Business Energy Contracts: A Devon & Cornwall Small-Business Renewal Checklist

Energy renewal can feel like one more job competing for attention. Yet business contracts can last for years, and the agreement may be binding even when accepted over the phone. A little preparation can therefore prevent a rushed decision with a long tail.

A Plymouth workshop, Exeter office, Torbay hotel and seasonal Cornish attraction can have very different patterns of use. This guide will not tell you which supplier or contract is best. It shows what to collect, what to compare and what to confirm before your business agrees its next electricity or gas contract.

1. Start with the dates and the current contract

Find the contract end date, any notice requirements and the section explaining what happens afterwards. Do not assume the supply simply continues on the same price. Ofgem distinguishes between deemed, out-of-contract, fixed, variable and rollover or evergreen arrangements.

A deemed contract commonly applies when a business occupies premises and uses energy before agreeing a contract. Out-of-contract rates are the rates specified for use after an existing contract ends. A rollover arrangement can extend the existing terms; Ofgem says a microbusiness rollover cannot be longer than 12 months.

Action: write the end date, notice deadline and post-contract position in your calendar. If the wording is unclear, ask the supplier to confirm it in writing.

2. Gather one consistent set of evidence

Collect the current agreement, recent bills and ideally 12 months of consumption. Your electricity bill should show the Meter Point Administration Number or supply number; your gas bill should show the Meter Point Reference Number. Keep the correct details for each site and meter.

Record annual kilowatt-hour consumption, not just annual spend. Spend reflects the price you currently pay, while kWh describes the energy used. Note unusual closures, extended opening hours, new equipment, electric vehicles or planned changes that could make last year unrepresentative.

Seasonality matters in Devon and Cornwall. If summer trade dominates your year, a quiet winter month is a poor basis for forecasting annual use.

3. Compare the full annual cost

A quote can include a unit rate for each kWh and a standing charge for each day. Ofgem explains that business bills can also include taxes, government schemes and levies, network costs, metering, supplier costs and third-party services such as brokerage.

Estimated annual units × unit rate + annual standing charges + other stated charges = comparison total

Use the same consumption figure, VAT basis and assumptions for every quote. Where a price has several time bands, apply the correct amount of usage to each band. Ask which costs are fixed for the term and which can be passed through or changed.

4. Understand the type of contract

With a fixed-rate contract, the price for each unit is generally fixed for the term, but the bill is not fixed: using more energy still costs more. Ofgem also notes that some contracts contain conditions allowing a supplier to change the rate, so read the detail rather than relying on the word “fixed”.

A variable contract can move with energy costs. That may provide flexibility or exposure to falling prices, but it also creates uncertainty if prices rise. Longer fixed terms can provide price certainty but reduce the opportunity to benefit from a later market fall. The right balance depends on the business, not a prediction presented as fact.

5. Check VAT and the Climate Change Levy

Ofgem lists VAT and the Climate Change Levy among the costs that can form part of business energy bills. GOV.UK says the main CCL rates generally apply to industrial, commercial, agricultural and public-service use, with exemptions and reliefs for certain supplies, including small quantities of energy.

Do not alter the tax treatment yourself because a quote appears inconsistent. Ask the supplier what basis it has used and speak to an accountant or tax adviser if the correct treatment is uncertain. Compare quotations consistently—either all including or all excluding VAT.

6. Ask what the broker does—and what it costs

A broker can help gather information, explain bills and identify available contracts, but it does not automatically cover every supplier. Ofgem recommends checking which suppliers a broker works with, what its fees include, how they are charged and what permission it receives to act for you.

Broker costs can be paid upfront or included in the energy price. Ofgem says a supplier must provide details of service fees included in the bill if asked. Principal terms for non-domestic contracts signed from 1 October 2024 must clearly display broker fees.

If you are a micro or small business, check that the broker belongs to a qualifying dispute-settlement scheme. Keep the broker’s terms, the supplier’s principal terms and the final quotation together.

7. Read before agreeing—especially by phone

Ofgem warns that a business energy agreement made over the phone can be legally binding and may have no cooling-off period. Do not treat the call as an informal expression of interest.

Before accepting, check the legal business name, trading address, supply numbers, prices, term, start date, payment method, broker fee, renewal arrangements and authority being granted. Ask for the contract offer and terms in a form you can retain. If anything differs from the discussion, resolve it before agreeing.

8. Plan the handover

Once a contract is agreed, keep the confirmation and note the expected start date. Submit an accurate meter reading when requested and retain a dated photograph where practical. Check the final bill from the former supplier and the first bill under the new arrangement against the agreed supply numbers and prices.

If a switch is delayed or objected to, contact the supplier promptly. Micro and small businesses that cannot resolve a complaint with a supplier or broker may be able to use an independent redress scheme such as the Energy Ombudsman, depending on the issue and eligibility.

Your renewal checklist

1. Dates: record the contract end, notice deadline and post-contract terms.
2. Documents: gather the agreement, bills, supply numbers and 12 months of usage.
3. Forecast: adjust carefully for planned changes and seasonal trading.
4. Costs: compare unit rates, standing charges and every other stated charge.
5. Terms: compare contract length, price-change clauses, renewal and exit conditions.
6. Taxes: keep VAT and CCL treatment consistent across quotations.
7. Broker: confirm supplier coverage, fee, authority and dispute scheme.
8. Agreement: read and retain the principal terms before accepting.
9. Handover: record meter readings and check the final and first bills.

What makes a good renewal?

A good renewal is not necessarily the quotation with the smallest number in one column. It is an agreement the business understands, based on suitable consumption data, with a clear total-cost comparison and terms that fit its appetite for certainty and commitment.

Starting early gives you time to ask questions. It does not require you to predict the market or accept the first offer.