Business Energy Change of Tenancy Guide
A structured guide for incoming and outgoing commercial tenants covering the key energy steps to take when moving into or out of a business premises.
Managing Energy at a Change of Tenancy
A change of tenancy at a commercial premises involves a number of energy-related steps that both the outgoing and incoming tenant need to manage. Handling these steps promptly and in the right order reduces the risk of billing disputes, unexpected charges and gaps in energy supply.
The responsibilities of each party will depend in part on the terms of the lease and any agreements reached between the landlord, outgoing tenant and incoming tenant. This guide sets out the general steps involved and the practical actions each party should take. It does not constitute legal advice on lease terms or property law — if you have specific questions about your legal obligations under a lease, you should seek independent legal advice.
Energy suppliers and network operators have their own processes for handling changes of tenancy, and it is important to notify them promptly. Delays in notification can result in the outgoing tenant continuing to be billed for energy consumed after they have vacated, or the incoming tenant being placed on a higher out-of-contract rate when a more competitive arrangement could have been put in place.
Guidance for Outgoing Tenants
As an outgoing tenant, your primary energy-related responsibilities are to notify your supplier of your departure date, provide accurate final meter readings, and ensure that your final bill is settled. Acting on these steps promptly will help to prevent ongoing charges after you have vacated the premises.
Contact your energy supplier as early as possible — ideally several weeks before your departure date — to inform them that you will be vacating the premises. Provide the date on which you will cease to be responsible for the supply and ask what information they require to process the change. Some suppliers have a specific change of tenancy process; others handle it as a standard account closure.
On or as close as possible to your departure date, take a meter reading for every meter at the premises — electricity, gas and any other metered utilities. Record the readings with the date and time, and photograph the meter displays if possible. Submit these readings to your supplier promptly and keep a copy for your own records.
Check your contract terms carefully before vacating. Some commercial energy contracts include early termination fees or notice period requirements that may affect the timing of your account closure. If your contract has a fixed term that extends beyond your departure date, discuss the options with your supplier — the position will depend on the specific terms of your agreement.
Once your final meter readings have been submitted, your supplier should issue a final bill covering the period up to your departure date. Review this bill carefully and check that it is based on the readings you submitted rather than an estimate. If the bill appears incorrect, raise a query with your supplier before making payment.
If you are aware of who the incoming tenant will be, it is helpful to share their contact details with the supplier so that the account can be transferred smoothly. However, you are not responsible for setting up the incoming tenant's account — that is for them to arrange directly with the supplier or a broker of their choice.
Guidance for Incoming Tenants
As an incoming tenant, you will need to establish who supplies energy to the premises, contact that supplier to notify them of your occupation, and decide whether to remain with the existing supplier or arrange a new contract. Taking these steps promptly will help you to avoid being placed on a high out-of-contract rate for longer than necessary.
Before or on the date you take occupation, take meter readings for every meter at the premises. Record the readings with the date and time and photograph the meter displays. These readings will form the basis of your opening account with the supplier and will be important if any dispute arises about consumption during the period before you took occupation.
To find out who currently supplies the premises, check any paperwork left by the outgoing tenant or the landlord. If this is not available, you can identify the electricity supplier by contacting the relevant Distribution Network Operator (DNO) for the area, or by using the Meter Point Administration Service (MPAS). For gas, the supplier can be identified through the Find My Supplier service operated by Xoserve.
Contact the existing supplier to notify them that you have taken occupation of the premises. Provide your opening meter readings and the date from which you are responsible for the supply. The supplier will typically place you on a deemed or out-of-contract rate while your account is being set up. These rates are generally higher than contracted rates, so it is worth arranging a new contract as soon as practicable.
You are not obliged to remain with the existing supplier. Once you have notified the current supplier of your occupation, you can approach other suppliers or use an independent broker to compare rates and arrange a new contract. The process for switching supplier from a new tenancy is broadly similar to a standard business energy switch, though some suppliers may require evidence that you have taken occupation of the premises.
