Managing energy costs is a vital part of running a successful business. With energy bills often being a significant overhead, it’s essential to work with a supplier that offers competitive prices and outstanding service. But when is the right time to make the switch? Navigating contracts, prices, and timing can feel overwhelming, but with the right approach, it doesn’t have to be.
Here’s your complete guide to switching business energy suppliers with ease.
Why Do Businesses Switch Energy Suppliers?
Switching energy suppliers is often driven by the potential to save money. With energy prices varying widely, comparing quotes can reveal products better suited to your business needs. Beyond cost savings, businesses may switch for improved customer service, access to renewable energy solutions, or innovative tools that provide greater insights into energy use.
If your current contract has expired or you’re out-of-contract, switching can lead to significant savings. Out-of-contract prices are usually much higher than fixed-term prices, so securing a new agreement is a smart move to cut overheads.
Can You Switch Business Energy Suppliers?
Switching energy suppliers is generally straightforward if you meet the following criteria:
- You’re not within the initial fixed-term contract you agreed.
- Your contract has expired, with no extended or rollover periods in place.
- You don’t have any unpaid bills with your current supplier.
If these conditions apply, you’re free to explore new energy deals that better suit your business.
When Can You Switch Suppliers?
The timing of your switch often depends on your current contract. If you’re in a fixed-term agreement, your supplier will usually notify you 60 days before your contract ends. This is an ideal time to start gathering quotes and comparing options.
Fixed-Term Contracts
If your fixed-term contract is ending, check for any rollover clauses. Some contracts automatically extend for a set period, while others transition you to more expensive out-of-contract prices. Be proactive in renewing or switching during your notice period to secure better terms.
Automatic Rollover And Out Of Contract Arrangements
If you’re on a rolling or non-fixed agreement, you can typically switch suppliers with 30 days’ notice. If you are a microbusiness or small business, Ofgem regulations allow even more flexibility, letting you switch supplier during this period, without notice and at any point.
What Happens When Your Contract Ends?
When your contract ends, you have three choices:
- Negotiate and agree a renewal offer from your current supplier.
- Switch to a new energy provider.
- Do nothing, in which case you’ll likely be placed on an automatic rollover or out-of-contract price—often significantly higher due to unknown hedging and trading requirements to supply your business.
Out-of-contract prices can dramatically increase your costs, so it’s crucial to act promptly to renew or switch suppliers.
Can a Supplier Block Your Switch?
If you’ve followed the correct process, your supplier shouldn’t object to your switch. However, objections may arise if:
- You’re attempting to switch during your initial fixed term period.
- There’s an outstanding balance on your account that relates to the fixed term period.
- You’re a large business and have not provided your current supplier with notice of your intention to switch supplier.
Your supplier is required to inform you of any objections and provide guidance on resolving them.
Is Switching Different for Microbusinesses and small businesses?
Small and Microbusinesses enjoy greater flexibility when switching suppliers. Ofgem rules mean these customer groups don’t need to provide termination notice, making the process simpler and quicker.
You’re a microbusiness if you meet one of the following criteria:
- You have fewer than 10 employees and an annual turnover below €2 million.
- Energy usage below 100,000 kWh of electricity or 293,000 kWh of gas annually.
You’re a small business if you meet one of the following criteria:
- You have fewer than 50 employees and an annual turnover below €6.5 million.
- Energy usage of 200,000 kWh of electricity or 500,000 kWh of gas annually.
When Is the Best Time to Switch?
The best time to switch depends on your current contract and business needs. Consider the following:
- Switching Window: Start comparing suppliers when your switching window opens to ensure a smooth transition when your contract ends.
- Out-of-Contract prices: If you’re nearing the end of your contract, act quickly to avoid being placed on higher prices.
- Moving Premises: Relocating your business is an excellent opportunity to shop for better energy deals, as new premises default to deemed rates.
- Better Offers: Look for suppliers with competitive rates and additional benefits tailored to your business.
Switch to the Ruby Way
At Ruby Energy, we understand that switching energy suppliers can feel like a daunting task. That’s why we’ve simplified the process, helping you secure competitive prices without the hassle. Our dedicated team is here to guide you every step of the way, from comparing quotes to finalising your new contract.
Ready to explore better energy solutions? Discover why so many businesses are choosing Ruby Energy for great prices and exceptional customer service. Get your free quote today and experience the Ruby Way for yourself.
