To make sure you’re not being overcharged for your business gas and electricity, it’s important to know the differences between the types of business energy contracts on offer. The five main types of business energy deal are:
These deals charge a pre-determined price per unit (kWh) of energy used, which is fixed for the entirety of the contract. However, this doesn’t mean your energy bills will stay the same each month. This will depend on your usage.
The price per unit on variable rate energy deals fluctuates depending on wholesale prices. So, if the market price of energy goes up, so will your bills, and vice versa.
These deals will typically be the supplier’s most expensive tariff, which you will be put on if you don’t negotiate a new deal once your agreed contract ends. To avoid deemed rate tariffs, make sure you compare business energy deals and switch before your current deal expires.
Similar to deemed rate tariffs, rollover energy deals can be implemented if you fail to agree a new deal when your current tariff ends. Your supplier will automatically roll you over to this expensive deal for another year if you don’t switch.
Another variable rate contract with typically expensive rates. If your business hasn’t switched energy supplier since the market was deregulated in the 1990s, you may still be on a 28-day contract.
For us to compare business energy deals and find the perfect tariff for your specific needs, we will need to know some details about your business and the energy it uses. For an accurate quote, you will need to let us know:
Who your current gas and electricity suppliers are
Which energy tariffs you are currently on
When your current energy contracts end
How much energy your business typically uses
Once you’ve submitted this information, we can provide you with a range of quotes from a number of business energy suppliers. Just choose the one that suits your needs and your budget best, and you’ll be all set for the switch.
Setting up gas and electricity tariffs for your business is a little bit more complicated than it is at home. Read through our guides if you’re feeling lost.
Switching business energy suppliers usually takes up to six weeks. Once you have requested to switch, your new supplier will inform you of the exact date. You should take a final meter reading once the switch is complete and send it your old supplier so any outstanding credit can be settled.
Your energy will not be cut off at any time during the switch. You also won’t need to schedule an engineer visit, as all your gas and electricity is supplied through the same pipes, no matter your supplier.
Other than switching your energy supply to a cheaper tariff, there are many ways you could keep your business’s gas and electricity usage down in order to get cheaper bills. This includes engaging with your staff to be more eco-friendly and increasing the energy efficiency of your business premises. For more information on how to keep your business energy costs down, check out our business energy guides.
When it comes to running a successful business, you need to cut costs in the right places. And every business needs energy, so make sure you’re not overpaying by comparing quotes from a range of suppliers. Even small business can use up a lot of energy compared to households, so finding the right deal can amount to huge savings.
Businesses also need to think about their reputation. If you’re concerned about your business’s carbon footprint, switch to a green business energy deal. You should also look for top-quality and reliable customer service, as you would need any problems concerning your energy supply to be resolved as quickly as possible to not disrupt your operations.
There are currently more than 50 energy suppliers to choose from in the UK. Most domestic energy suppliers also offer their services to businesses, including the Big Six, but there are also many firms that specialist in commercial energy supply.
The Big Six energy suppliers – British Gas, EDF Energy, E.ON, Npower, Scottish Power and SSE – are well known in the UK, and still hold a collective majority market share. They are typically seen as a safe option when comparing business energy deals, but it’s likely you could find cheaper tariffs elsewhere. Smaller suppliers also tend to have better customer service as they have more time to focus on individual customer needs, although this isn’t always the case so do your research.
Since the energy market was deregulated over two decades ago, dozens of small, independent energy suppliers have entered the UK market. If you’re looking for an energy supplier that can cater specifically for your businesses’ needs, you may have better luck looking at these smaller energy suppliers. However, make sure your supplier is reliable, as you want any issues with your energy supply to be resolved quickly and efficiently.
If your company prides itself on being eco-friendly, or your just want to do your bit to help the environment, you should choose a green energy supplier when comparing business energy deals. These tariffs offer energy sourced from 100% renewable sources, such as solar or wind power.
Last reviewed: 19 October 2021
Next review: 19 November 2021