What happens if I don't renew my business energy contract?

Your lights and gas stay on when a fixed term ends. What changes is the price and sometimes the commitment.

Possible outcomes

Outcome	What it means
Rollover	The supplier extends your contract for a further fixed term, up to 12 months, if rules are met
Out-of-contract rates	You stay with the supplier on a standard rate, usually dearer than fixed deals
Deemed contract	Applies mainly when you move into premises without a contract, or your supplier fails

Your contract says which applies. See rollover contract and out-of-contract rate.

The rollover rules

Under Ofgem's rules a supplier may roll over a fixed term only if it has provided the required renewal information (a Statement of Renewal Terms and Principal Terms), you haven't given notice to prevent the rollover, and the new term is 12 months or less. Your renewal letter should show your end date and the last date to give notice; check it as soon as it arrives. If you miss that, you could be tied to a new term at a rate you didn't choose.

Leaving without penalty

Out-of-contract customers cannot be charged a termination fee. Since 1 October 2022 suppliers cannot require microbusinesses to give notice to switch, except under evergreen contracts, where notice can be up to 30 days. See rollover contracts for how this fits together.

What it costs: an example

A small office uses 20,000 kWh a year. Using the Moneysupermarket October 2026 averages (a comparison site, indicative only) of 28.4p fixed for a micro business against 40.0p out-of-contract:

• Fixed: 20,000 × £0.284 = £5,680
• Out-of-contract: 20,000 × £0.400 = £8,000
• Difference: £2,320 a year, or about £193 a month

Standing charges are extra and also tend to be higher out of contract.

What to do

1. Diarise the end date and last notice date; see finding your contract end date.
2. Request your renewal quote and compare it with the market.
3. If you want to stop a rollover, give written notice before the deadline and keep proof.
4. If already out of contract, switch promptly. Use our out-of-contract cost calculator to see what delay costs.

Stopping a rollover is not the same as ending the contract. Check whether you also need to give separate termination notice.

Checklist if your contract ended last week

1. Find your latest bill and see which rate now applies.
2. Take a meter reading to fix the changeover date.
3. Request quotes and switch; the new supplier handles the exit.
4. Ask the old supplier for a final bill and any credit refund.

Is doing nothing ever sensible?

Occasionally, if you plan to leave premises within weeks, staying on a flexible out-of-contract rate avoids committing to a term. Otherwise it usually costs more than a new fixed deal. Write down the date you decide to wait and set a reminder, because short delays quietly turn into months at a premium rate.

Next steps

Read our renewals guide and see why renewal prices rise.