Business energy FAQs — every question, answered
Everything UK business owners ask us about business gas, electricity, tariffs, contracts and switching supplier. Organised by category.
Comparing & Switching
How does comparing business energy prices with Energy Tariff work?
Tell us your postcode and a few details about your business. We check live rates from our panel of UK suppliers, present the best-value tariffs for your usage profile, and — if you're happy — handle the switch for you end to end. There's no paperwork and no interruption to your supply.
Is it free to compare business energy prices?
Yes. Our comparison service is completely free for UK businesses. We're paid a commission by the supplier you choose to switch to, which is factored into the unit rate — it never adds extra cost on top of your quote.
Will comparing my rates affect my current contract?
No. Requesting a comparison is completely non-binding and doesn't change anything with your current supplier. You'll only switch when you formally accept a new contract with a new supplier.
How long does it take to switch business energy supplier?
Most switches complete within 4-6 weeks. Ofgem's rules guarantee a smooth transfer with no loss of supply, and your new supplier handles the meter reads and communication with your old one.
Do I need to be out of contract to compare prices?
No — you can compare at any time. Most business energy contracts have a renewal window (typically 1-6 months before the end date) when you can lock in new rates. We'll flag if you're in-window so you don't miss it.
What information do I need to get a quote?
Ideally have a recent energy bill handy — we'll ask for your postcode, business name, current supplier, contract end date if known, and your annual usage (kWh) or spend. Don't worry if you don't have everything; we can usually work from a postcode alone for an initial indication.
Will switching business energy supplier cause any disruption?
No — your supply is identical because the energy still comes through the same network. Only the company billing you changes. There's no engineer visit and no downtime.
How much notice do I need to give my current supplier?
This varies by contract, but Ofgem's rules mean most micro-businesses can give notice up to 60 days before contract end. Larger businesses often have specific renewal windows written into the contract — we'll check yours.
Can I switch if I'm in the middle of a contract?
You generally can't switch mid-contract without paying termination fees, but you can agree a new contract now to start when your current one ends. This is called 'future dating' and is the best way to lock in low rates before your current deal runs out.
What happens to my old supplier's final bill?
Your old supplier will issue a final bill within around six weeks of the switch date, based on the final meter reads submitted at changeover. Any credit is refunded and any outstanding balance is billed as normal.
Electricity
What is the average business electricity rate per kWh in the UK?
Business electricity unit rates typically sit in the range of 22p-32p per kWh in 2026, with a daily standing charge of roughly 40p-70p. Rates vary significantly by region, business size, meter type and contract length — the only reliable rate is a live quote for your specific meter.
What's the difference between a small, medium and large business electricity user?
As a working guide: small businesses use under 25,000 kWh a year (small offices, shops), medium users 25,000-100,000 kWh (busy hospitality, small industry), and large users above 100,000 kWh often on half-hourly metering (manufacturing, cold storage, large multi-site retail).
What is a standing charge and why do I have to pay it?
The standing charge is a fixed daily fee that covers your connection to the electricity network — meter reading, maintenance and grid access. It applies even if you use zero units in a day. Some no-standing-charge tariffs exist but usually build the cost into a higher unit rate.
Can I get a business electricity tariff with no standing charge?
Yes, a few suppliers offer no-standing-charge business electricity tariffs, mostly for very low-usage sites like unmanned units. For most businesses the unit rate is higher, so a standard tariff usually works out cheaper overall — we'll model both for you.
What is an MPAN number and where do I find mine?
Your MPAN (Meter Point Administration Number) is a 21-digit reference — often shown in a grid marked 'Supply Number' or 'S' on your bill — that uniquely identifies your electricity meter. You'll need it when switching, and we can look it up for you if it's missing.
Is business electricity cheaper than domestic electricity?
Generally unit rates for business electricity can be lower than domestic rates because businesses buy in larger volumes and on longer contracts. However business bills attract 20% VAT by default (vs 5% for domestic) so the total bill differs.
How is VAT applied to business electricity bills?
Business electricity is charged 20% VAT as standard. You may qualify for the reduced 5% rate if you're a charity, non-profit, or your site uses under 33 kWh per day / 1,000 kWh per month. You'll need to complete a VAT declaration with your supplier.
