For many UK businesses, managing energy contracts can be a complex and time-consuming task. With volatile market prices and countless suppliers, it’s no surprise that companies turn to brokers or consultants for support. One popular feature offered in energy contracts is the “Blend & Extend” option, designed to provide flexibility and cost savings. 

But what happens when this feature is misused or misunderstood? At Commercial Energy Solutions (CES), we’ve seen firsthand how Blend & Extend agreements can lead to confusion, unexpected charges, and even mis-sold contracts. 

Here’s what every business should know about Blend & Extend – and how to protect your organisation from costly mistakes. 

What is a Blend & Extend Agreement? 

A Blend & Extend allows businesses to renegotiate their energy contract before it ends. Essentially, it “blends” the remaining period of your current contract with a new one at Today’s market prices, then “extends” the length of the agreement. 

The benefit? When energy prices drop, businesses can take advantage of lower rates without waiting for their existing contract to expire. 

The catch? However what actually happens is that businesses commit long contract and when energy prices drop, energy suppliers just increase their profit margin often making it difficult customers to get out of long and expensive energy contract. Blend and extend is a one sided benefit for energy suppliers and result in businesses becaming in a prisoner of of long and never ending contracts losing their power to negotiate.   

How Can Blend & Extend Be Misused? 

While Blend & Extend is intended to benefit businesses, we’ve identified several ways it can work against them: 

1. Overpriced “Blended” Rates 

Some suppliers offer new rates under Blend & Extend that are significantly higher than the market average. In one recent case, our client was presented with a rate 36% above the average market price, with no apparent justification for the premium before they reached us. 

2. Lack of Transparency From Brokers or Suppliers 

Many businesses rely on brokers to negotiate contracts on their behalf. Unfortunately, we’ve seen cases where brokers failed to fully explain the implications of Blend & Extend – or worse, misrepresented the potential savings. 

3. Withdrawal of Promised Offers 

In another situation, a supplier contacted our client offering a Blend & Extend deal, only to later withdraw the offer without explanation, despite repeated follow-ups. This left the client stuck on an unfavourable tariff and unable to take advantage of market price drops. 

4. Hidden Terms and Conditions 

Not all Blend & Extend agreements are created equal. Some contain restrictive terms that limit when you can re-fix rates or penalise early exits, which can leave businesses with little flexibility. 

Real-World Example: CES Steps In 

One of our new clients came to us after noticing unusually high charges from their energy provider. Upon investigation, we discovered that their previous broker had arranged a Blend & Extend contract that:  

• Offered inflated rates far above the market average. 

• Left the client unable to renegotiate when prices fell. 

• It was poorly documented, making it difficult to hold the supplier accountable. 

Our energy consultants reviewed the case, escalated the issue to the Energy Ombudsman, and lodged an appeal after an initial unfavourable decision. By presenting new evidence of the supplier’s failure to honour their Blend & Extend commitments, we’re now helping the client fight for a fair resolution. 

How to Protect Your Business 

If you’re considering or currently in a Blend & Extend contract, here’s how to safeguard your business: 

Review Your Contract Carefully – Look for clauses on rate calculations, re-fixing rules, and penalties. 

Check Market Rates – Compare your blended rates to the current market average. 

Document All Communications – Save emails and notes of any calls about contract terms or renegotiations. 

Get Independent Advice – Work with an impartial energy consultant, such as CES, to assess your contract and negotiate on your behalf.

CES: Your Partner for Fair Energy Contracts 

At CES, we help businesses avoid the pitfalls of complex energy agreements. Our team of experts: 

Reviews existing contracts for hidden risks. 

Negotiates directly with suppliers to secure competitive rates. 

Supports clients through disputes, including Ombudsman appeals. 

Don’t let an unfavourable energy contract damage your bottom line.  

Get in Touch Today 

If you’re unsure about your current energy contract or suspect you’ve been mis-sold, contact CES at [email protected] or 0203 750 0853 for a consultation. We’ll help you regain control and secure the fair deal your business deserves.