How to close a business energy account when you move out

What closing an account really means

Your energy contract is with the supplier, but the meters belong to the building. When you leave, the supply carries on for the next occupier. If you do not tell your supplier, you can keep being billed for energy someone else uses. The job is to hand over cleanly: a recorded reading, a date and a final bill sent to the right place.

Before you leave: the checklist

1. Read your contract. Look for the end date, any early-termination clause and rules about moving. Our guide on taking a contract to new premises covers the alternative to closing.
2. Tell the supplier as early as you can the date you are leaving, and give a forwarding address, as Citizens Advice advises. Do this separately for gas and electricity.
3. Check for credit or debt. Ofgem suggests knowing whether the account is in credit or owing before you move; see credit balance refunds.
4. Agree a date with the landlord for handover, because that affects who pays after.

The final meter reading

On your last day, photograph the gas and electricity meters with the date visible, even if they are smart meters, and note the numbers. Send them to the supplier at once. Citizens Advice also recommends switching everything off, because you could still be charged for what runs after you leave.

If there are two registers (day and night), photograph both. See how to submit a business meter reading.

Take a short video of the meter and the room as well; it is quick proof of the date and state of the supply.

What if you cannot get into the building?

If the meter is locked away or the landlord holds the keys, tell the supplier and ask the landlord to supply a reading on the handover date. A dated email from the landlord or agent confirming the reading is strong evidence if there is a dispute.

Notice periods and exit fees

Closing an account does not automatically end a fixed-term contract. If you leave in the middle of a fixed deal, you may face a termination charge, depending on your contract. In practice the question is whether the supplier will move the contract to your new address or end it at the old one. Suppliers handle this differently and some will not transfer a fixed deal at all, so ask which option applies and get the answer in writing. Our guide on leaving a business energy contract early explains what charges look like and how to challenge them.

Once a contract has ended and you are out of contract, there is no termination fee, and a microbusiness cannot be required to give notice to leave, except under an evergreen contract (notice up to 30 days). See out-of-contract rates.

Proving the change of occupier

Ofgem's business guidance says that where you move but keep the same supplier, it will review your evidence of the change of occupier within 10 working days and then close the old account and open a new one, reject the change with reasons, or ask for more information. Ofgem lists a tenancy or lease agreement, sale documents or title deeds as the main evidence; if more is needed, mortgage papers, a business rates bill, or a letter from a bank, solicitor or landlord. Find the detail at Ofgem's change of tenancy page. See also change of tenancy.

Worked example: a salon closing in mid-month

A salon moves out on 18 June. The electricity standing charge is 58p a day on a monthly bill period that began on 1 June.

• Standing charge for 1 to 18 June: 18 days × £0.58 = £10.44.
• If the supplier is not told and the bill runs on to 30 June: 30 days × £0.58 = £17.40, plus whatever the next occupier uses.

The gap is small for standing charges alone, but unit charges are the real risk: a heater left on or a fridge freezer running for a month of unknown use can add up fast. The photo and the call stop that. Illustrative figures only; check your own tariff.

The final bill and getting money back

Expect a closing bill based on your reading. Compare it with your photos; if the supplier used an estimate, challenge it using this guide to correcting estimated bills. If you are in credit, request a refund in writing. If a dispute drags on, complain to the supplier first and then escalate; see energy disputes and the ombudsman.

If you are moving to a new place

Set up the new supply before you arrive; otherwise you land on default rates. Our guide to setting up business energy covers this, and this FAQ explains why you should always tell the supplier.

If the business is closing for good

Closing a company or ceasing to trade is different from moving. Nobody takes the contract to a new address, so the supplier will look at whether the fixed term has time left and whether the next occupier, or the landlord, will take responsibility for the supply.

• Tell the landlord in writing when you are handing back the keys, so the supplier can be told who is responsible from that date. If the premises will stand empty, the owner usually becomes responsible.
• Ask the supplier for a closing statement showing the final reading, the date the account stopped and any balance. Keep it with your company records.
• Check direct debits. Cancel them only after the final bill is settled or a refund is agreed, so a late adjustment does not become a debt.
• If an insolvency practitioner is involved, give them the supplier's details and account numbers; they deal with what is owed, not you personally (unless you gave a personal guarantee).

Gas, electricity and other meters

Many premises have more than one account: a gas meter, an electricity meter and sometimes a second electricity meter for a unit, a sign or a car park. Each has its own supplier relationship and its own final reading. Go round the building and list every meter with its serial number before you leave, and match each to an account on your bills. A forgotten meter is the most common reason a former tenant keeps getting bills months later.

Worked example: credit left on the account

A small office paid £180 a month by direct debit. The final reading shows actual use over the last quarter cost £420, but £540 was paid (3 × £180). The account should close £120 in credit (540 − 420). Ask for that sum to be refunded to your bank account rather than left on a closed account, and quote the final reading and date in your request.

Next steps

1. Tell each supplier your leaving date and forwarding address.
2. Ask what happens to a fixed-term contract if you leave.
3. Photograph all meters on your last day and send the readings.
4. Keep landlord and agent emails, and check the final bill.

Biz Energy is independent and not affiliated with any supplier.