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Is your current business electricity contract coming to an end? Are you unhappy with the tariff you’re presently on?
We have put together this guide to provide you with all the help and advice you need to successfully cancel your business electricity contract. We can also help you switch suppliers who can better suit your needs.
Terminating your business electricity contract is important as it helps to prevent you from being charged expensive rollover rates from your supplier. It’s estimated that rates can increase by 30%-100% on a default rollover contract! Your supplier can also bind you into this new, more expensive contract if you fail to terminate in time.
Expensive rates lead to even more expensive gas and electricity bills, which can cause your business overheads to be unnecessarily high.
To keep your business expenses as low as possible and maximise profits, we recommend terminating your electricity contract when it is up for renewal and comparing business electricity prices to find a cheaper deal.
The process of cancelling a business electricity contract is typically more complicated than terminating a domestic electricity contract. Businesses are usually tied into their electricity contracts for a longer length of time (usually at least 12 months). It can often be longer. Businesses cannot cancel their deal before the end of their contracted period.
However, businesses can agree terms of their next electricity contract to lock in cheaper deals. This is known as the renewal window. There is also no cooling-off period for business electricity tariffs.
If your supplier does allow you to cancel your contract before its renewal date, you are likely to have to pay a large cancellation fee.
If you’d like to terminate your business’ electricity contract, there are a few steps that you’ll need to take. These include:
If your company is considered a microbusiness, your electricity supplier is required to send you a renewal letter at least three months prior to your renewal date. This document will include details about your current tariff, its renewal date and your options in terms of cancellation or continuing with your existing supplier.
If your business is not considered a microbusiness, the onus is on you to remember your contract’s renewal date and organise a termination or supplier switch.
Sending a termination letter to your supplier is the most effective way to cancel your electricity contract. You can do this via email or post. Just ensure that you set delivery receipt alerts if you choose to send an email, and get recorded delivery if you send the letter by post.
Additionally, most suppliers require you to send your termination notice at least 30 days prior to your contract’s end date. Any later than this could lead to you being placed on an expensive rollover contract.
If you’d like to save yourself the hassle of sending a termination letter, you could switch electricity suppliers with Business Electricity Prices. If you provide enough notice, we’ll terminate your current electricity contract and manage your switch to a new supplier.
To find out how much you could save, compare electricity quotes with Business Electricity Prices.
If you opt to terminate your contract yourself, here are some of the details you should include in your termination letter:
Below is an example of a termination letter template:
To Whom It May Concern,
To: Your electricity supplier’s address
From: Your name, company name and registered business address
Please accept this letter as formal notice of the termination of the electricity contract [contract number]. This notice is for meter numbers MPAN/ MPRN, registered at the address quoted at the top of this document. This termination notice is set out in accordance with the terms and conditions of the contract and is to take effect as of the contract end date.
Please confirm in writing you have received this notice of termination.
Your Company Name.
Once you’ve sent your termination letter to your old supplier, you can begin to compare electricity deals on the market to find a cheaper tariff for your business gas and electricity.
Be aware that comparing electricity tariffs can be a difficult and timely process if you choose to do it on your own. However, here at Business Electricity Prices, we aim to make it as simple as possible for you to find the best electricity deal for your company. We also seek to make the switching process easy and seamless.
Try our free online electricity comparison engine today to find the best business electricity deals on the market.