Reviewing a business energy contract

A business energy contract is agreed on the phone or by e-signature, on the supplier's terms, often through a broker whose commission is built into the unit rate, for a term the business cannot leave without paying for the energy it would have used. The supplier's terms sit under a regulatory regime that gives micro-businesses protections and leaves larger businesses to the contract. I review the contract from the customer's side and return it marked up with a written explanation of what it commits the business to and the terms worth challenging, for a fixed fee of £495 in three working days.

Who this is for

Businesses in England and Wales signing or renewing a gas or electricity supply contract, directly with a supplier or through an energy broker, whether a single shop or a multi-site estate, and want to understand the term, the pricing and the commission before they commit. The customer is a business; the protections for micro-businesses under the supply licences depend on the customer's size and consumption.

What to look for in a business energy contract

The regime: licensed supply, micro-business protections and the ombudsman

Gas and electricity are supplied under licences granted under the Gas Act 1986 and the Electricity Act 1989, and the standard licence conditions Ofgem enforces give micro-business customers protections that larger businesses do not have: on the information given before the contract, on renewal notices and on the terms that can apply after the fixed term ends. The review confirms whether the customer is a micro-business, whose complaints must be handled under the Gas and Electricity (Consumer Complaints Handling Standards) Regulations 2008 and can be taken to the energy ombudsman established under the Consumers, Estate Agents and Redress Act 2007, and applies the contract terms accordingly.

The term, the renewal and the out-of-contract rates

The contract sets a fixed term with a notice window for termination, and if no notice is given the supplier moves the customer to its out-of-contract or deemed rates, which are the most expensive it offers. Deemed contracts arise by statute where energy is taken without an agreed contract, under Schedule 6 to the Electricity Act 1989 for electricity and the equivalent gas provisions. The review checks the notice window, the renewal terms, the supplier's obligation to send a renewal notice, and the position on a change of tenancy, and asks for the notice window to be as wide as the licence conditions permit.

The unit rate, the standing charge and what can change

A fixed-price contract fixes the unit rate and the standing charge, but suppliers pass through changes in non-commodity costs, taxes and levies, and reserve the right to revise the price if consumption differs from the estimate or the meter type changes. The review checks what is fixed and what is pass-through, the supplier's right to re-price on a consumption variance, the treatment of half-hourly and multi-site supplies, the payment terms and the direct debit reconciliation, and the security deposit the supplier may demand.

The broker: commission, authority and the letter of authority

Where a broker arranged the contract, its commission is added to the unit rate for the whole term and paid by the supplier, and the customer may not have been told how much. The Energy Act 2023 provides for the regulation of third-party intermediaries in the energy market, and the licence conditions require suppliers to inform micro-business customers of the broker's commission. The review checks the broker's own terms, the letter of authority the customer signed and the scope of the broker's authority to contract, and asks the supplier for the commission figure built into the rate.

Termination, switching, objections and early exit

Suppliers may object to a transfer where the customer is in debt or in a fixed term, and charge an early termination fee for leaving before the term ends, calculated on the energy the customer would have used. The review checks the termination provisions against the licence conditions, the early termination charge against the supplier's real loss, since a charge out of all proportion to its legitimate interest is unenforceable under Cavendish Square Holding BV v Makdessi [2015] UKSC 67, and the customer's right to switch at the end of the term without objection where it is not in arrears. The Late Payment of Commercial Debts (Interest) Act 1998 applies to sums the supplier owes the customer, such as a credit balance on closure.

What the sales call said and what the contract says

Many business energy contracts are concluded by telephone, on a recorded call, with the terms sent afterwards. The review checks whether the customer agreed the price and term the contract records, whether the sales call complied with the licence conditions on pre-contract information, and whether statements about the rate, the term or the broker's independence can be challenged under section 2 of the Misrepresentation Act 1967 or the Business Protection from Misleading Marketing Regulations 2008. Where the call was not recorded or the recording is not produced, the review sets out how to obtain it.

What it costs

Standard review, £495. Marked-up document and a written explanation of the changes. Three working days.

Buying online forms the engagement on payment. The scope is what the contract review page describes, you accept the Terms of Service at checkout, and I email you within four working hours to get started. If you would rather ask something first, email me.

What you get

• Your own contract returned with my amendments as tracked changes, plus a clean version with every change accepted, ready to send to the other side
• Comments in the document where a point needs explaining
• A written explanation of what I have changed and why, by email or as an attachment if it is lengthy, marking the points I would hold firm on and the ones that are negotiable
• A view on what is normal market practice and what is the other side pushing their luck
• One round of follow-up questions by email, included

What is not included

• Negotiating directly with the other side, which I quote separately once I know who is on the other side. Where the other side is willing to share a live document, I can work in that document directly
• Drafting a replacement contract from scratch
• Advice on the law of any jurisdiction other than England and Wales
• Tax, accounting or regulatory advice
• Disputes about a contract that is already signed

Questions I am often asked

The broker said its service was free. How is it paid?

By a commission the supplier adds to your unit rate for the whole term, which you pay in every bill. The review checks the broker's terms and the letter of authority and asks the supplier to disclose the commission, which the licence conditions require it to do for a micro-business.

We missed the renewal window and are now on out-of-contract rates. Can we get off them?

You can switch or agree a new contract; the question is what you owe for the period since the fixed term ended and whether the supplier gave the notice the licence conditions require. The review checks the renewal notice, the rates applied and the supplier's obligations for your size of business.

Can the supplier stop us switching?

It can object to a transfer if you are in a fixed term or in arrears. The review checks whether either applies, what you would owe to leave early, and whether the supplier's objection rights are being used within the licence conditions.

Related guidance and services

• Contract review, £495, the service this page describes
• Terms and conditions drafting, £995
• Reviewing a business telecoms contract

This page is general guidance for businesses in England and Wales, not advice on your own circumstances. Last reviewed: September 2026. Email geoffrey@caesar.co.uk.