If you’re looking to switch your business energy contract, you may be wondering how long the process will take. In short, the length of the process with vary depending on the complexity of your contract.
Below we have created an easy guide to understanding the timescales of your business energy switch.
When can I switch my business energy contract?
If you are in a fixed-term contract, you can explore and even sign future contracts in advance, but you’ll need to wait until your contract ends before switching. We would advise you to check the terms and conditions of your contract before reaching out to suppliers so you fully understand your notice periods and agreement terms.
As a result, even if you’re locked into a contract, our energy team can still help you. We can secure your next contract several years in advance so that when your current deal ends, we can fully manage a seamless switch for you.
Alternatively, if you are on an ‘out of contract rate’, you are not tied in for a specific term, so you can begin the switching process straight away. If you are planning to switch without the help of a broker, you will need to give notice to your supplier that you are switching.
How to find a business energy contract
| Process | Dealing directly with suppliers | Using a third party (e.g. Consultiv Utilities) |
| Initial requirements | You must gather historical usage data and provide to multiple suppliers | Sign a letter of authority (digitally) so they can act on your behalf |
| Quoting | Obtain quotes individually from different suppliers | Third party gathers data and requests quotes from matching suppliers |
| Decision making | Compare tariffs, costs, green credentials, and add on services yourself | Third party provided you with curated options based on your needs and can also provide expert insight |
| Timeframe | Varies depending on how quickly you gather data and compare quotes | Usually receive quotes within 2-3 working days after initial call, without having to do any leg work on your end |
How long does a business energy switch take?
If you’re in an ‘out of contract rate’ we usually advise that it can take up to 30 days for your new provider to take over your energy supply. However, if the supplier runs into any objections this could take longer as any objections are subject to review.
If you are on a fixed-term contract with your old supplier, your new contract will begin when your current fixed contract ends.
What happens if you don’t switch once the contract ends
If you stay with your energy supplier after your contract ends you will be placed on ‘out of contract rates’, sometimes called deemed rates.
This situation can occur when:
- A fixed contract comes to an end, and the customer does not renew or switch supplier.
- When a new tenant moves into a property and has not negotiated a new contract with existing supplier.
Out of contract rates are often higher than available through a fixed-term contract.
Can an energy supplier refuse to switch?
Under certain circumstances like debt on the account or administrative issues the supplier can object to the switch. However, issues like these can often be resolved and only delay the switch.
What if I want to switch to a flexible energy contract?
A flexible energy contract tender is usually more complex. A flexible energy contract can often take weeks or months, and not days, to pull together. The structure of a flexible energy contract varies to a fixed contract so it’s difficult to compare flexible energy contracts on a like-for-like basis. Suppliers will ask for more consumption forecasts, and the supplier fee structure can be complex with varying details around non-commodity elements to weigh up. As a result, it’s best practice to start the tender process for a flexible energy contract well in advance of renewal and give yourself 2-3 months to complete. Due to the nuances of supplier offers it’s good to get some third-party advice to help your decision-making.
Switching made easy
If you’re looking to make your energy switch seamless, our energy team can help. We are experts at tailoring business energy deals to your specific requirements, plus we handle all the admin for you throughout your contract.
Contact us today to find out more about how our team can save you time and effort, and guide you through the switching process.
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