Although it’s certainly true that switching suppliers after comparing different tariffs can save you money, there are a number of switching factors you should consider. For example, it’s worth remembering that if you have to pay a penalty exit fee to your existing supplier in order to make the switch, the saving you stand to make may not be worth it. This will all come down to what type of contract you currently have.
If you are on a standard variable tariff, then you are free to switch energy suppliers at any time without having to pay an exit or cancellation fee. However, if you are on a fixed-term contract, you are likely to incur an exit free if you wish to switch suppliers. Typically, when it comes to domestic energy, most suppliers offer customers fixed-term plans before moving them onto their standard variable tariff when the contract is set to expire. This move from a fixed to variable tariff usually sees your bills go up, but gives you the freedom to switch to a new supplier that may offer better rates.
Unlike domestic energy contracts, the fact that the vast majority of business energy contracts in the UK are fixed-term tariffs means that switching can be slightly more tricky. This is because rather than your current supplier moving your business onto a standard variable tariff at the end of your fixed-term contract, typically your existing contract will just renew automatically. This means if you do not keep an eye on the expiration date of your business’ energy contract, and/or fail to comply with the specific notice period procedure outlined, you could be locked into another fixed-term deal, often with increased rates. If this is the case and you are still looking to switch, a penalty exit fee will likely have to be paid to free you from your contract.
To switch business energy suppliers without having to pay a penny, you simply need to confirm the official end date of your current contract and ensure you send a termination letter before the agreed notice period outlined in your deal begins. Once your termination has been confirmed, you can then source a new energy supplier without having to pay for the switch.