Termination Notice Period

Key takeaways

A termination notice period is the time you must give your supplier to end (or prevent renewal of) your contract.

For microbusiness contracts, Ofgem rules cap termination notice periods at no more than 30 days.

Microbusiness reforms also strengthened the right to give notice and terminate without being blocked by “unduly restrictive” terms.

What is a termination notice period?

It’s the notice you must give before your contract end date (or renewal point) to:

1. stop an auto-renewal,
2. avoid a rollover, or
3. end an evergreen arrangement.

If you miss it, you can land on rollover or default rates.

Microbusiness protection (important)

Ofgem’s Microbusiness Strategic Review decision includes a clear requirement that termination notice periods for microbusiness consumer contracts must be no longer than 30 days.

Older Ofgem microbusiness renewal guidance also reflects the move to a shorter maximum termination notice period and clearer renewal communications.

Sources

1. Ofgem: Decision on the Microbusiness Strategic Review (termination notice period limit)
2. Ofgem: Microbusiness contract renewals factsheet (renewal letter timing and reduced termination notice)
3. Ofgem: Guidance on Deemed Contracts (what Ofgem considers “unduly onerous” in supply terms)