How to Switch Your Business Energy Supplier

Switching business energy suppliers can reduce costs, improve contract flexibility, and provide access to better customer service and greener energy options. Many businesses unknowingly overpay for business gas and electricity, often because they remain on expensive default tariffs instead of securing a competitive fixed-rate deal.

More businesses are recognising the benefits of switching. Energy supplier switching increased by 78% in 2023 compared to the previous year, highlighting a growing trend in businesses and households actively seeking better deals. Additionally, approximately 70% of all domestic and non-domestic Meter Point Administration Numbers (MPANs) in Great Britain have switched suppliers at least once since 2012, indicating a strong history of supplier switching in the UK.

The primary benefit of switching is cost reduction. Energy suppliers frequently update their tariffs, meaning that businesses stuck on out-of-contract rates can end up paying significantly more than necessary. By comparing suppliers and switching at the right time, businesses can lock in lower rates and stabilise their energy costs, making budgeting more predictable.

Contract flexibility is another key advantage. Some suppliers offer tailored contracts that suit different business needs, whether that means short-term rolling contracts or long-term fixed-rate agreements that provide price stability. Businesses that negotiate wisely can secure terms that align with their operational requirements, avoiding unnecessary fees or penalties.

Beyond financial benefits, switching suppliers can also enhance sustainability efforts. Many energy providers now offer green energy tariffs, allowing businesses to reduce their carbon footprint by sourcing electricity from renewable sources. This is particularly valuable for companies aiming to meet corporate social responsibility (CSR) targets or appeal to eco-conscious customers.

Customer service quality also varies between suppliers, and poor service can lead to billing errors, delays in issue resolution, and inefficiencies in energy management. Businesses that switch to a provider with a strong reputation for customer support can avoid these issues and benefit from a smoother, more reliable service.

Cost Comparison: Staying vs. Switching

 
The above table highlights the significant savings businesses can achieve by switching to a more competitive tariff. Even small price differences per kWh can lead to thousands of pounds in annual savings.

Switching business energy suppliers is a strategic decision that can provide both immediate and long-term benefits. Whether reducing costs, improving contract flexibility, securing better service, or moving towards renewable energy, businesses that regularly review and switch suppliers stand to gain the most.

The business energy switching process involves comparing tariffs, reviewing contract terms, notifying your current supplier, and finalising the switch with your new provider. While the process is straightforward, businesses should plan ahead to avoid delays or unexpected costs.

With energy prices fluctuating, businesses are becoming more proactive in switching. In December 2023, 190,655 customers switched to a new business electricity supplier, while March 2024 saw 187,117 energy switches. These numbers show that many businesses are actively seeking better deals. However, switching requires understanding key steps to ensure a seamless transition.

Step-by-step guide to switching business energy suppliers

1. Review Your Current Contract
• Check your contract end date and notice period to avoid exit fees.
• Look for automatic renewal clauses, which can lock you into a higher tariff if not cancelled in time.
2. Compare Business Energy Suppliers
• Use an energy comparison site or broker to find the best tariff for your usage.
• Consider factors like fixed vs. variable tariffs, contract length, and green energy options.
3. Gather Key Business Energy Details
• To switch, you’ll need:
• Current supplier name
• MPAN/MPRN numbers (found on your bill)
• Current energy usage
• Missing this information can slow down the process.
4. Notify Your Existing Supplier
• Most business energy contracts require written notice to terminate.
• If you’re in a deemed or out-of-contract rate, switching is usually quicker.
5. Sign the New Energy Contract
• Read the contract terms carefully, especially clauses on hidden charges and renewal conditions.
• Ensure your new supplier can match your energy needs before finalising the deal.
6. Wait for the Switching Period to Complete
• Switching typically takes 2 to 6 weeks, depending on supplier response times.
• There’s no disruption to your energy supply, as the National Grid handles the transition.

Business Energy Switching Timeline

Stage	Expected Duration
Reviewing your contract	1-2 days
Comparing new suppliers	3-7 days
Notifying your current supplier	1-2 days
Processing the switch	2-6 weeks
Total estimated switch time	2-6 weeks

 

Switching business energy suppliers is a straightforward process that can lead to substantial cost savings and better service.

However, businesses must be aware of contract obligations and supplier terms to avoid unexpected costs. With energy switching becoming more common, companies that actively compare and switch suppliers can stay ahead of price increases and secure the best deals.

Yes, switching business energy suppliers requires specific details about your current energy contract, usage, and business information. Having these details ready ensures a smooth transition and helps secure the best tariff.

Without the right information, businesses risk delays or being placed on an unsuitable tariff. Many suppliers require key data before confirming a switch, and missing details can slow down the process.

Essential information needed to switch business energy

1. Your Current Energy Supplier Details

• Supplier name and current tariff name (found on your energy bill).
• Your contract end date and any termination notice period to avoid exit fees.

