Switching your business to a new energy supplier

If you work from home

If your business is based from home, you'll usually be a domestic energy customer instead of a business customer. Check how to switch if you’re a domestic customer.

Switching your energy supplier could save you money but it can take time to organise. 

You'll need to check some details about your current contract, including:

• the terms of your current contract - including the end date

• your standing charges and energy costs per unit - these are shown in kilowatt hours on your bill

• your annual energy usage

If you’re a microbusiness you might get extra protections when switching. Check if your business is a microbusiness.

Contact your local Citizens Advice Bureau if you're not sure if your supplier should be treating you as a microbusiness.

Important

If your energy supplier goes bust 

Don’t switch tariff or supplier until your account is moved to the new supplier. You might find it harder to get any money you’re owed if you switch before this happens. 

Read our advice about what to do if your energy supplier goes bust.

Check if you can switch

You'll normally be able to switch to a new business energy supplier if:

• you're not tied in to your contract - it's important to check when your contract ends 

• you're on a tariff you didn't choose to be on, for example if you've taken over a new premises - you'll be on a 'deemed' tariff

• the fixed term of your contract has ended

If you’re on a deemed tariff it’s worth switching - these are usually the most expensive tariffs. You usually won't need to pay a fee or give notice to switch.

Contact your local Citizens Advice Bureau if you think you should be able to switch but your supplier won't let you.

If you're a microbusiness on a fixed-term contract

It’s usually best to wait until the end of your fixed-term contract before you switch.

If you want to switch before the end of your contract, you might have to pay a fee to leave your contract early - this is an ‘exit fee’. 

If you’d have to pay an exit fee to switch, check:

• when you’ll be able to switch without paying an exit fee

• how much you’d save by switching - you might save more money, even if you have to pay an exit fee

If your contract has no end date, sometimes called an ‘evergreen contract’, you might have to give up to 30 days’ notice before you switch.

If your fixed term is ending soon, your supplier should let you know your switching options. They should contact you about 3 months before the end of your contract. If they don’t, you can complain to your supplier.

If your fixed term has already ended you can switch at any time. You won’t need to pay your supplier a fee to switch and you won’t need to give notice. 

Your contract might give you a 'roll-over period' to agree a new contract. Check your contract to see how long the roll-over period is - it can't be more than 12 months. If you're not sure, contact your supplier to check.

If your contract didn't give you a roll-over period or the period has ended, you'll be on an 'out-of-contract' tariff.

If you're in a roll-over period or on an out-of-contract tariff, it's worth switching - they're usually very expensive. You won't need to pay a fee or give notice to switch.

If you can't switch to a different supplier

Your supplier might still let you move to one of their cheaper tariffs - it's worth calling them to check.

It's worth calling your supplier to ask if they can offer you a better deal. They have to tell you if you can move to a cheaper tariff - but you might have to sign a new contract.

Make sure you understand all the rules about any new tariffs they offer you. You'll usually have to agree to sign up for a fixed period of time - most business energy contracts last between 1 to 3 years.

You should check:

• how long the new contract is for

• how much you'll pay per unit of energy and if the price can change

If you're struggling to pay your bills it's worth asking if your supplier can take other steps to help - for example, by giving you a smart meter so your bills are more accurate.

Don't feel pressured into agreeing to anything over the phone - if you're not sure, ask them to send you the details.

If you can switch you should compare what they've offered with other suppliers' prices.

If you can't switch and your supplier won't offer you a better deal you should check what to do if you're struggling to pay your energy bills.

Check if you can pay less with a new supplier

It's best to compare as many different suppliers' contracts as possible.

You'll normally need to speak to suppliers to compare prices and contracts. If you don't have much time to do this yourself you could use a price comparison website or an energy broker to find you the best deal.

You'll need to give information about what your business does and how much energy you use.

It's worth trying to negotiate with suppliers and brokers - mention other deals you've been offered and ask if they can beat them.

Contacting suppliers directly

Make a list of suppliers to contact for quotes.

It's best to call them to find out what prices and contracts they can offer you. You can find their contact details on their websites.

Tell them you're interested in switching and ask what prices and contracts they can offer you. If you've been offered a cheaper price by another supplier it's worth saying - you might be able to get a better deal.

Ask them to send you the full terms and conditions of any contract they can offer you.

Using energy price comparison websites

You can check other suppliers' tariffs using a price comparison website. Not all websites will show the same tariffs and suppliers, so it’s a good idea to check several. 

Ofgem has a list of genuine price comparison websites. The list is for ‘domestic’ customers who use their energy at home - but most of the websites also compare tariffs for business users. Check the list of price comparison websites on Ofgem’s website.

If you use a different price comparison website, you should check if it's genuine. Some websites might be scams and offer deals that are too good to be true. Check if something might be a scam.

