How to switch your energy supplier for cheap electricity and gas
With over 30 plus business energy suppliers in the UK, businesses now have better opportunities to switch their electricity and gas suppliers to get the lowest prices for their businesses.
However, choosing an energy supplier from a long list of energy suppliers takes time and effort. That is why we wrote this guide on how you can switch your energy supplier and the process that goes along with it.
Best time to switch your energy supplier
Switching your business energy suppliers is quite different when compared with switching your home energy suppliers. The size of your business, the energy consumption at your business site(s), type of contract (flexible, fixed etc.), duration of contract (1 to 5 years), your business credit score; all play different role on how you can switch to a new energy supplier.
Renewal dates and switching window
The first thing when switching an energy supplier is that you need to know when your existing contract is up for renewal. There is also a time frame where you are allowed to switch your energy supplier; often called switching window or notice period.
Your current electricity or gas will have details about when your contract will be up for renewal along with when the switching window is open and when it closes.
Most suppliers offer a switching window that is around 60 to 120 days before your current contract expires. Some suppliers may offer a short switching window as short as 30 days while some may offer a long switching window of 180 days before your contract ends.
If you are unable to find this information on your energy bill, call your energy supplier and ask for it. Another thing to keep an eye on, is a renewal letter (only if you are a micro-business.) Your energy supplier must send you a renewal letter with renewal dates and energy tariffs for the future contract.
Switching deemed rate contracts
If you move to a new business premises, you will automatically be placed on a deemed rate contract. Deemed rates are high as compare to usual energy contracts but the good thing is that you can switch your energy supplier anytime you wish to do so. You will also be paying deemed rates if your existing contract expires and you do not sign up a new energy contract.
To understand more about electricity and gas prices, please read the following guides:
Your energy contract has two types of prices; a standing charge, often called ‘daily meter rent’ and a unit price, the price of the energy units you consume at your business site.
Once you found out which energy supplier you will be switching to, you need to send a termination letter (notice) to your current supplier. You need to send this letter to your current energy supplier before you sign up with your new energy supplier.
Important things to keep in mind;
No cooling-off period: Unlike domestic electricity or gas contracts where a consumer gets an option to change their mind and switch during the cooling-off period, there is no cooling-off period for business energy contracts.
Switching time: The switching process from current to new supplier can take between 4-6 weeks.
You need to send a termination letter to your current energy supplier, letting them know that want to end your contract with them. You must ensure that the following information is mentioned in the termination letter:
Termination letter must be printed on a company letterhead containing business name, address and contact details.
Your contract details, customer reference or energy account number
MPAN/MPR related to your energy supply at your business site
Signed by the business owner or by an authorize person.
Your current supplier can object to your termination letter if you are in debt with your current supplier or if you send this letter before your switching window opens.
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