Check whether the premises has a smart meter or a half-hourly meter. If so, confirm with the supplier that the meter is registered correctly to your account and that consumption data is being attributed to you from the correct date. For half-hourly meters, there may be additional steps involved in transferring the meter point to your account.
Meter Readings at Change of Tenancy
Accurate meter readings taken on the date of the tenancy change are the single most important step in avoiding billing disputes between outgoing and incoming tenants. Both parties should ideally take readings on the same date — the departure date of the outgoing tenant and the occupation date of the incoming tenant should be the same day wherever possible.
If there is a gap between the outgoing tenant's departure and the incoming tenant's occupation, the landlord or property manager should take meter readings on both dates. Energy consumed during a void period — when the premises is unoccupied — is typically the responsibility of the landlord, though the specific position will depend on the lease terms.
For premises with multiple meters — for example, separate electricity meters for different floors or units, or both electricity and gas supplies — readings should be taken from every meter. Note the meter serial number alongside each reading to ensure that readings are attributed to the correct supply point.
Submit meter readings to the supplier as soon as possible after taking them. Many suppliers accept readings online, by telephone or by email. Keep a record of the submission, including the date and any reference number provided by the supplier. If the supplier subsequently issues a bill based on an estimated reading rather than the reading you submitted, contact them to request a correction.
Notifying the Energy Supplier
Both the outgoing and incoming tenant have an interest in ensuring that the energy supplier is notified of the change of tenancy promptly. For the outgoing tenant, prompt notification reduces the risk of being billed for energy consumed after departure. For the incoming tenant, it ensures that their account is set up correctly from the date they take occupation.
When contacting the supplier, have the following information ready: the address of the premises, the MPAN (for electricity) or MPRN (for gas), the date of the tenancy change, and the meter readings taken on that date. The outgoing tenant should also provide their account number and the name and contact details of the incoming tenant if known.
Some suppliers have a dedicated change of tenancy team or process. Ask the supplier whether there is a specific form or procedure to follow, as this can speed up the account transfer. Keep a record of all contact with the supplier, including the date, the name of the agent spoken to and any reference numbers provided.
If the outgoing tenant's contract is with a broker rather than directly with the supplier, the broker should also be notified of the change of tenancy. The broker may be able to assist with the account closure process and can advise on any contractual obligations that need to be addressed before departure.
Lease Considerations — General Guidance
The terms of a commercial lease will typically address the allocation of utility costs between the landlord and tenant, and may include provisions relating to the condition in which the premises must be left at the end of the tenancy. The specific terms vary considerably between leases, and this guide does not constitute legal advice on lease terms or property law.
It is worth reviewing the energy-related provisions of your lease before vacating or taking occupation of a premises. Some leases require the outgoing tenant to ensure that energy accounts are settled and transferred before departure. Others may place obligations on the landlord in relation to the energy supply during void periods.
If the premises is part of a multi-tenancy building with a shared energy supply or a landlord-managed energy arrangement, the position may be more complex. In these cases, the landlord or managing agent will typically coordinate the energy arrangements, and both outgoing and incoming tenants should liaise with them directly.
If you have specific questions about your obligations under your lease in relation to energy costs or the condition of energy infrastructure at the premises, you should seek independent legal advice from a solicitor with experience in commercial property.
Final Bills for Outgoing Tenants
Once the outgoing tenant has notified the supplier of their departure date and submitted final meter readings, the supplier should issue a final bill covering the period up to the departure date. This bill should be based on the actual meter readings submitted rather than an estimate.
Review the final bill carefully before making payment. Check that the billing period ends on the correct date, that the closing readings match those you submitted, and that the unit rates and standing charges correspond to your contract. If any element appears incorrect, raise a query with the supplier before settling the account.
If the supplier issues a final bill based on an estimated reading rather than the actual reading you submitted, contact them and ask them to reissue the bill using your actual reading. Provide the reading you submitted and the date on which you submitted it, along with any reference number you were given at the time.
