How to Switch Business Energy Provider in 5 Steps

From laptops and the lunchtime microwave to more heavy-duty equipment specific to your sector, business energy powers many aspects of your work. But are you getting the best deal? Find out how to switch business energy provider, and what to watch out for when you do.

Connor Campbell Last updated on 18 November 2022.
Fact Checked
How to Switch Business Energy Provider in 5 Steps

Just like with your gas and electricity at home, it pays to shop around for business energy. Sticking with the same supplier for several years could mean you are not getting the best deal for your business.

However, when looking to switch business energy provider, there are a bunch of rules and requirements you have to keep in mind.

Below, we detail everything you need to know about your business energy switch, including how to find your supplier, when you can switch, and what to watch out for if you are a micro business.

» COMPARE: Business energy with NerdWallet

How to switch business energy provider in 5 steps

If you are considering switching business energy supplier, you should follow these five steps:

  1. Find the name of your current business energy suppliers.
  2. Check your contract to find out when you can switch suppliers.
  3. Get the details of your business energy contract, including yearly usage.
  4. Compare business energy suppliers to find the best deal.
  5. Finalise your new business energy contract.

Why switch business energy provider?

Alongside your commercial rent or mortgage, business energy can be one of the biggest operational costs related to the running of your organisation.

One way to try to keep these costs down is by actively seeking out the cheapest tariffs when your business gas or electricity contract is coming to an end.

If you don’t arrange a new contract by the time your old one is up, whether it is with the same provider or a new one, you will likely find yourself on your existing provider’s most expensive rate.

Step 1: Identify your business energy supplier

It may sound like a basic starting point but whether you want to switch your gas or electric, first of all you need to find your current business energy suppliers.

If you have been at your business premises for a while, it will be on your most recent business energy bill.

However, if you have just moved into a new business premises, you may not automatically know your supplier. In this case, you can contact your landlord or, if you have their details, the previous tenant or owner to ask who your business energy supplier is.

If you don’t have these contact details to hand, however, there are ways to find your gas and electricity suppliers.

  • The Meter Point Administration Service can help find your business gas supplier.
  • The Energy Network Association search tool can help identify your electricity provider. This will involve first finding your network operator, which can then give you the details of your supplier.

» COMPARE: Business electricity

Step 2: Find out when you can switch business energy provider

Once you have the name of your provider, you will need to find out when you can switch business energy suppliers.

If you are on a fixed-term contract

If you are still under a fixed-term contract with your supplier, you will usually have to wait until that contract has expired to switch providers at the same business premises.

As well as the expiry date, you will also need to check if your contract involves a notice period. Typically, this could be anywhere from 30 days to 120 days.

Your supplier should contact you around three months before the end of your contract with details of its renewal offer.

In order to avoid rolling over to a potentially more expensive tariff at the end of your contract, and secure a smooth switchover, you will need to issue a notice of termination to your current supplier within your notice period. Your energy broker or the provider you’re switching to may do this for you.

You will need to check whether your supplier accepts a termination notice over the phone, or whether you need to send the notice as an email.

If you are out of contract

If you don’t negotiate a new deal with your energy supplier, or fail to immediately switch to a new provider, you won’t be left without gas or electricity. Instead, you may be moved to your original supplier’s ‘out of contract’ rates, which will likely be far more expensive than your fixed-term contract.

To switch from an out-of-contract rate, you may not need to provide your supplier with any notice. However, this can vary from provider to provider. .

If you are on a deemed rate

If you move into new business premises, you will be placed on a deemed rate. Like an ‘out of contract’ rate, this will typically be more expensive than a fixed-term contract.

However, since you did not pick this contract yourself, but instead inherited your provider, you are free to switch business energy suppliers at any time.

» COMPARE: Business gas

Step 3: Compile everything you need to switch business energy suppliers

Before you start applying to switch business energy suppliers, it is best to make sure you have all the details you need to hand.

This will include, but is not limited to:

  • The postcode of your business premises.
  • The name of your current business energy supplier.
  • The details of your current business energy contract, including its end date and notice period length.
  • The current cost of your business energy per unit in kilowatt hours (kWh), as well as any standing charges.
  • Your annual energy usage.

You will be able to find most of this information on either your most recent energy bill, or your business energy online account.

Step 4: Compare business energy suppliers

It is always worth asking your current provider if it can switch you to a cheaper tariff.

Once you have your current provider’s offer, you can then start comparing the merits of each supplier. You should make sure that you take into account:

  • the unit cost per kilowatt hour (kWh)
  • any other charges and maintenance fees, including your standing charge
  • the length of the contract, any exit fees, and whether it has a notice period
  • reviews of its customer service, specifically how well it responds to urgent inquiries
  • whether the business energy supplier is offering any extra incentives to sign a contract
  • if the contract has a 14-day ‘cooling-off’ period, in case you wish to pull out of the contract after signing – this is unusual with business energy contracts, unless you are a micro business
  • whether the supplier offers 100% renewable business energy

When it comes to finding a new supplier, you can use our business energy comparison page to see how providers stack up against each other.

Alternatively, you may want to consider a business energy broker. For a fee, they can carry out the negotiation process with the supplier for you.

