Switching business energy is straightforward once you know one thing: you can only switch when your current contract has ended or is about to, or when you’re on a deemed, rollover or out-of-contract rate. If you’re mid-contract, tell us your end date and we’ll plan the switch for the right time. When that time comes, we’ll compare supplier prices, arrange your new contract to start the day your old one finishes, and handle the switch for you.
Key points
- Your contract sets the clock: You switch when you’re out of contract or in your renewal window, not part way through a fixed deal.
- Mid-contract? Tell us your end date: We’ll plan your switch for the right time, so nothing rolls over by accident.
- Start early: We always advise arranging your next contract as early as possible, normally 12 months before your renewal date.
- We do the leg work: A recent bill for each site is enough to get started.
When Can You Switch? Your Contract Sets the Clock
This is the part that catches most businesses out: you can’t switch business energy whenever you like. It all starts with your current contract. Its terms tell you when you can switch, how much notice you need to give and whether an exit fee applies. On a fixed-rate contract, most suppliers won’t let you leave before the end date unless you agreed a termination clause or you pay an exit fee. The energy regulator, Ofgem, covers the basics of switching your business energy supplier, and we’ll go through your own contract’s terms with you.
So when can you move? There are two situations:
- You’re in your renewal window: Your renewal window normally opens 12 months before your contract end date. You can line up your next contract any time in that window, ready to start the day the current one ends, and it won’t cost you anything as long as you see out your contract.
- You’re already out of contract: If you’re on out-of-contract rates or a deemed contract, you can usually switch at any time. Variable-rate and rolling contracts depend on their terms, as some still run for a set term or need notice, so check with us first.
If neither applies and you’re part way through a fixed contract, that’s fine. Tell us your contract end date and we’ll plan your switch for the right time. Once you update your contract end date with us, our retentions team makes sure your renewal never sneaks up on you.
Smaller businesses get extra protection. You count as a microbusiness if you employ fewer than ten people (or the full-time equivalent) and your annual turnover or balance sheet is no more than £2 million, or if you use no more than 293,000 kWh of gas or 100,000 kWh of electricity a year. As a microbusiness, your supplier has to give you renewal prices before your contract ends. And since 1 October 2022, a supplier can’t make you give termination notice unless you’re on an evergreen contract, where the notice period is capped at 30 days.
Why Is Earlier Always Better?
We always advise arranging your next contract as early as possible, normally 12 months before your renewal date. Starting early lets you take advantage of forward pricing, rather than the short-notice prices on offer when a renewal is left to the last month or two. If you’re already closer than 12 months, don’t worry: we’ll arrange it as early as we still can.
Imagine you run a café whose fixed contract ends on 31 March. If the next contract is agreed the previous spring, it simply starts on 1 April and the switch is timed to that date. Leave it until March and you’re choosing from whatever prices happen to be on offer that week, and if nothing is agreed by 31 March, you’re facing the rollover or deemed rates that apply when a contract ends.
What Do You Need to Switch Business Energy?
Before you sign with a new supplier, you’ll need your annual consumption and your meter details: the MPAN for electricity and the MPRN for gas, which you’ll find on your energy bills.
It helps to know what kind of meter you’ve got, too. If the first two digits of your MPAN are 05, 06, 07 or 08, your supplier takes readings every half hour, so you’ve got a half-hourly meter.
You don’t have to dig all of this out yourself. Where we can, we gather your meter details, usage and contract end dates before we ask suppliers for prices, because it gives you more accurate pricing. A recent bill for each site is enough to get started, though it doesn’t always give us the whole picture, so ideally we’ll also have a signed Letter of Authority (LOA). Our LOA lets us help you, not make decisions for you. Help with your contracts, bills and supplier queries: yes. Enter into a contract on your behalf: no. Some brokers ask for a “level 2” LOA that lets them sign contracts for you. Ours is a level 1 LOA, so only you can agree a contract.
How Long Does a Business Energy Switch Take?
The switch itself is quick. Since the supply licences were changed for faster switching in 2022, a supplier has to complete a transfer within five working days of the relevant date. The exceptions are where you’ve asked for the switch to happen on a later date, you’ve said you don’t want it to go ahead, or the switch has been blocked by an objection. We agree a business switch weeks or months ahead, with the start date set to the day your old contract ends.
If a switch does run slow, households get automatic compensation, but businesses don’t. That compensation is limited to households and to people who run a business from home on a domestic tariff. That’s why we set your timetable well ahead, so your new contract is ready to start the day your old one ends.
Can Your Supplier Block a Switch?
Yes, your current supplier can object to a switch. Business suppliers can object where the contract allows it. In a 2016 sample of blocked business switches, the most common reasons were the customer still being in a fixed-term contract (78%) and the customer being in debt (18%).
So most objections in that sample came from businesses trying to move before their contract allowed. It’s exactly why we plan your switch around your end date rather than trying to rush it.
Debt is the other main reason. The debt rules should be made clear in your contract’s principal terms, and you should have had a reasonable chance to pay after receiving the bill. Once the reason for an objection is resolved, it’s withdrawn and the switch carries on. If your supplier does object, we’ll take it up with them and help you get it cleared.
Moving premises is the other common snag. You’re responsible for the energy used before your new contract starts, and using energy in that gap can put you on a deemed-rate contract. When you’re moving premises, tell us early and we’ll line up contracts for your new site so there’s no gap to fall into.
What Does This Mean for Your Business?
If your contract has ended, is about to end, or you’re on a deemed or out-of-contract rate, talk to us as soon as you can and we’ll get you moved. If you’re mid-contract, the job is to plan, and we’ll do that with you. Either way, switching is a big part of what we do:
- Comparing prices: We compare prices for your business electricity and business gas from suitable suppliers for your sites and present the options that best suit your business.
- Arranging the contract: We arrange your new contract so it starts when your old one ends, and handle the switch.
- Commission in writing: You don’t pay us a separate fee. We’re paid commission by the supplier, included in the rates and charges in your contract, and we disclose it in full, in writing, before you sign.
- Looking after you on contract: We check your bills against the agreed rates and recorded consumption, help with billing and meter issues, and our dedicated retentions team keeps every end date on record and sends renewal reminders well ahead.
- Somewhere to turn: We’re members of an alternative dispute resolution scheme with the Energy Ombudsman. We’re also members of the Energy Consultants Association (ECA), our trade association.
Final Thoughts: Get the Timing Right
A smooth business energy switch comes down to timing: switch when you’re out of contract or in your renewal window, arrange it as early as you can, and let us handle the rest. If your contract still has a while to run, that’s the best time to start. Get a quote, book a call with our Energy Team or ring us on 01273 914000. No hassle, no jargon.