£75 BILL JUST TO QUIT BRITISH GAS

Energy firms have introduced penalty charges to punish customers who switch suppliers.

British Gas is demanding the highest "exit fees" - of up to £75 - from those people who want to end their fixed-rate gas and electricity deals.

The deals - in which fuel rates are capped for a fixed period whether prices go up or down - allow hard-pressed families to budget properly. But if they want to switch to a cheaper deal elsewhere they are now being stung for cancellation charges.

Industry watchdogs have condemned the fees as another rip-off. They say customers are often completely unaware of the penalties which are hidden in the small print.

Mark Todd, of energy helpline.com, said: "We're urging consumers to check there's no catch before they switch."

The introduction of exit fees has coincided with a 16 per cent rise in energy prices, which have seen average annual bills top £1,000. At the same time, the UK's six big power suppliers have seen a 30 per cent jump in profits, from £3.7billion to £4.9bn.

British Gas customers face a £55 fine if they quit their 17-month gas tariff before it ends while those on a similar rate for electricity will be charged £20. Those on combined deals will be hit with a double whammy and will have to fork out £75.

British Gas imposed a 15 per cent price rise on their 16 million customers this year, making it the country's most expensive. Meanwhile their profits leaped 500 per cent to £600million in 2007.

German energy giant E.on and Spanish-owned Scottish Power have also imposed exit penalties since last month.

Experts believe the other big energy suppliers will soon follow suit.

They have already warned that suppliers are on the verge of announcing further double-digit price rises this summer.

A spokesman for Unison said: "Energy companies are making huge profits and consumers are getting caught out everywhere."

A British Gas spokesman said: "The small cancellation charge allows us to minimise the tariff premium, thus reducing the cost for customers. Customers tend not to cancel fixed-price tariffs as they provide peace of mind."