How switching business energy supplier works, step by step

Switching business energy supplier sounds like a project. It is closer to a short checklist, as long as you do the checking before you agree to anything. The parts that go wrong are almost always timing, paperwork and contract terms, not the switch itself.

Here is the process in order, using Ofgem and Citizens Advice as our sources, with the traps flagged. We are an introducer, so we set out how it works rather than telling you whether to switch.

Step 1: Check whether you can switch, and what it costs

Ofgem says to read the terms and conditions of your existing contract first, to find out when you can switch, how much notice to give and whether there is an exit fee. What you find will fall into one of these groups:

Citizens Advice adds that if you are a microbusiness on a fixed term, it is usually best to wait until the end before you switch, and that if you would need to pay an exit fee you should compare how much you would save, because you might still save more even after the fee.

Step 2: Gather what you need

Before anyone can quote accurately they need some facts. Ofgem says you will need to give a new supplier information before you sign, including your annual consumption and details of your meter. Citizens Advice adds your current contract terms, including the end date, your standing charges and unit rates, and your annual energy usage. You will also be asked what your business does.

• Your latest bill (it carries most of the above)
• Your contract end date and any notice period
• Your meter details: the supply number (MPAN) for electricity, or meter point reference for gas
• Your annual usage in kWh
• Whether you are a microbusiness, a small business or larger

Our guide to reading your bill shows where each item sits.

Step 3: Compare your options

Citizens Advice says it is best to compare as many suppliers’ contracts as possible. There are three main routes:

Contact suppliers directly

Citizens Advice says you will normally need to speak to suppliers to compare prices and contracts. Ask what prices and contracts they can offer, and ask for full terms and conditions in writing. It points to its customer service rating table as a way to pick suppliers to contact.

Use a comparison website

Citizens Advice says not all sites show the same suppliers or tariffs, so check several. It also notes that business energy prices depend on your situation, so many sites will take some details and then contact you to discuss prices. Check a site is genuine before you use it.

Use a broker or an introducer

Ofgem says brokers can help you find a suitable contract and negotiate with your chosen supplier, which can save time and resources. It also says brokers charge for their services, and Ofgem’s guide notes that some are paid by an upfront fee while most are paid commission by the supplier you choose. An introducer connects you to a business that does the comparing. We are an introducer: we introduce you to our energy partner, who gathers quotes and options from 50+ suppliers. When an introduction leads to a qualifying contract we receive a commission from our energy partner, and it is free to you. See how each route is paid.

Ofgem also says the best option may be with your current supplier, so it is worth asking them what they can offer. Citizens Advice says it is worth negotiating, for example by mentioning other deals you have been offered.

Step 4: Check the contract before you agree

Citizens Advice and Ofgem list what to compare in the contracts you are offered:

• The price per unit and whether it can change
• Any extra costs, such as maintenance charges
• The length of the contract, and any fee to cancel early
• How much notice you need to give to end it
• Whether there is a cooling-off period (Citizens Advice says most business suppliers do not offer one)
• Any broker fees or commissions included in the price

If you use a broker, Citizens Advice says you will normally sign a letter of authority that lets them act for you. Read it carefully so you know what they can do. For microbusinesses, it also says your supplier or broker should send the terms and conditions within 10 days of agreeing a contract, including details of any fee your broker will receive.

Step 5: Tell your current supplier and agree the start date

Citizens Advice says that once you have decided to switch you should tell your current supplier as soon as possible, then agree your contract with the new supplier and confirm when they will take over. If you are on a fixed term and do not want to switch until it ends, ask the new supplier to start on a specific date.

Ofgem says your existing supplier may object to the switch, for example if you owe them money. If that happens, contact them as soon as possible to find out what the issue is and how to resolve it.

Step 6: The switch itself

Citizens Advice says you will be switched to the new supplier within five working days. On the day:

1. Take accurate meter readings on the day you switch, as Citizens Advice advises.
2. Send them to both companies so you pay the right amount to each.
3. Keep your final bill from the old supplier and check it against your readings.
4. Check the first bill from the new supplier against the contract you agreed: rates, standing charge, taxes and start date.

If your supplier goes bust, Citizens Advice says not to switch until your account has moved to the new supplier, because it might make it harder to get money you are owed.

Moving to new premises

Ofgem says you may want to switch to a new supplier or contract for new premises, and that you should check whether you can before you move and follow the usual process. You are responsible for any energy you use before your new contract starts, and using it can put you on a deemed rate. Citizens Advice suggests arranging a contract before you move in and having proof of the change of tenancy ready. We cover this in our guide to deemed and out-of-contract rates.

Common ways a switch goes wrong

• Missing the window. Ofgem says fixed contracts include a switching window a few months before the end. Miss it and you may roll onto another term.
• Switching during a supplier failure. Citizens Advice says to wait until the account moves.
• An objection from the current supplier. Ofgem says this can happen where you owe money, so check your account is clear.
• No readings. Without readings on the day, final bills can be estimated. Citizens Advice says to send readings to both companies.
• Agreeing by phone and not checking the paperwork. The contract is binding on the call. Citizens Advice says to ask for it in writing.
• Assuming a smaller price means a better contract. Compare term, exit fee, notice and what happens at the end, not only the unit rate.

A one-page switching checklist

Frequently asked questions

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