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What do I do if my landlord supplies my business energy?


Switching business energy is straightforward when you own your premises, but if you’re a tenant in a leased property, it can be more difficult to change suppliers. However, it is not impossible!

If your business operates in rented premises, your energy contract will be handled in one of two ways:

  • You pay your energy bills directly to your supplier
  • You pay your landlord and they pass the cost on to you

It can be frustrating trying to switch when your landlord has a preferred supplier or handles your costs for you, there are ways to tackle this problem!

You pay your energy bills directly to your supplier

As a tenant you have the right to switch your business energy supplier, and the landlord for your premises cannot stop you from switching. Although when moving business premises, make sure to check the tenancy agreement for a ‘preferred’ or ‘default’ supplier.

A default supplier is the supplier your landlord would prefer you use for your business gas and electricity. If your landlord has a preferred supplier, this should be clearly stated in your tenancy contract. If you have not yet signed a contract for your business, you can negotiate with your landlord about this clause.

However, even if a default supplier has been mentioned in your tenancy contract, they cannot stop you if you would like to switch energy suppliers as long as you are paying the suppliers directly. So if you want to switch your gas and electricity supplier, make sure you read the small print of your contract to see if you need to tell your landlord about the switch.

Your landlord pays your energy bills and invoices you for them – or includes the cost in your rent

When your landlord pays your energy bills, it is common for tenants to be unaware of who supplies their business energy, but this can leave businesses very vulnerable to paying over the odds for their gas and electricity!

If you’re currently uncertain about who supplies your business with power, you can request to access this information from your landlord and under the Electricity and Gas (Internal Markets) Regulations 2011, you have the right to compare and switch energy supplier if you’re unhappy with your current tariff. Even if your business is in a multi-tenanted building, you can still request a different supplier. Your premises’ landlord must acknowledge your request within 10 days and respond either accepting your wish to switch supplier or to explain why they may object.

If your business is one of many on a large property complex, your landlord may buy energy in bulk which can allow them to fix prices. In this situation, your request to switch may be rejected by your landlord due to the financial burden it could place on them. Landlords can also reject energy switching requests if the cabling to your building doesn’t have enough capacity for alterations to supply.

If you feel that your landlord is being unreasonable and obstructing you from switching energy tariffs, you should contact them to resolve the situation. If negotiations are not successful, you can contact the Ombudsman to help you handle the situation.
For businesses whose landlord has allowed them to switch your gas and electricity supply, our online comparison service is quick and easy to use. We compare gas and electricity quotes from a range of suppliers to help you find the best deal for your business! Switch with us today!

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Excellent, 9.9 / 10

Lorraine made it as easy as possible to…

"Lorraine made it as easy as possible to switch despite the endless text she has to read out to make sure you stay within the regulations. Thanks for rushing through it"

This review was posted by Nick Apsey-Brown on the 13th of May 2019

Thanks to Lorraine

"Thanks to Lorraine, switching, my gas and electric, to a new supplier was made a pleasant experience of instead of the usual traumatic one we usually endure. A very efficient, polite and cheerful young lady. Thanks again Lorraine."

This review was posted by Allan Jones on the 09th of May 2019

Thank you Lorraine Carey for your help…

"Thank you Lorraine Carey for your help getting me a good deal on my electricity. great customer service and friendly"

This review was posted by Simi Hussain on the 07th of May 2019

Brilliant

"Pamwan Johnson was very efficient and a pleasure to work with. Made my week!!"

This review was posted by Margaret Hall on the 03rd of May 2019

Lorraine was very helpful and…

"Lorraine was very helpful and knowledgeable throughout the process. Highly recommended Many thanks"

This review was posted by Totton & Eling Youth on the 02nd of May 2019