This website uses cookies to ensure you get the best experience on our website. Find out more.

Business Energy Contract Termination Guide

Are you unhappy with your current energy tariff? Are you paying more than you’d like to for your business gas or electricity?

If so, you could terminate your energy contract when it is up for renewal and find a better energy deal for your needs.

In this guide, we’ll take you through the process of terminating your energy contract and highlight how you can ensure that you get a better deal for your business energy.

Reasons for terminating your business energy contract

The main reason why businesses should terminate their energy contracts and switch suppliers when their tariff is up for renewal is to avoid expensive rollover rates.

If you fail to switch suppliers or negotiate new rates with your current provider, they can place you onto a default tariff for a fixed amount of time. It’s estimated that energy rates can increase by 30%-100% on a default rollover contract!

To avoid expensive rates for your business energy, we recommend terminating your current energy tariff when it is up for renewal and comparing energy deals on the market to find a cheaper deal.

Your energy bills could end up being even lower than they were before!

Terminating a business energy contract vs. cancelling a domestic energy contract

The process of cancelling a gas or electricity contract for a business is slightly more complicated than it is for domestic energy contracts.

Business contracts usually last for a longer period of time (typically a minimum of 12 months) and you aren’t permitted to cancel the contract before the opening of its renewal window.

Additionally, there is no cooling off period for business energy contracts. It is essential that you make a suitable choice when signing up to a new deal.

On the odd occasion that your supplier does allow you to terminate your contract before its renewal, you are likely to be charged an early exit fee.

How to terminate your business energy contract

If your current energy contract is up for renewal and you’d like to terminate the agreement, we recommend that you complete the following steps:

1. Look out for your renewal letter

If your business is considered to be a micro business, your supplier is legally obligated to send you a renewal letter at least three months prior to your contract’s end date.

If your business meets any of the below criteria, it could be considered a micro business:

  • It has less than ten employees
  • It has a yearly turnover or balance sheet of no greater than €2 million
  • Its annual electricity consumption is no more than 100,000 kWh
  • Its yearly gas consumption does not exceed 293,000 kWh

The renewal letter will inform you of your options in terms of contract termination and renewal. It will also feature information about your tariff and your estimated annual usage. You should make a note of this figure as it will help you compare deals on the market if you choose to switch suppliers.

If your business is not considered a micro business, it is your responsibility to remember your renewal date and terminate your contract in time. If you’re unsure of your contract’s end date, you should be able to find this information on a recent bill. Alternatively, you can contact your supplier for this information.

2. Send your current supplier a termination letter

If you want to terminate your energy contract, you’ll need to contact your supplier and inform them that you no longer require their services. A renewal letter is an effective way of doing this.

You can send this notice via email or post, and you should use a company headed document where possible. If you choose to send the letter via email, ensure that you set delivery receipt alerts to ensure that it is delivered. Likewise, we recommend using recorded delivery if you decide to send it via post.

It is a common requirement for your termination letter to be send at least 30 days prior to your contract’s end date. Sending it any later could result in you being rolled over to a more expensive contract. You should therefore aim to send the letter as soon as your renewal period opens.

Composing your termination letter

When writing your termination letter, you should include the following details:

  • Your energy account number
  • Your meter number
  • A signature from someone that the energy provider will recognise as being associated with your company.
  • The document should feature your business’ letterhead, or at least be sent from a business email address.

Here’s an example of a termination letter template:

Dear Sir/Madam,

Your energy provider’s address
Your name, company title and your business’ registered address

This is formal notice of the termination of energy contract [contract number]. This notice is for meter numbers MPAN/ MPRN, registered at the address quoted at the top of this letter.

This 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 that you have received this notice of termination.

Yours faithfully,
[Your name]
[Your role]
[Company Name]


3. Compare energy deals

Once you’ve sent your termination letter to your current supplier, you can begin to compare energy deals. This is the best way to find a better deal for your business gas and electricity.

Comparing energy tariffs can be a time-consuming and confusing task. But not to worry, here at British Business Energy, we can help you find the cheapest deals on the market in no time!

Simply enter your business’ postcode, contact details and some brief information about your energy needs into our free comparison engine, and in just a few minutes, we’ll send you a quote with a list of suitable energy tariffs.

Our energy experts will also be on hand to answer your questions and guide you through the supplier switching process. Give our free business energy comparison tool a try today!

Why pay more for the same energy? 
Keep your business energy bills low

Find your latest energy deal in less than 30 seconds


Find the Latest Deals 

Secure business energy quotes in under 30 seconds from a range of trusted UK energy suppliers.

Compare energy deals in 30 seconds