Change of Tenancy is when you either move in or move out of premises. When that happens, there are certain things you as a tenant have to do. If you are moving out of your existing premises and moving into different ones, you should let your energy supplier know. That will enable the smooth transition and will eliminate the risk of disruption to your supply.
In this guide we focus on moving in and out of premises as a business. As Niccolo we want to help you make the process as easy and quick as possible. Get in touch with us for expert advice regarding the steps you should undertake.
What to keep in mind when moving in?
When you move into new premises, it is your responsibility to contact the supplier that currently delivers energy there to inform them that you are the new tenant.
If you fail to do so, you might find yourself having to pay some charges incurred by previous tenants. Moreover, you might be paying overly expensive rates. In most cases, after moving in, you will automatically be placed on a deemed contract. These types of contracts tend to be the most expensive and the least flexible.
When you get in touch with the supplier, you can compare various energy tariffs they offer and choose the most competitive ones that best match the needs of your business. Similarly, if you think that the existing supplier is not good, you can switch to a different one.
What to keep in mind when moving out?
If you intend to leave the premises, you have to let your supplier know. You should aim to do that at least 30 days prior to the moving out date to allow enough time for the Change of Tenancy process to be completed. Keep in mind that you will have to pay for the energy supplied to the premises until the change of tenancy process is finalised.
If you do not inform your supplier about the fact that you’re moving out or you do it at a later date, you might end up paying for charges incurred by the new tenants. Moreover, while you still have an active contract at old premises, you will not be able to negotiate a new one at new ones.
When you reach out to the supplier, make sure to provide them with full details about your property, the tariff that you are on, and the date when you hope to leave the premises. The supplier will acknowledge your decision and, after you submit your final meter reading, you will have to wait for them to give you your final bill. After you pay it, your account will officially be closed. Do not cancel your direct debit if you had set it up before you receive the final bill as that can make things more complicated.
What steps to take before moving?
So you have made the decision to move the premises of your business? Great, now you should start preparing for the move to make the process easier. You should check which supplier provides energy to the new premises. If it is the same supplier you are currently with, they will be able to use the details they already have about your business to set up your supply there. They will also ask you whether you want to be receiving both gas and electricity from them and they will tell you whether you can get the same prices that you have been getting at old premises.
If you want to stay with the same supplier but they do not yet supply energy to your new premises, you will have to arrange and sign a new contract with them.
Before you commit to an energy deal, make sure to do a price comparison and see what tariffs are being offered by various suppliers. Even if you are satisfied with your existing supplier, once you do a tariff comparison you might realise that there are other providers that offer more competitive rates and more flexible contracts. When you are comparing the available energy deals, you should take into consideration other aspects of them too, not only prices.
What are deemed contracts and why should you avoid them?
In simple terms, a default energy contract is a deal that customers who haven’t agreed a contract with an energy supplier get. Customers are usually placed on them when they move to new premises and start using gas and electricity without first signing a contract with the supplier.
Luckily, getting out of a deemed contract is easy. There are no fixed dates to them so you can change them anytime. To get out of them and get better prices you have to choose a tariff you are interested in and sign a contract with the current supplier. Alternatively, you can switch suppliers and sign a contract with a new provider.
Be careful not to confuse deemed contract rates with out of contract rates. Here you can find out what the difference between them is.
| Deemed Rates | Out of Contract Rates |
| If you move to new premises if you haven’t agreed a contract with the supplier, you will automatically be charged Deemed Rates. You will have to pay them until you sign a contract with the supplier. | If your energy contract comes to an end and you do not renew or extend it, you will start paying Out of Contract Rates. You will be paying them until you sign a new contract or switch to a different supplier. |
Deemed Rates and Out of Contract Rates tend to be the most expensive rates on the market so if you find yourself paying them, you should act immediately. Otherwise you will lose a lot of money on your energy supply.
Can tenants switch suppliers?
In the UK, all domestic and business users have the right to choose who supplies their energy. If you move into new premises and you are not happy with who the supplier there is, you can switch to a different one. The process of switching suppliers is easy, especially if you use an Energy Broker who can help you find the best energy deal and handle all the paperwork for you.
Switching suppliers as a new tenant can be more complicated if you pay your energy bills to the landlord. Then, your energy rates will be included in your rent and it will be the landlord’s responsibility to switch energy suppliers. That means that you have to ask them to do it on your behalf. In most cases they should not have a problem with it. Make sure to ask the landlord to switch suppliers right after you move into new premises to start saving money on your energy bills as soon as possible.
Do I need to pay any charges to the supplier when I move premises?
That depends on when you decide to move and what the terms of your contract are. Often if you move into new premises before the contract at your current premises expires, you will have to pay an early termination fee. How much you have to pay if you end the contract before it finishes should be stated in your energy contract. Most fixed rate contracts that you sign for a specific period of time come with early termination fees. How much you will have to pay varies depending on the length of your contract.
If you are paying variable rates and are on a flexible contract, you may be able to end the contract anytime, without having to pay fees to the supplier.
Before you make the decision to move into new premises, check how much time you have left until your existing contract expires and verify whether you will have to pay any fees if you move before that.
Need help with moving premises and setting up an energy supply?
Here at Energy Solutions we know the energy industry very well. We have over 20 years of experience in helping businesses find the most competitive energy deals. If you are not sure what to do before you move out of the existing and move into the new premises, let us know.
We can guide you through the whole process, offering expert advice and professional support. We will be around to answer any questions you might have.
We will also run a tariff comparison for you and show you the best energy deals on the market. No matter which utility you are looking for, be it water, electricity, or gas, we can help you find the most competitive contract.
Thanks to our help you can save money, effort, and time. Our mission is to help you have less work but more savings.
To find out more about the services we offer and about how we can help you with moving premises, call us today on 0131 610 1688, send us an email to nick@energybrokers.co.uk, or come visit us in one of our offices. You can find us in Edinburgh, Woolwich, and London.