Business Energy Glossary
What is a termination notice window?
A termination notice window is the period before the end of a fixed-term business energy contract during which the customer must give the supplier notice of their intention to terminate, renew, or switch. The window varies by supplier and contract type, typically running from 30 to 120 days before the contract end date. Missing the window can result in the customer being automatically placed on rollover rates or default out-of-contract rates.
The termination notice window is one of the most overlooked terms in a business energy contract. Sites that miss their window can find themselves locked in to a new fixed term or paying significantly more on default rates. Most business contracts have a window, and tracking it is part of basic contract management.
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How the notice window works
A termination notice window is the period, set in a business energy contract, during which you must tell the supplier you intend to leave at the end of the term. Since 1 October 2022 microbusinesses can’t be required to give this notice, while larger businesses that miss the window may be rolled onto a new term.
A fixed-term business energy contract has a defined start date and end date. The contract terms usually include a provision that, unless the customer notifies the supplier within a specified window before the end date, one of three things happens:
- The customer is placed on a rollover contract for a new fixed term at supplier-set rates.
- The customer is placed on out-of-contract rates with no fixed term but at significantly higher pricing.
- The customer is placed on a deemed contract with the same supplier.
The notice window is the period in which the customer can prevent any of these outcomes by formally signalling their intention to terminate or renew.
Typical window lengths
| Customer type | Typical notice window |
|---|---|
| Micro-business (post-2014 Ofgem rules) | No notice needed at the end of a fixed term since 1 October 2022 |
| Standard SME contract | 30 to 60 days |
| Mid-market and corporate contracts | 60 to 120 days |
| Some legacy contracts | Up to 180 days |
The exact window is specified in the contract. The customer should locate the relevant clause at the start of the contract, not at renewal time, to avoid surprises.
Micro-business protections
Ofgem rules introduced in 2014 limited the termination notice window for micro-business contracts. Since 1 October 2022, micro-business customers can’t be required to give notice to leave at the end of a fixed term. The same rules require suppliers to send clear renewal communications well before the window opens.
A micro-business is defined by Ofgem as one consuming less than 100,000 kWh of electricity or 293,000 kWh of gas per year, or with fewer than 10 employees and turnover below £2 million. Most small UK businesses qualify.
What happens if you miss it
Missing the window has different consequences depending on the contract type:
- Rollover contract. The customer is bound to a new fixed-term contract (usually 12 months) at supplier-set rates. Exit fees apply if the customer tries to terminate within the new term, except in a defined post-rollover notice window.
- Out-of-contract rates. The customer is placed on a no-term default arrangement at higher rates. The customer can exit on 30 days notice without fees but pays substantially more in the meantime.
- Deemed contract. Similar to out-of-contract for most practical purposes.
For micro-businesses, Ofgem rules limit any rollover to 12 months and allow it to be ended at any time without a termination fee. The default is OOC rates instead, which is bad commercially but at least allows immediate exit.
How to manage the window
Three practical steps:
- Record the contract end date and window length on every meter point. A simple spreadsheet works. Set a reminder 30 days before the window opens.
- Engage with renewal at the start of the window. Compare the supplier renewal offer against the market via a broker or direct quotes. Make a decision with at least 30 days of margin.
- Sign or instruct early. Signing during the notice window prevents both rollover and OOC.
For larger portfolios, automated contract management software or a broker on retainer typically handles this. Most missed windows are on portfolios where the business does not have a clear owner for energy renewals.
After the window has passed
If the window has closed and the customer has been placed on rollover or OOC, options remain:
- If rolled over and within the post-rollover notice window (typically 30 days from the start of the rollover), terminate without fees.
- If on OOC rates, terminate on 30 days notice and sign a new fixed-term contract with any supplier.
- If on rollover and past the post-rollover window, weigh the cost of staying for the remaining term against the exit fees. For long remaining terms with high rollover rates, exit can be cheaper despite the fees.
The wider lesson is to manage the window in the first place. Tracking contract end dates across a portfolio is unglamorous but it is a common and avoidable cost.
Related guides
a termination notice window FAQs
What is a termination notice window?
The period before the end of a fixed-term business energy contract during which the customer must give notice to prevent automatic rollover or default rates applying.
How long is a typical termination notice window?
Micro-business contracts have a maximum 30-day window under Ofgem rules. Standard SME contracts are 30 to 60 days. Mid-market and corporate contracts can be 60 to 120 days or longer.
Where do I find my contract notice window?
In the supply contract itself, usually in the section covering renewal, termination, or contract end. Locate the clause at the start of the contract, not at renewal time.
What happens if I miss the notice window?
Depending on the contract: a rollover contract, out-of-contract rates, or a deemed contract may apply. For micro-business contracts, a microbusiness can’t be held to a rollover, as it can end one at any time without a termination fee.
Can I terminate after the window has closed?
Yes, but with potential consequences. If rolled over, exit fees may apply for the remaining term. If on OOC, exit on 30 days notice without fees but at higher rates until the new contract starts.
What is the notice window for micro-business contracts?
None. Since 1 October 2022 a microbusiness can’t be required to give notice to leave at the end of a fixed term. Contracts cannot require longer notice from a micro-business customer to prevent rollover.
How do I manage notice windows across multiple sites?
A simple register with meter point, supplier, contract end date, and notice window length. Quarterly review catches anything approaching. Larger portfolios usually use broker-managed services or contract management software.
Does the supplier remind me about the notice window?
Most suppliers send a renewal communication 60 to 120 days before contract end. Under Ofgem rules, micro-business suppliers must send clear renewal notices well before the window opens. Reliance on supplier reminders is not advisable; tracking the date directly is more reliable.