Your business energy renewal letter: what it means and what happens next

A letter from your energy supplier about your contract ending is easy to put in the pile. It should not go in the pile. In most cases it is the one document that tells you the date a lot of money turns on.

This guide explains what a renewal letter is, what Ofgem says it should contain for microbusinesses, how notice periods work, and what your options are. We are an introducer, so we lay out the choices rather than tell you which to take.

What is a renewal letter, and why does it matter?

When a fixed-term contract is coming to an end, the supplier writes to tell you. Citizens Advice says that if your fixed term is ending soon, your supplier should let you know your switching options, normally about three months before the end. If they do not, you can complain to your supplier. Ofgem’s 2022 advice for non-domestic customers says the same thing in different words: the supplier will write to let you know when your deal is due to end.

The reason it matters is the switching window. Ofgem explains that fixed-rate contracts include a set period, opening a few months before the end, for you to renew with your supplier or tell them you intend to leave. You can sometimes switch in that window without paying a fee. If you miss it, Ofgem’s 2022 advice says you could roll over to a more expensive default contract.

What should the letter tell you?

Different protections apply to different business sizes, so start by checking whether you are a microbusiness. Ofgem says that means fewer than 10 employees and an annual turnover or balance sheet total of no more than £2 million, or using up to 100,000 kWh of electricity or 293,000 kWh of gas a year.

If you are a microbusiness

Ofgem says your supplier must provide information about renewal prices before your contract ends. An Ofgem factsheet on the renewal rules, published in July 2015, says that since 30 April 2015 suppliers have had to include the current prices, the new prices and your annual consumption on renewal letters for fixed-term contracts, to make comparison easier. Ofgem’s 2022 advice adds that your supplier must contact you with the details of its new fixed-term offer at least 60 days before your contract ends. Your bill should also show the end date of a fixed-term contract.

So a good renewal letter should let you put three numbers side by side: what you pay now, what you would pay on the offer, and the usage that figure is based on.

If you are a small or larger business

The specific microbusiness protections do not apply in the same way, so reading your own contract matters even more. Ofgem says to check the terms and conditions of your existing contract to find out when you can switch, how much notice you should give and whether you will need to pay an exit fee.

Notice periods: what Ofgem says

• Maximum notice for microbusinesses. Ofgem’s factsheet says the maximum notice period for terminating a microbusiness contract was reduced from 90 to 30 days from 30 April 2015. Ofgem’s current guidance applies the 30-day limit to evergreen contracts.
• Acknowledgement. Suppliers must take all reasonable steps to acknowledge a termination notice within five working days of receiving it.
• Evergreen contracts. Citizens Advice says that if your contract has no end date you might have to give up to 30 days’ notice before you switch.
• Fixed term already ended. Citizens Advice says you can switch at any time, with no fee and no notice.
• Rollover period. Your contract may give you a roll-over period to agree a new contract. It cannot be more than 12 months.

For anything beyond these headlines, your own contract is the authority. If the dates in the letter and the contract do not match, ask the supplier to explain in writing.

Your options when the letter arrives

Most businesses have four routes. None is automatically right.

1. Accept the supplier’s renewal offer. Ofgem notes the best option may be with your current supplier. It is quick, and you stay put.
2. Ask the supplier for a better price. Citizens Advice says it is worth trying to negotiate and mention other deals you have been offered.
3. Compare other suppliers. Contact them directly, use a comparison website, or use a broker or introducer to gather quotes. Citizens Advice suggests comparing as many suppliers as possible.
4. Do nothing. This is the route that tends to cost the most, because it can end in a rollover, out-of-contract or deemed rate. Our guide to these rates explains why.

A simple renewal timeline

1. About 3 to 4 months out: find your end date and your latest bill. Citizens Advice says to know your end date, your standing charges and unit rates, and your annual usage.
2. Around 60 to 90 days out: the supplier’s renewal information should arrive. Compare it with your current price.
3. Before the notice deadline: gather other quotes, check the terms, and make a decision.
4. Before the end date: make sure the new contract is agreed, or that you have given notice correctly. Ofgem says if you move to a new contract you must tell your supplier before the current one expires.
5. On the switch date: take meter readings and send them to both companies, as Citizens Advice advises.

Citizens Advice also says that once you switch you will normally be moved to your new supplier within five working days, and that if you want a specific date, for instance the day your fixed term ends, you should ask the new supplier.

Things to be careful about

• Phone agreements are binding. Citizens Advice says business contracts are binding if you agree over the phone, and that you should not feel pressured. Ask for details in writing.
• No cooling-off period. Citizens Advice says you will not get one when you switch. If you change your mind you might have to pay a termination fee.
• Check unexpected calls. Ofgem says you can avoid fraudsters by verifying unexpected calls and stopping to check details if you are in doubt.
• Security deposits. Ofgem says suppliers may require them because of the greater risk of businesses defaulting on payment.

The wider picture: why timing matters in a moving market

In March 2026 Ofgem said its understanding was that most businesses were not yet exposed to immediate price rises because contract lengths were starting to return to three to five years. It expected fewer than 10% of businesses to recontract in March and April, with another 10% or so recontracting between May and July. Those are Ofgem’s estimates for that moment, not a forecast for your contract, but the lesson is general: when your renewal falls decides which market you meet.

Ofgem also pointed out that suppliers are not obliged to offer businesses a contract and that offers may be harder to find, and that suppliers may ask for security deposits. If your renewal date is close and you have not looked at the market, those are the things that can narrow your choices.

What to do if the letter never arrives

Citizens Advice says that if your supplier does not contact you about three months before the end of your fixed term, you can complain to your supplier. Do not wait for the letter to find your own end date. It is in your contract, and for microbusinesses your bill should show it.

What to do if the dates do not add up

• Put the contract end date, the date on the letter and the date of the notice deadline side by side.
• Ask the supplier to confirm each in writing.
• If you are a micro or small business and cannot settle it, Ofgem says you can take an unresolved complaint to the Energy Ombudsman after speaking to your supplier.

Frequently asked questions

Got a renewal letter in your hand?

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