How Business Energy Switching Works in the UK

How business energy switching works is straightforward in principle: you compare contract offers from across the market, agree a new fixed-term deal, and your new supplier arranges the changeover while your gas and electricity keep flowing. Only the billing supplier changes — the wires, pipes and meters stay exactly as they are.

Business energy is not price-capped like domestic energy, and contracts behave differently too, with no automatic cooling-off period and fixed terms you usually cannot exit mid-way without paying. Knowing the timeline, the notice rules and the costly default tariffs is what separates a smooth switch from a year stuck on expensive rates.

• Compare quotes using your MPAN (electricity) and/or MPRN (gas) plus recent usage figures.
• Most business energy switches complete within around 5 to 15 working days, with no break in supply.
• Business contracts have no automatic cooling-off period, so check the terms before you sign.
• Switch before your contract ends to avoid out-of-contract or deemed rates, which can run far higher than a fixed deal.

How does the business energy switching process work?

The business energy switching process works by comparing market contracts, choosing a tariff and start date, and letting your new supplier handle the transfer with your old one. Your physical supply is never interrupted — the changeover happens behind the scenes on the billing side only.

The steps are similar across electricity and gas:

• Gather your details: your MPAN (electricity supply number) and MPRN (gas meter point reference), a recent meter reading and your annual usage in kWh.
• Compare quotes across the market based on your usage, meter type and region.
• Choose a contract and a start date that lines up with the end of your current agreement.
• Your new supplier contacts your old one and agrees the switch date.
• The supply transfers, and your old supplier sends a final bill.

Most switches are completed within around 5 to 15 working days, though deemed-contract switches can move faster, often in two to five working days. You do not need a new meter to switch in the vast majority of cases — the same meter simply reports to a different supplier.

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What information do you need to switch business energy?

To switch business energy you need your MPAN for electricity, your MPRN for gas, a recent meter reading and your annual consumption in kWh. These let a supplier price an accurate quote rather than an estimate.

Your MPAN and MPRN appear on your existing energy bill. The MPAN is a long electricity supply number (sometimes called the “S number”), and the MPRN is the gas meter point reference. If you run more than one site, you’ll need a site list with each address and its MPAN or MPRN, because each meter point is priced separately.

Usage data matters because business rates vary by how much you consume and by meter type. Half-hourly metered sites, common for larger users, are quoted differently from standard non-half-hourly meters. The more accurate your figures, the closer your quote will be to your real bill.

Business energy contract types explained

Business energy contracts fall into two broad groups: the deals you actively choose (fixed-term) and the costly defaults you fall onto if you do nothing (deemed, out-of-contract and rollover). Understanding the difference is the single most useful thing for keeping bills down.

Fixed-term contracts

A fixed-term business energy contract locks your unit rates and standing charge for a set period, usually between 12 months and three years, though some suppliers offer one to five years. The rate is fixed, but your bill still varies with how much you use. Fixed deals are normally the cheapest option and the type you actively switch onto.

Deemed contracts

A deemed contract applies when no contract has ever existed at the meter point with that supplier — for example after a change of tenancy, a new connection, or a Supplier of Last Resort transfer. Under Ofgem’s Standard Licence Condition 7A, you can leave a deemed contract at any time on a maximum of 30 days’ notice, with no termination fee. Deemed rates are among the most expensive, so moving off them quickly is worthwhile.

Out-of-contract and rollover contracts

An out-of-contract arrangement applies when a previous fixed-term deal has expired without a new one being agreed — the customer relationship continues but the contract has ended. A rollover contract is a new fixed term the supplier creates automatically when your old one ends, usually at non-competitive rates. You can typically leave an out-of-contract arrangement with 28 days’ notice and no early termination charge, but rollover terms can lock you in, so check before your end date arrives.

Avoid expensive default rates

Switch before your contract ends to sidestep deemed and out-of-contract pricing.

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Notice periods and renewal windows

Most business energy suppliers require between 30 and 120 days’ written notice before your contract end date, with many sitting in the 30 to 90 day range. Miss the window and your contract may automatically renew or roll over onto poorer rates.

Most contracts include a renewal window, typically one to six months before the end date, when you can switch or renegotiate without penalty. Since October 2022, Ofgem rules mean microbusinesses no longer need to serve a termination notice on standard fixed-term contracts — though notice may still apply on evergreen or rollover tariffs. The safest approach is to diarise your contract end date and start comparing well inside the renewal window.

For broader tips on timing and the case for shopping around, our guide to price comparison for energy sets out how regular reviews keep costs down.

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Is there a cooling-off period on business energy contracts?

No — business energy contracts do not automatically come with a cooling-off period. Unlike a residential tariff, once you sign a business contract it usually becomes legally binding immediately, with no automatic cancellation window. Always read the principal terms before agreeing.

You also cannot normally exit a fixed-term business contract early without paying out the remaining term, unlike a domestic deal. The main exception is a deemed contract, which you can leave at any time on up to 30 days’ notice without a termination fee under Ofgem rules.

Business energy rates in 2026

Business energy is not price-capped, so rates vary widely by supplier, region, meter type and usage. The figures below are drawn from commercial market commentary across 2026 and should be treated as ranges, not fixed prices (Free Price Compare research, June 2026). They are useful for understanding the gap between a fixed deal and a default tariff.

Standing charges add a daily fixed cost on top: business electricity typically runs around 35–65p per day and business gas around 25–45p per day in 2026, though these vary by region and meter. Electricity rates also vary sharply by Distribution Network Operator (DNO) region — the same tariff can cost several pence per kWh more in north Scotland than in London because of distribution charges and line losses.

Two taxes apply to most business bills: VAT at 20% by default (dropping to 5% if you use under 33 kWh of electricity a day or qualify under the de minimis rules), and the Climate Change Levy at 0.775p/kWh, with relief available for some users. For practical ways to cut consumption, see our tips to cut business energy use in your office.

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Your rights and protections when switching

Ofgem has strengthened business energy protections in recent years, extending several rights beyond microbusinesses. From 1 July 2024, Ofgem expanded its Standards of Conduct to apply to businesses of any size, not just microbusinesses.

Two further changes matter when switching:

• For contracts signed on and from 1 October 2024, suppliers must clearly display any broker fees in the contract’s principal terms for all non-domestic customers, and make this available on request.
• The Energy Ombudsman currently handles microbusiness complaints, with government and Ofgem proposals to extend access to small businesses with fewer than 50 employees that cannot resolve a complaint with their supplier.

Brokers and third-party intermediaries are also moving towards formal Ofgem regulation, which should improve transparency on fees. If you’re weighing up timing against rising costs, our overview of consumer and business energy price hikes explains what to watch for.

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