Signing a new energy contract for your business? You might be wondering if you can cancel it if you change your mind. For consumers, there’s a legal cooling off period—but what about UK businesses?
At Scalex Technology, we help UK businesses navigate the often-confusing world of commercial energy contracts. Here’s everything you need to know about cooling off periods, cancellation rules, and how to protect your business from getting locked into a bad deal.
Do Business Energy Contracts Have a Cooling Off Period?
❌ In most cases, no—business energy contracts do not include a cooling off period.
Unlike domestic (household) energy contracts, commercial energy agreements are legally binding from the moment you accept them—whether that’s online, over the phone, or via email.
This means once you agree to a contract, you’re usually committed for the full term (e.g., 12, 24, or 36 months).
Why No Cooling Off Period for Businesses?
UK consumer protection laws provide a 14-day cooling off period for domestic customers, giving them time to reconsider or cancel without penalty.
However, businesses are treated differently:
- They are seen as “non-domestic” customers
- They are assumed to have commercial awareness and due diligence processes
- Suppliers are not legally required to offer a cooling off period
This applies even to small businesses, sole traders, or start-ups—unless the supplier voluntarily offers flexibility.
What Happens If You Change Your Mind?
If you’ve already accepted a business energy contract:
- You can’t usually cancel unless the supplier agrees
- Cancelling may result in termination fees
- Some brokers or third parties may allow grace periods, but it’s not a legal requirement
How to Avoid Getting Locked Into the Wrong Contract
✅ 1. Check the Full Contract Terms First
Always ask for a written contract and review:
- Unit rates and standing charges
- Contract length
- Termination fees
- Auto-renewal clauses
✅ 2. Use a Trusted Broker or Consultant
Work with reputable advisors like Scalex Technology to compare offers, clarify small print, and avoid misleading deals.
✅ 3. Don’t Rush Over the Phone
Verbal acceptance over the phone is legally binding. Be cautious and don’t say “yes” unless you’re absolutely sure.
✅ 4. Ask if a Cooling Off Period is Offered Voluntarily
Some suppliers or brokers may offer one voluntarily, especially for small businesses or sole traders.
Can a Business Ever Cancel a Signed Energy Contract?
There are a few scenarios where cancellation may be possible:
- Mis-selling or misleading information (can lead to a formal complaint or legal challenge)
- Supplier failure or breach of contract
- Within a grace period provided by the broker or supplier (rare)
If in doubt, seek support before signing—or immediately after, if you suspect a mistake.
How Scalex Technology Protects Your Business
At Scalex Technology, we believe in clear, fair, and strategic energy solutions. Our energy experts help businesses across the UK:
- Review offers before acceptance
- Understand all terms and conditions
- Avoid costly mistakes and overpayments
- Ensure contract compliance and exit strategies
We don’t just compare prices—we provide long-term energy planning to give you peace of mind.
🔍 Thinking of Switching or Signing a New Energy Deal?
Contact Scalex Technology for a no-obligation review of your energy options. Make the right decision the first time—because in most cases, there’s no turning back.
