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When to renew a business energy contract

The single most expensive thing a business can do with its energy contract is nothing. Letting a fixed term lapse drops you onto rates set by the supplier rather than agreed with you.

Guide reviewed September 2026 · Business-Utility.com

What happens when a fixed term ends

At the end of a fixed contract you either sign a new one, roll onto the supplier's out-of-contract or deemed rates, or transfer to another supplier. Out-of-contract rates carry no negotiated discount and generally sit well above anything you would be quoted for a new term, and the standing charge is usually higher too. Businesses often sit on them for months without realising.

The renewal window

Suppliers will quote for a supply starting in the future, so you do not have to wait until the last weeks of your contract. Locking a price ahead of the start date lets you choose your moment rather than accept whatever the market is doing on the day your term expires.

  • 6 months out — check your end date and the notice your contract requires
  • 4 to 6 months out — gather 12 months of consumption data and go to market
  • 3 months out — compare offers on total annual cost, not headline unit rate
  • Before the notice deadline — serve written termination if you are switching
  • At switch — take and record a meter reading on the changeover date

Termination notice: the clause that traps businesses

Many business contracts require written notice before the end date, and some allow the supplier to roll you into a further term if none is served. Find the clause, diary the deadline and send the notice by a method you can prove. Serving notice does not oblige you to leave — it simply keeps your options open.

What you need before you can get real prices

Accurate quotes need accurate data. Suppliers price on your actual consumption profile, so a quote based on guesswork will be repriced later.

  • MPAN for electricity and MPRN for gas, from a recent bill
  • Twelve months of consumption in kWh, ideally with a seasonal breakdown
  • Current unit rate, standing charge and contract end date
  • For half-hourly sites, the agreed capacity and maximum demand data
  • A signed letter of authority if a consultant is gathering this for you

Comparing offers properly

Convert every offer to a total annual cost including standing charges, and check what is fixed. A fully fixed contract holds all charges for the term; a partly fixed one leaves pass-through costs to move against you. Also check the termination terms of the new contract before you sign — that is where the next renewal begins.

Frequently asked questions

When should I renew a business energy contract?
Most suppliers will quote for a future start date months ahead of your contract end. Starting the process three to six months out gives you time to compare offers and avoid rolling onto out-of-contract rates.
What are deemed rates?
Deemed rates apply when you use energy at a site without an agreed contract — for example after moving in, or after a fixed term ends without a renewal. They are typically much higher than contracted rates.
Can a business energy contract auto-renew?
Business contracts can roll over where the terms allow it. Check your contract for the termination notice required and serve it in writing within the stated window.
Do I need a letter of authority to get quotes?
A consultant needs a signed letter of authority to obtain your consumption data and contract details from suppliers. It authorises information gathering and negotiation; it does not commit you to a contract.

We track your renewal date so you never roll over

Upload a bill and we record your contract end date, consumption and meter references. We go to market ahead of the window and bring you the offers — free of charge, cancel any time.

Upload a bill and set a renewal reminder
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