Business energy when moving premises

What happens to the energy supply when you move

The gas and electricity supply belongs to the premises, not to your business. The cables, pipes and meters stay where they are, and so does the supplier that is registered to that supply point. What changes is who the supplier bills.

That creates two separate jobs:

• At the new premises, you become responsible for the energy used from the day you take over. If you have not agreed a contract, Ofgem explains that you are put on a deemed contract automatically, and deemed rates are usually higher than negotiated contract rates.
• At the old premises, your existing contract does not simply stop because you leave. What happens depends on its terms: some contracts set out notice periods or charges if you leave a site before the end date. Read them before you commit to a moving date.

Ofgem's guidance is clear that you are responsible for any energy you use before your new contract starts. The sooner you plan the energy side of a move, the shorter that gap can be.

Before you move: what to find out

Most of the information you need is on the meters and on the previous occupier's bills. Ask the landlord, agent or seller for it as early as you can.

If some details are missing, do not let that hold up the rest. Our guides to the MPAN number and MPRN number explain where else to look and who to ask. We can also help you work through the list.

On moving day: readings and evidence

The most useful thing you can do on the day is take clear, dated photos of every meter at both sites, showing the reading and the serial number. Those readings mark where your responsibility starts at the new premises and ends at the old one.

Ofgem's change of tenancy guidance for businesses says to tell the current supplier for the property as soon as you can, whether you are the business moving in or the business moving out, and to do so even if you are already talking to other suppliers. The steps look like this:

1. Notify the current supplier of the change of occupier, with a meter reading if you can.
2. Provide evidence when asked, such as a tenancy or lease agreement, property sale documents or title deeds.
3. Expect a review: if you are staying with the current supplier, Ofgem says it will review your documents within 10 working days and either close the old account and open a new one, reject the change with a reason, or explain what further evidence it needs.
4. If you are changing supplier, notify both the current and the new supplier and give both the evidence; the new supplier can help with this. The new supplier starts the switch, and the current supplier accepts it if it agrees a change of occupier has happened.

Further evidence a supplier may ask for includes mortgage documents, business rates bills, or letters from a bank, solicitor or landlord. Having the lease and your first business rates bill to hand makes this quicker. The full change of tenancy process, and what to do if it stalls, is covered on our sister site under switching supplier.

Deemed rates and the gap before a contract starts

If you start using energy at new premises without a contract in place, the supplier treats you as being on a deemed contract. Ofgem describes deemed rates as usually higher than negotiated rates, and you pay them for every unit used until a contract begins.

You are not stuck there. Ofgem's guidance says customers on deemed, out-of-contract, evergreen or other variable arrangements can switch to a new supplier at any time. You can also agree a contract with the existing supplier. The options are explained alongside the other tariff types in our guide to business energy tariffs.

Two practical points help keep the gap short:

• Check before you move whether you can arrange a contract for the new premises in advance. Ofgem suggests doing exactly that and following the usual switching process.
• Have your details ready. A new supplier needs your expected annual consumption and the meter details, so the checklist above is what gets a quote moving.

A supplier can object to a switch, for example if there is money owed on your account. If that happens, Ofgem's advice is to contact the supplier as soon as possible to find out why.

Check the supply and meters suit your business

New premises may not come with the supply your business needs. It is worth checking before you sign the lease, not after the equipment arrives:

• Capacity: larger electricity supplies have an agreed capacity, in kVA, set with the network operator. A site that was a warehouse may not suit a commercial kitchen or a production line. On half-hourly sites you pay a daily capacity charge on the agreed figure whether you use it or not, so too much capacity costs money too.
• Single or three-phase: heavier equipment may need a three-phase supply. If the premises only have single-phase, upgrading is a job for the network operator; see new business electricity connections.
• Meter type: a two-rate meter suits overnight use; if you work days, a different tariff may fit better. A half-hourly meter brings capacity and network charges onto the bill. Smart meters for business and AMR meters send readings automatically, which helps avoid estimated bills while you settle in.
• Gas: confirm there is a live gas supply at all. If there is no meter or no supply to the building, you may need a gas connection before a supplier can help; see new business energy connections.

If the building is shared, check which meters serve your space and which serve common areas. A landlord may hold some supplies and recharge them; our guide to business energy for landlords explains how that usually works.

Leaving your old premises

Moving out needs the same care as moving in, because you remain responsible until the supplier closes your account.

1. Read your contract for what happens when you leave a site before the end date, including any notice or charges.
2. Tell the supplier you are moving out, with the date and your forwarding address for the final bill.
3. Take closing readings on the day, with dated photos, and send them in.
4. Give evidence that you have left, such as the lease surrender or sale completion, if the supplier asks.
5. Check the final bill against your closing readings before paying it.

Ask the supplier whether your contract ends when you leave or whether it offers terms for the new site. Either way, the new premises need an arrangement of their own, which is where we come in.

Moving several sites or expanding

Businesses that open a second site, consolidate offices or relocate a whole operation often end up with contracts at different suppliers, on different terms and with different end dates. A move is a good moment to tidy that up.

You can ask for quotes that line up end dates across sites, so renewals happen together instead of one at a time. If you want gas and electricity at the new site from one supplier, our dual fuel for business guide sets out the trade-offs. And if your use will grow, it is worth looking at whether the meter and capacity will still suit you in a year or two.

How we can help

Moving is busy enough without chasing energy suppliers. We help you work out who supplies the new premises, gather the MPANs, MPRNs, meter details and readings, and explain what the tariffs and charges on offer mean. We then introduce you to Fidelity Energy, an independent energy consultancy and broker, which gets quotes from its network of business energy suppliers, arranges the contract you choose and looks after the account. On the metering side, Fidelity Energy also supports businesses through office moves, new site connections and changes of tenancy. You can read exactly how that relationship works on how we work with Fidelity Energy.

Moving soon, or already in and on deemed rates? Contact us with the new address and any bills or meter photos you have. If you would rather compare offers yourself, see compare business energy on our sister site.