Business energy FAQs

Your gas and electricity supply should continue while Ofgem arranges a replacement supplier. Take meter readings and keep bills and payment records. Follow the transfer guidance before trying to switch. Your old prices may not continue. Business credit balances are not protected in the same way as household balances: recovery from the new supplier or administrator is not guaranteed.

Your supplier arranges your energy contract and bills you. The network operator runs the local pipes or wires that deliver energy to the premises. Billing questions usually go to the supplier; connection work and network faults usually involve the network operator. Use Ofgem’s lookup guidance if you do not know who serves your site.

Check the supplier’s specific promise and evidence. Renewable Energy Guarantees of Origin (REGOs) are certificates showing electricity was generated from eligible renewable sources. A certificate-backed tariff does not mean a separate renewable-only cable feeds your premises. Ask how the tariff is supported and what environmental claims you can make; gas products need separate assessment.

Business contracts are agreed for commercial supplies and can have different prices, terms and protections from household contracts. The domestic energy price cap does not cap business tariffs. Compare the full agreement rather than assuming the rules for your home also apply at work.

Ofgem’s definition includes businesses with fewer than 10 employees and annual turnover or balance sheet total no more than £2 million. Alternatively, annual use of up to 100,000 kWh of electricity or 293,000 kWh of gas can qualify. Ask your supplier to confirm your status; some protections depend on it.

No. You can compare them separately. Even with one supplier, check the terms and end date for each fuel: they may be separate contracts. Compare combined total costs with separate proposals rather than assuming one arrangement is cheaper.

Quotes can reflect location, annual consumption, when you use energy, meter arrangements, contract length and credit risk. Use the correct supply details and the same consumption assumptions when comparing prices for a site.

Yes. Keep a record of each site, supply identifier, supplier, usage and end date. A multi-site proposal can simplify administration, but confirm whether sites have separate obligations and what happens when one closes or changes ownership.

A supplier may check your business’s creditworthiness before offering a contract and may request a deposit or different payment terms. Requirements vary, particularly for new businesses. Ask what information is needed, how any deposit is held and returned, and whether the quoted terms depend on the credit assessment. Do not assume acceptance is guaranteed.

No. Using more energy increases the bill even when the agreed rates stay unchanged. “Fixed” also does not always mean every charge is fixed: check the standing charge, excluded costs, taxes and any reconciliation clauses.

A fully fixed proposal aims to include specified costs in agreed rates, subject to its exclusions. Pass-through contracts allow named costs to be charged separately or change. Fixed-with-reconciliation contracts may adjust specified costs later against actual charges. Ask for a written list of what is fixed and what can move.

Not necessarily. A tracker links an element of the price to a stated market index or formula. Pass-through describes how specified costs are passed to you. One contract can contain both features, so check the pricing formula, review frequency and exposure to increases.

Business energy contracts generally do not have the domestic 14-day cooling-off right. Do not agree until you have checked the terms. Any cancellation option offered by the supplier must be confirmed in the agreement.

Yes, a business energy agreement can be made over the phone. Whether a particular call formed a valid contract depends on the agreement and the person’s authority. If you dispute it, request the recording, written terms and evidence of acceptance promptly; do not assume an unsigned contract is invalid.

Check the agreement for early termination rights, fees and any supplier consent required. Moving premises or changing ownership does not automatically resolve every obligation. Ask for the proposed termination charge and its contractual basis in writing before arranging a conflicting supply agreement.

It sets limits around the consumption assumed when your price was agreed. Usage outside those limits may trigger extra costs or a price adjustment. Check the actual clause rather than relying on a standard percentage, especially if equipment, opening hours or site numbers will change.

Start early enough to collect usage data, compare proposals and meet any notice deadline. The earliest date you can agree a replacement contract varies by supplier and offer. Keep the current end date, notice requirements and new start date together in your records.

It depends on your agreement. Read the notice clause and ask the supplier to confirm the deadline and accepted method. Keep proof of delivery and acknowledgement. Agreeing a new contract does not necessarily satisfy the notice requirements of the existing one.

Your contract explains what happens at expiry. You may move to out-of-contract rates or an automatic renewal arrangement. These are not interchangeable with a deemed contract, which commonly arises when you take over a supply without agreeing a contract. Check the rates and exit terms that will apply.

A normal supplier switch changes the company billing you, not the physical network connection. It should not interrupt your supply. Arrange meter readings for the changeover and check the old final bill against the new opening reading.

Yes, in permitted circumstances, such as relevant outstanding debt or contractual restrictions. Ask for the specific reason and what is needed to resolve it. If you disagree, raise a complaint and ask both suppliers to confirm the intended start date.

