How long before contract end should I start renewing my business electricity?

For most small and medium businesses, starting three months ahead is sensible, while larger half-hourly metered sites may benefit from starting four to six months ahead due to more complex pricing and tender processes.

Will my electricity renewal rate be the same as my current rate?

No, the renewal rate reflects wholesale market conditions and supplier pricing at the time of renewal, not the rate originally agreed. It can be higher or lower depending on how the market has moved since the original contract started.

What is a deemed electricity rate?

A deemed rate applies when a business consumes electricity without an agreed contract in place, for example after missing a renewal deadline. It is typically priced higher than a negotiated contract because the supplier has no fixed-term commitment from the customer.

Can I switch electricity supplier at renewal without penalty?

Yes, provided the correct notice is given within the window specified in the existing contract, switching at renewal does not usually incur an early termination charge. The charge applies to switching mid-contract, not at the natural end of the term.

Business Electricity Renewal

Business Electricity Contract Renewal

Business electricity renewal is the point at which a business must decide whether to accept new terms from its current supplier or move elsewhere, governed by a notice period specified in the existing contract. Electricity contracts vary in how far ahead this notice must be given.

Because electricity unit rates are influenced by ongoing wholesale market movements, the renewal rate a business is offered can differ noticeably from rates available elsewhere in the market at the same time, making comparison a useful step before committing.

Electricity renewal notice periods are usually set out in the original contract, commonly 30 to 120 days

Half-hourly metered sites often have longer renewal lead times due to more complex pricing

Comparing multiple supplier quotes at renewal can reveal significant rate differences

A missed renewal deadline typically results in a deemed rate rather than continued contract terms

The electricity renewal timeline

Suppliers typically send a renewal notice for electricity contracts between 60 and 120 days before the end date for larger or half-hourly metered sites, and somewhat later for smaller non-half-hourly accounts. This notice sets out the proposed new rate and the deadline by which a decision or switch notice is required.

Comparing renewal rates

Because electricity unit rates move with wholesale prices, the rate offered at renewal reflects market conditions at that specific point in time rather than the rate the business originally signed at. It is common for the renewal quote to differ substantially from the expiring contract's rate, in either direction.

Businesses should request the renewal offer in writing and compare it against quotes from other suppliers before deciding, since renewal pricing is not always the most competitive option on the market at that time.

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Half-hourly meter renewal considerations

HH sites often require earlier engagement with suppliers due to more detailed pricing models
Consumption profile data feeds into the renewal quote
Multiple supplier tenders are common for larger HH accounts

What to do if renewal is missed

If notice is not given in time, the electricity supply typically continues under a deemed or out-of-contract rate until a new agreement is reached. This rate is usually higher than a negotiated contract, so businesses should treat the notice deadline as a firm date rather than a guideline.