What is a half-hourly meter and do I need one?
Half-hourly (HH) meters record consumption every 30 minutes and are mandatory for sites with peak demand above 100 kW, and increasingly for many medium businesses. They enable more accurate — and often cheaper — pricing, but tariffs are quoted differently, with separate day/night/peak rates.
Gas
What is the average business gas price per kWh in the UK?
Business gas unit rates in 2026 typically fall between 6p-11p per kWh, with a daily standing charge of around 30p-50p. Prices depend heavily on wholesale market conditions, your annual consumption band and contract length.
What's an MPRN number and where do I find it?
Your MPRN (Meter Point Reference Number) is a 6-10 digit unique identifier for your gas meter, shown on your bill — sometimes labelled 'Gas Supply Number'. It's needed to get an accurate quote and to switch supplier.
How does the wholesale gas market affect my business gas price?
Wholesale gas (bought on the NBP market) makes up 40-60% of the unit rate you pay. Suppliers buy in bulk, hedge for future periods and pass movements on to fixed and variable tariffs. That's why fixing a rate when wholesale prices are low can lock in significant savings.
Can I get a fixed-rate business gas tariff?
Yes — fixed-rate business gas tariffs typically run for 1, 2, 3 or 4 years and lock in both the unit rate and standing charge for the full term. They give complete billing certainty; the trade-off is you don't benefit if wholesale prices fall.
What happens if I don't renew my business gas contract on time?
If you let a contract expire without renewing, you'll be rolled onto 'deemed' or out-of-contract rates, which are typically 40-80% more expensive than a negotiated tariff. Set a reminder for your contract end date, or let us track it for you.
Is my business eligible for a reduced VAT rate on gas?
You can pay 5% VAT instead of 20% on business gas if you're a charity, non-profit, use less than 5 therms per day (145 kWh), or if 60%+ of the gas is used for domestic/qualifying purposes. Submit a VAT declaration to your supplier to claim the reduced rate.
Contracts & Renewals
How are business energy prices calculated?
Your bill is built from three main components: the wholesale cost of the energy itself (typically 40-60% of the total), non-commodity costs (network use, policy levies, capacity charges — 30-40%), and the supplier's operating margin. Your unit rate blends all of these into a pence-per-kWh figure and adds a daily standing charge.
How often should my business compare energy tariffs?
As a rule, review your contract at every renewal window (usually 1-6 months before your end date) and whenever wholesale markets move significantly. Setting a calendar reminder for the day your renewal window opens is the single easiest way to avoid rolling onto expensive out-of-contract rates.
Can I switch business energy supplier if I have debt with my current one?
You can normally still switch as long as any debt is under 28 days old, or you have a payment plan in place. Older or disputed debt can trigger an 'objection' from your current supplier, which we can help you resolve before quoting.
Do I need a smart meter to compare business energy prices?
No. Smart meters make bills more accurate and unlock some time-of-use tariffs, but comparison and switching work perfectly with traditional meters. If you have a smart meter, we can quote against your real consumption rather than an estimate.
Can landlords compare business energy tariffs for tenanted properties?
Yes. Landlords who pay the bill for a commercial unit (or between tenancies) can switch supplier at any time. Once a tenant takes over the account, the tenant becomes the customer of record and manages their own contract.
Can tenants of commercial premises switch supplier?
Yes — if your business is named on the energy bill and you pay the supplier directly, you're free to switch. If your rent is inclusive of energy or the landlord bills you, the landlord holds the contract.
Are charities and non-profits eligible for cheaper energy?
Charities benefit in two important ways: they usually qualify for the reduced 5% VAT rate on business energy, and they're exempt from the Climate Change Levy (CCL) with a valid VAT certificate. Both together can cut a charity's total bill by 20% or more.
Can schools and academies compare business energy tariffs?
Yes. State schools, academies, MATs and independent schools all buy energy on business tariffs, and a good comparison across the panel (or via a public-sector framework) typically finds meaningful savings — especially for multi-site trusts.
How does the wholesale market affect the rate I'm quoted?
Suppliers hedge months or years ahead on the wholesale market. When wholesale prices fall, fixed tariffs offered today drop soon after; when prices spike, they rise. Timing your renewal against wholesale trends can materially change the rate you lock in.
