Energy costs remain one of the biggest overheads for UK businesses in 2026. Yet most business owners accept their bills without question — and that's costing them thousands of pounds every year.
Here are five of the most common ways businesses overpay, and what you can do about each one.
Staying on an out-of-contract rate
When your fixed energy contract ends and you haven't switched, your supplier automatically moves you onto an "out of contract" or "deemed" rate. These rates can be two to three times higher than the best available tariffs on the market.
What to do: Check your contract end date today. If you're already out of contract, contact us immediately — we can usually get you onto a much better rate within days.
Paying 20% VAT when you should pay 5%
Many businesses don't realise that qualifying energy users should only pay 5% VAT — not the standard 20%. You qualify for the reduced rate if your average daily usage is below certain thresholds, or if your business is a charity or non-profit.
What to do: Check your bill — the VAT rate will be listed. If you're paying 20% and think you might qualify for 5%, speak to your supplier or contact us and we'll help you reclaim what you're owed.
Auto-renewing into a bad deal
Most energy contracts include an auto-renewal clause. If you don't give notice before the deadline — typically 30 to 90 days before the end date — your supplier can lock you into a new fixed contract, often at uncompetitive rates.
What to do: Find your contract end date and set a reminder to start comparing at least three months before it. Our AI Energy Bill Checker flags contract end dates automatically when you upload your bill.
Not separating day and night rates
If your business operates mainly during the day, you could be on the wrong tariff entirely. Economy 7 or time-of-use tariffs can save significant amounts for businesses that can shift usage to off-peak hours.
What to do: Review when your energy consumption is highest and ask your supplier — or us — whether a different tariff structure would save you money.
Never switching at all
Research consistently shows that businesses which have never switched energy supplier pay far more than those who regularly compare the market. Loyalty is not rewarded in the energy industry.
What to do: Compare suppliers at least once a year. With 15+ suppliers on our panel, we can find you a better deal in minutes — and it costs you nothing.
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If you're not sure whether you're getting a good deal, upload your latest energy bill to our AI Energy Bill Checker and get a free analysis in seconds.
