Business energy contract renewal: when to renew and how to compare

Start looking at renewal quotes several months before your contract ends, and decide before the end date. If you are a microbusiness, your supplier must send you a statement of renewal terms about 60 days before your fixed term ends. If you do nothing, you will usually be rolled over or moved onto variable or out-of-contract rates.

Your renewal date matters more than any other date in a fixed business energy contract. It is when you can move to a better deal without an exit fee. Miss it, and you may be rolled onto another term or left paying higher rates.

When should you start your renewal?

Earlier than you think. Some suppliers will quote well before your end date:

• British Gas Business says it can give a renewal quote up to 12 months before your renewal date, and sends a renewal deal 60 days before the contract ends.
• EDF says it sends small business customers a renewal letter 90 days before the end date, setting out their options.

Other suppliers set their own windows, so ask how far ahead they will quote. Starting early gives you time to compare several quotes, to watch how prices move, and to meet any notice deadline in your contract.

Quotes are not held open for ever, so ask how long each one is valid for. You can follow recent market moves on our wholesale prices page.

What is a statement of renewal terms?

A statement of renewal terms is the renewal letter microbusinesses must receive under standard licence condition 7A of the supply licences. A microbusiness uses no more than 100,000 kWh of electricity or 293,000 kWh of gas a year, or has fewer than 10 employees and a turnover or balance sheet of no more than £2 million.

About 60 days before your fixed term ends, unless you have already agreed a new contract, your supplier must send you:

• the statement of renewal terms, showing your end date, how to stop the contract being extended, and what happens if you do nothing
• the principal terms that would apply after the end date
• your current charges
• your annual consumption

If the supplier makes you renewal offers, at least one must be in writing and open for you to accept until your fixed term ends.

Microbusinesses should also see their contract end date on every bill, along with a note explaining how to stop the contract being extended.

If you are not a microbusiness, these rules do not apply. Your supplier may still write to you, but check your contract for what it promises.

Do you need to give notice?

Microbusinesses do not need to give notice to leave at the end of a fixed term. Ofgem banned termination notices for microbusiness contracts from 1 October 2022, except for open-ended evergreen contracts, where notice cannot be longer than 30 days.

You can still write to your supplier before the end date to stop it rolling your contract onto a new fixed term. The statement of renewal terms gives the address to use.

Other businesses should check their terms carefully. Some contracts require notice by a set date. TruEnergy’s terms (version 2.7, June 2026), for example, ask for at least 30 days’ notice. Without it, you may be charged its deemed tariff after the contract ends or rolled onto a 12-month contract.

What happens if you don’t renew?

Ofgem says that if you do not change your contract before it expires, your supplier will automatically roll it over. What that means depends on your contract:

What your contract says	What happens	Can you leave?
Rollover clause	New fixed term starts	Microbusinesses: yes, at any time, no fee. Others: check terms
Moves to variable rates	Out-of-contract or variable prices	Microbusinesses: yes, at any time, no fee. Others: check terms
Nothing about the end	Deemed rates	Yes, at any time, no fee

For microbusinesses, a rollover can only happen if the supplier sent the renewal information and you did not write to stop it. The new fixed term cannot be longer than 12 months.

Some suppliers’ default options are gentler than others. British Gas moves customers who do not renew to its Variable Price Plan. EDF renews small business customers onto Freedom, a variable contract with no termination fees. Our guide to out-of-contract rates lists where each supplier publishes the rates you would pay.

How do you compare renewal quotes?

Compare like for like, using your own annual consumption. Your renewal letter gives your annual usage if you are a microbusiness. Otherwise, use your bills.

Check each quote for:

• Unit rate in pence per kWh
• Standing charge in pence per day. Our guide to unit rates vs standing charges explains why both matter
• Contract length and end date
• What is fixed. Check whether the price fixes every cost or lets the supplier pass some through during the contract. See fixed vs flexible contracts
• Broker fees. For contracts from 1 October 2024, suppliers must show broker fees clearly in the principal terms for all business customers
• What happens at the end, including rollover and notice terms
• Exit fees if you need to leave early

Example: comparing two quotes

This is an example only, with made-up prices, to show the method. A business uses 20,000 kWh of electricity a year.

	Quote A	Quote B
Unit rate	24p per kWh	26p per kWh
Standing charge	90p per day	40p per day
Energy cost (20,000 × unit rate)	£4,800	£5,200
Standing charges (365 days)	£328.50	£146
Total before CCL and VAT	£5,128.50	£5,346

Quote A is cheaper for this business. For a business using 5,000 kWh a year, Quote B would work out cheaper (£1,446 against £1,528.50), because the lower standing charge matters more at low usage.

Your bill will also include Climate Change Levy, currently 0.801p per kWh from 1 April 2026, and VAT.

Using a broker at renewal

If a broker handles your renewal, Ofgem’s good practice principles for brokers (July 2026) say they should explain their role, how many suppliers they searched, the principal terms of the deal and how they are paid. Our guide to energy brokers covers what to ask.

What if you have already missed your renewal date?

Act now rather than waiting for the next renewal. Where you stand depends on what happened at the end date:

• Rolled over as a microbusiness: you can switch at any time during the rollover period without a termination fee or higher charges.
• On out-of-contract rates as a microbusiness: you can switch at any time, with no fee and no notice.
• On deemed rates: you can switch at any time. A deemed contract cannot have an exit fee or notice period.
• Rolled over as a larger business: check your new contract. You may be tied in until the new end date.

Once you agree a new contract, Citizens Advice says the switch should happen within 5 working days.

Business energy renewal checklist

1. Find your end date on your contract or bill.
2. Check your notice terms if you are not a microbusiness, and diary any deadline.
3. Gather your data: annual kWh for each meter, your MPAN and MPRN, and current rates.
4. Get quotes early, from your current supplier and others.
5. Read your renewal letter and note what you will pay if you do nothing.
6. Compare like for like, using the total annual cost, not just the unit rate.
7. Check the principal terms, including broker fees and end-of-contract terms.
8. Agree the new contract before the end date, or write to stop a rollover if you are switching.
9. Take a meter reading on the switch date and check your first bill.

When you are ready, you can compare business energy quotes with us.

Frequently asked questions