2. Meter Point Numbers (MPAN/MPRN)

• The MPAN (Meter Point Administration Number) for electricity and MPRN (Meter Point Reference Number) for gas identify your business’s energy supply location.
• These numbers are crucial for the new supplier to take over the correct meter.

3. Your Business Energy Consumption

• Suppliers need your annual or monthly kWh usage to provide accurate quotes.
• This is usually found on your latest energy bill under “Annual Estimated Consumption.”

4. Business Information

• Business name, address, and company registration number (if applicable).
• The size of your business (e.g., small, medium, or large) may affect tariff options.

Why Is This Information Important?

Providing complete and accurate details speeds up the switching process. Missing or incorrect information can lead to:

• Delays in the switch process (as suppliers need to verify details).
• Being placed on an estimated tariff, which may not reflect actual usage.
• Potential errors in billing, resulting in overcharges or disputes.

Key Takeaway

Before switching, businesses should review their latest energy bill, note their MPAN/MPRN, and check contract terms. Preparing this information in advance ensures a fast and hassle-free switch to a better energy deal.

Comparing energy suppliers before switching is crucial to securing the best tariff, avoiding hidden charges, and ensuring the contract aligns with your business needs. Not all suppliers offer the same rates, contract flexibility, or customer service levels, so careful comparison helps businesses make an informed decision.

A common mistake businesses make is switching solely based on price. While cost savings are important, factors like contract length, renewable energy options, and additional service fees can impact long-term expenses. Businesses should also be aware that 44% fewer energy switches took place in 2024 compared to pre-crisis levels, meaning some companies are hesitant to switch due to concerns over market volatility. However, suppliers frequently update their pricing structures, and those who compare regularly can secure more competitive fixed-rate tariffs before energy prices rise again.

Key factors to compare before switching

1. Business Energy Rates

• Check unit rates (pence per kWh) and standing charges.
• Compare fixed vs. variable tariffs to find the most cost-effective option.

2. Contract Length and Exit Fees

• Some suppliers offer short-term flexibility, while others lock businesses into longer contracts with penalties for early exit.
• Always check termination notice periods to avoid unexpected fees.

3. Green Energy and Sustainability

• Many suppliers now offer 100% renewable electricity and carbon-neutral gas options.
• Switching to a green energy supplier can enhance corporate social responsibility (CSR) initiatives and appeal to eco-conscious clients.

4. Supplier Reputation and Customer Service

• Read customer reviews and ratings to gauge supplier reliability.
• Check if the supplier offers dedicated account management or customer support guarantees.

5. Additional Fees and Hidden Charges

• Some suppliers charge extra fees for administration, meter installation, or early contract termination.
• Always request a full breakdown of costs before signing a contract.

Comparison snapshot: Supplier A vs. Supplier B

The table above demonstrates how comparing multiple suppliers can reveal differences in pricing, contract terms, and sustainability options. While Supplier B offers a slightly cheaper unit rate and no exit fees, Supplier A locks businesses into a longer contract with additional penalties.

Key Takeaway

Before switching, businesses should compare multiple suppliers, read contract terms carefully, and look beyond just the price. Choosing the right supplier can lead to long-term savings, better service, and a tariff that aligns with business energy needs.

Switching business energy suppliers can lead to cost savings, but mistakes in the process can result in financial losses, contract disputes, or unnecessary delays. Many businesses rush into switching without checking key details, which can lead to costly consequences.

One of the most common mistakes is not checking contract end dates. Failing to review your contract terms can lead to unexpected exit fees if you switch too early. Many energy suppliers impose penalties for breaking a fixed-term contract, so businesses should always confirm their contract status before initiating a switch.

Another major pitfall is ignoring the details of a new tariff. Some suppliers advertise low unit rates but include hidden fees such as high standing charges, meter installation costs, or early termination penalties. Businesses should always request a full breakdown of costs to ensure they’re getting the best deal.

Top mistakes businesses make when switching energy suppliers

Example Scenario: costly switching mistake

A small business owner switched to a new supplier without checking their existing contract. They later discovered a £250 exit fee for early termination and an additional £100 administration charge for meter setup. Had they compared contracts carefully, they could have avoided these unnecessary costs.

Key Takeaway

Businesses should carefully review their current contract, compare supplier offers in detail, and ensure they understand all costs and terms before switching. Avoiding these common mistakes ensures a hassle-free switch that delivers real savings.

Switching business energy suppliers typically takes between 2 to 6 weeks, depending on contract terms, supplier response times, and administrative processes. While the process is straightforward, certain factors can delay or accelerate the switch.

The switching timeline depends largely on whether the business is moving from a fixed contract, an out-of-contract rate, or a deemed rate. Businesses switching from out-of-contract or deemed rates often experience faster transitions, whereas those in a fixed contract may have to wait until their notice period expires.

Business energy switching timeline

What can delay the switching process?