Record the date you become responsible, take dated photographs of every meter reading and serial number, and contact the existing supplier. Provide the incoming legal entity’s details and any requested evidence. Agree supply arrangements promptly rather than leaving the account unresolved.

A deemed contract commonly applies when you use energy at premises without having agreed a contract with the supplier. This can happen immediately after taking over a site. Find out the current charges and arrange a suitable contract; do not assume the previous occupier’s price transfers to you.

The supplier may request a lease, sale or completion document, landlord confirmation or other evidence of the handover. Requirements vary. Ask which documents it accepts, make sure dates and legal names are consistent, and provide only the information needed through an appropriate channel.

A genuinely new occupier should ask the supplier to separate the previous account from their own. However, buying shares in a company, buying its assets and entering a new lease are different situations. Do not assume responsibility disappears if the same legal entity continues. Seek advice where ownership or liability is disputed.

Not necessarily. Tell your supplier before moving and request written confirmation of the old account’s closure, any remaining obligations and arrangements for the new site. A transfer to another party, sometimes called novation, requires the relevant parties’ agreement; it is not automatic.

Ask the supplier to reconcile your account using current readings and explain any unbilled usage, outstanding charges or deposit included in the balance. Request a refund of the confirmed refundable credit and a timescale in writing. After moving or switching, check the final bill first. If a refund is refused or delayed, ask for the reason and use the complaints process.

A regular payment is not necessarily the same as the cost of energy used that month. The supplier may adjust it for expected consumption, an account debit balance or earlier estimates. Ask for the calculation, usage assumptions and current balance. Check your payment arrangement: some businesses pay the invoiced amount rather than a fixed monthly instalment.

The unit rate is the price for each kilowatt-hour (kWh) used. The standing charge is usually a daily amount payable while the supply remains active, even when usage is zero. Compare both, alongside additional charges and taxes.

For a simple single-rate tariff, multiply annual kWh by the unit rate in pounds, then add the daily standing charge in pounds multiplied by the number of days. Convert pence to pounds by dividing by 100. Add other applicable charges and compare on the same VAT basis. Multi-rate tariffs need usage split by rate.

These are costs beyond buying the energy itself, including network delivery, system balancing and policy costs. Suppliers may recover them through unit rates, standing charges or separate items. Their treatment depends on the contract; there is no single percentage that applies to every business bill.

A Meter Point Administration Number (MPAN) identifies an electricity supply point. A Meter Point Reference Number (MPRN) identifies a gas supply point. The meter serial number identifies the physical meter. Use the supply identifiers when comparing or switching; a meter can be replaced without changing the supply point.

A smart meter can have communication or data problems, so its presence does not guarantee every bill uses actual readings. Check the reading labels, submit a dated reading if requested and ask the supplier to investigate repeated estimates.

Ofgem’s back-billing protection covers domestic and microbusiness customers in specified circumstances involving previously unbilled or incorrectly billed charges. Exceptions include obstructive or manifestly unreasonable behaviour. It does not simply erase a valid unpaid bill that is over a year old. Ask the supplier to explain whether the protection applies to your case.

Compare billing dates, actual or estimated readings, consumption, unit rates, standing charges and extra items with the previous bill and your contract. A catch-up bill may cover a different period. Ask for a written explanation of unexplained differences; our checker can help identify questions, not confirm a correction.

Most ordinary business gas and electricity supplies are standard-rated at 20%, but qualifying use and small-quantity rules can change the treatment. The usual reduced rate is 5%. HMRC also specifies temporary 0% VAT for qualifying electricity supplies in Great Britain from 1 October 2026 to 31 March 2027; Northern Ireland remains at 5% for qualifying electricity. This is not a blanket exemption for businesses.

HMRC’s small-quantity rules include electricity not exceeding an average 33 kWh per day or 1,000 kWh per month, and piped gas not exceeding 145 kWh per day or 4,397 kWh per month, supplied to one customer at one premises. Ask the supplier to assess the relevant billing period and applicable rate. Public EV charging has different treatment.

No. Charity non-business use can qualify, but business activities and mixed-use premises need assessment. The supplier may require a declaration of qualifying use. Ask for help if the split is unclear rather than treating charity registration alone as proof of eligibility.

Climate Change Levy (CCL) is a tax on specified energy supplies to business and public-sector users. Exemptions can include qualifying domestic or charity non-business use and small quantities. Other reliefs have their own conditions. Ask the supplier to check the specific supply; a green tariff alone does not establish an exemption.

