The Complete Guide to Switching Your Business Energy Supplier

Switching your business energy supplier is one of the most effective ways to reduce costs — yet many businesses stay with the same supplier for years, often paying significantly more than they need to.

This guide explains exactly how the switching process works, what to watch out for, and how to make sure you get the best possible deal.

The most common reasons businesses give for not switching are:

• "It's too complicated" — In reality, the process is straightforward and your broker handles most of it
• "We're mid-contract" — You may be able to exit early, or plan ahead for your renewal date
• "We don't have time" — A broker does the comparison and paperwork for you; it typically takes less than 30 minutes of your time
• "We're happy with our current supplier" — Loyalty rarely translates to better rates; the market rewards those who shop around

Before you can switch, you need to understand your current situation:

Fixed-rate contracts lock in a unit rate for a set period (typically 1–3 years). You know exactly what you'll pay per kWh, which makes budgeting easier.

Variable-rate contracts move with the wholesale market. They can be cheaper when prices fall, but expose you to price spikes.

Deemed rates (also called out-of-contract rates) apply when your contract has expired and you haven't renewed. These are typically the most expensive rates available — often 40–60% above market rates.

Most business energy contracts require 30–90 days' notice before the end date. Miss this window and you may be automatically rolled over for another year at potentially unfavourable rates.

Check your contract documents or call your supplier to confirm your exact notice period and end date.

You'll need:

• Your current energy bills (showing annual consumption in kWh)
• Your meter point reference numbers (MPAN for electricity, MPRN for gas)
• Your contract end date and notice period
• Your business details (registered name, address, Companies House number if applicable)

Use an independent broker to compare rates from multiple suppliers simultaneously. A good broker will:

• Access rates from 20+ suppliers
• Present options clearly, showing unit rates, standing charges, and contract lengths
• Explain the differences between suppliers (payment terms, green tariffs, customer service)
• Recommend the best option for your specific consumption profile

Consider more than just the unit rate. Look at:

• Contract length — Longer contracts offer more price certainty but less flexibility
• Payment terms — Direct debit, monthly billing, or quarterly?
• Green credentials — Does the tariff include renewable energy?
• Exit clauses — What happens if you need to leave early?

Once you've chosen a supplier, your broker will handle the paperwork. You'll typically need to sign a Letter of Authority (LOA) allowing the broker to act on your behalf, and then sign the new supply contract.

Your current supplier has the right to object to the switch if you're still within your contract term or have outstanding debt. If there are no objections, the switch proceeds.

The new supplier takes over on the agreed start date. There's no interruption to your supply — the physical infrastructure doesn't change, only the billing relationship.

Many contracts include auto-rollover clauses that lock you in for another term if you don't give notice within a specific window. Set a calendar reminder 6 months before your contract end date.

If you switch mid-contract, you may face early termination fees. These can sometimes be offset by the savings from a better rate, but always calculate the net position before proceeding.

If your contract has already expired, you're on deemed rates. Switch as quickly as possible — every month on deemed rates is money wasted.

Check the contract for:

• Automatic renewal clauses
• Notice period requirements
• Price review mechanisms on variable contracts
• Charges for paper billing or non-direct-debit payment

For most business energy switches:

• Comparison and contract signing: 1–3 days
• Objection period: 14–28 days
• Switch effective date: Usually aligned with your contract end date, or 28 days from signing for out-of-contract customers

If you have multiple sites, a broker can manage a portfolio switch — comparing rates across all your meters simultaneously and potentially negotiating volume discounts. This is significantly more efficient than managing each site individually.

Our brokers compare 20+ UK suppliers and handle the entire switching process on your behalf — completely free of charge.

Get a free quote or call 01256 844048 to speak with an energy expert.