However, if you do use a business energy broker, it is important to make sure they offer a full-market comparison, and that you check exactly what they will require payment for.

» MORE: Business energy claims

Step 5: Finalise your business energy switch

Once you have selected your new business energy supplier, and signed the contract, it is time to finalise your switch.

This may involve providing your payment details or setting up a direct debit, creating an online login, and supplying up-to-date meter readings for your gas or electricity.

Also, remember you must satisfy the notice period for your current supplier and issue a termination notice before you make the switch.

Thanks to the Office of Gas and Electricity Markets (Ofgem) switching programme, if your business is based in England, Scotland or Wales, it should only take two two working days for your switch to be completed, or four if you are a large gas business customer.

You will only be able to pull out of the contract once it has been signed if it has a 14-day cooling-off period, and you are still within that period of time.

Unless you are a micro business in England, Wales or Scotland, many business energy suppliers will not provide you with the option of a cooling-off period, so it is important to make sure you are happy with the terms of your contract before signing.

Switching business energy as a micro business

Based on Ofgem guidelines, there are specific rules in place to protect you if you are a micro business in England, Scotland or Wales, and decide to apply for a business energy contract.

Firstly, you will be classed as a micro business for business energy purposes if you satisfy one of the following:

  • You have fewer than 10 employees, and an annual turnover or balance sheet of less than €2 million.
  • You use up to 100,000 kWh of electricity a year.
  • You use up to 293,000 kWh of gas a year.

These rules mean that many small businesses in the UK would technically be classified as micro businesses.

If you do meet any of these requirements, then you are entitled to certain business energy benefits. This includes:

  • a maximum notice period of 30 days to end your contract
  • the contract end date and notice period clearly visible on each energy billyour ‘rollover’ contract not lasting longer than 12 months if you fail to switch suppliers or sign a new contract with your current supplier

To work out whether or not you need business energy as a micro business, it is worth carrying out a business energy audit. Among other things, this will help you identify how much energy you use, and, if you work from home, how much of that energy is specifically for business purposes.

The energy market in Northern Ireland is regulated separately from the rest of the UK. So if you are a micro business based in Northern Ireland, you will be regulated by the Utility Regulator (UR) and may not be subject to the same protections as micro businesses in England, Scotland and Wales.

Help with switching business energy suppliers

If you need further assistance switching business energy suppliers, you can read our frequently asked questions below:

How long will it take to switch?

Prior to the introduction of the Ofgem switching programme, the industry standard was for it to take 21 days to switch energy suppliers.

Now, however, if you are based in England, Scotland or Wales, it should only take two working days, or four working days if you are a large gas business customer.

While it is rare, you may receive an unexpected welcome letter or final energy bill notifying you of a switch you did not initiate. If this happens, contact your original business energy supplier and let them know.

If the issue isn’t resolved, you can make a complaint. Citizens Advice may also be able to help you.

You should be aware that you are not automatically eligible for compensation if you are mistakenly switched to a new supplier.

How do I switch business energy if I rent my premises?

If you rent your business premises, then you should check your rental agreement to check whether it is the responsibility of you, the tenant, or the landlord, to switch business energy suppliers.

You should also check whether you need to give your landlord notice of your intention to switch suppliers, or if your rental agreement has a ‘default supplier clause’.

If it is your responsibility to pay your business energy bills, then consumer protection law states you have the right to choose your own supplier.

Can my business energy provider object to the switch?

There are certain circumstances that may cause your existing business energy provider to object to your switch. This includes if you:

  • have been in debt to your supplier for longer than 28 days
  • are not at the end of your original contract
  • have not given your original supplier the required amount of notice
  • supplier accuses you of breaking the terms of your contract
  • are switching multiple meters, and one has not been picked up in the application process

Under the Ofgem switching programme, suppliers have a window of two working days to object to a business energy switch.

If your existing provider raises an objection, this may slow down your switchover process, and could halt it completely. You will need to clear the objection with your existing supplier before the switch can take place.

Unless you have been in debt to your supplier for longer than 28 days, the provider cannot object to your switch if:

  • your contract has ended
  • you are on a deemed rate

If you take issue with the objection, and are unable to resolve it with the supplier, you can make a complaint. However, as a business, you are not eligible for automatic compensation if there are problems with your switch.

» MORE: What is Ofgem?

How do I complain about my business energy supplier?

If you have a problem, you should first try to contact your business energy supplier directly. For future reference, make sure to note down when you get in contact, the name of the customer adviser you speak to, and what you are complaining about.

If your problem isn’t resolved, and you want to make a more formal complaint, then you need to gather supporting evidence. What evidence you collect will be specific to your complaint – it could be anything from photos of a broken meter to copies of disputed bills.

You can then look up your supplier’s dedicated complaints procedure on its website. The supplier should send you a ‘decision letter’ or ‘letter of deadlock’ in response within eight weeks.
If eight weeks have passed, and you are not happy with your supplier’s response, or have not received a response, you can submit an official complaint to the Energy Ombudsman.

Image source: Getty Images

About the author:

Connor is a writer and spokesperson for NerdWallet. Previously at Spreadex, his market commentary has been quoted in the likes of the BBC, The Guardian, Evening Standard, Reuters and The Independent. Read more

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