Automatic contract renewal – how restaurants can avoid the trap
Many restaurants only discover after the fact that their electricity contract has been automatically renewed – often on less favourable terms. Here's what you need to know about notice periods and reminder routines.
Silence implies consent
Most business contracts are automatically renewed if they are not terminated within the notice window – typically 1–3 months before the contract's end. The renewal rarely occurs on the same terms: the mark-up may increase, the binding period may extend, and the tariff structure may change.
What you should check today
- When does the contract expire? The date should be clearly stated in the contract text – not just in an appendix.
- What is the applicable notice period? 3 months is most common, but 6 months can occur.
- What happens upon renewal? Does it state "same terms and conditions" or "the supplier's terms and conditions applicable at the time"?
- Is there a reminder from the supplier? Some suppliers send them – others do not.
Three routines that reduce risk
- Enter the contract's expiry date + notice period into your calendar immediately upon signing.
- Always request written confirmation of renewal – verbal promises are not binding.
- Begin renegotiating 4–6 months before expiry, not 1 month prior.
Would you like a personal review?
This guide is free knowledge from Savera and intended to provide you with concrete points to check independently. We are an independent advisor in business electricity – if you would like us to specifically review your contracts, invoices, or consumption, you are welcome to book a free initial consultation.
Tip: A notice of termination can always be sent as a preventive measure. You can sign a new contract with the same supplier if it turns out to be the best option – but you will then have the negotiating power.