In short
You can get out of a business energy contract at any time if you are on a rolling, out-of-contract or deemed arrangement. On a fixed-rate contract, Ofgem says most suppliers will not let you leave early unless you agreed a termination clause or pay an exit fee, so the usual route is to switch in the window before it ends.
Ask about Leaving a business energy contract
Tell us your premises, meters and renewal date and we will reply by email with options.
Start with the type of contract you are on
The route out depends almost entirely on the contract. Ofgem's guidance groups business arrangements like this:
| Arrangement | Can you leave? | How |
|---|---|---|
| Fixed-rate, mid-term | Usually only at a cost | A termination clause in your contract, or paying the exit fee the supplier sets |
| Fixed-rate, in its switching window | Yes | Switch or renew; Ofgem says this is sometimes possible without a fee |
| Rollover or evergreen contract | Yes, with notice | Give the notice the contract requires; for microbusinesses it is capped at 30 days |
| Out-of-contract rates | Yes, at any time | Agree a new contract with your supplier or another one |
| Deemed contract | Yes, at any time | Agree a contract; Ofgem says deemed rates are usually higher than negotiated rates |
| Variable-rate contract | Yes | Ofgem says variable-rate customers can switch at any time |
If you are not sure what you are on, ask your supplier for your contract terms and end date, or let us find out for you (see below).
Not sure which option suits you? Ask us
Tell us about your premises and usage and we will explain the options that fit.
Leaving a fixed contract early
This is the hardest case. Ofgem says most suppliers will not let you switch before the end of a fixed contract unless you have already agreed a termination clause or you pay an exit fee. Your options are:
- Read the contract. Look for a termination clause, break clause or special conditions, and for how any exit fee is calculated.
- Ask the supplier for the exit figure in writing. You need the actual number to decide whether leaving makes sense.
- Weigh it up. Compare the exit cost plus the new contract against staying put until your switching window. Leaving early may not make sense on price alone, but it can if the business is changing.
- Check the window date. If the end of the contract is only a few months away, the switching window may already be open, or close to it.
Our business energy contract renewal guide explains how the switching window works.
Ending a rollover or evergreen contract
If your fixed contract ended and rolled over automatically, Ofgem says the new arrangement is usually a fixed term of 12 months and may be on a higher rate. What you can do depends on the rollover terms, so read them first.
If your business is a microbusiness (fewer than 10 employees and turnover or balance sheet no more than 2 million pounds, or up to 100,000 kWh of electricity or 293,000 kWh of gas a year), Ofgem gives you specific rights on evergreen contracts:
- Termination notice periods are limited to 30 days
- The supplier must acknowledge your request to end the contract within 5 working days
Since 1 October 2022 suppliers also cannot require microbusinesses to give notice of their intent to switch, except on evergreen contracts. See microbusiness energy rules for the full list. Give notice in writing, keep a copy, and line up your new contract so it starts when the notice runs out.
Want this looked at for your premises?
Tell us your sites, meters and renewal dates and we will reply by email with options.
Out-of-contract and deemed supplies: leave any time
If your fixed term ended and the supplier moved you onto out-of-contract rates, or you have been on a deemed contract since moving in, you are not tied in. Ofgem says you can switch to a new supplier at any time, and that both out-of-contract and deemed rates are usually more expensive than a negotiated fixed-term contract.
The fix is simply to agree a contract, either with your current supplier or a new one. Our guides to out-of-contract rates and deemed rates explain both, and how to switch business energy supplier has the steps.
Moving premises or closing the business
If you are leaving premises, Ofgem's change of tenancy process applies: tell the current supplier as soon as possible, with a closing meter reading and evidence such as the lease end or sale completion, so your account closes at the right date. What happens to the remaining term of a fixed contract depends on its terms, so read the relevant clause and ask the supplier to confirm in writing.
If the business is closing, ceasing to trade or entering insolvency, contact the supplier as early as you can and take professional advice; the outcome depends on the contract and on the circumstances. This page is general information, not legal advice.
If you think the contract was mis-sold
If you believe you were misled into a contract, for example about who you were dealing with, the price or the commission, use the complaints process of whoever sold it: the supplier, or the broker. If the complaint is not resolved, you can take it to the Energy Ombudsman. Micro and small businesses can also get help from Citizens Advice.
Two protections help here. For contracts signed since 1 October 2024, suppliers must show broker costs in the principal terms of all non-domestic contracts and make that information available on request. And Ofgem says a broker paid by an energy supplier must be a member of an approved redress scheme; for microbusiness contracts that rule has applied since 1 December 2022. Our energy broker ombudsman and complaints page explains how to check a broker and escalate.
How we help you get out of a contract
Forever Communications works as an agent of Fidelity Energy. With a signed letter of authority, Fidelity Energy can ask your current supplier for the key terms of your existing contract, including the end date, notice period and termination process, so you know where you stand. We then help you work out your options, which is often simply waiting for the switching window and having a new contract ready to start.
When you are free to move, Fidelity Energy can price your supplies across its panel of 24+ suppliers (its figure). It is normally paid commission by the supplier you choose, included in your rates; the energy broker fees page explains how, and how you can pay a fee by invoice instead. Before you agree anything new, remember there is no cooling-off period for business energy.
Contact us with your latest bill and we can help you find the way out.
Frequently asked questions
Can I get out of a business energy contract early?
On a fixed-rate contract, usually only at a cost. Ofgem says most suppliers will not let you leave before the end unless you agreed a termination clause or pay an exit fee. Rolling, out-of-contract and deemed arrangements can be ended at any time, subject to any notice period.
How much does it cost to leave a business energy contract?
It depends on the supplier and the contract. Exit fees are set out in your contract terms, so ask your supplier for the figure in writing before you decide. We do not quote exit fees because they vary.
How do I stop my business energy contract rolling over?
Act inside the switching window before the fixed term ends: agree a new contract or give any notice your contract requires. Microbusinesses get renewal price information before the end and cannot be required to give notice of intent to switch, except on evergreen contracts.
How much notice do I need to give to end an evergreen contract?
It depends on the contract, but for microbusinesses Ofgem caps termination notice on evergreen contracts at 30 days, and the supplier must acknowledge the request within 5 working days.
Can I leave my business energy contract if I move premises?
It depends on the contract terms. Tell the current supplier as soon as possible under Ofgem's change of tenancy process, with a closing meter reading and evidence, and ask the supplier to confirm in writing what happens to the rest of the term.
Can I cancel a business energy contract I have just signed?
Not as of right. There is no cooling-off period for business energy contracts, so check for a termination clause and the exit terms, and complain through the seller's complaints process if you think you were misled.
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