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Writer's pictureTom McGlynn

How long does it take to switch business energy contracts?

Updated: May 2, 2023



We are seeing an increase in customers who are still unaware of the Faster More Reliable Switching (FMRS) introduced by Ofgem last year.


Previously you may have been told you need to agree a new contract 28 - 30 days before your contract ends which has been vastly improved! It now only takes 2 - 5 working days to change suppliers, giving you longer to assess the market to obtain the best prices for your business.


If you have any contracts coming up, do not feel pressured into agreeing a contract via another broker / supplier - particularly if you have a little while left on your contract to run - even up to 2 weeks away!


While the energy market is still volatile, prices have fallen dramatically from prices we have seen from August 2022 to December 2022.


What else is new?


For SME businesses, you no longer have to serve 'Termination' to your supplier to let them know your intention of agreeing a new contract with a potential new supplier. In years gone by, the termination window was sometimes up to 3 months before your contract ended - if this was missed, your supplier could 'auto roll' your contract on their standard variable contract which you may have been stuck in, for up to 12 months!


Ofgem are bringing in these reforms to make it easier for businesses to switch, with less hassle and essentially saving them money, should they find that they are 'out of contract' for any reason!


What else is coming?


For SME business, there will soon be a 'cooling off' period in which you can cancel signed contract before they have gone live. This is now yet live so full details will be published when we have more information on this, the terms and when it comes into play!


 


0151 459 3388 | info@smart-energy.uk



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