1. Incomplete Business Energy Details

• Missing MPAN/MPRN numbers or incorrect business information can slow down the verification process.
• Always check your latest energy bill to ensure all details are correct.

2. Contract Notice Periods

• If your current contract requires a 30- to 90-day notice, you may need to wait before switching.
• Always review your contract end date before applying for a switch.

3. Supplier Response Delays

• Some suppliers take longer to process contract terminations or transfer requests.
• If delays occur, follow up with your supplier to avoid unnecessary waiting.

4. Metering Issues

• If your business has an incorrect meter reading or outdated meter type, the new supplier may require verification before completing the switch.

Key Takeaway

While most businesses can complete a switch within 2-6 weeks, preparing in advance can prevent delays and ensure a seamless transition. Checking contract terms, ensuring accurate meter details, and promptly responding to supplier requests can help speed up the process.

Yes, many business energy suppliers offer green energy tariffs, including 100% renewable electricity and carbon-neutral gas options.

Businesses looking to reduce their carbon footprint can switch to suppliers that generate power from sources like wind, solar, and hydro.

With growing concerns about sustainability, many UK businesses are actively choosing green energy suppliers. This shift is not only driven by corporate social responsibility (CSR) commitments but also by increasing government incentives for reducing carbon emissions. Green energy tariffs can help businesses comply with net-zero targets, making them more attractive to eco-conscious customers.

What are the benefits of green business energy tariffs?

1. Sustainability and Carbon Reduction

• Green tariffs ensure electricity comes from 100% renewable sources like wind, solar, and hydro.
• Carbon-neutral gas options offset emissions through sustainable projects.

2. Cost-Effective Long-Term Planning

• Although green energy tariffs used to be more expensive, costs have become more competitive.
• Some suppliers offer lower rates for businesses that sign long-term green contracts.

3. Corporate Social Responsibility (CSR) Compliance

• Businesses switching to green energy can improve their reputation and demonstrate sustainability efforts.
• Many organisations now require suppliers and partners to use renewable energy.

4. Government Incentives and Tax Benefits

• Businesses using green energy may qualify for tax relief or government grants.
• Companies that reduce emissions can lower their Climate Change Levy (CCL) rates.

Comparison: standard vs. green business energy tariffs

Many suppliers now offer fully green business energy contracts with competitive rates. Businesses looking to switch should compare suppliers carefully to ensure the tariff aligns with their sustainability goals.

Key Takeaway

Businesses can choose 100% renewable energy tariffs to support sustainability goals, improve their brand image, and potentially reduce long-term costs. Green energy contracts are now widely available and becoming increasingly cost-effective compared to standard fossil fuel tariffs.

Regularly reviewing your business energy contract helps prevent unexpected price increases, auto-renewals, and expensive out-of-contract rates. Many businesses overlook contract renewal dates, resulting in significantly higher energy costs.

Businesses that fail to track their contract end dates often get placed on “deemed” or “out-of-contract” rates, which are typically much more expensive than negotiated tariffs. As energy prices fluctuate, suppliers may also adjust standing charges or introduce hidden fees, making it crucial to check contract terms before renewal.

Auto-Renewal Risk:

• Some suppliers automatically renew contracts at higher rates unless businesses give advance notice.
• Without reviewing renewal terms, businesses may get locked into an expensive long-term tariff.

Out-of-Contract Rates Can Be Costly:

• If a business forgets to renew or switch, they may be placed on a standard tariff that costs 40-60% more than a fixed-term deal.
• These rates can fluctuate, making budgeting unpredictable.

Supplier Tariffs Change Frequently:

• Energy markets shift, and better deals may become available before your contract expires.
• Regularly checking options ensures businesses don’t miss opportunities to save.

Checklist: What to review in your business energy contract

Key Takeaway

Businesses should review their energy contracts at least 3-6 months before expiry to avoid auto-renewals, compare better deals, and prevent overpaying. Staying informed ensures cost control, contract flexibility, and financial stability.

Switching business energy suppliers is one of the most effective ways to reduce costs, improve contract flexibility, and access greener energy options. With energy prices fluctuating, businesses that regularly review and compare their tariffs can secure the best deals while avoiding unnecessary expenses.

The switching process is straightforward, but businesses must be proactive. Reviewing contract terms, comparing multiple suppliers, and ensuring accurate meter details can help avoid hidden charges and delays. Businesses locked into auto-renewing contracts or out-of-contract rates often pay significantly more than necessary.

More businesses than ever are recognising the importance of switching. In 2023, supplier switching increased by 78%, showing that companies are actively seeking better energy deals. However, the total number of switches in 2024 remains 44% lower than pre-crisis levels, meaning many businesses are still hesitant to act.

The key to securing the best energy deal is staying informed, planning ahead, and switching at the right time. Whether you’re looking for lower rates, better service, or sustainable energy solutions, reviewing your contract regularly ensures that your business stays in control of its energy costs.