Exiting a Business Energy Contract via Change of Tenancy

A genuine change of tenancy ends your responsibility for a business energy supply when you actually leave the premises. Because a business energy contract is tied to the meter at a specific site, your liability stops on the day you hand over: when the lease ends, the property is sold, or your business relocates or closes. This only works when you are truly leaving. It is not a way to walk away from a contract while you carry on trading at the same address.

How a change of tenancy actually works

Business energy is supplied to a meter, not to you personally. When you stop being the occupier of that property, you stop being responsible for the energy used there. A change of tenancy, sometimes called a change of occupancy or change of occupier, is how you tell the supplier that the responsibility for the meter is passing to someone else, or simply that you have gone.

Your liability runs up to the handover date and covers any genuine final charges for energy you used before that point. After the handover, the next occupier becomes responsible. Until they agree their own contract, they usually fall onto the supplier's deemed rates, which tend to be higher than negotiated rates. That is the supplier's standard arrangement, not something you need to sort out for them.

The steps to do it properly

Getting this right protects you from being chased for energy used after you left. Follow these steps:

• Notify the supplier in advance. Many contracts ask for a notice period, but check yours, as the period varies.
• Give the exact move-out or completion date.
• Take final meter readings on the handover day. Photograph the meter with a clear view of the readings and the date if you can.
• Provide a forwarding address so the final bill reaches you.
• Supply evidence that you are leaving. This might be the tenancy end date, a solicitor's completion letter for a sale, or the incoming occupier's details if you have them.

Many suppliers have a dedicated change of tenancy or change of occupancy form, or a specific team that handles it. Using their process usually speeds things up and gives you a record. Keep proof of everything: emails, reference numbers, the date you gave notice, and your final readings.

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The limit you need to understand

A change of tenancy does not release you from a fixed term contract while you stay put and keep trading. If you signed a fixed term and then leave early, the supplier may still apply early termination charges or pursue you for the remainder of the term. Whether they can, and how much, depends on the contract you agreed, so read it before you act.

Where this is genuine, the early termination question often falls away, because you no longer occupy the site and the contract for that meter ends naturally on handover. But suppliers will check that the move is real. If they think you are using a change of tenancy to dodge a live contract at premises you still occupy, they can refuse to close the account and may bill you as normal. Be straight with them and have your evidence ready.

Your situation may be slightly different. ask a question below ↓ and our editorial team will reply with our advice.

If something goes wrong

Disputes can happen, for example if the supplier keeps billing you after you left, or applies charges you think are wrong. Raise a formal complaint through the supplier's complaints process first and keep it in writing. If they do not resolve it within the timescale set out in their procedure, or they send a deadlock letter, you can take it to the Energy Ombudsman. The Ombudsman's decision is free for you and binding on the supplier.

If you are a microbusiness, you have extra protections under Ofgem's rules, including clearer information and complaint handling. Check whether your business qualifies, as the definition is based on factors like employee numbers and energy use or turnover.

Rules and protections can change, and some arrangements differ in Scotland and Wales. For the current position, check Ofgem and GOV.UK before you rely on anything here.

Quick questions

Do I still pay if the new occupier never sets up a contract? No. Once you have genuinely left and given the supplier your final readings and handover date, energy used after that point is the next occupier's responsibility, usually on deemed rates.

What if I do not know who is moving in? You can still close your account. Give your move-out date, final readings and forwarding address, and explain the premises are vacant or being handed back to the landlord.

Can my landlord help? Yes. A landlord can confirm the tenancy end date and may take over the supply between tenants, which can support your case with the supplier.

If you are staying at the premises but want to leave your deal, read whether you can cancel a business energy contract. If your contract is simply reaching its end date, see how to give notice to a business energy supplier.

The Next Step

Now that you have read through the advice above, you might want to put it into practice. Our Out of Contract Energy Rate Checker lets you find out if your business is stuck on expensive out-of-contract energy rates, and how to escape. Try it now →