Contact the supplier with dated readings, the meter serial number and details of the unusual behaviour. Ask it to investigate the meter and billing data; a high bill alone does not prove a faulty meter. For an unresolved electricity accuracy dispute, independent testing is available. Confirm any testing or visit charges beforehand and how bills would be corrected if an error is found. Never tamper with the meter.

Start with the local network operator for a new gas or electricity connection and coordinate with a supplier for the meter and supply account. For an existing disconnected site, ask the supplier and network operator which work is required and who will arrange it. A change of supplier alone does not reconnect a physically disconnected supply. Confirm costs, capacity and completion dates before planning your opening.

These cover services such as installing or maintaining a meter and collecting or processing consumption data. Bills may refer to a Meter Operator (MOP), Data Collector (DC) or Data Aggregator (DA). Arrangements and terminology are changing with Market-wide Half-Hourly Settlement (MHHS). Ask which services your site needs, whether charges are included or separate, and whether you already have a direct agreement. Do not assume every business needs the same appointments.

Some equipment, such as motors, requires reactive power to establish magnetic fields. It adds to the electrical demand on the network without being the active energy measured in kWh. Certain supplies can incur excess reactive-energy charges, commonly expressed per kilovolt-ampere reactive hour (kVArh). Ask for the applicable calculation and tariff. A qualified electrical specialist can assess whether power-factor correction is suitable; do not assume an upgrade will always pay for itself.

Solar can reduce the electricity you buy from the grid and change your consumption profile. Check any volume-tolerance or other relevant clauses with your supplier before installation. Export payments are a separate arrangement, with their own eligibility, metering and tariff terms. Eligible installations may use the Smart Export Guarantee (SEG). Also check network requirements, property permissions and installation suitability; savings and export income are not guaranteed.

It records how much electricity is used in each half-hour period. Reviewing it can help identify peaks, overnight consumption and changes in operating patterns. Ask your supplier how to obtain the available data and what meter or settlement arrangements apply to your site.

Some electricity supplies have an agreed capacity, often expressed in kilovolt-amperes (kVA). The bill may include a charge for that capacity and additional charges if demand exceeds it. Review actual demand with the supplier or network operator before changing capacity; cutting it too far can create costs or operational limits.

Only if your tariff offers a different price for those hours. Check the exact time bands, meter settings and rates. Shifting suitable loads can help, but do not compromise refrigeration, ventilation, safety or business operations.

Look for unnecessary use outside trading hours, heating and cooling operating together, incorrect timers and lighting left on. Use readings or interval data to measure changes. Plan equipment upgrades around actual use and maintenance needs rather than assuming a guaranteed payback.

No. You can approach suppliers directly or use a broker to help compare and arrange contracts. Ask which suppliers are considered, how the broker is paid and what work is included. Do not assume every comparison covers the whole market.

A Letter of Authority (LOA) gives the permissions written in that document. It may allow access to bills or supplier discussions; some forms grant wider powers. Read its scope, expiry and cancellation wording. Do not assume all LOAs use standard levels or that signing one only permits obtaining quotes.

Ask for any fee or commission in writing, how it is calculated, whether it is included in the quoted rates and the estimated total over the contract. Also ask about supplier relationships and the complaints scheme. A low headline unit rate is not enough to judge the overall proposal.

Contact the supplier and broker promptly. Request the LOA, acceptance evidence, call recordings and terms, and explain what you dispute in writing. Ask how the account will be handled while investigated. Do not assume the agreement is cancelled until the position is confirmed or resolved.

Use the broker’s complaints process first and keep the proposal, fee information, Letter of Authority and acceptance evidence. Ask which independent redress scheme it belongs to. Eligible microbusiness and small-business disputes may be escalated to the relevant scheme after eight weeks unresolved, or sooner with a deadlock letter. Check membership, eligibility and deadlines; the Energy Ombudsman cannot necessarily investigate every broker.

Use the supplier’s formal complaints process. State the issue, dates, account reference, supporting readings or documents and the outcome you want. Keep copies and request a complaint reference. If you cannot afford a bill, explain that separately and ask about payment options rather than ignoring it.

Eligible microbusiness and small-business customers can normally escalate an unresolved supplier complaint after eight weeks, or sooner after a deadlock letter. Check eligibility, deadlines and the scheme’s remit before submitting. Ofgem regulates the market but does not resolve individual account disputes.

Do not assume it does. Ask the supplier in writing how disputed charges, payments and recovery will be handled during the investigation. If disconnection is threatened, contact it urgently and seek appropriate advice. A complaint does not automatically freeze your tariff or cancel an amount owed.