How business energy contracts differ
Business gas and electricity are contracted separately, even when the same supplier provides both.
Prices are commonly tailored to the business, meter, annual consumption, location, credit profile and proposed start date rather than displayed as a universal domestic-style tariff.
Commercial agreements can run for several years and have stricter termination rules. Read start and end dates, notice, renewal and deemed or out-of-contract pricing carefully.
A director or employee agreeing by telephone may be able to bind the business.
Information needed for comparable quotes
Use recent bills to collect the meter point number, annual consumption, current supplier, contract end date and payment method. Half-hourly meters and more complex sites may need interval data or a current letter of authority.
Give every supplier or broker the same data and requested start date. Quotes produced on different days or assumptions are not directly comparable because wholesale prices and credit decisions move.
- MPAN for electricity and MPRN for gas
- Twelve months of consumption where available
- Contract end date and termination window
- Business name, address and legal entity
- Meter type, profile and smart-meter status
- Direct Debit or other payment preference
Unit rates, standing charges and other costs
The unit rate prices each kilowatt hour and the standing charge is paid for each day of supply. Bills may also contain taxes, network, capacity, meter and pass-through items depending on the contract and site.
Compare projected annual cost using the same consumption profile. A low unit rate with a high standing charge can be poor value for a lightly used site, while the reverse can apply to high consumption.
Confirm whether prices include VAT and Climate Change Levy.
Fixed, flexible and deemed contracts
A fixed contract can fix some or most energy price components for a term, but the word fixed does not guarantee every bill component stays unchanged. Read the pass-through and volume-tolerance clauses.
Flexible purchasing is usually designed for larger users that can manage procurement risk.
Deemed or out-of-contract rates can apply when a business occupies premises without agreeing a contract or remains after expiry; they may be materially more expensive, so act early.
Using a business energy broker
A broker can collect usage, approach suppliers and explain offers. Establish which suppliers are on its panel, whether it acts for you or the supplier, how it is paid and how much commission is built into the price.
Ask for commission and contract duration in writing. Keep the letter of authority narrow and time-limited, and never assume a broker can terminate the existing agreement without your confirmation.
Switching supplier and moving premises
Record the renewal window several months ahead. Check termination requirements, resolve incorrect meter details and give the new supplier accurate opening readings.
Ofgem says eligible small businesses can switch once a business contract is in place, with the process normally taking up to five working days, although contract dates still govern when supply can move.
When moving premises, tell both suppliers promptly, photograph meter readings and provide the occupancy dates. Do not assume the previous occupier's contract transfers automatically.
Supplier service, complaints and efficiency
Assess billing accuracy, online account tools, meter support, payment help and complaint handling. Microbusinesses receive specific protections in parts of the energy market; check Ofgem's current definition and rules.
Reducing consumption can outlast any tariff saving. Review heating controls, lighting, refrigeration, compressed air, standby loads and operating schedules.
Measure changes against comparable periods rather than relying on a single bill.
Frequently asked questions
Can I compare business energy online?
You can start online, but many business quotes are tailored and completed by telephone or email. Use identical meter, consumption and contract data and obtain the full written terms.
Are business energy prices capped?
Do not assume domestic price-cap rules apply to a commercial contract. Check Ofgem's current business guidance and the terms for your business size and contract.
Should a broker disclose commission?
Ask for the amount or calculation method in writing and check current disclosure requirements. Compare the broker's panel, role, fees and complaint route before signing.
Can gas and electricity use one business contract?
They are normally separate contracts, even where one supplier provides both fuels. Compare and record the terms for each meter.