If your business electricity or gas contract ends in the next 12 months, it is worth reviewing your renewal options now rather than waiting until the final few weeks.
Business energy prices can move quickly, and leaving a renewal too late can reduce your options or, worse, result in your business moving onto expensive out-of-contract or rollover rates.
With wholesale energy prices remaining volatile as we head towards winter 2026/27, having a clear renewal strategy can also make budgeting for 2027 considerably easier.
In this guide, we explain:
- When you should start looking at your business energy renewal
- What happens if your energy contract expires
- How to compare renewal quotes properly
- Whether you should fix now or wait
- How to choose between a 1, 2 or 3-year contract
- What businesses with multiple sites should consider
- How rising charges could affect your 2027 energy budget
- The steps you can take now to avoid expensive out-of-contract rates
At WeSave, we can obtain business electricity and gas renewal prices up to 12 months before your existing contract ends, giving you plenty of time to understand your options without any pressure to make an immediate decision.
What happens if my business energy contract expires?
There is no single perfect time to renew a business energy contract.
However, waiting until your existing agreement is almost finished can be risky.
Many business energy suppliers allow new contracts to be agreed months before the existing contract ends. At WeSave, we can generally obtain renewal pricing up to 12 months in advance.
Importantly, agreeing your next contract early does not normally mean leaving your existing supplier early.
Your current contract continues until its agreed end date, with the new contract beginning afterwards.
A sensible approach is:
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Time until contract ends
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What to consider
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9–12 months
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Start reviewing the market and understand current pricing.
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6–9 months
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Obtain renewal quotes and compare available terms.
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3–6 months
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Actively consider securing your next contract.
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1–3 months
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Avoid unnecessary delays and check supplier switching times.
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Final few weeks
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Act quickly to reduce the risk of moving onto expensive out-of-contract rates.
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This doesn’t mean that every business should automatically sign a contract 12 months early.
It simply gives you more time to monitor prices and make a considered decision.
What is happening with business energy prices now?
Business energy prices remain elevated as we move into the final quarter of 2026.
Wholesale gas and electricity markets have experienced significant volatility during recent months, with geopolitical tensions in the Middle East, disruption to global energy supplies and concerns around European gas storage all influencing prices.
Gas is particularly important because gas-fired generation continues to play a significant role in producing UK electricity. As a result, higher wholesale gas prices can also feed through into electricity prices.
This doesn’t mean energy prices will simply increase every day.
Wholesale markets continually move up and down.
However, it does mean businesses approaching renewal should be cautious about assuming prices will automatically become cheaper by waiting.
For the latest market position, see our Business Energy Prices – October 2026 update.
What happens if my business energy contract expires?
This is one of the most important reasons not to leave your renewal until the last minute.
Depending on your existing contract and supplier, reaching the end of your agreement without arranging another contract could result in your business being placed onto:
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Out-of-contract rates
Some suppliers automatically move businesses onto out-of-contract rates when a fixed contract expires and no replacement contract has been agreed.
These rates are usually considerably more expensive than negotiated fixed-contract prices. Ofgem specifically warns businesses that out-of-contract rates are generally more expensive than fixed-term contracts.
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Rollover contracts
Certain business energy contracts may automatically renew if you do not make alternative arrangements before the contract ends.
The new contract could be for another fixed period and may be at a higher price.
Ofgem states that rollover arrangements can typically last for 12 months, with additional protections applying to qualifying microbusinesses.
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Deemed rates
A deemed contract is slightly different.
These commonly apply where a business moves into premises and starts consuming energy without first arranging a contract with the existing supplier.
Deemed rates can also be significantly more expensive than an agreed business energy contract.
The terminology is sometimes used interchangeably, but the important point is the same:
Don’t assume your existing contract will simply continue on the same favourable terms after its end date.
How can I avoid business energy rollover or out-of-contract rates?
The process doesn’t need to be complicated.
1
Check your contract end date
Start by confirming when your existing electricity or gas contract finishes.