It can be hard to find fixed prices online because business energy prices depend on your situation. Most business energy comparison websites will ask you for some details and then contact you to discuss prices.

You'll usually need to give your contact details online and then speak to someone on the phone.

After you’ve found a good deal using a price comparison website, contact the supplier directly by phone or online. You should check they offer the deal you want.

Using an energy broker

If you use someone to negotiate your business energy contracts with suppliers, they're your broker. 

You'll normally have to pay a broker. Before you ask them to find you a deal, check how they'll charge you. You might have to pay a one-off fee when you sign up, or pay as part of the cost of your energy while you're in the contract. 

You can agree to use a broker over the phone. This agreement is binding - you should always ask for information in writing before agreeing to a contract.

If your broker is paid by your supplier they must be registered with either the Energy Ombudsman or Utilities Intermediaries Association (UIA). Check your broker is registered before you agree to use them - if they aren't registered you won't be able to complain if something goes wrong.

Check which scheme your broker is a member of by checking on the scheme’s website:

• check if your broker is registered with the Energy Ombudsman on their website - download the ‘Broker Register’ near the end of the page to check if your broker is listed 

• check if your broker is an accredited member of UIA on their website

When you work with a broker, you normally have to sign a ‘letter of authority’. This is a document that lets the broker act for you. For example, your broker might look for a cheaper energy tariff and switch it for you by using information about your current energy consumption. 

Before you sign a letter of authority, you should read it carefully so you know what your broker can do.

You might get a better contract without using a broker and contacting suppliers directly instead.

Once you’ve got quotes from a broker you can go back to your current supplier to see if they can offer you a better deal.

If you're a microbusiness customer

Your business might be a microbusiness if it meets certain criteria. You can check if your business is a microbusiness.

You get extra protection if you’re working with a broker that’s paid by your supplier. Your broker is paid by the supplier if they get a set amount or a commission when they work with them. 

The broker has to tell you how much the supplier pays them before you agree to a contract. The costs might be a set amount or a commission on how much energy you use.

Your supplier or broker should send you the terms and conditions within 10 days of agreeing a contract. This should include details of any fee your broker will get for arranging your energy contract.

Comparing contracts

When you're comparing the contracts you've been offered, make sure you check:

• how much you'll pay per unit of energy and if the price can change

• if there are any extra costs - for example, maintenance charges

• how long the contract will last for - and if you'll have to pay a fee to cancel it before it ends

• how much notice you'll need to give to end the contract

• if there's a 'cooling off' period where you can cancel or switch if you're not happy - most business energy suppliers don't offer one but it's worth checking

If you've used a broker to find you a deal make sure you consider their fees when deciding whether to sign up to a contract. For example, it might be a one-off charge that you pay your broker or it might be added to your energy bill. The broker must give you this information in writing.

If you’re agreeing a contract

Always ask suppliers to send you a written contract so you can check the terms and conditions before you agree to anything.

Business energy contracts are 'binding' if you agree to them over the phone - this means you don't need to sign anything to be tied in to the contract.

Switching

If you've decided to switch you should tell the company that already supplies your energy as soon as possible.

You'll need to agree to your contract with the new supplier and confirm when they'll take over supplying you with energy.

It's important to take accurate meter readings on the day you switch and send them to both companies so you pay the right amount.

You'll be switched to your new supplier within 5 working days. If you want to switch on a  specific date, contact your new supplier to ask if you can do this. For example, you might want to do this if you’re on a fixed-term contract and don’t want to switch until it ends. 

You won't get a cooling-off period when you switch. Only switch when you’ve looked at all the information and are clear on the terms of the contract. If you change your mind you might have to pay a termination fee.

Check what your broker is getting paid for setting up the contract

Check your contract with your energy supplier or ask your supplier to tell you what your broker is getting for setting up the contract.

You should ask your supplier to explain how the broker is paid - for example, money from every unit of energy your business uses. You can compare this with what your broker told you they were getting.

The amount of detail your supplier must tell you depends on what type of business you are.

If your broker has misled you, you can complain. For example, your broker might have misled you about the terms of your contract or your tariff being the cheapest. 

If you complain, you might be able to cancel your contract or get your money back.

Contacting your supplier or broker about a problem

If you have a problem with your energy supplier or broker, contact them.

If they can't help you or you aren't happy with their response, you can complain. You'll need to complain using their complaints process.

Check how to contact your business energy supplier or broker about a problem.

Contact your local Citizens Advice bureau or Advice Direct Scotland's energy advice service if you need more help.

Advice Direct Scotland energy advice

Freephone: 0808 196 8660

Website: energyadvice.scot

If you're deaf or hard of hearing, you can get help with energy issues from Deaf Action's Bright Deal service. It can give you advice in BSL, either online, on a video call or by arranging a home visit. Find out more on Deaf Action's website.