Do I have to give my supplier notice before switching?

Usually not. A microbusiness out of contract can switch without giving notice, with a limited exception for evergreen contracts (up to 30 days). If you are inside a fixed term, check your contract: leaving early can bring a termination fee.

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Who tells the old supplier?

When you agree a deal, your new supplier handles the transfer with your old one. You do not normally need to cancel separately. The thing to check is whether you are free to leave.

Notice rules by contract type

Where you areNotice and fees
Out of contract or deemed rateNo termination fee. Suppliers cannot require a microbusiness to give notice to terminate or switch, except under an evergreen contract
Evergreen contract (microbusiness): an open-ended contract with no fixed end dateNotice of up to 30 days can be required
Inside a fixed termTerms in your contract apply; early exit fees are likely, and the supplier may object to a switch
Rolled over by the supplierA rollover can only be for 12 months or less, and only if renewal information rules were met

These microbusiness rules, in force from 1 October 2022, come from Ofgem's Microbusiness Strategic Review decision. Citizens Advice says that once a fixed contract has ended, or if you are on a deemed tariff, you typically will not need to pay a fee or give notice (Citizens Advice).

Small and larger businesses

Not every protection reaches businesses above the microbusiness line. If you are a small or larger business, rely on your own contract's notice clause. Not sure which you are? See what is a microbusiness.

Notice to stop an automatic renewal

Different from notice to switch: a fixed-term contract may renew unless you act in a window before it ends. Ofgem's rules say a supplier can only roll you over if it has sent the required renewal information and you have not served notice preventing renewal. The exact windows are set out in your contract and renewal letter, so read them. See how to stop a contract rolling over and rollover contracts.

Worked example

A salon's fixed contract ends 30 June. On 1 May it signs with a new supplier starting 1 July. It sends nothing to the old supplier; the new one arranges the transfer. If it had signed for a 1 June start instead, it would be breaking the contract two months early, and a fee of, say, 2 months' charges of £180 a month would be £360. That figure is invented to show the sum; read your own contract for the actual fee. Learn more about leaving a contract early.

There is no cooling-off period on business energy contracts, so a deal you sign by phone or online is generally binding. Check the end date of the one you leave and the start date of the one you join.

Practical tips

  • Keep your renewal letter: it is the best evidence of your end date and terms.
  • Do not stop paying your old supplier before the switch completes; debts can block a transfer (see switching with debt).
  • Take a final meter reading on switch day and keep a photo.

Next steps

  1. Find your contract end date: how to find it.
  2. Confirm whether you are fixed, evergreen, rolled over or out of contract.
  3. Set the new start date for after the old term ends.

Sources

  1. Ofgem: Decision on the Microbusiness Strategic Review (March 2022)
  2. Citizens Advice: Dealing with your business energy bills
  3. Ofgem: Get energy for your business

General information only. Energy prices, rules and supplier terms change; check the latest position with your supplier, Ofgem or the Energy Ombudsman before you act.