There are many reasons why someone may wish to cancel their home energy contract. For some, it may be because they have found a better deal with another energy supplier, or because they are moving to a new home and no longer require energy services at their current address; Others may be experiencing financial difficulties and are looking to reduce their monthly expenses by renegotiating prices with a new energy supplier.
In some cases, consumers may be dissatisfied with the level of customer service they have received from their energy supplier or may have experienced issues with billing or meter readings. Whatever the reason, it is important to understand the terms and conditions of your energy contract before cancelling, in order to avoid any fees or penalties, and be sure that contract termination is the right thing for you.
The most common times to terminate your energy contract, both in business energy and domestic, is 30 days into the contract, or 12 months from the start date when most contracts will expire.
If you are within 30 days of opening your energy contract in the UK and wish to cancel it, you have the right to do so without incurring any fees or penalties. This is known as a cooling-off period, and it is designed to give consumers time to review their contract and make changes if necessary.
Some tariffs only have a 14 day cooling-off period, so take notice of the opportunity given to you when you first start with independent suppliers.
To cancel your energy contract within the cooling-off period, you will need to contact your energy supplier and inform them of your decision to cancel. You can do this by phone, email, or letter. Your energy supplier may also have an online cancellation form that you can use.
When you contact your energy supplier, you will need to provide them with your account details, including your name, address, and account number. These things should all be found on your electricity bill. You should also provide them with the date you wish to cancel your contract and the reason for the cancellation.
Your energy supplier will then confirm the cancellation and may ask you to provide a final meter reading. You will need to pay any outstanding bills that you owe to your energy supplier before your contract can be cancelled.
It is important to note that if you cancel your energy contract within the cooling-off period, you will need to find a new energy supplier or sign up for a new contract with your current supplier. It is also worth noting that some suppliers may charge a fee if you cancel your contract after the cooling-off period has ended.
If you want to leave your current contract early to switch suppliers, OfGem regulations are in place to help you do this without the hassle, but you may be subject to an exit fee.
If you want to leave your energy contract after the 30 days cooling off period in the UK, there are some important steps that you should take to ensure a smooth and hassle-free transition.
Firstly, you should check the terms and conditions of your energy contract to see if there are any penalties or fees for leaving before the end of the contract term. Most energy suppliers in the UK offer fixed-term contracts, which means that you may be required to pay an exit fee if you leave before the end of the contract term. The exit fee can vary depending on the supplier and the terms of your contract, so it’s important to check this before making any decisions.
Once you have checked the terms and conditions of your contract, you should start shopping around for a new energy supplier. There are many price comparison websites available in the UK that can help you find the best deals on energy tariffs. When you are comparing energy tariffs, it’s important to look at the total cost, including any standing charges and unit rates.
Once you have found a new energy supplier, you should contact them to set up a new contract. Your new supplier will then take care of the switching process for you, including informing your old supplier that you are leaving. You will need to provide your new supplier with your meter readings to ensure that you are billed accurately.
It’s important to note that you should not cancel your current energy contract until you have set up a new contract with your new supplier. This is because you may be left without energy supply if you cancel your current contract before your new contract is set up.
In summary, if you want to leave your energy contract after the 30 days cooling off period in the UK, you should check the terms and conditions of your contract to see if there are any penalties or fees for leaving. You should then start shopping around for a new energy supplier and set up a new contract before cancelling your old contract. This will ensure that you have a smooth transition and avoid any potential issues with your energy supply.
Cancelling your electricity contract, step by step
Step 1: Check your contract terms
The first step in cancelling your domestic energy contract is to check the terms and conditions for your gas and electricity. The contract you signed on opening with the new supplier will outline the length of the contract, the cancellation policy, and any fees or penalties that may apply if you cancel your contract early. This means that if there is a £50 cancellation fee for leaving before your contract expires, you can have this ready before the next step.
Step 2: Get in touch with your energy provider
Once you have reminded yourself of the details of the contract with your old supplier, reach out to tell your supplier that you want to end the contract early. You can do this by phone, email or send a letter of termination. Your energy supplier may also have an online cancellation form that you can complete.
When you contact your energy company, you will need to provide them with your account details, including your name, address, and account number. You should also provide them with the date you wish to cancel your contract and the reason for the cancellation. From here, your supplier sends you an official notice of the closure of your account and any remaining charges on your account, though this should also be found on your energy bills.
Step 3: Provide a final meter reading
An energy customer will be expected to provide a final meter reading once the contract ends – This is to ensure that you are not being overcharged, but also that you have not underpaid your current energy supplier. UK energy costs vary depending on your tariff, so the current energy deals will be considered when you need to cancel the contract.
You can provide your final meter reading to your energy supplier in several ways. Some suppliers may ask you to provide the reading online, while others may ask you to call or email them with the reading.
Step 4: Pay any outstanding bills
The majority of energy contracts will leave you with outstanding bills, even if you pay for your energy in advance. Fees such as early exit and other penalties will be highlighted in your electricity cancellation letter. This letter will make signing up to a new supplier within moments a lot easier, as it keeps note of the information that may be harder to get once you are not being traced by your current supplier.
If you are having difficulty paying your bills, you should contact your energy supplier to discuss payment options or seek advice from a debt charity or financial advisor.
Step 5: Return any equipment
If you have any equipment that belongs to your energy supplier, such as a smart meter or a gas card, you will need to return it before your contract can be cancelled. Your energy supplier will provide you with instructions on how to return the equipment, including any postage or packaging requirements; this means that you should be able to return the gear without having to pay to do so.
Step 6: Confirm the cancellation
Once you have completed all of the above steps, your energy supplier will confirm the cancellation of your contract. They will provide you with a final bill that reflects the energy you have used up until the date of cancellation, as well as any fees or penalties that may apply and if they have been paid on that date. This is all information that an alternative supplier will need if you are to move into a new energy contract soon after.
If you want to cancel a business electricity contract
Energy users in business contracts are much the same, but there are some differences when you look to cancel your business electricity.
Firstly, it’s important to ensure that you have chosen the best business electricity supplier for your needs before signing up for a contract. This is because business energy tariffs can be more complex than domestic energy tariffs, and it can be more difficult to find the best deal.
If you want to switch your business energy supplier or cancel your contract, you will need to provide your supplier with notice before the end of your initial contract term. This notice period can vary depending on the terms of your contract, so it’s important to check this on your electricity bill or in your contract documentation. New business energy contracts today tend to last longer than the typical domestic one, usually from one to three years in length.
When you switch your business energy supplier, you will need to provide your new supplier with meter readings to ensure that you are billed accurately. It’s also important to ensure that any outstanding bills are paid before you cancel your contract, as you may be charged interest or other fees if you don’t.
Another difference when closing a business electricity account is that you may be subject to a credit check when signing up for a new contract. This is because business energy contracts can involve larger amounts of energy usage and billing, so suppliers may want to ensure that they are dealing with a reliable and trustworthy customer.
In summary, when closing a business electricity account, it’s important to choose the best business electricity supplier for your needs and be aware of the notice period required to switch or cancel your contract. You will also need to provide meter readings to your new supplier and ensure that any outstanding bills are paid. Additionally, you may be subject to a credit check when signing up for a new contract.