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Contracts

When to renew a business energy contract

By the Business Savings Guru team. Last updated 28 October 2026.

On this page
  1. The short answer
  2. Why does renewal timing matter so much?
  3. How early can we sign a new contract?
  4. What is a notice period and why is it the real deadline?
  5. What happens if we miss the renewal window?
  6. Should we renew with our current supplier?
  7. How do we keep track of renewals across many sites?
  8. How Business Savings Guru helps
  9. Frequently asked questions
  10. Sources

The short answer

Larger energy users should start reviewing a business energy contract 6 to 12 months before it ends, and earlier still for multi-site or flexible arrangements, so there is time to watch the market and secure a price before the notice deadline. The date that matters most is not the end date but the last day to give notice under your contract. Miss it, and you risk a rollover or out-of-contract rates that are usually far higher than a negotiated price.

Why does renewal timing matter so much?

Business energy contracts are not covered by a price cap, and there is no cooling-off period once you agree a contract, even verbally. The price you lock in depends on wholesale prices on the day the supplier prices your contract. Starting early gives you a choice of days. Starting late means you take whatever the market is offering in the final few weeks, with no time to compare properly.

Timing also protects you from the default outcome. If no new contract is in place, many contracts either roll over onto a new fixed term or move to out-of-contract (deemed) rates. Both are typically more expensive than a contract you negotiate.

How early can we sign a new contract?

Many suppliers will price a contract that starts several months ahead, and some will go further for larger customers. How far ahead depends on the supplier and your consumption, so ask. Signing early does not mean paying for energy early: the new rates start on the day your current contract ends.

As a guide:

  • Single sites with moderate use: start looking around six months before the end date.
  • Larger users and multi-site portfolios: start 9 to 12 months before, so the combined volume can be tendered and compared without rushing.
  • Flexible or basket contracts: buying for a future supply period often starts a year or more ahead, because volume is bought in stages.

What is a notice period and why is it the real deadline?

Most business energy contracts require you to tell the supplier in writing that you will not be renewing on their terms. The contract sets how much notice you must give and in what form. For larger businesses these terms are set by the contract itself, so read the termination clause and diarise the last date to act. If you are unsure, ask the supplier to confirm it in writing.

For microbusinesses, Ofgem's rules add specific protections. The supplier must send a statement of renewal terms ahead of the end of the fixed term (commonly summarised as around 60 days, and no more than 120 days, before the end date). If a microbusiness takes no action, the contract can roll over, but a rollover onto a new fixed term is limited to a maximum of 12 months. Ofgem defines a microbusiness as using no more than 100,000 kWh of electricity or 293,000 kWh of gas a year, or having fewer than 10 employees (full-time equivalent) and turnover or a balance sheet of no more than £2 million.

What happens if we miss the renewal window?

It depends on your contract. Common outcomes are:

  • Automatic rollover onto a new fixed term at the supplier's renewal prices
  • Out-of-contract or deemed rates, which apply until you sign a new contract and are usually much higher
  • Exit fees if you try to leave a rolled-over contract early (check the terms, as these vary)

If you have already missed the window, act straight away. Get the supplier's terms in writing, check whether any rollover protections apply to you, and compare the market.

Should we renew with our current supplier?

Sometimes that is the right answer, but only after comparing. The renewal offer your supplier sends is one price from one supplier on one day. A fair comparison looks at several suppliers on the same basis: the same start date, contract length, consumption, and the same treatment of pass-through costs.

How do we keep track of renewals across many sites?

Build a single list of every meter with its supplier, end date and notice deadline, and set reminders well ahead of each deadline. For multi-site estates, consider aligning end dates so the whole portfolio renews at once. Our guide to how multi-site businesses cut energy costs explains how.

How Business Savings Guru helps

Business Savings Guru records the end date and notice deadline for every meter you hand to us and contacts you well before each window opens. We compare suppliers from our panel of over 20 energy suppliers on the same basis and give you the terms in writing before you agree anything. Our commission is disclosed on the energy contract you sign. We are a member of the Energy Ombudsman (membership number C35ENER126).

Frequently asked questions

How far in advance should a large business renew its energy contract? Start 9 to 12 months before the end date. That gives time to tender the volume and pick a good day to fix.

Is there a cooling-off period on business energy contracts? No. Ofgem is clear that business energy contracts have no cooling-off period, and a verbal agreement can be binding.

Will signing early mean we pay more? Not necessarily. You pay the price on the day the contract is priced, which can be higher or lower than later. Signing early removes the risk of being forced to fix at a bad moment near the deadline.

What are out-of-contract or deemed rates? They are the rates a supplier charges when you have no contract in place. They are usually much higher than negotiated rates, so moving off them should be a priority.

Can our current supplier stop us leaving? A supplier can object to a switch in some circumstances, such as unpaid debt, and you must follow the notice terms in your contract. Check the contract and keep a written record of any notice you give.

Sources