The Ultimate Guide to Switching Your Energy Supplier

Switching commercial energy provider is a major business decision with greater challenges and complexity than many realise. The right energy contract can save you a fortune on overheads, while the wrong one can tie you in for years to non-competitive rates and poor service quality. That process can be intimidating, wrapped up in jargon and with potential to lead businesses astray, which is why many would choose to just stick with what they know, even if it’s costing them.

This guide is to help make the switching process less daunting. Here’s a rundown of what the process looks like for small businesses and what to expect at each step of the way, from knowing when to start looking, all the way through to after you have made the decision. With the right strategy in place, you will be able to analyse the market with confidence, keep yourself from making the same mistakes others do, and lock a deal that makes sense for your business.

Understand Your Contract and Your Renewal Window

The most costly mistake any business can make is allowing a fixed-term contract to end without a prior plan. If any such case occurs, your electricity provider will put you out-of-contract, having usually far higher prices than any negotiated tariff.

But before you do anything else, find your current energy contract and bill and observe three important pieces of information

• Your Contract End Date: This is the end date. See to it that all your work prior to this is also planned in accordance with this date.

• Notice period with your current supplier – most contracts require you to notify energy supplier for business that you are considering a switch, and the timeframe is mentioned in the contract details. Failing to hit that window can cause your contract to roll over automatically for another year. Moreover, notifying the energy supplier in advance makes the transition hassle-free. 

• Your Annual Consumption: Typically expressed in kilowatt-hours (kWh), this is how much energy you use per year. You will need this number when you are seeking quotes.

When is the best time to start looking around for a new energy contract? Once your contract ends, you can switch without incurring any fees, so the optimum time to begin looking for a new plan is what’s known as your “renewal window,” usually three to six months before your contract is set to expire. This leaves you with plenty of time to analyse the market so you do not feel pressurised.

Collect the Information You Will Need

When you start looking for the best electricity suppliers in UK, they will require some basic details about your business to offer an energy quote that aligns well with your business energy needs. If you already have this information to hand, it will make the process a lot easier.

Prepare a file that contains the following:

• A recent energy bill: This will include most of the important information, such as your MPAN (Meter Point Administration Number) for electricity and MPRN (Meter Point Reference Number) for gas.

• Your annual usage (in kWh): This is essential for understanding your overall energy consumption and offering energy quotes as per your energy requirement, and in which business category your business falls. 

• The name of your current energy supplier and tariff.

• Your contract end date.

This ensures each quote you get is based on your energy needs and business type, and allows for an equivalent or better comparison. 

Price Is Not Everything When It Comes to Energy Supply 

Now that you have got your information, it’s time to find out what other power suppliers in UK can offer you. Contact energy suppliers directly, or use a trusted business energy broker who can compare tariffs from a large number of providers.

Price is a big consideration, but it must not be the sole priority. So when researching quotes, keep the following in mind:

• Contract Length: Are you looking for the security of a long-term fix, or are you open to the flexibility of a shorter-term deal?

• Customer Service: Are they easy to contact? Check the reviews from online review platforms like Trustpilot and analyse which is the best utility provider. The cheapest energy tariff is no big deal when the energy provider is unable to resolve your concern or fails to provide a timely response. Price and service quality must be equally important considerations for the energy supplier as well. 

• Billing: Are they known for accurate billing and transparent communication?

• Value Added Services: Do you receive practical tips on how to reduce your power usage or from an account manager? These are the services that can help you minimise what you use, with bigger savings to come over time.

• Green Energy: If sustainability is core to your brand, do your homework on what type of renewable energy tariffs are available.

Instead, the name of the game is trying to find the utility provider with the best combination of price, service, and contract terms.

Agreeing to a New Contract

When you have selected a new energy supplier, you will be required to agree to the contract in writing. This typically starts with a voice agreement on the phone (it is recorded and it’s a legal contract), followed by a written contract that you sign and return.

Avoid This Trap: Always carefully study the fine print before signing. Take note of the notice period on transferring to the new contract, payment terms, and any clauses that pertain to changing your business’s circumstances, such as moving premises. This is your opportunity to address any concerns and be transparent about every detail. 

Notify Your Previous Energy Supplier

This is a step that so many businesses miss. A new contract does not automatically erase your old one. If you want to end the contract with your previous supplier, your notice that you won't need their service anymore must be in writing (via post or email) and within the agreed notice period from your old contract. You won’t be asked much, just a few details about your business and final meter reads for an accurate final bill. 

The Smooth Transition 

Once you accept the new contract and cancel the previous one, your new supplier will take care of the rest. Switching itself is handled by the new energy supplier once the required details have been provided, so you won’t have to lift a finger.

Here’s how it works on the back end:

• Your new and old suppliers will agree on a switch-over date, which will be the day after your existing contract ends or once you have paid the early exit fee.

• On the day, you’ll need to take a final reading and give it to your old energy supplier (so they can make your final bill) and new energy supplier (so they know where you’re starting).

No power downtime will occur. The only difference is that the company is billing you.

Take Charge of Your Energy Management

Switching your business energy supplier is much more than an administrative task; it’s a strategic decision for your business. With this step-by-step guide, you can leave all the chaos behind and take charge of your energy management. The real way you can make a difference to your energy bills is to be proactive: check the date at which point your contract ends, do your own research, and shop around for a supplier that offers great value as opposed to just being low priced. A seamless, well-managed transition is just the beginning of improved energy management and a better bottom line.