Up to a million small businesses could see their energy bills nearly double this year when they come to renew their contracts, despite falling fuel prices. Every month about 90,000 business energy contracts expire, but many firms fail to realise this in time to cancel the contract or switch energy provider. If they receive no notification, providers can automatically renew the contract on a rollover basis, in most cases locking the business on to a far higher rate. A survey by business price comparison website makeitcheaper found that 84% of small businesses were unhappy with their current supplier, but only 14% knew when their contract was due to end.

Energy Contract Renewals Explained

Most providers require businesses to give at least 90 days’ notice before the end of an energy contract if they want to move elsewhere. ScottishPower recently changed the terms of its business contract so firms have a ‘termination window’ of between 90 days and 45 days before the end of their contract. Failing to give notice in time can cost small businesses dear. This time last year tariffs were available from 7p per kilowatt-hour for business electricity and at 2.5p per kilowatt-hour for gas. However the sharp increase in wholesale prices in 2008 means renewal tariffs are typically 14p per kWh for electricity and 5p per kWh for gas.

How to cut your energy bills

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