Business energy contract

annalt1974

I agreed a new business energy contract for my gas (due for renewal 01/04/23) , in August 2022.  I did this to get a better deal on my electric.    Now energy prices have come down a little I can get a much better deal staying with my existing provider.  They are telling me that the broker I signed  the contract with won't be able to apply a penalty if I do this, despite what is says in their T&Cs.  Any advice?  One thing i have learned over the years is to never believe anything an energy broker tells you?  I've google searched but not found anything of use.

Jeremy535897

Th broker would normally charge a fee for finding the new contract, rather than a penalty for backing out of it. It may help if you are a microbusiness:

"Suppliers must take all reasonable steps to identify if you are a microbusiness. If they do not think you qualify, supply them with supporting evidence. This should include evidence that your business either:

employs fewer than 10 employees (or full time equivalent) and has an annual turnover or balance sheet no greater than €2 million

uses up to 100,000 kWh of electricity per year.

uses up to 293,000 kWh of gas per year.

If you aren’t satisfied with their response, check our guide to making a complaint."

From https://www.ofgem.gov.uk/information-consumers/energy-advice-businesses/types-business-energy-contracts

I suggest you read through this if you are a microbusiness:
https://www.ofgem.gov.uk/information-consumers/energy-advice-businesses/guidance-microbusinesses

annalt1974

Thanks.  We have 13 employees so would be classed as an SME.  The broker doesn't charge a fee for arranging the contract but has a commission on the energy we use.

Jeremy535897

The only way to get a definitive answer is to go back to the broker and explain why you are considering staying with your current supplier.