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Compliance

UK Business Energy Out-of-Contract Tariff Penalties

What actually happens when your fixed term ends without a renewal in place - and the notice windows that determine whether you avoid it.

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Out-of-Contract vs Rollover - Two Different Penalties

These two terms get used interchangeably but describe different situations. An out-of-contract rate applies when your fixed term simply ends with nothing agreed to follow it - you default to the supplier's standard, typically highest, tariff. A rollover is different: your contract terms automatically renew into a new fixed term (commonly 12 months) at a rate you did not actively negotiate, unless you take action before the deadline in your contract.

Notice window: 30-120 days (typical)

Most suppliers require notice somewhere in this range before your end date - the exact figure is set out in your own contract, not a single industry-wide number.

Micro-business cap: 30 days

Ofgem rules mean a supplier cannot require a micro-business to give more than 30 days' notice before the contract end date.

Rollover length cap (micro-business)

For micro-businesses, an automatic rollover cannot exceed 12 months. Some suppliers apply longer rollover terms for larger businesses, so check your own terms.

Out-of-contract has no fixed cap

Unlike a deemed contract, an out-of-contract tariff is a standard published rate - costly, but not subject to the same no-termination-fee protections as a deemed contract.

How It Works

1

Tell us about your business

A short form, or a quick call - either way, it takes about two minutes.

2

We look at your options

One of our specialists checks your current contract, usage and renewal date.

3

Speak to a specialist

We call you and talk through what’s available, in plain English, with no pressure.

What Information We Need

To give you the most useful review, it helps if you can provide:

  • Your business name and postcode
  • A contact name, phone number and business email
  • Whether you need electricity, gas, or both
  • Your current supplier and contract end date, if known
  • An approximate idea of your energy spend or usage

Don't have everything to hand? That's fine - fill in what you can and a specialist can help with the rest.

Act Before the Window Closes

We Flag Your Renewal Window So You Don't Miss It

Once we know your contract end date, we can help you compare options in good time - well before your supplier's notice deadline - so you are never forced onto an out-of-contract rate or an unwanted rollover by default.

Out-of-Contract Tariff Penalties - Frequently Asked Questions

When your fixed-term business energy contract ends and you have not agreed a new one, most suppliers move you onto an out-of-contract tariff. This is typically well above a negotiated rate, because there is no agreed deal holding the price down.

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