Business energy contract renewal: a practical checklist

When should you review a business energy contract?

Start by checking the dates in your own agreement. Suppliers and contract types differ, so there is no single renewal window that applies to all businesses. Diary the end date, any notice deadline and the earliest date your supplier will quote for a future start.

Reviewing early gives you time to obtain information and compare offers. Agreeing a future contract is different from transferring the supply immediately: a new agreement should have a start date that respects your current commitments.

Gather the details for each meter

Keep a recent bill and your contract together. If you have several premises or separate gas and electricity agreements, list each one rather than assuming their dates match.

• Business name, supply address and postcode.
• MPAN for electricity or MPRN for gas.
• Current contract end date, notice requirements and any renewal notice.
• Annual consumption in kWh, ideally based on actual readings.
• Current unit rates and standing charges, plus separately billed costs.
• Planned changes such as longer opening hours, new equipment or a move.

Check what happens if you do nothing

Read the post-contract terms rather than assuming your rate stays unchanged. Depending on the agreement, the business may automatically renew, move to out-of-contract rates or enter a deemed arrangement. Ask the supplier to clarify the position in writing if your documents are unclear.

Ofgem distinguishes deemed contracts from out-of-contract arrangements. Understanding that distinction helps you establish your next steps, including any notice requirements, rather than treating all expired contracts alike.

Compare the whole renewal offer

Request the supplier’s renewal offer and compare it with alternatives on the same consumption and contract term. Staying with the current supplier can be a valid choice; changing supplier is not automatically the best outcome.

• Unit rate and daily standing charge for every relevant meter or time band.
• Estimated annual cost using the same consumption assumptions.
• VAT, Climate Change Levy where applicable, and any other excluded charges.
• Whether network or policy costs can be passed through separately.
• Contract length, start date, exit conditions and credit requirements.
• Broker fees or commission, how they are calculated and where they appear in the price.

Match the contract to your business plans

A longer fixed term can make some costs easier to plan, but also commits your business for longer. Consider the premises lease, expected consumption and any planned sale, closure or relocation. Check the specific change-of-tenancy and termination terms before agreeing.

Make sure you understand which charges are actually fixed. A fixed unit rate does not make your total bill fixed: consumption and other charges still matter. Business contracts generally do not offer a standard cooling-off period, so resolve questions before accepting, including when an agreement is made by telephone.

Check whether microbusiness protections apply

Eligible microbusinesses have additional protections. Eligibility depends on employee and financial criteria or energy consumption, rather than simply describing yourself as a small business. Check Ofgem’s current guidance and ask your supplier which protections apply to your account.

Keep the written terms, quote and any notice you send. If something goes wrong, those records help you explain the issue to the supplier or broker and use the appropriate complaints process.

Your final renewal checklist

Before accepting, confirm that the offer names the right business and meters, starts on the intended date and includes all the terms you discussed. Send any required notice in the specified way and keep confirmation of receipt.

After the new arrangement begins, check the first bill against the agreed rates and start date. A comparison enquiry is not an instruction to switch: your business should make the contract decision after reviewing the actual offer.

Frequently asked questions