Change of tenancy
A change of tenancy, also called a change of occupier, is when a business takes over or leaves a property and the energy account needs to change.
What it is
A change of tenancy (COT) covers any change of who occupies a business property, for example a sale, a new lease or expansion. The energy account must be moved to the new occupier, so the old one stops being billed.
Where you will see it
You tell the supplier of the site, and they ask for supporting paperwork. Ofgem advises telling the current supplier as soon as you can, whether moving in or out, even if you plan to switch. Include a meter reading, and evidence such as a lease or sale documents.
How it works
- Staying with the same supplier: they have 10 working days to review. They may close the old account and open a new one, reject the change with reasons, or ask for more information.
- Switching supplier: tell both. The new supplier starts the switch and the current supplier accepts it if it agrees the occupier has changed.
Why it matters
Move in without sorting a contract and you may be placed on a deemed contract with higher rates. Move out without notifying and the old occupier may keep being billed. Record readings on both days.
Example
You take over a unit on 1 March with a meter reading of 45,210 kWh. You send it with your lease. The supplier opens your account from that reading, and the previous tenant's bill closes at the same figure. If the next reading is 46,010, you pay for 46,010 − 45,210 = 800 kWh at your contract rate.
Ofgem's page does not address debts left by a previous occupier. See our page on previous tenant debt.
Related terms
See moving premises and deemed contracts, telling your supplier and out-of-contract rate.
Common questions on this topic
- How much more do deemed rates cost than fixed rates?
- How do I get off a deemed or out-of-contract rate?
- Can I take my energy contract with me to new premises?
- How long does a new commercial electricity connection take?
- Do I need a new gas meter for new premises?
- What happens to energy when a business changes hands?
Sources
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.