Business energy contract renewal: what to do and when

Towards the end of a fixed-term business energy contract your supplier will usually send a renewal offer. Often it is pitched at rates well above what you could get elsewhere. Because there is no Ofgem price cap on business energy and no cooling-off period once you agree, the renewal moment is when you have the most power. This guide shows what to look for and how to use it.

1. Find your end date

Your contract end date appears on your contract, Principal Terms, welcome letter and often your bill. If you cannot find it, ask the supplier in writing. Our guide on finding your contract end date covers the steps. Put the date in your diary now, and set a reminder several months earlier, because the best time to act is well before the supplier's own deadline.

2. Understand the renewal letter

For microbusinesses, a supplier can only roll you onto a new term if it has sent the required renewal information, including a Statement of Renewal Terms and Principal Terms. Ofgem's factsheet for microbusinesses says a renewal letter for a fixed-term contract must show your current prices, the new prices and your annual consumption. Citizens Advice says to expect contact about three months before a fixed term ends, and that you can complain if it does not come. When you read the letter, look for:

• your current end date;
• the proposed new rates and standing charge;
• how long the new term would be (for a rollover, no more than 12 months for a microbusiness);
• what happens if you do nothing;
• how to say no or switch.

Check your usage figure too. Renewal prices are based on your estimated annual use, and a wrong figure can mean you pay for more than you need. If your bills have been estimated, send a reading before you compare.

3. How early can you agree a new deal?

You can usually agree a replacement contract before your current one ends, with the new supply starting on the end date. How far ahead suppliers will quote is their choice (British Gas, for instance, says you can request a renewal quote up to 12 months before your end date), so ask. See how early can I agree a new energy contract. Do not wait for the last week: gathering quotes and checking terms takes time, even though the switch itself is quick.

4. Why renewal quotes often jump

Several things can push the price up at renewal:

• Market movement. If wholesale prices rose since you last fixed, a new fixed price reflects that.
• Network and policy costs. Non-energy charges can change year to year. One comparison-site report noted that a major network charge (TNUoS) rose by more than 60% from April 2026; treat that as a pointer, not a guarantee for your own bill.
• Loyalty pricing. Renewal offers to existing customers are not always the supplier's sharpest price.
• Your own profile. A change in usage, credit rating or payment method can alter the price.
• Broker commission baked into the rate, if you used a broker.

For a deeper explanation see why my business energy price went up at renewal.

5. The real cost of doing nothing

If you neither accept nor reject, one of three things happens depending on your contract:

1. You are rolled over onto a new fixed term (microbusinesses: up to 12 months, and only if the supplier has met the information rules and you have not stopped it).
2. You move onto out-of-contract rates, which are often higher but carry no exit fee.
3. You are on an evergreen contract that continues until notice is given (up to 30 days for a microbusiness).

Our guides on rollover contracts and what happens if you don't renew go into each.

Worked example: renewal vs shopping around

A salon uses 25,000 kWh of electricity a year. These rates are illustrative.

• Renewal offer: 33.0p/kWh. Energy cost: 25,000 x £0.33 = £8,250.
• Alternative quote: 28.0p/kWh. 25,000 x £0.28 = £7,000.
• Difference: £8,250 - £7,000 = £1,250 a year before standing charges, VAT and CCL.

If the salon does nothing and falls onto out-of-contract rates, the gap can be wider. A Moneysupermarket Business snapshot (21 October 2026, indicative only) listed average out-of-contract electricity at about 40.0p/kWh and 254p/day standing charge, against about 28.4p/kWh and 58p/day for an average fixed micro-business deal. On those figures: unit rate gap 11.6p x 25,000 = £2,900; standing charge gap 1.96 x 365 = £715.40; total about £3,615 a year more. Use our out-of-contract calculator with your own figures.

6. How to compare properly

1. Get your annual kWh from a bill.
2. Ask for quotes on the same term and the same pass-through basis so they are like-for-like.
3. Convert every quote to an annual total: (kWh x unit rate) + (365 x daily standing charge).
4. Ask for any broker cost to be shown as a total in pounds, and check it in the Principal Terms.
5. Consider asking your current supplier to match. See negotiating with your supplier.

Cheapest on paper is not always best. A lower unit rate with a high standing charge, or pass-through costs, can cost more.

7. Accepting, declining and switching

You do not need to give your existing supplier notice to switch if you are a microbusiness, unless you are on an evergreen contract. If your fixed term has not finished, early exit may bring a termination fee; see exiting early. Remember that once you agree a new contract, even verbally, there is no cooling-off period.

Common renewal mistakes

• Waiting for the supplier's letter. If it goes to an old address or an inbox nobody checks, you may not see it. Ask for renewal alerts to be sent to a shared mailbox.
• Accepting the first offer on the phone. There is no cooling-off period, and a verbal agreement can bind you.
• Letting a broker auto-renew you. If a broker manages your account, ask whether it will renew on your behalf and under what terms, and look for a renewal broker fee in the Principal Terms.
• Missing a multi-site date. Each meter has its own contract and end date.
• Forgetting changes in usage. If you have added equipment, extended opening hours or closed a site, update your estimate before comparing.

Do you have a credit or debt issue?

Unpaid balances can complicate switching. See switching if you owe money if that applies.

Next steps

• Diary your end date and set an early reminder.
• Read the renewal letter and check usage figures.
• Gather two or three like-for-like quotes and work out annual totals.
• Read about the best time to switch.

Biz Energy is independent and takes no commission.