How to Manage Business Utilities When Moving Premises

Moving premises is often a good sign. Your business may be growing and may have outgrown those you currently occupy. But it’s also a lot of work. Employees need to be relocated, as does equipment. And everybody needs to be notified of this change of circumstances. 

It could be easy to forget about utilities amongst all this. If the water is running and power is going into the plug sockets at the new place, does it matter anyway? Well, the answer to that question is yes, as you could significantly overpay for them if you don’t switch suppliers promptly. 

What Happens to Your Utility Contracts When Moving Business Premises?

Two things could happen to your utility contracts should you change business premises. On the one hand, you may be able to transfer your existing contract from your old premises to the new ones, but since energy pricing takes in many factors, including the size of the premises and distance from the source, this may not be possible. Your energy contract will likely be cancelled, meaning you have to set up a new one at your new premises. 

In the event of the former, the energy suppliers will have a team who will be able to ensure a smooth transition from one property to the other. In the event of the other, things start to get a little more complicated. But because there shouldn’t be any early termination fees because you’re moving premises, this can also be an opportunity to shop around for a better deal. However, this should all be done quickly because processes must be followed. You may be charged an early termination fee should you do so. 

Understanding Business Electricity Disconnection Rules

When you move into new premises, you might find the supply disconnected. The most likely reason is that the previous tenant stopped making payments or cancelled their contract. In this case, you may have to pay a reconnection fee or an additional deposit, which may take time to complete. 

You should begin the process early to prevent disconnection during a move. If you want to negotiate a new contract, that should be weeks before the actual moving date. Each supplier may have variations in their disconnection policies, so it’s essential to review your specific contract terms and communicate with your supplier promptly.

Setting up Utilities for a New Property

The key to a successful transition is to allow plenty of time. Arranging a new contract can take time if you want to compare the best deals and find a new provider. And if you are changing suppliers, you’ll need to inform the outgoing one, too. We have a guide on how to switch business energy suppliers. 

If there is still energy going into the premises, you should continue to receive it, but at a potentially higher cost based on what are commonly known as ‘deemed rates’. Unless you’ve arranged to transfer your existing contract to new premises, you could pay a lot more for your energy because your contract will end on the day you move premises. Always check your bills; this is why negotiating new contracts with suppliers is so important! 

Can a Water Company Cut Off Business Water Supply?

For water, there is a specific process when you move premises, and disconnection can be risky. All business water contracts are associated with specific properties identified by a Supply Point ID (SPID). Business water rates are regional and depend on your business water meter size, making transferring water tariffs from one property to another impossible. It is, therefore, necessary to cancel your business water contract when you have a fixed move-out date. Each water supplier maintains a move-out form on their website.

A water supplier may disconnect a property if it has been vacant for an extended period or if there are outstanding bills, so you could turn up at your new premises only to find there's no water. Eventually, locate the property’s water meter and note the meter number. 

You can contact any water retailer, and they can tell you which water or wastewater retailer is registered to your premises. Establish who the provider is, contact them, provide your address and meter number, and request reconnection. Again, reconnection may incur an additional charge. 

Can an Energy Company Cut Off Business Energy Supply?

Under the Electricity Act 1989, suppliers can disconnect electricity if payments are outstanding against an account. However, they cannot disconnect if the bill is genuinely disputed, and they must provide 7 working days’ notice.

The most likely reason for the energy being disconnected from a property will be the previous occupants having failed to pay the bill or the premises having been unoccupied for some time. You can minimise the risk of anything like this happening by making sure that you have arranged your switch before your move-in date. 

Utilities-Related Steps to Take When Moving Business Premises

The steps for switching over when you move from one set of premises to another is fairly straightforward but can be time-consuming. 

• Contact your energy supplier at least a month before your departure to notify them that you are leaving your premises and give them the moving date. Also, start looking at what deals are on the market. 

• Ring the existing suppliers again at least 48 hours before your move. Confirm your new address so they can send you a final bill. They may organise a meter reading or ask you to take it on the day of your move. Your current supplier may ask you for proof that you are leaving the premises if you are in a contract with them. 

• Take a meter reading on your last day in the property to avoid being overcharged by your energy company. 

• Pass the reading on to your supplier and take a note for your records. Suppliers will send you a final bill to settle your account once you have moved. If you rent the property, you should take note of your meter readings and confirm these with your landlord before you move out.

• After you move, take gas and electricity meter readings in the new premises, find out which company supplies them, and give them the readings, your details and the date you moved in. They will create a new account for you.

You’ll need to complete COT paperwork. A change of tenancy (COT) is when a business moves in or out of new premises and the responsibility for the energy supply changes. There are two types. An incoming COT is when your business moves in to take over a new supply, and an outgoing COT is when you move out and need to end the contract with the supplier at the premises. Whether you're an incoming or an outgoing COT, you must let your current energy suppliers know that you're moving into or out of a property. 

You may also need to provide a copy of your tenancy agreement as proof that you are switching premises, so keep a copy of this handy. Coordination with utility providers is important when ensuring a smooth transition for something like this. The calls don’t take long, so make sure that everybody knows what they need to know in plenty of time! You may also want to take photographs of your meter readings in case they’re later disputed. 

Can I Switch Energy Providers When I Move Business Premises?

Yes, you can! By necessity, gas and electricity contracts terminate when you move from one premises to another and you are under no obligation to stay with the same providers, whether from the old or new properties. You must do, because you’ll be put onto an expensive ‘deemed rate’ at the new one. 

When Can I Switch Energy Supplier Without Penalty?

While you’re at liberty to negotiate a new contract when you move properties, suppliers may have penalties for cancelling early. However, it should be added that these are often waived if you’re sticking with the same supplier. Check the terms and conditions of your contract for the specifics of your penalties. 

How Do I Notify Utility Companies of My Business Move?

You should be able to notify your gas, electricity and water supplier online, but it’s worth calling them to make sure they have all the information they need. Commonly, it’ll be: 

• Your business trading name

• Your customer reference number

• The date you moved out

• A meter read taken on your last day

• The supply address

• A forwarding address

Managing your business utilities when moving premises is hard work. It’s a lot to remember, from business waste to broadband and business insurance. But there are opportunities that can be mined from it. You could even take the opportunity to invest in renewable energy. But even if all you want to do is drive down your costs, Switchpal can help, not only with getting you the best deals for your business energy but with taking some of this weight off your shoulders when you’ve got enough on your plate in the first place! Get in contact with us when you’re looking to move premises, and you could find there to be more benefits than you were expecting!