In order to offer the lowest possible rates, we buy the energy we expect you to use in a year or more in advance. This will depend on the term of the tariff you’ve chosen. Doing this helps us lock in the cost of energy for the period of the tariff and allows us to guarantee the price.
If you choose to leave your contract early, we are left with excess energy that has already been bought. We charge an exit fee to go some way to cover the cost of the energy that we no longer need.