How easy is it to switch energy supplier for your business?

According to Ofgem’s latest research, more businesses are reaching the end of their energy contracts – and not always with a plan. In fact, 39% of businesses had a contract end in the past 12 months. Worryingly, 1 in 5 of those were automatically rolled onto an out-of-contract rate, often far more expensive than their previous deal.

If you’re not actively managing your business energy contracts, there’s a real chance you’re paying more than you should. Whether you’re out of contract, thinking about switching, or just want to line everything up more efficiently – here’s what you need to know about switching business energy suppliers

What happens when a business contract ends?

When your energy contract ends, your supplier may automatically move you onto a deemed or out-of-contract rate. These rates are typically much higher and can quietly eat into your overheads without you noticing.

Here’s what Ofgem’s “Businesses’ experiences of the energy market 2024” report found:

• 20% of businesses ended up on an out-of-contract rate
• 13% went onto a deemed contract
• 7% were offered new rates they simply couldn’t afford
• 2% were asked to pay a security deposit they couldn’t meet

The result? Many businesses are paying more than they need to, often without realising it. Staying on top of your energy contract is essential to avoid being penalised with inflated rates.

Why switch your business energy supplier?

Switching your energy supplier could make a big difference to your business.

Here’s why:

• Lower costs: Secure better rates and avoid being rolled onto expensive out-of-contract rates
• Improved service: Work with a supplier focused on business needs
• Sustainability goals: Access renewable energy options to align with your business’s values

Many businesses don’t realise they’re overpaying until it’s too late. Staying proactive can protect your cashflow and give you greater certainty over future energy costs.

How to switch your business energy supplier

Switching is far easier than most business owners expect, especially when we handle it for you.

1. Review your current energy contract

Before making any changes, look at:

• Your contract’s end date.
• Notice periods or termination clauses.
• If you’re on a deemed or out-of-contract rate.

2. Compare business energy quotes

Before you compare deals, it helps to gather a few key details. Having the right information to hand will make the process smoother and ensure your quote is accurate:

• Your current supplier and contract end date
• A copy of your latest energy bill (for usage and pricing info)
• Number of meters or sites (if you operate from more than one location)

Once you’ve gathered this, you can start comparing quotes.

Your new supplier will assess pricing options based on your usage, location, and business size.

• For companies with multiple sites, UGP can offer group pricing, align contract dates, and provide consolidated billing – saving you time and helping you manage everything under one roof.

Take time to explore what’s out there. Different suppliers offer varying rates, contract lengths and support levels. Consider whether you want to go direct or use an energy broker.

For an estimated quote, you can use our quote calculator to get the ball rolling!

3. Accept your new contract

Once you’ve found a deal, all you need to do is sign up. Your new supplier will coordinate the switch and take care of the details.

4. Seamless switching with UGP

At UGP, we handle the entire process so you can focus on running your business. There’s no disruption to your energy supply, just a smoother, more cost-effective service.

Brokers vs direct suppliers: Which is right for you?

Brokers can save time by comparing deals across multiple suppliers, which is useful if you don’t have internal resource.

However, they may charge commission or direct you toward preferred partners. Going direct gives you more control and transparency – especially if you already know what you’re looking for. At UGP, we deal with businesses directly, so you benefit from straightforward advice, a dedicated account manager, and fewer layers between you and your supplier.

Common questions about switching business energy suppliers

1. Can I switch suppliers mid-contract?

You may be able to, but some contracts carry exit fees. It’s worth reviewing your agreement or asking us to help.

2. Will my energy supply be interrupted?

No , your business won’t experience any downtime during the switching process.

3. Can I switch multiple sites to one supplier?

Yes. UGP specialises in working with businesses that manage more than one site. We’ll align your contracts and consolidate billing where possible, making energy management simpler, cleaner and easier to control. Whether you operate across two locations or twenty, we make switching stress-free.

4. What about renewable energy?

We offer 100% renewable business energy options, backed by REGO certificates.

5. Should I choose a fixed-rate or variable business energy tariff?

Fixed-rate tariffs give you price certainty, making it easier to plan your budgets. Variable tariffs can follow the market – which means potential savings, but also more risk if prices rise. Talking out your options with our energy experts can help you confidently make an informed decision.

6. What if I owe money to my current energy supplier?

You can still switch, but any outstanding balance will need to be settled with your current supplier. We’ll help guide you through the process and flag any issues that could delay the switch.

Ready to switch your business energy supplier?