Switching your business energy supplier sounds like a chore, but the process is more straightforward than most owners expect. Done at the right time, it takes a few details and a little planning, and your lights never so much as flicker. This guide walks through exactly how to switch business gas and electricity in the UK, what to have ready, and the dates that matter most.
Can you switch business energy supplier?
Almost every business can switch, but the timing is different from home energy. A business energy contract is a fixed agreement for a set period, so you generally cannot move part-way through without paying to exit early. What you can do, and should do, is line up your next contract in advance so it begins the moment your current one ends.
If your contract has already finished and you have not agreed a new one, you are likely on expensive "out of contract" or "deemed" rates. In that case you can usually switch much sooner. Either way, the first job is to find out where you stand.
When to start: your switching window
Most suppliers let you agree a new contract well before the current one expires, often up to 12 months ahead. This period is your renewal or switching window, and it is the best time to act, for two reasons.
First, you lock in a price while you have time to compare, rather than scrambling at the last minute. Second, you avoid rolling onto deemed rates, which are among the highest a supplier charges. If you are approaching the end of a contract, do not wait for it to lapse. Our guide on what to do when your business energy contract is ending covers your options in detail.
What you need before you switch
Having a few details to hand makes everything faster:
- Your latest energy bill, which shows your current supplier, tariff and contract end date.
- Your meter numbers. For electricity this is your MPAN (the long "S" number on your bill). For gas it is your MPRN. These identify your exact supply.
- Your annual consumption in kWh, again shown on recent bills. This drives the quotes you are offered.
- Your business and site details, including the supply address and the name of the account holder.
If you run more than one site, gather this for each. Multi-site businesses can often be brought onto aligned contracts, which makes future renewals far simpler.
How to switch business energy, step by step
- Check your contract end date and current rates. This tells you when your switching window opens and whether you are already out of contract.
- Pull your usage together. Your kWh consumption and meter numbers let suppliers price accurately.
- Compare the market. Look across suppliers, not just your incumbent's renewal offer, which is rarely their best. Energy Observe compares 20+ suppliers in one go.
- Choose your contract. Weigh the unit rate, standing charge, contract length and any green credentials against what your business needs.
- Sign and set the start date. Your new contract is scheduled to begin when your current one ends, or as soon as possible if you are out of contract.
- Let the switch complete. Your new supplier handles the changeover with your old one. You simply carry on using energy as normal.
You can do all of this yourself, or have a broker run it for you. Either way the steps are the same.
What a Letter of Authority actually does
If you ask a broker to compare the market, they will ask you to sign a Letter of Authority, or LOA. This often worries people, so it is worth being clear: an LOA simply lets the broker request your usage data and gather quotes from suppliers on your behalf. It does not commit you to a contract, and it does not let anyone switch you without your explicit approval. You stay in control of the final decision at every step.
What happens after you switch
Once your contract is agreed, the changeover happens quietly in the background. Your new supplier coordinates with the old one, reads are taken or estimated, and your account moves across on the start date. There is a short objection window in which a supplier could flag an issue, for example an outstanding balance, but for most businesses the switch is seamless.
Crucially, your supply is never at risk. The same cables and pipes deliver your gas and electricity regardless of who bills you, so there is no engineer visit, no new meter and no downtime. The only change you notice is the name on the bill and, ideally, the figure at the bottom of it.
Should you use a broker?
You are never obliged to use one. Approaching suppliers directly is perfectly possible, and for a single small site it can be quick. The value of a whole-of-market broker is breadth and time: comparing many suppliers at once, handling the back-and-forth, spotting unfavourable terms, and keeping track of when your contract is due for renewal so you never drift onto deemed rates.
That is what we do. Energy Observe has been an independent, whole-of-market broker since 2009, and we are a member of the Energy Ombudsman scheme. If you would rather hand the legwork over, you can get a quick quote or read more about how we manage business gas and electricity.
Switching is not the hard part. The hard part is remembering to do it before your rates jump. Mark your contract end date now, and start comparing a few months ahead.