You can normally find this on your supplier’s invoice, online account or renewal correspondence.
If you’re unsure, WeSave can often establish this for you.
2
Find your MPAN or MPRN
For electricity, you’ll need your MPAN.
For gas, you’ll need your MPRN.
These identify the individual energy supply and allow suppliers to produce accurate pricing.
3
Check your annual consumption
Your annual electricity or gas consumption is one of the biggest factors determining your quote.
Don’t compare contracts using unit rates alone.
A tariff with a slightly lower unit rate could still cost more overall if it has a much higher standing charge.
4
Check whether notice needs to be given
Different contracts can have different termination provisions.
Microbusinesses receive additional protections under Ofgem’s rules. For example, termination notice periods on evergreen contracts are limited to 30 days.
Never assume, however, that every business contract operates in exactly the same way.
Check the terms of your existing agreement before making changes.
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Compare the market
Once you know your usage and contract dates, compare your existing supplier’s renewal offer against alternatives.
WeSave works with more than 20 leading business energy suppliers, including major and independent suppliers.
Staying with your current supplier can sometimes be the best option.
But you won’t know until you’ve compared it.
Compare now for free
How should I compare a business energy renewal quote?
One of the biggest mistakes businesses make is comparing unit rates alone.
The cheapest unit rate does not necessarily produce the cheapest annual bill.
At a minimum, compare:
- Unit rate or rates
- Standing charge
- Estimated annual cost
- Contract length
- Payment method
- Contract start date
- Supplier
- Any additional charges or conditions
For a simple single-rate electricity contract, the basic calculation is:
Annual electricity cost = annual kWh × unit rate + 365 × daily standing charge
The same principle applies to gas.
For multi-rate electricity meters, each consumption period — such as day and night — needs to be calculated separately.
Other charges may also apply depending on the meter and contract.
This is why we normally show customers the estimated annual cost alongside the individual rates.
It provides a much clearer like-for-like comparison.
Should I renew my business energy contract now or wait?
This is probably the most common question we get asked.
Unfortunately, nobody can predict wholesale energy markets with certainty.
Prices can move because of:
- Global gas supply
- LNG availability
- Geopolitical events
- Weather forecasts
- European gas storage
- Renewable generation
- Electricity demand
- Currency movements
- Network and policy costs
Waiting can work in your favour if markets subsequently fall.
But the opposite is equally true.
Reasons you may choose to fix earlier
Securing a contract earlier may make sense if:
- Current prices work within your budget
- Cash-flow certainty is particularly important
- Your contract ends during winter
- You don’t want exposure to further market increases
- You’re managing multiple sites
- You want to know your likely energy costs for 2027
Reasons you may decide to wait
Waiting could make sense where:
- Your renewal is still several months away
- You believe current pricing is temporarily elevated
- You are comfortable accepting the risk of prices moving higher
- You want to continue monitoring wholesale markets
This is why starting the process early is useful.
You can understand what is available without necessarily committing immediately.
Use our handy renewal calculator here
Is it better to fix business energy for 1, 2 or 3 years?
There isn’t one contract length that suits every business.
The right term depends on your priorities and your view of the market.
1-year business energy contract
A one-year contract provides the greatest flexibility.
It may suit businesses that don’t want to commit to today’s prices for several years or believe the market could improve before their next renewal.
The downside is that you will need to go through the renewal process again sooner and could face higher prices when the contract ends.
2-year business energy contract
Two years can provide a useful middle ground.
You get longer-term budget certainty without committing for as long as a three-year contract.
Depending on supplier pricing, a two-year option can sometimes also offer better annual value than the equivalent one-year product.
3-year business energy contract
A three-year contract provides the greatest long-term certainty.
For a business where energy represents a meaningful operating cost, knowing your contracted rates for several years can make financial planning considerably easier.
However, if wholesale prices subsequently fall considerably, you’ll generally remain committed to the contract you signed.
That’s why we usually recommend comparing the actual annual cost of each term rather than automatically choosing the shortest or longest available contract.
