For many UK businesses, energy contracts quietly roll on in the background. Unfortunately, that set and forget approach is exactly what suppliers rely on, and in 2026, automatic renewals are still one of the most expensive mistakes companies make.

Despite greater awareness and more competitive procurement options, thousands of organisations continue to be caught out every year, often paying far more than they need to for gas and electricity.

What Is an Auto-Renewal?

Most business energy contracts include an automatic renewal clause. If you do not take action within a specific notice window, usually between 60 and 120 days before contract end, your supplier can automatically place you onto a new contract.

The problem is that the new contract is rarely priced competitively. Instead, it is typically higher than current market rates, fixed without any negotiation, and locked in for another 12 to 36 months. Once renewed, you are usually tied in with no option to switch or renegotiate.

Why Auto-Renewals Are So Expensive

Energy suppliers know that many businesses do not have the time, resource or market knowledge to actively manage their contracts. Auto-renewals take advantage of that.

We are still seeing renewal rates far higher than available market prices, contracts rolling over without any tender process, businesses missing out on more flexible purchasing options, and organisations paying inflated standing charges and non-commodity costs.

For a small business, that can mean thousands of pounds wasted. For multi-site organisations, it can be tens or even hundreds of thousands.

The Warning Signs to Watch For

If any of the following apply, you could be at risk. You are unsure when your current energy contract ends, you have been with the same supplier for several years, you have not reviewed your energy costs in the last 12 months, or you have never formally tendered your energy contracts.

These are classic indicators that an auto-renewal may already be costing you money.

How to Avoid the Trap

Avoiding auto-renewals is straightforward with the right approach. Key steps include understanding your contract end dates, serving termination notices on time, going to market early, exploring fixed and flexible procurement strategies, and using expert support to manage the process correctly.

How Enexus Can Assist

At Enexus Energy, we specialise in preventing exactly this problem. Our procurement process ensures that renewal dates are tracked proactively, notice periods are managed correctly, contracts are tendered competitively, pricing structures are fully transparent, and businesses never drift onto expensive default rates.

We have helped organisations across the UK avoid costly auto-renewals and secure contracts that genuinely fit their needs.

Final Thought

In a complex and fast-moving energy market, doing nothing is often the most expensive decision of all. If you are unsure about your current contracts or worried you may be approaching an auto-renewal, now is the time to act.

Speak to Enexus today and make sure 2026 is the year your energy contracts work for you, not your supplier.