Every year, thousands of Irish businesses silently slide onto rollover energy rates — paying 30–50% more than they would on a negotiated contract. It happens automatically, requires no action on your part, and locks you in for another 12 months. Most businesses don't even realise it's happened until they see the next bill.
Rollover contracts are the single biggest source of unnecessary energy costs for Irish businesses. Here's how they work, how much they cost, and how to make sure it doesn't happen to you.
What a rollover contract actually is
When your fixed-term business energy contract expires, one of two things happens if you take no action. Either your supplier automatically extends your contract for a new fixed period — typically 12 months — at rates they choose, or you move to a standard variable or deemed rate. Both outcomes are significantly more expensive than a competitively negotiated deal.
The mechanics are straightforward. Your original contract includes a termination window — usually 30 to 120 days before the end date — during which you must notify your supplier if you want to leave or renegotiate. Miss that window, and you're automatically rolled over. Once rolled over, you're bound by the new terms and cannot terminate early except in cases of change of tenancy.
The CRU requires suppliers to send renewal offers before your contract expires, including the new rates, contract length, and what happens if you don't respond. But these notices often arrive buried in routine correspondence, and the deadline passes before anyone in the business acts on it.
How much rollover rates actually cost
The markup on rollover and out-of-contract rates is substantial. Irish energy broker data consistently shows these rates running 30–50% above competitively negotiated tariffs. UK data from Ofgem suggests markups can reach 80% in some cases, and many of the same suppliers operate in both markets.
Let's put numbers on it. A mid-sized business spending €20,000 per year on electricity at negotiated rates would face a bill of €26,000–€30,000 on rollover rates. That's €6,000–€10,000 per year in avoidable costs — and the business is locked in for the full rollover period with no way out.
For gas, the pattern is identical. Businesses that let gas contracts lapse without renegotiating typically find themselves on variable rates well above what the market would offer for a new fixed deal.
How to check if you're on a rollover rate
Start with your most recent energy bill. Since June 2023, all Irish suppliers are required to display your contract end date on every bill. If that date has passed and you haven't signed a new agreement, you're on rollover or out-of-contract rates.
You can also find your contract end date through:
- Your original signed contract documentation
- Your supplier's online customer portal
- Calling your supplier's business customer service line
The three things that make rollover traps so effective
First, the notice periods are long. A 120-day notice requirement means you need to be thinking about renewal four months before your contract ends. For a busy business owner, that's easy to forget.
Second, supplier renewal offers aren't competitive by design. The rates in your renewal notice are the supplier's opening position, not the best available deal. They're banking on you accepting the default rather than shopping around.
Third, there's no disruption to supply. Your lights stay on, your gas keeps flowing, and your bills keep arriving. Nothing changes except the price — which is exactly why so many businesses don't notice for months.
How to prevent rollover: a simple system
The fix is straightforward but requires discipline. Set calendar reminders 90 days and 60 days before your contract end date for every energy account your business holds. At the 90-day mark, start getting competitive quotes. At the 60-day mark, make a decision and serve notice if you're switching.
If you have multiple sites, this gets complex quickly — different contracts with different expiry dates mean you're always approaching a deadline somewhere. This is where having a broker track your renewal dates pays for itself, because the cost of one forgotten rollover can dwarf the effort of staying on top of them all.
CRU data shows that only 12% of electricity customers and 14% of gas customers switched supplier in 2023, while 21% renegotiated. That leaves the majority of Irish businesses on whatever terms their supplier decided — and for many, those terms include rollover penalties they never agreed to and don't know they're paying.
What to do right now
Check your contract end date today. If it's within 90 days, start getting quotes. If it's already passed, you're on rollover rates and should begin planning your next move. Either way, send us your bill — we'll tell you exactly what you're paying versus what's available in the market, and make sure you never roll over again.