Don’t forget the costs beyond wholesale energy
Wholesale energy receives most of the attention when prices rise, but it is only part of a business energy bill.
Other costs can include:
- Network charges
- Metering costs
- Environmental and policy costs
- Climate Change Levy
- Transmission charges
- Capacity charges for some half-hourly supplies
- Supplier operating costs
These can change independently of wholesale energy prices.
Climate Change Levy increases in April 2027
The standard Climate Change Levy rate for electricity and natural gas is currently 0.801p per kWh.
From 1 April 2027, this will increase to 0.827p per kWh.
For a business using 100,000 kWh per year, for example, that represents another policy-driven cost to factor into future energy budgets.
Certain businesses may qualify for exemptions or reduced rates, so CCL should be considered separately from the actual contracted supplier unit rate.
Transmission and network costs
Businesses should also be aware that electricity network charges continue to evolve.
National Energy System Operator (NESO) is already publishing forecasts relating to 2027/28 Transmission Network Use of System (TNUoS) tariffs, highlighting why future energy costs cannot be assessed from the wholesale market alone.
What about the Nuclear RAB Levy?
The Nuclear Regulated Asset Base Levy is another policy-related electricity charge businesses may now see reflected within their energy costs.
Although individually these charges can look relatively small compared with wholesale electricity prices, they become more significant for higher-consumption businesses.
Understanding them also helps explain why supplier prices do not always fall by exactly the same amount as wholesale markets.
You can read our Nuclear RAB Levy guide and calculator for more information on how the charge works and what it could mean for your business.
Business energy renewal checklist for 2027
If your contract ends during the next 12 months, this is a useful checklist.
Contract information
- Current electricity supplier
- Current gas supplier
- Contract end dates
- Existing unit rates
- Existing standing charges
Meter information
- Electricity MPAN
- Gas MPRN
- Meter type
- Half-hourly status, where applicable
- Agreed capacity/kVA for relevant meters
Consumption
- Annual electricity consumption
- Annual gas consumption
- Day/night split for multi-rate meters
- Any expected changes in usage
Business plans
- Moving premises?
- Installing solar?
- Adding EV charging?
- Expanding operations?
- Reducing opening hours?
- Purchasing energy-intensive equipment?
Changes like these can materially affect which tariff is most suitable.
Multi-site business? Consider aligning your renewal dates
Energy procurement becomes more complicated when a business has several sites with different contract end dates.
One option is to gradually align contracts so that multiple meters renew at the same time.
Potential advantages include:
- Fewer renewal dates to manage
- Easier budgeting
- Simplified administration
- Ability to tender a larger combined portfolio
- More consistent contract terms
- Easier comparison between suppliers
This may involve using carefully selected shorter contract terms for individual meters until they can be brought onto a common renewal date.
For businesses with significant electricity and gas consumption across multiple locations, we can also approach suppliers for bespoke portfolio pricing rather than relying solely on standard tariffs.
Half-hourly electricity users need to look beyond the unit rate
Larger electricity users with half-hourly meters may have additional considerations.
These can include:
- Agreed supply capacity (kVA)
- Excess capacity charges
- DUoS charges
- TNUoS exposure
- Meter operator charges
- Data collection charges
- Reactive power charges
It is worth checking these before entering a new long-term agreement.
For example, if your agreed capacity is substantially higher than your site actually requires, you could potentially be paying unnecessarily for capacity.
Equally, setting the capacity too low could expose you to excess charges.
Can I choose renewable business electricity?
Yes.
Many business electricity suppliers now offer renewable electricity products supported by Renewable Energy Guarantees of Origin (REGOs).
Some suppliers include renewable electricity within particular tariffs at no additional charge, whereas others offer it as a separate product.
If renewable energy is important to your business, compare:
- Total annual cost
- How the electricity is sourced
- Whether REGOs are included
- Supplier fuel-mix information
- Any documentation you require for sustainability reporting
The important thing is to look beyond the word “green” and understand exactly what the product provides.
