How to cancel an electricity contract

Cancel an electricity contract – some tips

You would like to cancel your electricity contract, because you are coming to the end of your contract and want to switch to another electricity supplier. Read this guide to ensure you cancel your electricity contract correctly, to avoid delays and higher charges.

Please note, this guide is for business energy contracts. Domestic energy contracts rarely need terminating, but you should check your terms and conditions to be safe.

Going back a few years, it was imperative that businesses logged a termination notice with their business energy supplier within a certain window. Failure to do so often meant the electricity company would simply roll them onto another 12 months at higher prices. All this would have been in the small print of the contract signed by the customer.

Have you been mis-sold a business electricity contract? We have some advice here for small businesses who may have been mis-sold an energy contract.

If you are now looking for a new electricity contract, please see our small business electricity prices.

Moving business premises? Read our advice on managing your energy contracts when moving premises and the mistakes to avoid.

Making it easier to cancel an electricity contract

However, OFGEM have cracked down on this in recent years. Plenty of electricity suppliers will not roll business customers onto new contracts anymore, if they do not receive a termination notice. Instead, they will put the business on a variable rate contract. This will still be a higher rate, but the customer can leave with 30 days notice.

However, there are more than 30 energy companies in the business sector, and some still require notice. Therefore you should check with your energy company, or call us for advice on 020 3372 6517.

Steps to cancel a business electricity contract

  1. Find out your deadline to terminate the electricity contract
    Check your terms and conditions. If you can’t find them, call your electricity supplier (or broker). This will usually be 30 days before the end of your electricity contract.
  2. Log termination with your electricity supplier
    As long as the cut off date is in the future, you can send a termination notice to your supplier at anytime. This will ensure that you are free to switch supplier at the end of your contract. Check with your supplier the address this needs to be sent to. Or call us for advice.

What to include in a termination notice

This letter can be very brief, it should state your account number, and be on company letterhead. Or be sent from a company email address. It should be signed by a person recognised by the electricity company. And you just need to write “please terminate our electricity contract when it ends on [insert date]”.

If you log this notice by email, you should check with your supplier, the correct email address it should be sent to. Some suppliers will have a particular mailbox for termination notices. And some suppliers will only recognise emails from you that come from the email address you have registered with them! They do seem to make it as difficult as possible for customers.

Avoid excess charges at the end of your contract

Please note that you need to have a new contract ready to start the day after your existing contract finishes. If not, you will be charged higher rates by the outgoing supplier until the new supplier takes over the supply.

For example, your electricity contract ends on 30 June, and you have correctly sent your termination notice in by 30 May. This means your current supplier will allow a new supplier to apply for the registration of your electricity supply from 1 July.

Please bear in mind that your new electricity supplier will need around 3 weeks to take on the supply, from receipt of your new contract. So you do need to plan ahead a little.

Leaving it until 25 June to agree a new contract, means the new supplier will be unable to take this on until roughly 10-20 July. Your current supplier won’t cut you off, or anything drastic like that. But they will put you on a higher rate for your electricity from 1 July, until your new supplier takes over.


Perfect Clarity can help businesses save money on their energy and water contracts. Call 020 3372 6517 for more information.