Switching energy suppliers can feel daunting, but for small businesses it’s one of the most effective ways to cut overheads. The process is far simpler than many think, and with energy bills making up a significant portion of business costs, reviewing your options regularly is essential.
Why switch business energy suppliers?
- Lower costs – securing a better tariff can reduce annual bills significantly.
- Improved service – some suppliers offer dedicated business support and account managers.
- Green options – many suppliers now provide renewable tariffs that support sustainability goals.
- Contract flexibility – switching can give you access to different contract lengths and terms that suit your business needs.
Step-by-step guide to switching
1. Review your current contract
Check your existing tariff, end date, and notice period. Most business energy contracts include a “switching window” — typically 6 months before the end date — when you’re free to arrange a new deal.
2. Compare energy suppliers
Use a business energy comparison service or approach suppliers directly. Key points to compare include:
- Unit rates (pence per kWh)
- Standing charges (daily fees)
- Contract lengths and flexibility
- Renewable energy options
- Customer service ratings
3. Get a quote
Provide your business details, including postcode, annual energy consumption (kWh), and current supplier information. Accurate usage figures help you get the most competitive quotes.
4. Choose your new supplier
Select a deal that balances cost, contract terms, and service reliability. Remember that the cheapest rate isn’t always best — customer service and contract flexibility also matter.
5. Notify your current supplier
Once you agree on a new contract, your new supplier usually manages the handover process, including informing your old supplier. You’ll need to provide a final meter reading to ensure accurate billing.
6. Complete the switch
Most business energy switches take 4–6 weeks to complete. There should be no disruption to your supply during this period.
Common pitfalls to avoid
- Exiting early – leaving a fixed contract before the end date can incur penalties.
- Rolling onto out-of-contract rates – these are often much higher, so plan your switch in advance.
- Not comparing enough suppliers – relying on just one quote may mean missing out on better deals.
Final verdict
Switching energy suppliers for your small business is easier than it seems and can lead to significant savings. By comparing options, timing your switch carefully, and avoiding common pitfalls, you can take control of your energy costs and keep more money in your business.
FAQs – How to switch energy suppliers for small business
Most business energy switches take 4–6 weeks from the date you agree to a new contract. There is no disruption to your supply during this process.
You usually can’t switch mid-contract without paying exit fees. Most businesses wait until their renewal or “switching window” — typically within the last 6 months of the contract.
No. Your energy is delivered through the same pipes and cables, regardless of supplier. Only billing and account management change.
You’ll need your business postcode, current supplier details, contract end date, and annual usage in kilowatt-hours (kWh). This information is usually available on your latest energy bill.
Yes. Many SMEs reduce their bills by 20–30% when they compare the market and move to a more competitive deal. The exact saving depends on usage and timing.