Important information about business energy contracts

Who does what

We want every customer to go into a contract knowing exactly how it works, so this page sets out the facts in one place. The roles are:

Neither Forever Communications nor Fidelity Energy is an energy supplier. Fidelity Energy's terms say that for its switching, price comparison and contract checking services it is not your agent and cannot commit you to a contract: you accept a quote yourself. Fidelity Energy's services are for businesses resident in the UK (sole traders must be 18 or over) that meet any credit criteria Fidelity Energy or the supplier requires.

How Fidelity Energy and Forever Communications are paid

Fidelity Energy's terms and conditions say its services carry no charges payable by you, except a contract cancellation fee or the direct invoice option described below. Otherwise:

• Fidelity Energy is paid commission by the supplier you choose. It sets the commission as an uplift on the unit rate (pence per kWh) and/or the daily standing charge, so it is included in the rates you are quoted and pay
• The estimated commission for each supply contract is set out in your contract documents. Because most of it depends on consumption, the actual amount changes if you use more or less energy than forecast
• Suppliers must show broker costs in the principal terms of business energy contracts (microbusiness contracts since 1 October 2022; all non-domestic contracts signed on or after 1 October 2024) and give you the information on request
• You can opt at the start to pay Fidelity Energy by invoice instead of having an uplift on your rates. It then invoices you quarterly in advance, plus VAT
• If a supplier stops paying the commission, Fidelity Energy can move you to direct invoicing for the rest of the contract after telling you in writing, and you will not pay twice for the same services. Its terms also let it change the way it charges on reasonable notice
• Forever Communications is paid by Fidelity Energy, out of the commission Fidelity Energy receives

Our energy broker fees page shows how the estimated commission is worked out.

Quotes and accepting a quote

Business energy prices follow the wholesale market, so quotes are short-lived. Under Fidelity Energy's terms:

• A quotation sets out the prices and terms on which a supplier may be prepared to supply you. Fidelity Energy and the supplier can revise, amend or withdraw it, and how long it stays valid varies by supplier
• Fidelity Energy sends you the key terms of the supply contract to check before you sign
• Accepting a quotation is an offer to the supplier that you cannot withdraw. The contract is formed when the supplier accepts it
• The supplier can refuse your offer, for example after a credit check, and Fidelity Energy or the supplier may apply credit criteria

No cooling-off period

Ofgem says there is no cooling-off period after you agree a business energy contract. Ofgem consulted on one for microbusinesses and decided in March 2022 not to introduce it at that time.

Ofgem's guidance for microbusinesses also says that agreeing to a contract over the phone is binding. Once you agree, you are bound by the supplier's contract terms for the agreed period, including any exit fees. Our business energy cooling off period guide explains the background.

The household price cap does not apply

Ofgem's energy price cap applies to household standard variable tariffs. Ofgem says you are not protected by the price cap if you have a business energy contract, and that includes deemed and out-of-contract rates. Your price is the one set by your contract. Our page on the business energy price cap explains the protections that do apply to business customers.

Renewal, rollover and ending a contract

• Switching window. Ofgem says fixed-rate business contracts include a switching window that opens a few months before the end of the contract, and you can sometimes switch during it without paying a fee. Your contract sets the exact window and any notice you must give
• If you do nothing. Some contracts renew automatically for a further fixed term (Ofgem says usually 12 months), possibly at a higher rate; some suppliers move you onto out-of-contract rates, which Ofgem says are usually more expensive than a fixed-term contract
• Leaving early. Ofgem says most suppliers will not let you leave a fixed contract before the end unless you agreed a termination clause or pay an exit fee. Exit fees are set by the supplier's contract
• Rolling, out-of-contract and deemed supplies can usually switch at any time. If you use energy at premises without agreeing a contract, you are supplied on deemed rates, which Ofgem says are usually higher than negotiated rates
• Microbusinesses get renewal price information before the contract ends; on evergreen contracts, termination notice is capped at 30 days and requests to end the contract must be acknowledged within 5 working days. Suppliers cannot require a microbusiness to give notice of intent to switch, except on evergreen contracts
• Objections. Your existing supplier may object to a switch, for example if you owe it money

See business energy contract renewal and how to get out of a business energy contract for the detail.

Other Fidelity Energy terms

Fidelity Energy's terms also include:

• Contract cancellation fee. It can apply if you sign a supply contract arranged through Fidelity Energy and then do not go ahead with the transfer, or if, while a supply contract it sourced is live, you enter into another supply contract it did not source (including after a change of tenancy). The amount and how it is calculated are set out in clause 6.3
• Selling or leasing a site. If a site it manages is sold or leased and the new owner stops using its services, a termination fee applies for that site, based on the income it would have received for the rest of the contract
• Flexible procurement. If you choose its flexible procurement service, you appoint Fidelity Energy as your only broker for those services for the contract period, and you accept the market risk of buying in stages
• Complaint costs. It reserves the right to recover its costs from a complaint if an alternative dispute resolution provider finds in its favour, or if it reasonably believes the complaint is frivolous

The full text is on Fidelity Energy's website, and we are happy to go through any clause with you before you sign.

Complaints and redress

Ofgem says a broker paid by an energy supplier must be a member of an approved redress scheme. Fidelity Energy Ltd is listed on the Energy Ombudsman's broker register, with active membership since 1 December 2022.

1. Complaints about the broker service go to Fidelity Energy first, by letter or email, through its complaints process, which includes escalation to its managing director.
2. Complaints about bills, meter readings, payments or the supply go to your supplier, under its own complaints process.
3. If a complaint is not resolved within 8 weeks, or you receive a deadlock letter sooner, micro and small businesses can usually take it to the Energy Ombudsman, a free and impartial service. Ofgem says micro and small businesses can also get help from Citizens Advice.

Our energy broker ombudsman and complaints page explains how to check the register yourself. Ofgem's Get a business energy contract page lists the questions it suggests asking before you agree any contract.