Switching your small business to a new energy supplier

Switching your energy supplier could save you money but it can take time to organise. If you’re a microbusiness you might get extra protections when switching. Check if your business is a microbusiness.

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 on a fixed-term contract your supplier should let you know your options about 3 months before the end of your contract. If they don’t, you can complain to your supplier.

You’ll also need to check if you can switch and then compare different suppliers' prices - including the supplier you already have.

It’s best to compare prices and agree to a new contract as soon as you take on new premises, or near your current contract’s end date, to get a better deal.

Contact the Citizens Advice consumer helpline if you're not sure if your supplier should be treating you as a microbusiness.

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 'deemed' or 'out-of-contract' tariff - this is a tariff you didn't choose to be on, for example if you've taken over a new premises or your old deal has expired

Check if you’re on a deemed or out of contract tariff 

If you’re on a deemed tariff or an out of contract tariff it’s worth switching - these are usually the most expensive tariffs. 

If you moved into new premises and didn’t agree a new contract you’ll usually be on a deemed contract. 

If your original contract ended but the supplier kept supplying your energy you might be on an out of contract tariff. This happens when your original contract doesn’t say what will happen when the contract ends, or doesn’t have an automatic renewal process.

If you're not sure, call your supplier to check.

Contact the consumer helpline if you think you should be able to switch but your supplier won't let you.

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

Use our customer service rating table to find business energy suppliers that give the best customer service. 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

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.

You can find a list of authorised price comparison websites on Ofgem's website.

Using an energy broker

An energy broker is someone who negotiates business energy contracts with suppliers. 

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. The broker has to explain their charges to you before you agree to a contract. They also have to confirm these costs in writing within 10 days of you entering into a 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 you think a broker has misled you or added on fees you didn't know about you can complain - you might be able to cancel your contract or get your money back.

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.

Contact the consumer helpline and explain what's happened.

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.

Switching

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

If your fixed term is coming to an end you can arrange to switch - as long as you haven’t agreed a new contract. If your fixed term has already ended you can tell your supplier you don’t want to extend your contract - you can then switch. You won’t need to pay your supplier a fee to switch and you won’t need to give notice.

You shouldn't have to give notice to switch unless you've agreed to an 'evergreen contract' - this is a contract with no end date. If you've got an evergreen contract your supplier might ask for notice of up to 30 days.

After you've done this, 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.

Contacting your supplier about a problem

If you’re having a problem with your energy supply, call or use webchat to contact your supplier straight away. You can get their contact details from their website.

Tell them what’s happening, and what you want them to do about it. They might be able to sort it out then and there. You should note down the:

• date and time you get in touch

• person you speak to

• problem you talk about

If your supplier doesn't solve your problem while you're on the phone or webchat, send them an email or letter repeating what you said. This means you’ll have a record of your conversation with your supplier.

When you write to your supplier include your account number and any case reference numbers you have. This makes it quicker and easier to sort out your problem.

Making a complaint

The first thing you should do is gather any supporting evidence. What you’ll need depends on your issue - for example you could:

• take photos of a faulty meter

• get together copies of unusual bills

• gather notes from phone calls you’ve had

• look for emails from your supplier about the problem

You’ll also need details of your complaint and your energy account number to hand. You can find this on a recent bill.

When you’re ready, you can complain to your supplier over the phone, or in writing by email or post.

Look online for your suppliers ‘complaints procedure’ - this should be listed on their website, and includes contact details for complaints.

What happens next

Your supplier will get in touch with you if they need any more details about your complaint.

They should send you a ‘decision letter’ or ‘letter of deadlock’ within 8 weeks. This explains how they’ll deal with your complaint.

Complaining to the energy ombudsman

You can complain to the energy ombudsman after complaining to your supplier if you:

• have a letter of deadlock and aren’t happy with the decision

• didn’t get a decision letter or letter of deadlock within 8 weeks

If you’ve had a deadlock letter you can complain to the ombudsman within 12 months of getting it. If you didn’t get a deadlock letter you might be able to complain to the ombudsman after more than 12 months.

You can complain to the ombudsman on the Ombudsman Services website.

If you need more help

If you need more help switching or you've had a problem with an energy contract you can contact the consumer helpline. They can give you unbiased advice about business energy contracts and your rights.