How to switch business energy

Business energy works differently from residential energy and there are a few principles to take into consideration…

  • You can only terminate a contract during the contract termination period, not before or after, unless you move premises, in which case the contract ends automatically – we can still quote a price for a follow on contract before the contract termination period.
  • If you move premises and register with a new supplier, it is likely that you will on deemed (out-of-contract) rates. You should get a contract as quickly as possible to secure a cheaper rate.
  • Your current supplier can block any transfer to another supplier if you are in debt with them.
  • Prices are volatile and getting a fixed price at the right time can be very beneficial.
  • You can sign a contract to begin when your current contract ends to lock-in a good rate.
  • Strict credit checks are required.

The process for switching business energy..

  1. Check your contract termination notice period to make sure it is not too late to terminate your contract.
  2. Send a letter of termination to your supplier in-writing or by email within the notice period set out in your contract. You are then free to search the market for a new contract.
  3. Timing is everything and prices in a volatile market can change on a weekly or even daily basis.
  4. Let us try and find you the best deals for your supply at no charge to your company.
  5. You’ll receive your new contract either by email or Docusign, along with a Direct Debit form. Simply sign and return to us, snd we will lock this in with the supplier on your behalf.
  6. Ensure your old supplier is fully paid up, with no outstanding balance on the account, or they can prevent you moving to your new supplier and increase your prices.
  7. After your current contract has expired, your first invoice will be issued around 4-6 weeks later. It’s really as simple as that, but please note that strict credit checks are generally undertaken by all suppliers and not all credit risks are accepted.

Make sure your current supplier is paid up

If you owe your current supplier money they can refuse to allow you to enter into your new contract. They will instead put you on to “out of contract” rates and have the power to disconnect your supply if you refuse to pay up.

Not only will this result in higher energy costs while you resolve any outstanding issues, but your contract with your new supplier will expire, exposing you to increased future energy costs in a rising market.

Credit ratings and risk management

Suppliers are more vigilant than ever before due to market volatility and the unprecedented wholesale
energy market price rise and they are stipulating strict parameters before providing a contract.

These parameters are strict and not up for negotiation.

Most suppliers will not accept a credit score under 26, which means customers with a credit score lower than 26 will not be able to see a full list of suppliers within their analysis quote.

Maximum risk customers face even further challenges as very few suppliers will consider contracting for a
customer under a maximum risk credit status.

In addition, suppliers have also ruled out quoting business within certain sectors, which can limit options further.

With high wholesale costs and ever-increasing non-wholesale charges in a volatile market, we would recommend that you focus on budget certainty.

If you can afford a longer-term contract on a fully fixed contract, then this may be beneficial to procure a longer-term deal and avoid the exposure to the energy market. If however you are willing to see if there are drops in the energy market, then a 1 year contract duration would be beneficial for your procurement strategy.

The customer always makes the decision with what contract length they sign up to, so the decision is ultimately with you.

We can help you to provide the most up-to-date market information, supplier quotes and advice to help you make an informed decision.