Check how long a cheaper energy contract or switch takes to recover an exit fee or other switching cost, and the net result over the term.
Use this when you are deciding whether to leave one energy contract or rate for another, for example leaving an Ontario retail contract early to return to the Regulated Price Plan, or moving from a variable retail plan in Alberta to a fixed one.
Inputs: the exit fee (read it in your contract; in Ontario, for contracts entered into after the 2016 rule change, the fee for cancelling on notice is capped at $50 under O. Reg. 389/10), any certain sign-up credit, and your expected yearly saving. Work out the saving as (old price − new price) × your annual kWh or GJ, and include any monthly admin fee difference.
Formula: net cost = exit fee − credit (not below zero). Each year's saving grows by the change percentage you enter; payback is the point where the savings add up to the net cost. Net saving over the term = total savings − net cost.
Worked example (illustrative): exit fee $50, no credit, new rate 1¢/kWh lower on 6,000 kWh a year = $60 saving. Payback = 50 ÷ 60 = 0.83 years; net saving over 3 years = $180 − $50 = $130.
Limits: the saving is a forecast. A fixed price only wins if the default rate it is compared with stays higher, and default rates move (Ontario resets each 1 November, Alberta's Rate of Last Resort is reset for 2027). In Ontario a retail contract adds the Global Adjustment on top of the contract price. See fixed-price contracts vs the default rate.
Rates, Price Drivers and 2026 Rules
Alberta's Rate of Last Resort replaced the RRO on 1 January 2025 at about 12¢/kWh to the end of 2026. How it compares with retailer plans and what to check for 2027.
Bill Calculations and Plan Choices
Compare an Ontario or Alberta fixed-price electricity or gas contract with the regulated default: Global Adjustment, admin fees, exit fees, renewals and break-even math.
Billing Problems, Complaints and Official Sources
Your rights to cancel an electricity or gas retail contract in Ontario (10 days, second bill, $50 cap) and Alberta (10-day cooling-off), with steps and what to send.
