Businesses could be missing out on significant savings by leaving their energy renewals too late, according to energy experts at Bionic, who say timing is key to securing competitive rates and avoiding high out-of-contract charges.

Most business energy and utility contracts are fixed-term and difficult to exit early. Les Roberts, energy expert at Bionic, said companies should focus on their “switching window” — the period before a contract expires when they are allowed to compare deals and arrange a new one to start as the old agreement ends.

“Your supplier is required to notify you when this window opens, but it’s also worth checking your contract directly and setting your own reminder,” Roberts said. “Acting early can help you secure better rates and avoid being rolled onto costly out-of-contract tariffs.”

Roberts recommends that businesses start reviewing their contracts around 90 days before expiry, which aligns with the typical switching window used by most suppliers. “Reviewing your contract at this stage gives you the best chance to lock in competitive rates and prevent automatic renewals or higher default charges,” he added.

Bionic also highlighted key details small and medium-sized enterprises (SMEs) should understand before switching suppliers:

• No cooling-off period: Once a business signs an energy contract, it’s legally binding.

• Switching times vary: Most SME switches take up to 30 days, while microbusinesses can complete the process in as little as five.

• Outstanding debt can block a switch: Suppliers may prevent a transfer if more than £500 is owed.

• Out-of-contract costs are steep: Lapsed contracts default to expensive tariffs.

• Potential savings: Switching can save small firms up to £1,450 a year, depending on energy use and payment method.

Bionic’s platform automatically tracks contract renewal dates, compares market rates, and arranges switches on behalf of businesses.

Roberts said taking proactive steps before winter could help protect margins and ease cost pressures.

“We know how stretched business owners are right now,” he said. “By comparing quotes early and locking in competitive rates, businesses can better manage winter energy demands and avoid paying more than they need to.”