Business Energy Change of Tenancy Explained: A Guide for New Business Owners.

Moving into a new business premises is an exciting step, whether you're launching a new venture, expanding into a larger site or taking on an additional premises.

With leases to sign, equipment to move, staff to organise and customers to look after, business energy is often not at the top of the priority list. However, taking a few simple steps early on can help ensure your energy supply is set up correctly, avoid unnecessary costs and make the transition into your new premises much smoother.

Understanding how the Change of Tenancy process works can help you take control from day one, ensuring you're billed correctly, paying the right rates and have visibility over the options available to your business.

In this guide, we'll explain what a Change of Tenancy is, why it's important and the key steps you can take to get it right.

What Is A Change Of Tenancy?

A Change of Tenancy (often referred to as a COT) or Change of Occupier (CoO) is the process of transferring responsibility for the energy supply from one occupier to another.

This typically occurs when a business moves into or purchases a new premises or when a new lease agreement is signed.

While the energy supply itself usually remains active, suppliers need to update their records to reflect the new occupier and ensure future billing is assigned correctly.

Completing the process promptly helps establish your business as the new responsible party.

Find Out Who Currently Supplies The Property

One of the first steps when moving into a new premises is identifying who currently supplies the site's electricity and gas.

This information may be available from the landlord, letting agent, previous occupier or, if not, electricity supplier details can usually be traced through the local Distribution Network Operator, while gas supply details may need to be checked through the relevant gas network.

If available, obtaining the site's MPAN (electricity) and MPRN (gas) details can help speed up the process. Where meters are accessible, the meter serial numbers can usually be found directly on the meter and may also be requested by the supplier.

Understanding who currently supplies the property allows you to notify the correct supplier and begin the Change of Tenancy process. The sooner this information is established, the easier it becomes to ensure a smooth transition.

Take Opening Meter Readings

Taking opening meter readings on the day responsibility transfers is one of the simplest but most important steps in the process.

Accurate readings help ensure your business is only billed for energy consumed from the date you take occupancy and can provide valuable evidence should any disputes arise later.

Where possible, take clear photographs of all electricity and gas meters and keep a record of the readings alongside your move-in date.

A few minutes spent gathering this information can help avoid unnecessary billing issues further down the line.

Understanding Deemed Rates

If your business is consuming energy at a property without an agreed contract in place, you'll usually be billed on what are known as deemed rates.

New occupiers are typically placed on deemed rates until a formal agreement is arranged with a tariff and contract term being agreed with the supplier. However, deemed rates are variable and often significantly more expensive than contracted business energy rates.

Completing the Change of Tenancy process promptly and reviewing your available contract options can help minimise the time spent on deemed rates and reduce unnecessary additional energy costs.

Gather The Right Documentation

Suppliers will usually require supporting information before they can complete a Change of Tenancy request.

Depending on the circumstances, suppliers may request documents such as a signed lease agreement, proof of occupancy, completion statements, company information, proof of identification, move-in dates and opening meter readings.

Providing accurate information as early as possible can help prevent delays and ensure the process progresses smoothly.

Complete The Change Of Tenancy Process

Once you have gathered the required information, the next step is to notify the current supplier and begin the Change of Tenancy process.

Most suppliers will require either an online Change of Tenancy submission or an email containing the relevant supporting information. Details of the each suppliers specific process vary but are usually available on their website and must be completed before responsibility for the supply can be transferred.

The supplier will then review the information provided, update their records and transfer responsibility for the supply into the new occupier's name. Under Ofgem’s guidance, suppliers should review the evidence provided within 10 working days and either update the account, request further information or explain why the request has been rejected.

Once the Change of Tenancy has been completed, you'll be in a position to review your available contract options.

Compare And Secure Your Contract

Once the Change of Tenancy is underway or completed, you can start to compare and review the contract options available to you.

Taking the time to compare suppliers, review tariff structures and understand how different contracts align with your business needs can help ensure you're securing a suitable and competitive agreement.

This can also be a good opportunity to review renewable energy options, supplier service standards and tariff structures before making a final decision.

Final Thoughts

Moving into a new premises comes with enough challenges without having to worry about your energy supply.

Taking the time to understand the Change of Tenancy process, submit the right information and review your available options can help ensure a smooth transition into your new energy agreement.

At Shoto Energy, we can help you complete the Change of Tenancy process, compare and review competitive tariff options from our panel of trusted suppliers that suit your business.

If you need any support with an upcoming move, we're always happy to help.