There could be many reasons for an existing business user to cancel his electricity contract. One of them could be that your current contract is coming to an end and maybe you are not so satisfied with the present company.
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If that is the scenario, you should know everything that goes behind canceling your electricity contract, and here, we are to guide you about it.
Earlier companies asked the businesses to file a termination contract within a specific time period. Their inability to do so would lead the electricity company to roll them into another contract of 12 months.
All this information would be mentioned in the small print of the contract received. In modern times businesses can look for business electricity quotes and then choose a suitable company and end the contract with the existing one.
How to cancel an electricity contract
The situation has changed a lot in the last decade. With more than 30 companies in the power sector, the consumers get the best deal. These power companies will not roll the customer into a new plan if they have not received the termination notice.
Instead, these companies put the business on a variable rate contract. Though the rate of this is slightly higher, the customer has the chance of exiting the contract at any time.
Having said that, there would still be companies that require a termination contract. Before your contract expires, ask the company what their procedure for contract cancellation is.
Steps to cancel a contract
- Firstly find out the date on which your contract reportedly ends. This should be mentioned in the terms and conditions of the contract you have. Usually, you have to do 30 days before your contract ends.
- If the cut-off is still away, you can send a termination notice any time. This will ensure that at any time, you can look for another supplier. You must check with the supplier on the address this contract should be sent to.
What to include in the contract
The contract need not be very extensive or lengthy. You will have to mention your account number. Make sure that the contract is written on your company’s letterhead. Or you can send the contract from the company’s registered email id.
The person who signs it should be recognized by the person identified by the electricity company. At this point, all you need to write is “Please terminate our contract when it ends on ….” and you are done.
If you are sending this by email, remember that some companies have specific emails to receive termination contracts. In case you send it to any other email, they may not recognize it at their end.
Please make sure that you have another contract with you before terminating the existing one. If you do not do that, the existing supplier will charge a high rate as you will have to still use his supply.
The new electricity supplier needs at least three weeks before it starts supplying power to your premises. Keep this point in mind when you are sending your termination contract ahead.