Yes. A business energy contract is normally legally binding once the business and supplier have agreed to its terms. A handwritten signature is not always required: microbusiness and small-business energy contracts can, for example, be agreed over the phone or online.
This makes it important to understand exactly what is being accepted before confirming a contract. The agreement may specify the unit rates, standing charges, contract period, termination conditions, renewal arrangements and any fees or commissions included in the price.
Business energy contracts also differ from domestic energy agreements because there is generally no automatic cooling-off period after the contract has been agreed. Ofgem specifically advises businesses to check the terms carefully before committing.
Being legally binding does not mean a contract can never be challenged. There may be grounds for a complaint if information was misleading, important terms were not properly disclosed or regulatory requirements were not followed. However, a business should not assume that it can simply cancel the agreement because it later finds a cheaper price.
