New Financial Year, New Energy Contract: Why April Is the Best Month to Switch

The financial year turned on 1 April, and for UK businesses still sitting on an expired or rolling energy contract, that date just cost you money. Suppliers have repriced. Levies have shifted. And if you haven’t actively negotiated a new business energy contract for April 2026, you’re paying more than you should be — probably significantly more.

Here’s what’s actually happening in the market right now, and what you should do about it.

Why April Triggers a Repricing Across the Market

UK energy suppliers align their pricing cycles with the financial year. April is when they push through updates to network charges — including Distribution Use of System (DUoS) and Transmission Network Use of System (TNUoS) costs set by Ofgem — alongside revisions to standing charges and supply margins.

Ofgem’s 2026-27 network charge determinations have already been published and absorbed into supplier pricing models. That means every quote being issued right now is built on an updated, higher cost base. Businesses that act quickly can still lock fixed rates against current forward curves. Those that delay are giving suppliers more time to widen margins further.

Rolling Contracts After 1 April: The Expensive Default

If your contract expired and you haven’t switched, you’re on a deemed or out-of-contract rate. These are the highest rates any supplier offers — full stop. They exist to maximise margin from customers who aren’t actively managing their supply.

Under Ofgem’s rules, suppliers must give advance notice before rolling a contract over. Most do — via a brief email that looks like every other piece of supplier correspondence. If you missed it, your contract has now rolled into a new term at inflated rates, and you may be locked in for months before you can exit without penalty.

The unit rate difference between a rolled deemed rate and a properly negotiated fixed contract can be 30 to 40 percent. On a £40,000 annual energy bill, that’s a £12,000 to £16,000 overpayment — per year.

CCL Rates Have Increased for the 2026-27 Tax Year

The Climate Change Levy is a government environmental tax charged directly on business energy consumption. It applies to the majority of commercial electricity and gas use and is separate from your unit rate — it sits on top of whatever you’ve negotiated with your supplier.

HMRC updates CCL rates each April. For the 2026-27 tax year, the main rate for electricity stands at 0.775p per kWh and for gas at 0.672p per kWh. These apply whether you’re on a fixed or variable contract, and they compound the impact of any unit rate increases you’re already facing.

If your business holds a Climate Change Agreement (CCA), you remain entitled to an 89% discount on electricity CCL and a 78% discount on gas CCL — but only if your agreement is in good standing and correctly administered.

Lock a Fixed Rate Before the Market Moves Further

Wholesale electricity and gas prices in 2026 remain volatile. European gas supply constraints, demand forecasting uncertainty, and shifting renewable output mean forward markets can reprice sharply — and suppliers will pass that through immediately on out-of-contract customers.

A fixed-rate contract agreed now freezes your unit rate and standing charge for the duration of the term. Most SMEs negotiate one to three-year positions. Given current forward curves, a two-year fixed contract offers a practical balance between cost certainty and flexibility — without overcommitting to a long-term position in an uncertain market.

The key word is negotiated. Going directly to your existing supplier and accepting their renewal quote is rarely the optimal outcome. Suppliers have no commercial incentive to offer their sharpest rate to a customer who hasn’t tested the market.

What an Independent Consultant Does That a Broker Doesn’t

There’s a meaningful difference between an independent energy consultant and a brokerage model. Brokers typically work from a panel of preferred suppliers and earn commission on the contracts they place — which means their recommendations are shaped, at least partly, by margin rather than purely by your interests.

An independent consultant runs a full tender process across the supply market, negotiates on unit rates, standing charges, contract flexibility, and exit terms, and charges a transparent fee for doing so. The savings generated typically outstrip the consultancy cost many times over.

Talk to Telnergy Before Your Next Bill Arrives

At Telnergy, we work exclusively on behalf of business energy users across the UK. Our fee is agreed with you upfront — paid directly or via the supplier, your choice. We tender your contract properly, negotiate hard, and make sure you understand exactly what you’re signing before you sign it.

If your contract has expired, you’re not sure what you’re on, or you want to know whether your current rate is competitive — get in touch. A short conversation now could mean a materially lower energy bill for the next two years.