Can I Get Out of a Business Energy Contract?
For many business owners, a new energy bill can prompt a second look at the figures and raise doubts about the value they’re getting from a current supplier. There are many reasons you may be paying too much, and by fully understanding the details of your current contract, you can identify whether you are able to switch to a better deal and the potential cost savings.
The team at Business Utility Hub explains when you can end a business energy contract, when you may need to wait and what steps you can take to make sure you're ready to switch to a much better deal on your next energy supplier.
Understanding how business electricity and gas contracts work
Business energy contracts operate differently from domestic energy contracts. Domestic customers have cooling-off periods, flexible terms and stronger consumer protections. Business energy contracts, however, are commercial agreements. Once signed, they are binding for the initial contract term and do not include a cooling-off period.
The quickest way to understand your position is to check the business supply agreement you received when the contract was agreed. This will set out the details you need, including your supply address, meter point reference number, company number and the full contract length. It will also explain your pricing structure, renewal rules, termination notice requirements and the terms that apply at the end date.
When can you get out of a business energy contract?
There are situations where you can leave your existing contract or switch suppliers. These include:
- Your contract is approaching renewal: your renewal window typically begins around six months before the contract end date. During this period, you can compare business energy deals, issue a termination letter and line up a new business energy contract.
- You are on deemed or out-of-contract rates: if your fixed-term contract bills have ended and no new agreement is in place, you are free to switch to a new supplier at any time. You should do this as soon as you become aware that this has happened, because in most cases these are the supplier's most expensive tariffs.
- Your business is moving premises: if the supply address changes, depending on the contract, the current agreement may not continue. You may be able to cancel your business energy contract and arrange a new contract.
If any of these apply, you should call the team at Business Utility Hub now on 0800 781 2700. In just a few minutes, our friendly team will collect details about your business energy needs and compare the market to find a deal that cuts your energy costs. Once you are happy, we will handle the switch from beginning to end, including arranging cancellation of your old contract and making sure there is no interruption of service at any point.
When you cannot get out of a business energy contract
If none of the valid cancellation circumstances apply, you will usually need to stay in the existing contract until your renewal window opens. Should you leave anyway, you may face high early exit fees, depending on the remaining energy usage projections and contract terms. The supplier may charge what is called a market rate fee if you leave early. This covers any loss they incur from buying energy in advance based on your expected usage, which is how many commercial energy contracts are priced.
However, there are things you can do during this time to get yourself into a good position to make the switch, such as:
- Check your renewal letter or your original written confirmation, and make a note of the contract termination date on your calendar.
- Take note of the minimum notice period, as this can vary between electricity suppliers and gas suppliers.
Once you are within six months of your contract ending, you should look to compare the current energy market to see about finding a good deal for your business.
How an energy broker can help with switching suppliers
While it’s possible to secure a new energy contract on your own, the business energy market can be difficult to work through. Prices vary widely between providers, terms can be complex and a deal that looks attractive today may not suit your business as it grows or as your energy usage changes.
At Business Utility Hub, our team closely follows the energy market and reviews wholesale prices every day. This up-to-the-minute insight allows us to scan the market quickly and identify deals that match the needs of SMEs and large businesses alike. When you call us, you’ll speak to a friendly expert who knows the sector inside out, takes the time to understand your business needs and explains your options in clear, straightforward terms.
We also manage all of the admin involved in switching, deal with the termination of your old contract and keep track of future renewal dates so you don’t slip onto expensive out-of-contract rates ever again.
If you are out of contract, or your contract is due for renewal in the next six months, call us today on 0800 781 2700 or fill in our contact form, and we'll get searching for your next energy deal.
Compare and switch your business energy today
To start the process, call us today, email or complete our online form.
