Business energy change of tenancy is the process of informing the gas or electricity supplier that responsibility for a commercial property has moved from one occupier to another.
It should be completed whenever a business moves into or leaves a restaurant, takeaway, café, salon, shop, office, warehouse, care facility or other commercial premises.
Completing the business energy change of tenancy promptly can help separate the outgoing occupier’s charges from the incoming occupier’s usage, reduce billing disputes and prevent a business from remaining on unsuitable deemed rates for longer than necessary.
Quick Answer
The outgoing business should provide its leaving date and final meter readings. The incoming business should notify the existing supplier, provide evidence of occupancy, record opening readings and arrange a suitable business energy contract.
What Is a Business Energy Change of Tenancy?
A business energy change of tenancy, sometimes shortened to CoT, informs an energy supplier that the person or company responsible for a commercial supply has changed.
The physical gas or electricity supply normally remains connected. The supplier instead closes the outgoing occupier’s account and creates an account for the new occupier.
A change may be required when:
- A business enters or leaves rented premises.
- A commercial property is sold.
- A lease is transferred to another company.
- A restaurant, shop or care business changes operator.
- A landlord becomes responsible between tenancies.
- A new legal entity takes over the same premises.
Both the incoming and outgoing businesses should notify the existing supplier as soon as possible. Do not assume that the landlord, letting agent or previous tenant has completed the process.
Why Business Energy Change of Tenancy Matters
Completing a business energy change of tenancy creates a clear date from which the new company becomes responsible for energy consumption and charges.
A properly documented handover can help your business:
- Separate the previous occupier’s charges from your own.
- Avoid estimated opening and closing readings.
- Confirm the correct electricity and gas supply points.
- Identify every meter at a multi-meter property.
- Correct inaccurate supplier records.
- Create evidence for a billing dispute.
- Review deemed rates and available contract options.
A new occupier may initially be supplied under a deemed contract when energy is used before a formal business contract begins. The business remains responsible for the energy consumed during that period.
Business Energy Change of Tenancy: 7 Essential Steps
1. Notify the Existing Supplier
Contact the current electricity and gas suppliers as soon as the handover date is known. The outgoing occupier should provide the final responsibility date, while the incoming occupier should provide the date on which responsibility begins.
Prepare the following information:
- Full commercial supply address.
- Unit, shop, floor or building number.
- Registered legal business name.
- Trading name, where applicable.
- Move-in or move-out date.
- Account number, if available.
- Authorised contact details.
- Forwarding address for the final bill.
Ask the supplier to acknowledge the business energy change of tenancy in writing and retain the reference number.
2. Record Meter Readings and Take Photographs
Record gas and electricity readings on the exact handover date. Where practical, the incoming and outgoing occupiers should inspect and agree the readings together.
Take clear photographs showing:
- The full meter.
- The displayed meter reading.
- The meter serial number.
- The meter’s surrounding location.
- Any label identifying the unit it serves.
Keep the original photographs. They provide useful evidence if the business energy change of tenancy later results in a dispute about the opening or closing reading.
3. Gather Proof of Occupancy
The supplier may require evidence confirming that a genuine change of occupier has occurred. The document should clearly show the premises, responsible business and relevant start or end date.
Evidence may include:
- A signed lease or tenancy agreement.
- A property completion statement.
- A sale or purchase document.
- A landlord’s confirmation letter.
- A solicitor’s letter.
- A business rates bill.
- A licence to occupy.
Clear occupancy evidence can prevent unnecessary delays in completing the business energy change of tenancy. If the supplier rejects your evidence, ask it to explain precisely what is missing.
4. Confirm the Meter and Supply Details
Confirm that the supplier has matched your business to the correct property, meter and supply point before accepting an energy contract.
- Check the complete supply address.
- Check the electricity MPAN.
- Check the gas MPRN.
- Check the meter serial number.
- Check the opening meter reading.
- Confirm how many meters serve the property.
This is particularly important in shopping centres, food courts, shared kitchens, subdivided warehouses and business parks where several meters may be located together.
Read Utility7’s guide on how to find your MPAN without a bill or learn how to find your MPRN without a bill.
5. Open the Account in the Correct Business Name
The account should show the registered legal entity responsible for the premises, rather than only a restaurant, shop or trading name.
Request written confirmation of:
- The account commencement date.
- The opening meter reading.
- The registered business name.
- The correct supply address.
- The current tariff status.
- The payment method and billing frequency.
The previous occupier’s debt should not automatically become the new occupier’s liability. However, incomplete records can delay account creation, so keep your lease, meter photographs and handover correspondence available.
6. Review Deemed Terms and Compare Contracts
A business energy change of tenancy does not normally mean that the former tenant’s fixed contract transfers automatically to the new business.
The new occupier may initially receive energy under the existing supplier’s deemed terms. Ask the supplier to confirm the unit rate, standing charge, payment terms and contract status.
When comparing alternatives, review:
- The unit rate per kWh.
- The daily standing charge.
