Can my supplier renew my contract automatically?

When automatic renewal is allowed

Many fixed-term business contracts include a clause that lets the supplier start a new term when the old one ends. Ofgem's rules, described in its microbusiness decision, only allow this where the supplier has met the renewal information requirements (a Statement of Renewal Terms and Principal Terms), you have not served notice preventing renewal, and the new term is 12 months or less.

For a plain-English definition, see what a rollover contract is.

What the supplier must tell you

Since a 2014 Ofgem decision (effective 30 April 2015), a renewal letter to a microbusiness on a fixed term must show your current prices and annual consumption. That lets you compare the offer with what you pay now. Suppliers must also acknowledge a termination notice from a microbusiness within five working days of receiving it, or as soon as reasonably practicable after that.

The exact deadlines for renewal letters and for giving notice have changed over the years, and your contract and Principal Terms set out the dates that apply to you. Read those rather than relying on a general rule, and send any notice in writing so you have proof of the date.

Your rights if it happens anyway

• Check the paperwork. If you never received a proper renewal letter, the rollover may not be allowed. Ask the supplier to show what it sent and when.
• Challenge a rollover longer than 12 months. That exceeds the limit.
• Complain. Raise it with the supplier first. Microbusinesses and small businesses can then go to the Energy Ombudsman after 8 weeks, or immediately with a deadlock letter.

Is it ever the right choice?

Occasionally. If you've compared the market and your supplier's rolled-over price is competitive, doing nothing is fine. But don't assume it. Example: a shop using 20,000 kWh a year whose rollover rate is 2p/kWh above a rival quote pays 20,000 × £0.02 = £400 more over the year. That figure is illustrative.

How to stay in control

1. Find your end date and diarise it.
2. Read the renewal letter as soon as it arrives.
3. Follow how to stop your contract rolling over.

Fixed-term versus other contracts

Automatic renewal applies to fixed terms. If you are already on an out-of-contract or deemed rate, there is nothing to renew and you can switch without a termination fee. If you are on an evergreen contract, it continues until you end it, and a supplier may require up to 30 days' notice.

Check which type you have before worrying about renewal. The glossary entry on rollover contracts is a quick reference.

Keeping a paper trail

Save every renewal letter, email and portal message with its date. If you later dispute a rollover, the key questions are what the supplier sent, when, and whether it showed your current prices and annual consumption. A tidy folder makes a complaint to the supplier, and if needed the Energy Ombudsman, much easier.

Next steps

Compare at least one rival quote before the deadline. Our hub guide on rollover contracts goes deeper.