Business Energy Change Of Tenancy
Moving business premises or taking over a commercial property? This guide explains exactly what a Change of Tenancy is, what information suppliers usually need and how to avoid delays, unexpected bills and expensive mistakes.
This guide is produced by The Best Energy Rates, an independent UK business energy consultancy. We are not part of any energy supplier. Our advice is independent and our service is free to businesses.
What Is A Change Of Tenancy?
A Change of Tenancy — often shortened to COT — is the process of telling an energy supplier that responsibility for a property has changed hands. It is not about switching supplier. It is simply about making sure the right business is named on the account from the right date.
When a business moves into commercial premises, the electricity and gas supplies do not stop. They carry on running. The meters keep ticking. What changes is who is responsible for paying for them. A Change of Tenancy transfers that responsibility from the outgoing occupier to the incoming one.
It sounds straightforward. In practice, it often is not. Missing meter readings, several MPANs on one site, landlord confusion, estimated opening readings and old accounts that have not been closed properly can all cause delays and unexpected bills. Getting it right from the start saves a lot of time and money.
The same process applies in reverse when a business moves out. The outgoing occupier needs to notify the supplier, provide a closing meter reading and make sure the account is properly closed. Leaving this undone can result in ongoing charges long after the business has left.
In plain English
The electricity and gas do not stop when a business moves. The meters keep running.
Responsibility transfers from the outgoing occupier to the incoming one.
The supplier needs to know who is responsible and from what date.
A meter photograph on day one is the single most useful thing you can do.
If you do not notify the supplier when you move in, you may be placed on a deemed tariff — a rate the supplier sets for uncontracted customers. Deemed tariffs are almost always more expensive than a fixed contract. The sooner you notify the supplier, the sooner you can arrange a better rate.
Who Is This Guide For?
A Change of Tenancy affects anyone who is moving into or out of commercial premises, or who is responsible for managing energy accounts on behalf of others.
Businesses moving in
Taking over a commercial property and need to set up energy accounts correctly from day one.
Businesses moving out
Leaving premises and need to close accounts, provide closing readings and avoid ongoing charges.
What We Need From You
Having these to hand will help us process your Change of Tenancy as quickly as possible. You do not need everything on this list for every case — we will tell you what is essential for your situation.
Site address
The full address of the supply premises, including postcode
How We Handle A Change Of Tenancy
We follow the same process for every COT case, whether it is a single meter or a portfolio of sites. Working through each step in order prevents most of the common problems.
Check the property
We start by understanding the property — its type, size, number of buildings and likely number of supplies.
Common Problems
These are the issues we come across most often. None of them are unusual, and most of them can be avoided with a bit of preparation.
Did you know?
One of the most common issues we come across is businesses not realising there are several electricity supplies on one site. A farm with several buildings, an industrial unit with a shared yard — it is surprisingly easy to miss a supply. We always check ECOES before submitting a COT to make sure every MPAN has been accounted for.
No opening reading
Without an opening reading, the supplier will estimate.
One Thing That Catches Businesses Out
Many businesses assume that taking over a building also transfers the previous occupier's energy contract. It does not.
The contract belongs to the previous occupier. It was negotiated by them, in their name, for their business. When they leave, the contract ends with them. You cannot inherit the rates they were paying, and you are not bound by any terms they agreed to.
What you do inherit is the supply itself. The electricity and gas are still connected. The meters are still running. But until you contact the supplier and set up an account in your name, you will typically be placed on a deemed or variable tariff — a rate the supplier sets for uncontracted customers. These rates are almost always higher than a fixed contract.
The practical implication is straightforward: contact the supplier as soon as you take over the property, provide an opening meter reading, and arrange a fixed contract as quickly as possible. The longer you leave it, the more you are likely to pay.
From Our Experience
One of the most common issues we come across is businesses not realising there are several electricity supplies on one site. A farm with several buildings, a retail unit with a shared yard, an industrial estate with multiple meters — it is surprisingly easy to miss a supply, especially if the meters are not all in the same location.
Taking photographs of every meter at the beginning of a tenancy is one of the simplest things a business can do to protect itself. A photograph with a visible meter serial number and a date stamp is often the most useful piece of evidence when a dispute arises later. We have seen cases where a clear photograph taken on day one resolved a billing dispute that had been running for months.
We also see a lot of cases where businesses assume that taking over a building also transfers the previous occupier's energy contract. It does not. The contract belongs to the previous occupier. The incoming business starts fresh, usually on a flexible tariff, until a new fixed contract is arranged.
Questions Businesses Ask Us
These are the questions we are asked most often by businesses going through a Change of Tenancy.
Can I change supplier immediately?
You can usually request a new contract from any supplier once the COT has been processed.
Paid The Wrong Supplier For Over Two Years
What happened
A plumbing company with several commercial sites had three electricity meters connected to one MPAN. The customer had been paying E.ON Next every month since 2023. The bills appeared completely normal and were paid on time.
Unexpectedly, engineers attended the premises to disconnect the electricity because another supplier claimed the account had never been paid.
After investigating ECOES, we discovered the site was actually registered to Smartest Business rather than E.ON Next. Smartest Business had never issued bills to the customer.
What we did
We worked with both suppliers to establish the correct position
E.ON Next refunded the payments made in error
The customer settled the correct supplier
Goodwill credits were secured
The contracts are now being reviewed for suitable fixed contracts
What businesses can learn
Always check the supplier registered on ECOES
Never assume the company sending invoices is the registered supplier
Multiple MPAN sites should be checked carefully
Supplier-Specific Change Of Tenancy Guides
We have produced detailed Change of Tenancy guides for specific suppliers. These cover the contact routes, evidence requirements and common issues for each supplier individually.
Downloads
Practical documents to help you manage your Change of Tenancy. These resources are being prepared and will be available to download shortly.
Change Of Tenancy Checklist
Everything you need to gather before contacting your supplier about a Change of Tenancy.
Related Guides
Written by the The Best Energy Rates Knowledge Team
Reviewed by our business energy specialists with more than 40 years of combined UK business energy experience. We regularly manage Change of Tenancy cases for businesses across the UK.
This guide is intended as independent guidance only. It does not constitute legal advice. Always confirm current requirements directly with your supplier or through a regulated broker before making a decision.
Moving Premises?
Before signing anything or accepting a supplier's advice, send us your meter readings and photographs. We will help you understand exactly what needs to happen and identify any potential issues before they become expensive problems.
Our service is free. We are paid by the supplier if you choose to switch or renew through us. There is no charge for reviewing your situation or helping with a Change of Tenancy.