Your business energy contract is ending: what to do and when to renew

When a fixed business energy contract ends and nothing new is signed, the lights stay on. Your supplier keeps supplying you, but at a price it sets. Ofgem says those rates are usually more expensive than fixed-term contracts.

The gap can be big. The Gate Inn in Tansley had fallen out of contract on gas and electricity and was paying £123,077 a year. New fixed contracts are saving it £23,315 a year.

This guide is for businesses. Home energy works differently: it has a price cap and a cooling-off period, and business contracts have neither.

What happens on the day your contract ends

That depends on what your contract says. There are three possibilities, and your contract will name one of them.

You roll over. Some contracts renew automatically for a new fixed term if you haven't agreed a new deal or switched. Ofgem says the new term is usually 12 months and may be at a higher rate. If you're a microbusiness, a rollover can't run for more than 12 months, according to Citizens Advice.

You move to out-of-contract rates. Your supplier keeps supplying you on a variable rate until you sign something. It can change that rate whenever it reprices.

You're on deemed rates. Strictly, a deemed contract is what you get when you move into a premises and use energy without agreeing a contract. Some suppliers use one price list for both situations, which is why the two terms get mixed up. Our guide to deemed contracts covers the move-in case.

What your supplier calls it

Every supplier has its own name for the rate you pay after a fixed contract ends. It's worth knowing when you read a bill or look up the price. We checked each supplier's own website on 3 November 2026.

The current figure for every supplier, with the document it came from and how it has moved since 2021, is on our out-of-contract rates comparison.

The date that matters more than your end date

Most fixed contracts have a notice window. To leave, or to stop a rollover, you have to tell your supplier by a set date, and that date comes before your end date. Ofgem calls it a switching window that "opens a few months before the end of your contract". Miss it, and a rollover clause can lock you in for another term.

Microbusinesses get help here. Since Ofgem changed the rules in April 2015, your supplier has to print your end date and the last date you can give notice on your bill or statement. You can also send notice at any time from the day the contract starts, according to Ofgem's factsheet on microbusiness renewals. On a rolling contract with no end date, a microbusiness never has to give more than 30 days' notice.

You're a microbusiness if you have fewer than 10 employees and a turnover or balance sheet of no more than £2 million. You also qualify if you use up to 100,000 kWh of electricity or 293,000 kWh of gas a year. Our guide to energy contracts for microbusinesses has the detail.

Bigger businesses get fewer protections. Your contract decides the notice period and what happens at the end, so read it now, not in the last month.

One thing catches people out. Giving notice stops a rollover, but it doesn't stop your supply. If you give notice and don't sign anything new, you drop onto out-of-contract rates.

What to do, by how long you've got

Six months or more: the best time to renew

This is the best place to be. We can usually get prices for a contract starting up to about 12 months ahead, so you can watch the market and fix when prices suit you. Find your notice date and put it in the diary. Then pull together your last 12 months of bills. If your contract rolls over automatically, give notice early. You can still renew with the same supplier if it turns out to offer the best price.

Our live wholesale prices show which way the market is moving.

One to six months

Get quotes now. If you're a microbusiness, your supplier should send renewal terms before the end date, showing your current prices, the new prices and your annual consumption. Citizens Advice says that should come about three months before the end.

Don't treat that letter as your only offer. Ofgem's own advice is that you can normally get a better deal by negotiating than by accepting the renewal price, so compare it with other suppliers before you reply.

A month or less

There's still time. A new supplier can set your contract to start the day your old one ends, so ask for that start date when you agree. Citizens Advice says a switch should complete within five working days.

Business contracts agreed over the phone are binding. Ask for the terms in writing before you say yes. Our guide to verbal business energy contracts explains why.

Already ended

You're paying out-of-contract or deemed rates now, so every bill costs more than it needs to. Alchemilla, a restaurant in Nottingham, was paying £61,731 a year on out-of-contract rates. Its three-year fixed contract costs £34,395 a year.

Ofgem says that on a variable-rate contract, which includes out-of-contract and deemed rates, you can switch to a new supplier at any time. If you're a microbusiness whose fixed term has ended, Citizens Advice says you won't pay a fee or need to give notice. Your supplier can object to the switch if you owe it money, so clear the balance or agree a plan first. Our guide to switch objections explains what to do.

Already rolled over

Read the renewal terms before you assume you're stuck. A rollover is a new fixed term, and some tie you in until it ends, with an exit fee to leave early. Citizens Advice says a microbusiness in a roll-over period usually won't pay a fee or need to give notice to switch. Ask your supplier to confirm in writing which applies to you.

No cooling-off period

Business energy contracts have no cooling-off period. Once you agree, in writing or on the phone, you're bound for the full term. Ofgem says that's why it matters to use a broker you can trust.

If your broker is paid by the supplier, it must be registered with the Energy Ombudsman or the Utilities Intermediaries Association, according to Citizens Advice. Ask which, then check. You'll also sign a letter of authority so the broker can act for you, so read what it allows. And ask how the broker is paid. Our guide to broker commission covers what to look for.

How we handle a contract ending

We record your end date and your notice date, and we come back to you well before either. Then we tender across 30+ suppliers and show the wholesale price, non-commodity costs, supplier margin and our margin separately on every quote, so you can see what a fixed-price contract would cost before you commit.

If your contract ends in the next 12 months, or already has, get a quote or call 0161 521 3400.

Frequently asked questions