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Evergreen Contract
Key takeaways
An evergreen contract is a contract that continues or renews unless you take action to end it.
In business energy, “evergreen” is often used interchangeably with “rolling” or “auto-renewal” arrangements.
If you’re a microbusiness, there are extra protections around notice periods and rollover arrangements.
What is an evergreen contract?
In general contract terms, “evergreen” means the agreement continues until terminated, or it renews automatically on set terms unless you give notice.
In business energy, that often shows up as:
- a deal that renews for another period automatically, or
- a post-contract arrangement that continues until you switch or terminate.
Why evergreen matters for cost
Evergreen/rolling periods can be priced less competitively than a negotiated fixed-term renewal, simply because they’re “default” terms.
So the practical risk is not the concept of evergreen itself, it’s forgetting the dates and ending up on a higher-priced continuation.
Microbusiness note
Ofgem’s microbusiness reforms limit notice periods and give microbusinesses additional rights around how contracts can be ended.
