Stuck in an energy contract that you want out of? Breaking your energy contract early might come with hefty penalties. Here's what you need to know about terminating your business energy contract.
There could be several reasons for wanting to cancel your energy contract. You might be moving business premises, selling your business, or looking to switch energy suppliers. If you are in the middle of a business energy contract and are looking to terminate the agreement with your retail energy supplier, you might be facing an uphill battle. However, there are several options available to you that we will outline below. This article details energy contracts, early termination penalties, cancelation options, energy contract language, and other alternatives for terminating your business energy contract.
There are several valid reasons why you might want to terminate your business energy contract. From moving locations to problems with energy suppliers, business owners might be looking to get out of their agreements early. Here are some of the top reasons we see customers wanting to cancel their contracts.
The number one reason is that the business is moving premises. Now, if your business is moving to a new location within the same utility territory, you might be able to transfer your contract to the new location. However, if it is outside of that footprint, most businesses need to cancel their contract early.
If you are buying a new business, or selling your business to someone else, you need to address any energy contracts that might be associated with the business. Most retail energy suppliers will allow the new business to take over the active contract by completing transfer paperwork. The buyer of the business, however, might not want to assume the contract and in that case, the seller needs to cancel the contract. It’s important to manage energy contracts when buying or selling a business.
Another common reason to cancel an energy contract is energy scams or energy fraud. Unfortunately, some customers experience many problems with energy suppliers, and if your utility account was signed up to a contract without your permission, you should have every right to terminate the energy contract.
If you signed up for a fixed-rate energy contract and energy index prices fell, you might be wanting to cancel your contract so you can get a lower rate. This is quite common, but unfortunately very difficult to achieve. Most retail energy contracts have heft early termination penalties to deter customers from doing just that.
