How to Switch Business Energy Supplier and Choose the Right Deal

You can usually switch business electricity or gas supplier in these situations:

• Your fixed contract is ending: Most suppliers let you agree a new contract months before the end date, so you can lock in a price early. The new deal starts when the old one ends.
• You're on deemed or out-of-contract rates: You can usually switch at any time, without a fee or notice period.
• You're on an evergreen contract: This is a rolling contract with no end date. You may need to give up to 30 days' notice.
• You want to leave a fixed contract early: You can, but your supplier may charge an exit fee. Compare the fee against what the new deal would save.

• A recent bill: It shows your current supplier, tariff, unit rate and standing charge.
• Your MPAN (electricity): The 21-digit supply number on your electricity bill, usually shown in a box starting with "S". Suppliers mainly use the last 13 digits.
• Your MPRN (gas): The meter point reference on your gas bill, which is 6 to 10 digits long.
• Your contract end date: It's on your bill or contract, and it decides when your new deal can start.
• Your annual usage: Your yearly kWh for each fuel. For gas, this is called your annual quantity (AQ).
• Your business details: Your company name, registered address and bank details for direct debit.

Switching business electricity suppliers, or gas suppliers, takes six steps, and your new supplier does most of the work.

1. 1Check your contractFind your end date and any notice terms, so you know when a new deal can start.
2. 2Compare quotesGet quotes based on your real usage from several suppliers, or ask a broker to compare them for you. Look at the total annual cost, not just the unit rate.
3. 3Agree your new contractChoose your deal and sign the contract. Your new supplier confirms the start date.
4. 4Let the new supplier handle the switchIt contacts your old supplier and arranges the move, so you don't need to cancel anything yourself.
5. 5Take meter readings on switch daySend them to both suppliers, so your final and first bills are accurate.
6. 6Settle your final billYour old supplier sends a final bill. If your account is in credit, ask for the balance back.

When you move into new business premises, you're placed on the current supplier's deemed rates until you agree a contract. These are usually the most expensive rates, so act quickly:

• Take meter readings on moving day: Photograph the meters at both your old and new premises, so you only pay for the energy you use.
• Find out who supplies the new premises: Ask the landlord or previous tenant, or use the Find My Supplier service for gas and your local electricity network operator for electricity.
• Get quotes in your first few weeks: The sooner you agree a contract, the less time you spend on deemed rates.
• Tell your old supplier you're leaving: Give your moving date and final reading, so you aren't billed for the next occupant's usage.

When a fixed contract ends without a new deal, you're usually moved onto a rollover contract or out-of-contract rates. Both tend to cost much more than a new fixed deal.

• Watch for your renewal letter: If you're a micro business, your supplier should contact you about three months before your contract ends to explain your options.
• Know the rollover limit: For micro businesses, a rollover contract can't last longer than 12 months.
• Diarise your end date: Start comparing several months before it, so a missed letter never leaves you on expensive rates.

Price matters, but the contract terms decide whether a deal stays good value. Check these points before you agree:

1. 1Find out if you're a micro businessYou count as one if you use up to 100,000 kWh of electricity or 293,000 kWh of gas a year, or have fewer than 10 employees and a turnover or balance sheet of up to £2 million. Micro businesses get extra protections on notice, renewals and complaints.
2. 2Ask how your broker is paidBrokers are usually paid commission by the supplier, built into your rates. Suppliers must show broker fees in your contract's principal terms, and for micro and small businesses they can only work with brokers in a dispute scheme, such as the Energy Ombudsman.
3. 3Read the principal termsCheck the contract length, whether the price can change, any termination fees and any extra charges.
4. 4Don't expect a cooling-off periodUnlike household contracts, most business energy contracts can't be cancelled within 14 days, so be sure before you sign.
5. 5Get it in writing firstA contract agreed over the phone can be binding, so ask for the terms in writing before you say yes.

For our supplier picks and a checklist on prices, meters and green tariffs, read our guide to the best business energy suppliers in the UK.