When Is the Best Time to Switch Business Energy Supplier?

Energy bills can be a large overhead cost for businesses of all shapes and sizes, so it’s important that you find a supplier that can offer you great rates and great customer service for your utilities. One way of securing the best rates involves ‘shopping around’ for suppliers so you can find the perfect fit.  

But figuring out the best time to switch your business energy supplier can be confusing. You want to make sure you’re getting the best price, whilst avoiding any fees from your current supplier. 

So, when is the best time to switch business energy supplier? Our guide covers everything you need to know when it comes to switching your business energy, so you can make sure your switch goes without a hitch! 

There are many reasons why a business might want to switch energy suppliers, but the most common reason is to reduce energy costs. When comparing business energy quotes, you may find cheaper tariffs or plans that are more suited to your specific business needs. 

Others may switch business energy suppliers if they are unhappy with their current provider’s service, or if they have been offered additional incentives for their energy solutions such as green energy plans and insights tools.  

If a business is currently on a freedom tariff, or a plan that lets them switch at short notice, they might also choose to switch business energy supplier when the market rates drop, securing low rates for the duration of their contract.  

You should be able to switch business energy supplier if: 

• You are not tied up in the middle of a contract  
• Your contract has expired, and you are not bound by any terms (such as an extended supply period or rollover period) 
• You do not have an outstanding balance or debt on your account 

If you are currently in a fixed-period contract with your supplier, you should start receiving reminders to renew your contract a minimum of 60 days before your end date. If you are considering switching, this is the ideal time to start researching other options and gathering quotes to compare.  

In order to switch to a new supplier, you will need to know what your notice period or ‘switching window’ is.  In most cases, you can switch supplier without incurring any fees or penalties once you are within the last 49 days of your contract. However, it is best to review the terms and conditions of your current contract for information on any early-exit penalties or charges. 

Businesses on Fixed Contracts 

If you have come to the end of a fixed-term contract, you should check your terms and conditions to find out if you have a ‘rollover period’. This rollover period may be for a set length of time, but it cannot exceed 12 months. If you do not have a rollover period, or if your rollover period has expired, you may be placed onto an ‘out-of-contract’ tariff instead. These rates will usually be much higher than your fixed contract rates and you should be able to give 30 days’ termination notice before switching to a new supplier, though you should check this in your terms and conditions. 

If you are a microbusiness, you do not have to give notice and may terminate at any time. 

Businesses on Non-Fixed Contracts 

If you are on a non-fixed period contract, sometimes known as a ‘freedom tariff’, you will be able to terminate your contract by giving 30 days’ notice to your current supplier. 

If your contract is coming to an end, you have three options: 

• Accept the renewal terms offered to you by your current supplier 
• Switch your business energy to a new supplier 
• Do nothing and continue to be supplied by your current provider under a deemed contract or ‘out of contract rates’ 

When your current contract ends, what happens next will depend on your supplier and the terms and conditions set out in your contract, but typically, if you do not renew or switch business energy supplier, you will be placed on ‘out of contract rates’. These prices will typically be higher than your previous in-contract rates.  

If you find yourself in this position, you should check the terms with your current supplier to find out if you can switch supplier or renew your contract so you can avoid these high rates. 

If you have followed the switching process correctly, your supplier will not be able to object to your switch.  

Your existing business energy provider may object to your switch if: 

• You are trying to switch part-way through a fixed-term contract  
• You have an unpaid balance on your account  
• You have not provided enough notice to terminate your contract 

Your provider will give a reason for their objection and instruct you on how to resolve the issue. To find out more about why your business energy switch has been objected to, read our guide. 

For microbusinesses, the rules on switching energy provider are a little bit different and you will have more flexibility when it comes to terminating one contract and starting another. Ofgem rules state that microbusinesses no longer need to serve a termination notice, giving them greater freedom when it comes to switching.  

In order to be classed as a microbusiness, the business must: 

• Have fewer than 10 employees; and 
• Have an annual turnover of less than €2 million; or 
• Use less than 100,000 kWh electricity per year; or 
• Use less than 293,000 kWh gas per year 

Although there is no specific time to switch that will suit everyone, you should consider where you are in your current contract and how switching supplier will benefit you. You may also want to consider: 

• When your switching window opens – The length of your switching window will depend on your current contract. Using this timeframe to compare suppliers will ensure that you can get a new deal lined up for when your current contract ends, so you can transition seamlessly, without any surprise costs. 
• If you are going to be placed on out of contract rates – Check the terms and conditions of your contract so you know what to expect when your current contract ends. Some contracts will auto-renew if you do not opt to switch, whilst others will place you on ‘out of contract rates’ which are usually much higher than you would ordinarily be paying. 
• When moving premises – If your business has recently moved premises, or is set to move premises, this is an ideal time to switch business energy suppliers. When you move into a new property, you will be placed on ‘deemed rates’ which will be higher than contracted rates, so you should start shopping for energy contracts as soon as you are able, to avoid paying more for your energy. 
• If you find a supplier that offers better rates – during your ‘switching window’ you should start comparing suppliers to find a good deal for your energy. You can do this using comparison sites and visiting suppliers’ websites to get a quote. 

• If you find a supplier that suits your business better– there’s more to a good energy supplier than just low prices. Check what other benefits and services suppliers can offer your business and weigh up the best option for you. 

If you’re ready to make the switch, we can help! We’ve streamlined our switching process to help save our customers time and energy, that they can put back into running their business. Find out more about switching to Yü and get your free business energy quote in under 30 seconds with our online quote tool.

One of the most common reasons that businesses switch energy suppliers is to save money. But do you know how your energy costs compare to other businesses? Our new Energy HealthCheck tool lets you find out if you’re paying the right amount for your energy, as well las giving you an energy efficiency rating and free energy saving advice. 

It’s free to use and only takes 2 minutes to complete!