How to switch business energy supplier

When can you switch business energy supplier?

When you can switch depends on the type of contract you are on, so start with the terms and conditions of your current agreement. Ofgem says to check three things before you decide: when you can switch, how much notice you should give, and whether you will have to pay an exit fee.

If you are not sure which of these you are on, your latest bill or your supplier's renewal letter usually says. Our guides to out-of-contract rates and deemed rates explain the two defaults in more detail, and business energy contracts explained covers every contract type Ofgem describes.

If you run your business from home, Ofgem says you are probably on a domestic contract, and household switching rules apply instead.

How to switch business energy supplier, step by step

1. Check your end date and notice terms. Find your contract end date, the switching window, any notice you must give and any exit fee. For a fixed contract, the business energy contract renewal guide explains how the window works.
2. Gather your bills and meter details. A recent bill for each electricity and gas supply shows the supply numbers the new supplier needs (the MPAN on electricity bills and the MPRN on gas bills) and usually your annual consumption. Our sister site Business Gas and Electric explains meters and bills if you want the detail.
3. Compare quotes on the same basis. Same sites, same consumption, same start date and the same contract length, so the prices are comparable. Our business energy quotes page lists what to have ready.
4. Read the terms before you accept. Contract type, length, fees, what happens at the end, and the broker costs shown in the principal terms. There is no cooling-off period once you agree, so this step matters most.
5. Agree the contract. Accepting a quote commits you. The supplier, and Fidelity Energy, may check your credit, and the supplier can still decide not to accept your offer.
6. The new supplier starts the transfer. Once the supplier accepts, Fidelity Energy organises the supply contract and the new supplier starts the switch from your old one. Give any notice your current contract requires.
7. Give meter readings around the switch date. Accurate readings help both suppliers bill the right amounts, so the old supplier's final bill and the new supplier's first bill line up.
8. Close off the old account. Check the final bill, pay any balance or ask for any credit to be refunded, and cancel any Direct Debit once the final bill is settled.

How long a switch takes depends on the suppliers, your meters and whether anything needs resolving, so we do not quote a timescale. Starting inside your switching window, rather than in the last few days, gives time for checks and questions.

What can delay or stop a switch

These are the usual reasons a switch stalls:

• An objection from your current supplier. Ofgem says your existing supplier may object to the switch, for example if you owe it money. If that happens, contact the supplier as soon as you can to find out why and how to resolve it
• The new supplier declines. A quote is not a contract. The new supplier can refuse to accept your agreement, often after a credit check
• You are still in a fixed term. If you have not reached your switching window and have no termination clause, the old supplier may hold you to the contract or charge an exit fee. See how to get out of a business energy contract
• Details that do not match. A wrong business name, address or meter number on the application slows things down, so check the contract summary carefully
• A change of occupier at the same time. If you are moving into premises, the supplier needs evidence that the occupier has changed. Our change of tenancy guide explains the process

Should you stay with your current supplier?

Sometimes. Ofgem says the best option may be with your current supplier, and a renewal offer can be competitive. The point of comparing is to know, not to move for the sake of it.

What is worth avoiding is accepting a renewal offer, or letting a contract roll over, without seeing anything to compare it against. Fidelity Energy can price your supplies across its panel of suppliers, which it puts at 24+, so the renewal offer you hold can sit alongside the alternatives on the same basis. Ofgem advises checking which suppliers any comparison includes, so if there is a supplier you particularly want priced, tell us when you ask for quotes and we can check whether it is on the panel.

Our guide on how to find the cheapest business energy contract explains why the lowest unit rate is not always the lowest-cost contract once standing charges, contract length and exit terms are counted.

How switching works through Forever Communications

Forever Communications works as an agent of Fidelity Energy, an independent business energy broker and consultancy that has worked with business customers since 2014. In practice:

• We collect your bills, consumption and contract end dates, and help you work out when you can move
• Fidelity Energy prices your supplies across its panel and presents the quotes
• We go through the quotes, the terms and the commission with you, so you know what you are agreeing to
• If you accept a quote and the supplier accepts you, Fidelity Energy organises the supply contract with the supplier
• If you want your current contract checked first, Fidelity Energy asks you to sign a letter of authority so it can ask your current supplier for your end date, notice period, termination process and current prices

Fidelity Energy is normally paid commission by the supplier you choose, included in your rates; you can choose to pay a fee by invoice instead. Forever Communications receives a share of Fidelity Energy's payment. The energy broker fees page sets this out in full, and the business energy broker page explains the arrangement.

Before you agree: a short checklist

• Is the start date right, and does it line up with the end of your current contract?
• Is it fixed, variable or flexible, and how long is the term?
• What exit fees or termination terms apply if your circumstances change?
• What happens at the end: automatic renewal, out-of-contract rates or something else?
• How much broker commission do the principal terms show?
• Are the business name, every site and every meter listed correctly?
• If you are a microbusiness, have you seen the clear contract information Ofgem requires? See microbusiness energy rules

Read is there a cooling-off period for business energy contracts? before you sign: the short answer is no, so the checks above are your protection. When you are ready, contact us with your contract end date and a recent bill for each supply.