- Estimated annual consumption.
- Estimated annual cost.
- Contract duration.
- Fixed or variable pricing.
- Payment and exit terms.
- Broker fees or commission disclosure.
Important: Compare the complete estimated annual cost rather than choosing a contract only because it has a lower unit rate or standing charge. Any prices used in a quotation should be treated as business-specific examples, not general live market prices.
You can also review Utility7’s guide to deemed rates and out-of-contract rates.
7. Check the Final and Opening Bills
The outgoing occupier should check that the final bill uses the agreed closing date and meter reading. The incoming occupier should inspect the first bill before making payment.
Check the following details:
- Registered business name.
- Supply address.
- Account start or closing date.
- Opening or closing meter reading.
- Meter serial number.
- MPAN or MPRN.
- Tariff and contract dates.
- VAT and other applicable charges.
Raise any error promptly and send the supplier copies of your lease, meter photographs and previous correspondence.
Moving-Out vs Moving-In Responsibilities
The following table explains how business energy change of tenancy responsibilities differ for incoming and outgoing occupiers.
| Responsibility | Business Moving Out | Business Moving In |
|---|---|---|
| Supplier notification | Provide the final responsibility date. | Provide the new responsibility date. |
| Meter readings | Record closing readings. | Record opening readings. |
| Evidence | Provide lease-end or sale evidence if requested. | Provide lease, purchase or occupancy evidence. |
| Energy account | Request the final bill and account closure. | Open an account in the correct legal name. |
| Contract | Check whether existing obligations remain. | Review deemed terms and compare options. |
How Long Does a Business Energy Change of Tenancy Take?
The timing depends on whether the documents match the supplier’s records, whether several meters are involved and whether the incoming business intends to change supplier.
Ofgem states that where a business stays with the property’s existing supplier, the supplier should review the submitted change of tenancy documents within 10 working days.
Following its review, the supplier should:
- Close the old account and create a new account.
- Reject the proposed change and explain why.
- Request further evidence and explain what is required.
Where the incoming occupier wants to change supplier, it should notify both the current and proposed new suppliers about the change in occupier.
Read the official Ofgem change of tenancy guidance for businesses.
You can also read Ofgem guidance for moving business premises.
Common Business Energy Change of Tenancy Problems
Most business energy change of tenancy problems can be resolved more quickly when the business keeps dated documents, photographs and supplier correspondence.
The Previous Tenant Did Not Close the Account
Send the supplier your lease, opening meter readings and evidence of the date you took possession. Ask for the previous and new accounts to be separated from the confirmed handover date.
The Supplier Rejects the Change
Request the rejection reason in writing. Ask for a specific list of missing evidence rather than repeatedly sending unrelated documents.
The Bill Covers the Wrong Period
Provide the correct occupancy dates and meter evidence. Clearly identify the dates, readings and charges that you dispute.
The Meter Does Not Match the Bill
Compare the meter serial number, MPAN, MPRN and complete supply address. Label each photograph where several meters are installed at the premises.
The Process Is Taking Too Long
Contact the supplier using its formal complaints process and include your evidence, account references and a clear timeline of previous contact.
Business Energy Change of Tenancy Mistakes to Avoid
- Waiting for the first bill before contacting the supplier.
- Relying only on a verbal handover.
- Forgetting to photograph every meter.
- Opening the account under the wrong legal entity.
- Accepting estimated readings without checking them.
- Confusing a meter serial number with an MPAN or MPRN.
- Assuming the previous contract transfers automatically.
- Comparing only the unit rate.
- Ignoring the daily standing charge.
- Losing tenancy documents and supplier correspondence.
Create a digital handover folder containing the lease, meter readings, photographs, supplier emails, reference numbers, first bill and final bill.
How Utility7 Can Help
Utility7 helps UK businesses review gas and electricity information when entering or leaving commercial premises.
Our team can help you:
- Review a first or final business energy bill.
- Identify important meter and supply details.
- Understand MPAN and MPRN information.
- Compare unit rates and standing charges.
- Review estimated annual costs.
- Understand deemed and out-of-contract arrangements.
- Compare available business electricity and gas options.
Utility7 can help you understand the information required for a business energy change of tenancy and review the available energy options for your premises.
Need Help With Your Business Energy Handover?
Frequently Asked Questions
What is a business energy change of tenancy?
A business energy change of tenancy informs the energy supplier that responsibility for a commercial property has moved from one business or occupier to another.
What documents are normally required?
A supplier may request a lease, tenancy agreement, property sale document, business rates bill or confirmation from a landlord or solicitor. The evidence should show the premises, responsible party and relevant date.
Does the previous occupier’s energy contract transfer to me?
Usually, the previous occupier’s fixed contract does not automatically transfer. You may initially receive energy under deemed terms until you agree an appropriate business contract.
Can I change energy supplier after moving in?
A business can usually compare and change suppliers after it becomes responsible for the account and meets the relevant switching requirements. Confirm that the account, meter and supply details are correct before arranging the switch.