Switch business energy supplier: how it works

How do you switch business energy supplier?

You compare energy prices and contract offers, then give your new supplier some information before signing, including your annual consumption and details of your meter. The best option may be with your current supplier. ^[1]

Whether a new deal could reduce costs depends on your contract terms and usage, which a business energy review may help identify.

You can get offers directly from suppliers or through an intermediary such as a price comparison website or energy broker.

What should you check in your current contract first?

Read the terms and conditions of your existing contract to find out when you can switch, how much notice you should give your supplier, and whether you will need to pay an exit fee.

See also the guide to business electricity charges.

If you work from home you are probably on a domestic energy contract, so check with your energy supplier to make sure before following the home switching process.

When can you switch without a penalty?

With a variable-rate contract, you can switch to a new supplier at any time. This covers rolling or evergreen contracts, out-of-contract rates and deemed-rate contracts.

Fixed-rate contracts include a switching window, a set period to renew with your supplier or tell them you intend to leave. The window opens a few months before the end of the contract, and you can sometimes switch during it without paying a fee.

Most suppliers will not let you switch before the end of a fixed-rate contract unless you have already agreed a termination clause or pay an exit fee.

What if your current supplier objects to the switch?

Your existing supplier may object, for example if you owe them money. If that happens, get in touch with them as soon as possible to find out what the issue is and how to resolve it.

It is worth checking your account balance before you start, in case you owe your current supplier money.

What should you compare in a new business energy contract?

Compare energy prices and contract offers to find the one that is right for you.

Fixed-rate contracts fix the price of unit rates and standing charges for the length of the contract. ^[2] With a variable-rate contract, the price you pay for energy can rise or fall during the contract period.

When you compare fixed deals, check the term length, any fees in special clauses, the protections you have, and whether broker fees or commissions are included in the price.

Should you use a broker or comparison site?

You can arrange a contract yourself or use a broker, consultant or price comparison service. Check which suppliers a comparison site includes, whether it covers the whole market or only a selection, and whether it receives commission.

Some energy brokers charge an upfront fee, but most are paid a commission by the energy supplier you choose. A broker paid by a supplier must be a member of an approved redress scheme. ^[2]

Ofgem's good-practice guidance says it expects intermediaries to set out principal terms such as pricing, contract length, renewal terms and early exit fees before you agree, and to explain their commission or fees, although it is voluntary guidance to help intermediaries prepare for future rules. ^[3]

There is no cooling-off period after you agree to your contract, so check the terms and use a trustworthy broker before you sign.

What if you are moving business premises?

Compare any supplier, including Octopus Energy, on the same contract terms.

If you move premises, check before you move whether you can switch, and follow the usual process. You are responsible for any energy you use before your new contract starts. If you use energy in that period, your supplier could put you onto a deemed-rate contract.