Commercial energy / Buyer guidance
Ending an electricity contract early: obtain a settlement before comparing offers
Compare remaining electricity costs, a documented exit amount and replacement terms without assuming cancellation rights.
A lower replacement rate does not establish a cheaper exit
Before authorizing a supplier change, obtain the existing agreement and identify the contractual customer, covered meters, remaining delivery term and termination provisions. Request an itemized, dated settlement estimate from the current supplier. A rate comparison without that amount leaves out the very obligation the decision would trigger.
Constellation's business FAQ notes that early-exit provisions depend on the agreement. That supplier explanation does not establish a fixed fee or a cancellation right for another product. This guide provides a comparison workflow; it does not determine whether a disputed charge is enforceable.
Separate ordinary expiry, relocation and default
List each proposed action and the clause it may trigger. Finishing the agreed term, closing a meter, assigning service to a buyer and switching supply before expiry are not necessarily equivalent events. Ask whether a relocation provision applies to this legal entity and service territory, what evidence is required and whether it covers every meter. Do not assume residential cancellation protections apply to a commercial account.
For a formula-based settlement, request the remaining quantities, valuation date, price source, administrative charges, credits and calculation order. Ask how long the estimate is valid and what can change before the effective switch. If an amount is disputed, preserve notices, correspondence and relevant meter records and obtain qualified review of the actual agreement. Avoid initiating a second enrollment merely to test whether the first agreement still applies.
Worked example: a supply-rate difference is only one input
Hypothetical remaining-term comparison: forecast usage over the final six months is 240,000 kWh. Existing supply is $0.10/kWh; a replacement covering the same six months is $0.085/kWh. Existing modeled supply cost is $24,000 and replacement commodity cost is $20,400, a difference of $3,600 before exit costs.
Assume a written example settlement of $4,200 and a new enrollment charge of $100. The replacement path totals $20,400 + $4,200 + $100 = $24,700, or $700 more than remaining. This is not an actual supplier quote or an assessment of a real termination clause. Delivery, taxes and charges common to both paths are excluded. Any differing pass-throughs must be added before deciding.
At the assumed $0.015/kWh rate difference, the $4,300 combined exit/enrollment amount would require about 286,667 kWh to offset, calculated as $4,300 ÷ $0.015. The forecast is lower. If the replacement requires an additional year, compare that additional exposure separately; do not quietly credit it as a benefit over the shorter remaining obligation.
Close the administrative loop
Agree who may authorize termination and who must receive notice. Retain confirmation of the effective end date, final meter quantities, final bill, credits and deposit disposition. Check that a new supplier's start date does not precede the approved exit. Use the renewal planner to record confirmed dates, not to create legal notice requirements.
Sources and limits
The linked supplier FAQ supports contract-specific treatment. All amounts and the break-even exercise are independently invented. A settlement estimate can expire; this article does not establish a universal fee, guaranteed release or actual saving.