You can usually switch business energy supplier when your fixed contract ends, or at any time if you're on deemed or out-of-contract rates. Your new supplier arranges the switch, and you can agree a start date with them, such as the day after your current contract ends. Business contracts usually have no cooling-off period, though, so check the terms before you agree.
When can you switch?
That depends on the contract you're on now. Your latest bill should show your tariff and any end date, so it's a good place to start.
When you can switch
| What you're on now | Can you switch? |
|---|---|
| Deemed or out-of-contract rates | Yes, at any time, because there's no fixed term to see out. If you're out of contract, check your old contract for any notice period. |
| A fixed contract that's ending | Yes, from the end date. Many contracts need written notice before then, so check yours. A microbusiness doesn't have to give notice, but writing to its supplier before the end date stops a rollover. |
| A fixed contract mid-term | Usually not, unless you pay an exit fee, so check your contract's terms. |
| A contract that rolled over | You're in a new fixed term, so check its exit terms. A microbusiness can't be rolled over for more than 12 months, and can switch at any time without notice or a termination fee. |
| A rolling (evergreen) contract | Yes, with notice. For a microbusiness, the notice period can't be longer than 30 days. |
Deemed and out-of-contract rates are usually higher than contract rates, so if you're on them, it's worth moving onto a contract sooner rather than later.
Thinking of switching? Our free check compares your rates, standing charges and contract terms with today's market. A specialist will then ring to talk you through it, with no obligation. You don't need a bill to start.
Start before your contract ends
If you're a microbusiness, your supplier must tell you your renewal prices before your contract ends, and that letter is your cue to start comparing. Starting a few months ahead gives you time to compare quotes and give any notice your contract needs, so you don't end up on out-of-contract rates. Some contracts also have a switching window near the end when you can switch without paying a fee, so check whether yours does. You count as a microbusiness if you have fewer than 10 employees and a turnover or balance sheet of no more than £2 million. You also count as one if you use up to 100,000 kWh of electricity or 293,000 kWh of gas a year.
What you'll need
It helps to have these to hand before you ask for quotes, and you'll find most of them on your latest bill.
- your current supplier, account number and contract end date;
- your supply numbers: the MPAN for electricity and the MPRN for gas;
- how much energy you use in a year, in kWh;
- a recent meter reading;
- your business's legal name, address and, if you're a limited company, its company number.
When the switch happens
Your new supplier arranges the transfer for the start date you've agreed.
Your energy keeps flowing throughout, because it still comes through the same pipes and wires. The only thing that changes is the company that bills you.
Once you've switched, your old supplier sends a final bill based on a closing meter reading. It's worth taking a photo of your meter on the switch date, so you can check that bill against it.
If the switch is delayed or something goes wrong, contact your new supplier first, because it's arranging the switch.
When a switch can be held up
Your current supplier may object to the switch, for example if you owe them money or you're on a fixed contract that doesn't let you leave yet. If that happens, get in touch with them as soon as you can to find out what the problem is and how to sort it out.
What to check in a new contract
- Both prices: the unit rate and the standing charge. A low unit rate can hide a high daily charge, especially if you don't use much energy.
- The length and end date: when the contract ends, and whether it then rolls over or moves you onto out-of-contract rates.
- Fixed or variable: whether your prices are fixed for the whole term or can change during it. Our guide to business energy contracts explains the main types.
- Exit terms: the notice you'll need to give, and any fee for leaving early.
- Broker fees: if a broker arranges your contract, their fee is usually built into your prices. For business contracts signed since 1 October 2024, suppliers must show clearly in the main terms any broker fees they add to your bill. Fees you pay a broker directly won't appear there, so ask what's included if it isn't obvious.
There's usually no cooling-off period
Unlike household contracts, most business energy contracts don't give you 14 days to change your mind. Once you've agreed, even over the phone, you're normally bound by the contract. Read the terms first, and if you're agreeing on a call, ask for them in writing.
If a broker helps you
Many businesses switch through a broker, who deals with suppliers on their behalf. If you're a microbusiness or small business and the supplier you choose pays your broker, the broker must belong to an approved redress scheme, so you have somewhere to take a complaint if things go wrong. You can check this on the Energy Ombudsman broker register, the Utilities Intermediaries Association's list or the Dispute Resolution Ombudsman.
How to switch, step by step
- Find your contract end date and any notice your contract asks for. You'll find these on your bill or in your contract.
- Gather your details: supply numbers, yearly use, a meter reading and your business details.
- Get quotes, either from suppliers directly or through a broker you've checked.
- Compare the full picture: unit rates, standing charges, the term, exit fees and what happens at the end.
- Agree in writing, once you've read the terms, because there's usually no cooling-off period.
- Give notice to your current supplier, if your contract asks you to.
- Take a meter reading on the switch date, and check it against your old supplier's final bill.
- Send a VAT declaration to your new supplier, if you get the lower rate of VAT, because declarations don't move with you.
- Put the new end date in your diary, with a reminder a few months before it.
Thinking of switching? Our free check compares your rates, standing charges and contract terms with today's market. A specialist will then ring to talk you through it, with no obligation. You don't need a bill to start.
Questions about switching business energy supplier
Can I switch business energy supplier before my contract ends?
Usually not until a fixed contract ends, unless you pay an exit fee. If you're on deemed or out-of-contract rates, though, you can switch at any time.
How long does it take to switch business energy supplier?
It depends on the start date you agree with your new supplier, such as the day after your current contract ends. Your new supplier arranges the switch, and its licence says it must take all reasonable steps to complete it within five working days of agreeing the contract and getting the details it needs, unless you ask for a later date. It can be held up if your current supplier objects, for example because you owe it money.
Will my energy be cut off when I switch?
No. Your energy still comes through the same pipes and wires, and the only thing that changes is the company that bills you.
Do I need to tell my current supplier I'm switching?
You may need to. Your new supplier arranges the switch, but many business contracts ask you to give written notice before the end date, so check yours. If you're a microbusiness, your supplier can't require notice to switch at the end of a fixed term, but writing before the end date stops a rollover.
Can I cancel a business energy contract after I've agreed to it?
Usually not, because most business energy contracts have no cooling-off period. Once you've agreed, even over the phone, you're normally bound by it.
Can I switch business gas and electricity separately?
Yes. Gas and electricity are usually separate contracts, so they can be with different suppliers and end on different dates.
Sources
- Ofgem, get a business energy contract: rollovers, out-of-contract rates, microbusiness protections, brokers and redress schemes, and no cooling-off period.
- Ofgem, switch your business energy supplier: your current supplier may object, for example if you owe it money; notice and exit fees; switching windows; and switching at any time from a variable contract.
- Ofgem, greater protection for businesses: broker fees shown in a contract's main terms from 1 October 2024, and suppliers only working with brokers in a redress scheme.
- Citizens Advice, switching your small business to a new energy supplier: rollover periods of no more than 12 months; for microbusinesses, no fee or notice once a fixed term has ended; switching within 5 working days.
- Ofgem, Microbusiness Strategic Review decision (March 2022): from 1 October 2022, suppliers can't require microbusinesses to give notice to switch, except on evergreen contracts.
- Ofgem, electricity supply licence changes for the Switching Programme (May 2022): condition 14A, a switch completed within five working days unless you ask for a later date.