Keep a copy of your final bill and proof of payment. These documents may be needed if a dispute arises at a later date about energy consumption during your tenancy. If you paid a deposit to the supplier, confirm with them when this will be refunded and to which account.
Opening an Energy Account as an Incoming Tenant
When you take occupation of a commercial premises, you will need to set up an energy account in your name. If you choose to remain with the existing supplier, contact them to transfer the account. If you wish to switch to a different supplier, you will need to set up a new account with your chosen supplier and arrange for the supply to be transferred.
To open an account, the supplier will typically require your business name and registered address, the address of the premises, the MPAN or MPRN of the supply point, your opening meter readings and the date from which you are responsible for the supply. Some suppliers may also require proof of occupation, such as a copy of your lease or a letter from the landlord.
While your account is being set up, you will typically be placed on a deemed or out-of-contract rate. These rates are generally higher than contracted rates and are intended as a temporary arrangement. Arrange a new contract as soon as practicable to avoid paying the deemed rate for longer than necessary. An independent energy broker can help you to compare rates from multiple suppliers and identify a competitive contract.
If the previous tenant had a smart meter or half-hourly meter at the premises, confirm with the supplier that the meter has been correctly transferred to your account and that consumption data is being attributed to you from the correct date. If there are any discrepancies in the meter data, raise them with the supplier promptly.
Avoiding Disputes at Change of Tenancy
The most common source of energy-related disputes at a change of tenancy is a disagreement about the meter readings used to calculate the final bill for the outgoing tenant and the opening bill for the incoming tenant. Taking agreed meter readings on the date of the tenancy change — ideally with both parties present or with readings confirmed in writing — is the most effective way to prevent this type of dispute.
Keep thorough records throughout the process. This includes meter readings with dates and photographs, copies of all correspondence with the supplier, records of telephone calls including dates and reference numbers, and copies of all bills received. If a dispute does arise, having a clear paper trail will make it much easier to resolve.
If the outgoing tenant's account is not closed promptly, the supplier may continue to bill the outgoing tenant for energy consumed after their departure. If you are an outgoing tenant and you receive a bill covering a period after you vacated the premises, contact the supplier immediately and provide evidence of your departure date and final meter readings.
Similarly, if you are an incoming tenant and you receive a bill that includes consumption from before you took occupation, contact the supplier and provide your opening meter readings and occupation date. The supplier should be able to reissue the bill covering only the period from your occupation date.
If a dispute with a supplier cannot be resolved through direct contact, eligible micro-businesses may be able to refer the matter to the Energy Ombudsman after eight weeks. For larger businesses, the options for escalation will depend on the specific circumstances and the terms of the contract.
Change of Tenancy Checklists
Outgoing Tenant Checklist
Notify your energy supplier of your departure date as early as possible.
Take meter readings for all meters on or close to your departure date.
Photograph meter displays and record readings with date and time.
Submit final meter readings to your supplier and keep a record of submission.
Check your contract for notice period requirements or early termination provisions.
Review your final bill and check it is based on actual rather than estimated readings.
Settle your final bill and retain proof of payment.
Confirm the refund of any deposit held by the supplier.
Notify your broker if your contract was arranged through one.
Incoming Tenant Checklist
Take meter readings for all meters on or close to your occupation date.
Photograph meter displays and record readings with date and time.
Identify the current energy supplier for the premises.
Contact the current supplier to notify them of your occupation and provide opening readings.
Confirm the date from which you are responsible for the supply.
Compare rates from multiple suppliers and arrange a new contract as soon as practicable.
Confirm that any smart or half-hourly meter has been correctly transferred to your account.
Review your first bill and check it covers only the period from your occupation date.
Keep copies of all correspondence and bills for your records.
Frequently Asked Questions
Last reviewed: — Supplier notification requirements and tenancy processes may change. This guide provides general information only. Always seek independent legal advice if you are uncertain about your obligations.
Not legal or professional advice.
Moving Into or Out of a Business Premises?
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