new supplier terminates the former contract, and no notice period or penalty may be applied, the ombudsman points out, citing Article L.331-3 of the French Energy Code.
Why the amount is so hard to check
The national energy ombudsman reports a lack of transparency on the existence and calculation of these fees. Some customers are unaware that their contract includes them. The calculation formula is not always clear, and it can be difficult, or even impossible, to apply yourself.
Many formulas rely on variables unknown at signature, such as the gap between the price at which the supplier bought the energy and the price at which it can resell it on the markets. When signing, the customer therefore does not know what an early exit will cost. The ombudsman stresses that clauses differ widely from one supplier to another, which complicates any comparison.
Public oversight also remains limited. Directive (EU) 2019/944 provides that proof of the direct economic loss is subject to monitoring by the regulator or another national authority. According to the ombudsman, this provision has not been transposed, which prevents any real check on the amount charged.
The issue has been taken up by the public authorities. The "Simplification!" action plan, presented by the French government on 24 April 2024, announced in particular a cap on early termination fees for small energy-consuming businesses. Until a text gives effect to it, vigilance at signature remains the best protection.
Questions to ask before signing or leaving
Does my current contract provide for exit fees?
This is the first check. The ombudsman advises verifying, before signing a new contract, whether the current one provides for early termination fees. The general and specific terms set out the commitment period, the end date and the calculation formula.
Can I get the amount before terminating?
Yes, and it is recommended. The ombudsman advises asking the supplier for an estimate of the fees before ending a contract or switching supplier. This estimate makes it possible to compare the expected gain from the new offer with the real cost of leaving.
Do I have to terminate my contract myself?
No. According to the ombudsman's guidance on switching supplier, signing a contract with the new supplier is enough, using the delivery point number for electricity or the metering point number for gas. Until the switch takes effect, the former supplier keeps billing and supply is never interrupted.
Can a very small business return to the regulated tariff?
For electricity, yes. Since 1 February 2025, non-household consumers employing fewer than ten people, or whose turnover, receipts or annual balance sheet is below 2 million euros, can take out the regulated tariff. The ombudsman reminds customers to check beforehand the early termination fees of the market contract they are leaving. For gas, the regulated tariff was abolished for all on 1 July 2023.
What the national energy ombudsman proposes
In a proposal published on 27 April 2025, the national energy ombudsman calls for stronger protection of very small businesses. It targets those with fewer than 10 employees and annual turnover not exceeding 2 million euros. Its proposals are not, to date, rules in force. They nevertheless shed light on the practices it considers fair.
| Ombudsman's proposal | Aim |
|---|---|
| Extend to small gas-consuming businesses the rules applied to electricity | End the lack of framework for gas |
| Require "transparent and understandable" information and explicit consent | Prevent customers discovering the fees only when leaving |
| Use a fixed amount in euros multiplied by the number of months remaining | Make the calculation verifiable by the customer |
| Prohibit these fees in the event of death, cessation of business or liquidation | Avoid penalising an exit that is not chosen |
| Offer, alongside a fixed-price offer with fees, a fixed-price offer that can be terminated free of charge | Give the customer a real choice |
The ombudsman also recommends that suppliers obtain a handwritten statement from the customer confirming that they have been informed of these fees. It considers that a poorly explained clause would be void, in which case the fees could not be charged.
What it means for you
For a very small business or a shop
Before accepting an unsolicited offer, compare the announced gain with the exit cost of the current contract. If you are eligible for the regulated electricity tariff, it remains a public benchmark that you can leave free of charge.
For an SME or a manufacturer
A fixed-price contract over several years protects against price rises, but it locks in your position. Negotiate the fee calculation formula at signature, and align the end date with your renewal schedule.
For a co-ownership manager or an association
Non-business consumers, such as co-ownership buildings and associations, can also be charged these fees. The ombudsman notes that more than 50% of the referrals from very small businesses and co-ownerships it handles concern this issue.
For a multi-site manager
Each delivery point may have its own end date. A contract register, with end dates and exit conditions, avoids paying fees on one site when another contract was about to expire.
Our recommendations
IHD supports companies in purchasing their electricity and gas as an independent broker. Our role is to review current contracts, quantify the real cost of an exit and recommend a change only when it creates a net saving for you. We compare offers on identical bases, exit fees included.
Our guide to buying electricity and gas as a business details contract choices, and our guide to reading a business electricity bill helps identify each item. Our analysis of the end of ARENH explains the new price context. To have your contracts reviewed, discover our energy brokerage service or contact us.
