Moving a business location requires a lot of logistics. One often-overlooked aspect of relocating a business is the energy contract, as a business may be moving into a new location, out of a location, or transferring its energy supply to a new tenancy. Regardless of the scenario, it’s important to understand the Change of Tenancy (CoT) process in order to avoid excess energy costs. In this guide, we provide a step-by-step process to unload and manage a business energy CoT process and how E for Energy can help you save on electricity bills by supplying the lowest unit cost suppliers in the market.
A Change of Tenancy (CoT) means formally notifying the energy supplier of a change in business occupancy or ownership of a commercial property. This may be a new address, leaving an address, or simply moving into a new lease at the same address. Business energy rates do not switch or transfer like residential properties do, so if the new or vacating party does not act on the CoT, they may end up on deemed rates or out of contract (which can be up to 80% higher than negotiated rates). Understanding the CoT process helps ensure your business remains compliant, avoids unnecessary charges, and locks in the best business energy rates from day one.
If you are not familiar with Change of Tenancy, it can easily become complicated. Here are some of the most common challenges and complications:
• Potential confusion around the responsibilities of the incoming and outgoing tenant
• Finding the existing supplier or the supply number (MPAN/MPRN)
• Business Energy Contracts are not being updated in a timely manner to avoid deemed rates
• Invoicing & errors, and disputes about meter readings
• Confusion around VAT categories and Climate Change Levy (CCL)
This is why it can be so important to have an energy broker and energy expertise (E For Energy).
Below is an easy-to-follow guide on how to do a Change of Tenancy with as little stress as possible and the most savings.
As soon as you are ready to do a tenancy change—either by moving in or out—you should contact the energy supplier at least 28 days beforehand. This way, they have enough time to change their records and generate a correct bill.
You usually need to provide:
• Proof of tenancy or leasing agreement
• A forwarding address (if you are the outgoing tenant)
• Details of the new tenant or owner
If you have no idea what the current supplier is, E for Energy can assist with a supplier search and verification.
Step 2: Take Meter Readings
On the day you move in or move out, take a clear, time-stamped photo of the meter reading. (A picture is worth a thousand words!) If the property has smart meters, the readings can be automated.
Accurate readings will make sure that:
• You only pay for the energy you’ve consumed
• There are no overlaps with other tenants
• The new tenant can start with a clean slate on billing
Step 3: Confirm MPAN / MPRN Supply Numbers
You have to obtain your Meter Point Administration Number (MPAN) for electricity or Meter Point Reference Number (MPRN) for gas to show exactly where your supply point is.
By knowing your MPAN/MPRN:
• You can avoid billing confusion with nearby units or buildings.
• The suppliers can provide a more accurate quote.
• You will speed up the switching process.
If you are unsure where to find this information, E for Energy will obtain it for you.
Step 4: Pay the Final Account
The outgoing tenant should settle their bill based on the final meter reading. Please review the bill to ensure: • Charges list accurate readings • VAT is correctly applied (20% or 5% depending on usage) • Any Climate Change Levy (CCL) charges are allowed, to mention your exemption Business owners are often entitled to relief on VAT or CCL that they did not claim- this is where E for Energy can provide reassurance and compliance.
Step 5: Get a New Business Energy Contract
When you enter as a new tenant, don’t just assume that the rates from the existing supplier are the best. If you don’t have a new business energy contract put in place, you will probably end up on deemed or variable tariffs, which are the most expensive.
With E for Energy, you can:
• Have a market-wide comparison of electricity providers
• Find the lowest cost per unit rates
• Quickly and effortlessly make your business energy switch to a new supplier
The consultants at E for Energy follow live pricing trends so they can get you a tailored energy contract according to your usage and budget. No hassle and no running around!
Business owners focus on the unit rate when searching for a competitive tariff; however, they do not realize the extra costs that push the bill upwards:
• VAT is charged at the normal rate of 20%; however, businesses that consume less energy could qualify for a rate reduced to 5%.
• The Climate Change Levy costs additional pence per kWh, and almost all commercial users will be charged it, with a few exemptions.
• Deemed rates are also charged when there are no energy contracts in force, like deemed rates, and they are most likely to be 40–80% higher than negotiated tariffs.
E for Energy will carry out a full independent audit on your energy bills, ensuring no overpayments on any hidden charges.
E for Energy is an expert in supporting organizations like yours in managing your Change of Tenancy quickly and efficiently. Here’s how we will help you:
• We communicate with your suppliers to do the documentation and fast-track the CoT process
• We price check from multiple providers to find you the cheapest available deal on the market
• We look after all compliance matters regarding your VAT and CCL charges, and ensure you are on the relevant billing structure.
• We look after the entire change, including, but not limited to, meter reading arrangements and setting up the contract.
• We help small businesses with energy contracts because savings in the form of energy bills can help you go an extra mile when you have limited resources.
This process means that moving tenancy and changing suppliers is effortless, you’ll receive lower energy bills, and you will not experience any service disruption.
Some industries face elevated potential risks when CoT is mismanaged. For instance:
Hotels
Hotels have high electricity usage, several meters, and business utility changes, making hotels particularly susceptible to costly deemed rates. We can assist hotels in making sure the rates reflect occupancy and energy load.
Data Centres
Data Centres run 24/7, meaning, regardless of it being a small billing or supply problem, when things go wrong, it can be significantly expensive. We can help data centres secure fixed-rate contracts, which will help limit volatility.
Large Facilities & Commercials
E For Energy delivers structured procurement, bespoke contracts, and timely tenancy to commercial properties with high daily energy usage.
A Change of Tenancy does not have to mean bigger bills or billing mayhem. The right partner can help you turn a potentially expensive Change of Tenancy into a savings opportunity. E for Energy is experienced in Change of Tenancy for both businesses and organisations of all sizes and will help you save time, hassle, and money. Don’t leave your next move to chance, contact us today, take advantage of your expert adviser, and the lowest cost per unit energy available to any consumer in the UK market.