You can find out more in our renewable business energy procurement guide.
What if I’m already out of contract?
Don’t panic – but don’t ignore it either.
If your fixed business energy contract has already ended, first establish:
- Which tariff you’re currently on
- Your current unit rate
- Your current standing charge
- Whether any notice requirements apply
- How quickly a new contract can start
If you’re paying out-of-contract rates, even a relatively short delay can become expensive on a high-consumption supply.
You should therefore compare available contracted rates as soon as possible.
How WeSave can help with your business energy renewal
At WeSave, we help businesses compare commercial electricity and gas contracts across more than 20 leading UK suppliers.
We’re an independent business energy consultancy rather than an energy supplier, so the aim is straightforward: find the most appropriate deal available for your business and explain the options clearly.
We can help with:
- Business electricity renewals
- Business gas renewals
- Current supplier renewal comparisons
- New supplier comparisons
- Multi-site portfolios
- Half-hourly electricity supplies
- Renewable electricity and green gas
- Bespoke pricing for higher-consumption businesses
- Supplier liaison
- Contract administration
- Renewal reminders
And once your contract is arranged, we’re still here if you need support during the contract term.
Get your free quote now
Frequently asked questions about business energy renewals
How far in advance can I renew my business energy contract?
Depending on the supplier and contract, business energy prices can often be obtained many months before your existing contract ends.
At WeSave, we can normally obtain renewal prices up to 12 months ahead.
The new contract would then usually start once your existing agreement finishes.
Should I renew my business energy contract early?
There is no universal answer.
Renewing early can provide budget certainty and protection against future price increases, while waiting could benefit you if wholesale energy prices fall.
Starting the comparison early gives you more time to make that decision.
What happens if I don’t renew my business electricity contract?
Depending on your supplier and existing terms, you could move onto an out-of-contract rate or rollover arrangement.
Ofgem warns that out-of-contract and deemed rates are generally more expensive than negotiated fixed-term contracts.
Can my business energy contract automatically renew?
Some business energy contracts can have rollover or evergreen provisions.
Check the terms of your agreement carefully before it expires.
Qualifying microbusinesses receive additional protections under Ofgem rules.
Do business energy contracts have a cooling-off period?
Unlike most domestic energy contracts, there is generally no cooling-off period after agreeing a business energy contract.
Ofgem specifically advises businesses to make sure they understand the contract before agreeing to it.
Is the cheapest unit rate always the best business energy deal?
No.
The standing charge, consumption profile and other contract charges can make a tariff with a lower unit rate more expensive overall.
Always compare the estimated annual cost.
Can I stay with my existing energy supplier?
Absolutely.
Switching supplier isn’t automatically better.
We can compare your existing supplier’s renewal prices alongside alternative suppliers so you can see which works out best.
Can I renew my electricity and gas separately?
Yes.
There is no requirement to place electricity and gas with the same supplier.
In some cases, the best electricity price may come from one supplier while another provides the best gas price.
What is the best business energy contract length?
There isn’t one term that is best for everybody.
A one-year contract offers more flexibility, while two or three-year contracts provide longer-term certainty.
The most suitable term depends on pricing, your appetite for risk and how important predictable costs are to your business.
Planning your business energy costs for 2027
Energy prices remain difficult to predict.
Wholesale markets can change quickly and wider network, policy and environmental costs continue to evolve.
The best protection isn’t trying to perfectly predict the bottom of the market.
It’s giving yourself enough time to understand your options.
If your electricity or gas contract ends within the next 12 months, you can ask WeSave to compare your current supplier’s renewal offer against the wider market.
We’ll provide a clear, side-by-side comparison showing the rates, estimated annual costs and contract terms available to you.
No pressure, no call centres and no obligation to proceed.
Ready to compare your business energy renewal?
Send us a recent electricity or gas bill, or your supplier’s renewal quote, and we’ll compare it against prices available from more than 20 leading business energy suppliers.
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