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Cooling-Off Period
Key takeaways
- A cooling-off period is a short window after agreeing a contract during which you can cancel without penalty.
- For microbusiness energy contracts agreed by phone or online, suppliers have to provide a cancellation right (typically 14 days from the date you agreed).
- Larger non-microbusiness contracts often do not have a statutory cooling-off period — check the contract before signing.
What is a cooling-off period?
A cooling-off period (sometimes called a cancellation right) is a defined number of days after you agree a contract during which you can change your mind and cancel without paying termination fees.
For UK microbusiness energy contracts, distance/off-premises selling rules generally give you 14 calendar days from the day after you agreed the contract — but the exact details depend on how the contract was sold and the supplier’s terms.
When it applies
- Microbusiness contracts agreed by phone, email or online — typically 14 days.
- Contracts signed on the supplier’s premises — often no automatic cooling-off; check the termination notice period.
- Larger business contracts — usually no statutory cooling-off; binding from signature.
How to use it
Send the cancellation in writing within the window — keep a copy and proof of delivery.
If the contract has already started, the supplier may charge for energy used up to the cancellation date — but not termination fees.
If a supplier refuses to honour your cooling-off rights, complain in writing and escalate to the Energy Ombudsman after 8 weeks.
