Ofgem's own data shows SMEs on auto-renewal tariffs pay 20–40% above competitive rates. This guide gives you the exact steps to avoid the loyalty penalty — 90 days before your contract ends.
Farm energy contracts typically cover multiple meters — farmhouse, dairy parlour, grain store, workshop, and outbuildings — often on different contract end dates with different suppliers. This fragmentation means most farms have never consolidated their energy procurement, and almost none have run a competitive tender across all meters simultaneously.
The result: individual meters roll onto auto-renewal one by one, each time paying the loyalty premium. A 340-cow dairy farm typically spends £18,000–£28,000 on electricity alone. At a 25% loyalty penalty that is £4,500–£7,000 per year going straight to the supplier's margin.
⚠️ The auto-renewal trap: most business energy contracts auto-renew 30–90 days before the end date. If you miss the window, you are locked in for another year at whatever rate the supplier sets. Set a calendar reminder 90 days before every energy contract end date. Right now.
Log into your supplier's online account or call them and ask directly: "What is the end date of my current contract and what is the auto-renewal window?" Get this in writing by email. If you are already in a rolled-over contract, ask for the earliest exit date and any exit fees. Some rolled-over contracts have no exit fee — check before assuming you are stuck.
Collect the MPAN (electricity) and MPRN (gas) numbers for every meter on your holding. These are on your bills or your supplier's online account. List the annual consumption (kWh) for each. This data goes into every quote request — suppliers need it to price accurately.
The Ofgem non-domestic indicative unit rates are published quarterly. The DESNZ fuel price statistics are published monthly. Both are free. Check what a competitive rate looks like for your consumption band before you approach any supplier. If your current rate is within 5% of benchmark — you may already have a good deal. If it is more than 10% above — you are overpaying.
Bundle IQ's IQ Benchmark Index publishes current electricity and gas unit rates by sector and consumption band, updated monthly from government price feeds. Check your rate before you negotiate: bundleiq.co.uk/iq-benchmark-index.html
Contact at least 3 suppliers directly — or use a broker who will do this for you (check they are paid by you not by commission from the supplier, which creates a conflict of interest). Give each supplier exactly the same information: MPAN/MPRN numbers, annual consumption, current unit rate, contract end date, preferred term length (12, 24, or 36 months). Compare quotes on unit rate and standing charge separately — not just total cost, as consumption assumptions vary.
Bundle IQ's agriculture energy pool aggregates demand from farms across the UK. Combined buying volume gives the pool leverage that individual farms cannot achieve. Pool members typically achieve 15–22% below the rates available to individual buyers. The pool runs as a collective tender — you submit your requirements, we go to market, you review the result and decide whether to accept. There is no obligation and no cost to join.
Once you have 3 quotes, go back to your preferred supplier and tell them what the competition is offering. Most suppliers will move on price when faced with a concrete alternative. Agree the unit rate, standing charge, term, and any exit clause — then get a written contract before you cancel your existing arrangement. Never cancel before you have a signed replacement in place.
If your farm has roof space or land suitable for solar, a power purchase agreement (PPA) can lock in below-market electricity rates for 10–25 years. This is a separate conversation from tendering your grid supply — but the two complement each other. Tender your grid contract now to get immediate savings. Evaluate solar on a longer timeline. Do not let the solar conversation delay the competitive tender you can do this week.
A 340-cow dairy farm spending £22,000/year on electricity, currently on an auto-renewed tariff at 28p/kWh, could reasonably expect to achieve 21–24p/kWh through competitive tendering — a saving of £5,500–£7,700 per year. That is a milking machine service, a new pump, or simply £7,700 back in the business. Every year. Without producing a single extra litre.
Free to join. No obligation to accept the pool result. Your requirements are pooled with other farms to achieve rates no individual buyer can match.
See buying pools → Check current energy rates