In short
There is no cooling-off period for business energy contracts. Ofgem says there is no cooling-off period after you agree to a business contract, which is why it stresses using a trustworthy broker. Ofgem considered one for microbusinesses and decided in 2022 not to introduce it. Read the terms before you accept a quote.
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The short answer: no cooling-off period
Ofgem's guidance on getting a business energy contract says it plainly: there is no cooling-off period after you agree to your contract. It adds that this is why it is important to make sure you use a trustworthy broker.
That is different from household energy and many consumer purchases, which come with cancellation rights. Business energy contracts are commercial agreements between your business and a supplier, and the protections work differently. If you run your business from home, Ofgem says you are probably on a domestic contract, and household rules apply instead.
Did Ofgem consider a cooling-off period?
Yes. In its Microbusiness Strategic Review, Ofgem consulted on a cooling-off period for microbusiness contracts. In its decision published in March 2022, Ofgem said it was not proceeding with a cooling-off period at that time. It went ahead with other changes instead, which took effect from 1 October 2022 (and 1 December 2022 for the broker dispute resolution rule):
- Principal terms, including broker costs: suppliers must give microbusinesses the principal terms of a contract, including third-party costs such as broker commission, before and after the contract is agreed
- Broker dispute resolution: suppliers may only work with brokers signed up to a qualifying dispute resolution scheme
- No notice of intent to switch: suppliers cannot require microbusinesses to give notice of their intent to switch, except on evergreen contracts
Later reforms widened some of these. From 1 July 2024 Ofgem's Standards of Conduct, which require suppliers to treat customers fairly, cover businesses of all sizes, and from 1 October 2024 broker costs must be shown in the principal terms of all non-domestic contracts. None of this created a cooling-off period. The microbusiness energy rules page lists the current protections.
What accepting a quote means
Through Fidelity Energy, the process runs like this, and it is worth understanding before you say yes:
| Stage | What it means for you |
|---|---|
| You receive a quote | A quote is not yet a contract. Fidelity Energy's terms say the supplier and Fidelity Energy can revise, amend or withdraw a quotation, and how long it stays valid varies by supplier |
| You accept the quote | Fidelity Energy's terms treat your acceptance as a binding offer to the supplier that you cannot take back |
| The supplier decides | The supplier can accept or refuse your offer, for example after a credit check. It is accepted when the supplier confirms in writing or starts supplying |
| The contract runs | You are bound by the supplier's contract terms for the agreed period, including any exit fees |
Fidelity Energy's terms also include a contract cancellation fee if you sign a supply contract through it and then do not go ahead. The terms set out how that fee is worked out; ask us to walk you through it before you sign. The energy broker fees page explains how Fidelity Energy is paid in the normal case.
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What to check before you agree
Because you cannot change your mind afterwards, the checks happen before you sign. Ofgem's list of what to know before agreeing a business contract is a good starting point:
- The contract type. Fixed, variable or flexible. See business energy contracts explained.
- The term. How long you are committing for, and the exact start and end dates.
- Fees. Exit fees and any charges set out in special clauses.
- Your protections. Especially if you are a microbusiness or small business.
- Broker fees or commission. Whether they are included in the price, and the amount shown in the principal terms.
- What happens at the end. Automatic renewal, out-of-contract rates or deemed rates.
- The details. Business name, legal entity, every site and every meter number correct. Your bills show the MPAN and MPRN; Business Gas and Electric explains them.
If anything is unclear, ask before you accept. A good broker would rather answer a question now than deal with a dispute later.
How to check the broker is trustworthy
Ofgem points businesses to two places to check a broker that is paid by suppliers:
- The Energy Ombudsman's register of energy brokers
- The Utilities Intermediaries Association (UIA) accredited member list
Fidelity Energy is on the Energy Ombudsman's broker register, with membership active since 1 December 2022. Forever Communications works as an agent of Fidelity Energy: we introduce you and help you read the quotes, and Fidelity Energy arranges the contract. Our energy broker ombudsman and complaints page explains how to check a broker and how to complain if something goes wrong.
Also be wary of anyone who presents themselves as your supplier when they are not, or who pushes for a decision on the spot. Ask to see the principal terms, including the broker costs, and take time to read them before you agree.
Want this looked at for your premises?
Tell us your sites, meters and renewal dates and we will reply by email with options.
If you have already agreed a contract you regret
There is no cooling-off right to fall back on, but you still have options to explore:
- Read the contract for any termination clause, and for what an early exit would cost
- If the supplier has not yet accepted your offer, ask what happens next; but do not assume you can withdraw, because Fidelity Energy's terms say acceptance cannot be revoked
- If you think you were misled, complain to the supplier or broker through its complaints process, and then to the Energy Ombudsman if it is not resolved. Micro and small businesses can also get help from Citizens Advice
Our guide on how to get out of a business energy contract covers exit fees and rollovers. This is general information, not legal advice. If you would like a second pair of eyes on a quote before you sign, contact us.
How Forever Communications helps with business energy
Forever Communications is part of Forever Group, which looks after phone systems, business mobiles and connectivity for UK organisations. For business electricity and gas, we work as an agent of Fidelity Energy, an independent business energy broker that prices your requirements across its panel of suppliers. We are not an energy supplier, and neither is Fidelity Energy.
- Like-for-like quotes: we help you gather your bills, meter details and contract end dates so suppliers quote on the same basis
- Plain-English terms: we can talk you through unit rates, standing charges, contract length, renewal and the broker commission included in the price before you decide
- Better timing: we help you plan a renewal ahead of your contract end date, or move off deemed and out-of-contract rates
- More than the basics: Fidelity Energy also offers green (REGO-backed) electricity, flexible procurement, half-hourly supplies, multi-site contracts and bill validation
- Your choice: you decide which quote, if any, to accept; prices are set by the suppliers and confirmed at quote
We work with businesses, charities, hospitality, farms and multi-site organisations. Send us a recent bill and we can take it from there.
Frequently asked questions
Is there a 14-day cooling-off period for business energy?
No. 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.
Can I cancel a business energy contract after signing?
Generally not without cost. Once you accept, you are bound by the contract's terms, which may include exit fees. If you agreed the contract through Fidelity Energy and do not go ahead, a contract cancellation fee can apply under its terms.
Is a verbal agreement to a business energy contract binding?
It can be, depending on how the supplier or broker records your acceptance. Treat any agreement, spoken or written, as binding, and ask for the principal terms in writing before you agree.
Do microbusinesses have a cooling-off period for energy?
No. Microbusinesses have extra protections, such as clear contract information, renewal price information and broker costs in the principal terms, but not a cooling-off period.
What should I do if a broker pressured me into a contract?
Complain to the broker through its complaints process first. If the complaint is not resolved, take it to the redress scheme the broker belongs to, such as the Energy Ombudsman. Micro and small businesses can also get help from Citizens Advice.
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