Can I switch electricity and gas at the same time?
Yes, and it's usually the most efficient way. We can quote both fuels against your usage in parallel, align their end dates for future renewals, and — if you prefer — put both with the same supplier for simpler billing.
Are green business energy tariffs really renewable?
REGO-backed (Renewable Energy Guarantees of Origin) tariffs are matched, MWh for MWh, with certified UK renewable generation. Higher-tier 'green plus' tariffs additionally invest in new renewable capacity. If green credentials matter for your reporting, ask about REGO evidence.
What is the Climate Change Levy (CCL) on business energy?
The CCL is a UK government tax charged per kWh of business gas and electricity, added to your bill by your supplier. Domestic-use qualifying businesses (charities, low-usage, or 60%+ domestic use) are exempt with a VAT declaration.
How can I reduce my business energy bill beyond switching?
Switching gives the quickest headline saving. Beyond that: LED lighting (typically 15-20% saving), better voltage optimisation, timer-based HVAC control, and — for larger sites — on-site solar and battery storage. We can talk you through paybacks for each.
What is a unit rate on a business energy bill?
The unit rate is the price in pence you pay for each kWh (kilowatt-hour) of energy you consume. Combined with a fixed daily standing charge, it makes up the majority of your bill.
What is a kWh and how do I estimate my usage?
A kWh (kilowatt-hour) is the standard unit of energy: running a 1kW appliance for one hour uses 1 kWh. Your annual usage is on your last bill or annual statement; if not, we can estimate from your business size, sector and premises.
Does my postcode affect my business energy price?
Yes — significantly. The UK is split into 14 electricity distribution regions and multiple gas transportation regions, each with different network charges. Two identical businesses in different cities will see different unit rates on the same tariff.
What is a P272 (half-hourly) mandate and does it affect me?
Sites with maximum demand above 100 kW must be settled on half-hourly (HH) data. HH gives more accurate — often cheaper — pricing, but tariffs are quoted differently (often with capacity charges and time-of-use bands).
Can I get a business energy quote without a bill?
Yes. We can quote from your postcode alone using an industry lookup — you'll get a slightly indicative rate. For a firm rate we just need your MPAN (electricity) or MPRN (gas), current supplier, and rough annual usage.
What happens if my business moves premises?
You'll usually be placed on 'deemed' (out-of-contract) rates at the new site until you agree a fresh contract. Compare before, or immediately after, moving in — deemed rates are typically the most expensive tariff on the market.
Can I fix my business energy price for longer than 3 years?
Some suppliers offer 4- and 5-year fixed contracts to eligible businesses, especially larger consumers. Locking in for that long only makes sense when wholesale prices are low and your business is stable — we'll model the risk with you.
What's the difference between fixed and variable business energy tariffs?
A fixed tariff locks your unit rate and standing charge for the length of the contract — great for budgeting certainty. A variable tariff moves with wholesale prices, so bills go up or down each month. Most UK SMEs pick fixed for predictability.
How long can I fix my business energy tariff for?
Business energy contracts are usually available in 1, 2, 3 or 4 year fixed terms. Longer contracts give more price certainty and often marginally lower rates, but reduce your flexibility if prices fall or your business changes.
Are renewable business energy tariffs more expensive?
Not necessarily. Many green tariffs — backed by REGO certificates — are priced within 1-3% of standard tariffs, and some are even cheaper. They're a strong option if you want to reduce Scope 2 emissions without adding significant cost.
What is a deemed or out-of-contract rate?
Deemed rates apply when you move into a premises and haven't yet agreed a contract; out-of-contract rates apply when your existing deal expires and you haven't renewed. Both are significantly more expensive than a negotiated tariff and should be exited as soon as possible.
Can I combine gas and electricity into one dual-fuel tariff?
Business energy doesn't have true dual-fuel discounts like domestic energy — gas and electricity are contracted separately. However you can hold both with the same supplier for simpler billing, and we can quote both at the same time.
What's a flexible/bulk-purchase tariff and who is it for?
Flexible or basket-purchase tariffs let very large users (typically 400,000+ kWh a year) buy energy in tranches against the wholesale market rather than at one fixed rate. They can lower costs but require active energy management and appetite for market risk.
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