When does renewal start
Suppliers typically contact business customers with a renewal offer between one and six months before the contract end date, depending on account size and supplier policy. This letter or email usually includes a deadline by which the business must confirm new terms or give notice to switch.
Businesses should not wait for this contact to start reviewing options. Comparing renewal rates against the wider market three to six months ahead of the end date allows enough time to negotiate or switch supplier without being rushed into a decision.
Notice periods
Most business energy contracts specify a notice period during which the business must inform the supplier of its intention to switch, typically falling between 30 and 120 days before the contract end date. Missing this window is one of the most common reasons businesses end up on deemed or out-of-contract rates.
| Contract type | Typical notice period |
|---|---|
| Micro-business (under 100,000 kWh electricity) | 30 to 60 days |
| Small to medium business | 30 to 90 days |
| Larger business or multi-site | 60 to 120 days |
Renewing versus switching
Renewing means agreeing new terms with the current supplier, which can be straightforward if the rate offered is competitive. Switching means moving to a new supplier at the end of the contract, which involves comparing quotes and completing a new switch process but often accesses more competitive rates since suppliers price new customer contracts differently from automatic renewals.
- Renewal avoids a change of supplier and billing systems
- Switching opens the market to competing quotes
- Both require the correct notice to be given on time
- Comparing both options before deciding is generally advisable
Compare business energy prices
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What happens if renewal is missed
If a business does not agree new terms or give switching notice before the contract ends, it typically rolls onto an out-of-contract or deemed rate with its existing supplier. These rates are usually considerably higher than a negotiated contract and often carry no fixed term, meaning the business can still switch away but continues paying the higher rate until a new contract starts.
Preparing for renewal
- Review the last 12 months of consumption data
- Request renewal terms from the current supplier in writing
- Obtain comparison quotes from the wider market
- Check the exact contract end date and required notice period
- Decide on preferred contract length based on market outlook