Change of Tenancy: The Hidden Costs Nobody Warns You About

Your business isn’t moving, yet your energy bills might skyrocket anyway. A change of tenancy doesn’t require a removal van—it requires vigilance. Most business owners miss critical metre readings and contract handovers, only to discover unexpected rate hikes months later. What seems like a paperwork formality can become an expensive oversight that impacts your bottom line for years.

What Is a Change of Tenancy for Business Energy?

Moving into a new commercial space? You’ve got paperwork ahead. A Change of Tenancy—or CoT—is the formal notification you send to the energy supplier when business occupancy shifts at a property. Simple concept. Not-so-simple execution.

A Change of Tenancy notifies your energy supplier when business occupancy shifts. Simple concept—messy paperwork.

Here’s the thing. Both incoming and outgoing tenants must inform the supplier. It’s triggered when you’re moving in, moving out, or even just signing a new lease at your current address. No physical move required sometimes.

And unlike residential energy? Your business rates don’t just transfer. Contract duration matters here. You’ll need to handle supplier negotiation yourself—or find someone who can. Conducting an energy audit at your new premises can identify inefficiencies and inform your negotiation strategy. Working with an energy management partner can streamline this process and ensure you secure optimal energy contracts aligned with your business needs.

The account’s completely separate from your tenancy agreement. Failing to notify your supplier promptly can land you on deemed rates, which run up to 80% higher than negotiated contracts. Acting quickly also prevents you from being held liable for previous tenant charges.

Bottom line: you’re responsible for managing this. Nobody else will do it for you.

When Does a Change of Tenancy Apply?

When your business physically relocates—whether you’re expanding, downsising, or just chasing cheaper rent—a Change of Tenancy kicks in. It’s that simple. You vacate one premises, enter another, and boom—tenant shifts begin.

But here’s where it gets interesting. You don’t actually have to move anywhere. Legal entity changes trigger this too. Converting from sole trader to limited company? That’s a Change of Tenancy. Same desk, same coffee mug, different legal status.

Lease migration also applies when ownership shifts. New proprietor takes over? Partnership dissolves? Someone buys your business outright? All valid triggers. These legal changes receive closer supplier scrutiny because they carry higher fraud risk than standard relocations. A structured compliance audit can help identify any gaps in your regulatory adherence during this transition period.

You’ll need to notify your supplier when these changes happen. Documentation matters here—Companies House filings, purchase agreements, the works. Enerbiz can guide you through the energy switching requirements that accompany change of tenancy procedures to ensure continuity of supply at your new location.

One thing that doesn’t count: simple rebranding. Same company number means same occupier. However, if you’re vacating premises entirely, remember that protection only applies if occupation exists on the final day of your lease—leaving early means losing your statutory rights under the Landlord and Tenant Act.

Documents Required for a Change of Tenancy

So you know a Change of Tenancy applies to your situation. Now comes the paperwork. Fun, right?

You’ll need an inventory checklist documenting the property’s condition. This protects you. It protects the landlord. Everyone’s covered.

An inventory checklist isn’t optional—it’s your protection and the landlord’s. Document everything.

Utility transfers require their own documentation. Metre readings. Account numbers. The whole lot. Your energy supplier needs proof you’re the new tenant at this address. Installing smart metres and submetres during your transition can provide accurate baseline data for your new location.

Expect to gather lease agreements, identification documents, and property condition reports. Security deposit paperwork matters too. Don’t skip it. As part of your transition, consider reviewing energy contract expertise to ensure you’re securing the best rates for your new premises.

Here’s the blunt truth: missing documents slow everything down. Your business doesn’t have time for that.

Keep copies of everything. Seriously. Every signature, every reading, every form. Future you’ll be grateful when questions arise months later.

How to Complete Your Change of Tenancy Notification

Getting your change of tenancy notification sorted out requires knowing the specific steps your energy supplier wants you to follow.

Here’s the thing though. Every supplier has their own process. Some want online forms. Others prefer phone calls. A few still cling to paper like it’s 1995.

Your tenant handover goes smoother when you’ve got your metre readings ready.

Snap photos. Write down the numbers. Do both, honestly.

You’ll also need to review your service contracts during this move.

These don’t automatically transfer when you move. Shocking, right?

Contact your supplier directly for their specific requirements.

They’ll walk you through their exact process. Don’t assume anything here. What worked at your last location might be completely different this time around. Implementing advanced monitoring systems during your transition ensures you capture accurate baseline data for your new premises.

Consider implementing real-time monitoring tools during your transition to ensure accurate energy consumption tracking between tenants and identify any inefficiencies in your new premises.

Why Delayed Change of Tenancy Triggers Deemed Rates

Missed the memo on notifying your energy supplier about your move? Here’s the brutal truth. The moment your CoT registration hits the supplier’s system without a contract in place, you’re automatically stuck on deemed rates. No warning. No grace period.

Deemed rates kick in the second your CoT registers without a contract—no warnings, no grace period, just higher bills.

• You’re paying up to 80% more than businesses with negotiated contracts
• Billing disputes become your new nightmare
• Supplier negotiation influence? Gone until you lock in a deal
• Every day of delay drains your budget
• You’re literally funding the supplier’s most expensive pricing tier

Look, relocation chaos happens. Energy contracts get forgotten. But deemed rates don’t care about your moving stress. They activate from day one of occupancy. That’s just how it works. Omnium’s supplier switching support manages the entire transition process, handling comparisons and negotiations so your new premises aren’t left on expensive default rates. During your transition, comprehensive energy audits can identify immediate cost-saving opportunities at your new premises whilst you’re sorting out contract negotiations.