Change Of Tenancy: The Ultimate Guide 2025
- mitchthorne98
- Apr 14
- 3 min read
Whether you’re relocating your business, moving into your first commercial space, or taking over a site from another company, navigating a Change of Tenancy (COT) can be complicated. That’s why we’ve created this easy-to-understand guide. If you want to avoid overpaying for your energy during the transition, PPS is here to help.
What is a Change of Tenancy (COT)?
A Change of Tenancy (COT) – also known as a Change of Occupancy (CoO) – is the process of informing your energy supplier when the legal entity responsible for a property changes. There are two main types:
Incoming COT: You’re moving into new premises and taking over the energy supply.
Outgoing COT: You’re moving out and need to stop being billed for the site.
Without submitting a COT, businesses risk being charged incorrectly, potentially long after they've left the building.
When Should You Inform a Supplier?
Both outgoing and incoming parties should notify the supplier as soon as the tenancy changes. Scenarios that require a COT include:
Moving into or out of a business premises
Changing from a sole trader to a limited company (or vice versa)
Business ownership changes or company number changes (for Ltd companies)
Failing to notify your supplier could lead to being billed on higher "deemed rates" or continuing to be liable for a site you no longer occupy.
The Change of Tenancy Process (2025 Edition)
Before anything can be actioned, both outgoing and incoming tenants must complete a COT form and provide a signed Letter of Authority (LOA). Here’s how the process breaks down:
Incoming COT
You’ll need to submit:
Signed COT form and LOA
Lease or tenancy agreement / Land Registry document
One of the following: Business Rates, Solicitor’s letter, Accountant’s letter, Incorporation Certificate (for Ltd companies)
A photo of the meter on the date of handover also helps ensure accurate billing.
Outgoing COT
You’ll need to submit:
Signed COT form and LOA
Surrender of Lease or End of Tenancy letter
A photo of the meter on the day you leave
These documents are then submitted to the supplier for approval. The process can take up to 3 months, depending on supplier and complexity.
Important: Not all suppliers work with TPIs (Third Party Intermediaries). Some require customers to submit COTs directly, and some only price contracts via bespoke sales channels.
Upcoming Changes: June 2025 Update
From 27th June 2025, Ofgem will implement new standards for evidentiary support and processing times under project R0155. These changes aim to:
Simplify the COT process for businesses
Help suppliers update their systems faster
Make it easier for brokers like PPS to act on your behalf
As the changes approach, we’ll publish a follow-up guide breaking down exactly how it affects your energy contracts.
What Makes a COT High-Risk?
Some COTs get flagged by suppliers for extra scrutiny. Common triggers include:
Existing debt on the account
Contract signed less than 6 months prior
Unusual business types
Frequent recent COT history
This can delay processing and make things more complex. Luckily, PPS can help guide you through even the trickiest transitions.
How PPS For Business Can Help
Whether you're moving in, moving out, or just trying to avoid sky-high deemed rates, PPS is here to make the process easy.
We handle COT paperwork on your behalf
We compare commercial energy contracts to find you the best deal
We negotiate with suppliers to help you avoid overpaying
PPS has already helped businesses like Crossfit Bude save up to 131% and others cut their rates by as much as 88%.
Don’t Navigate It Alone
COTs can be a headache, but they don’t have to be. Let PPS take the stress off your plate. Our expert team will manage the entire process, ensuring you’re not left on expensive default rates and your business is set up for success.
Send us your tenancy details and your most recent energy bill. We'll take it from there.
Comments