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Business energy guides
Straight answers on contracts, bills, meters, tax and saving energy, written from official sources and kept up to date.
- 72 guides
- 363 official sources cited
- Updated 3 October 2026
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Essential reading
Contracts and switching How to switch business energy supplier Switching business energy means agreeing a contract with a new supplier, which then moves your supply across. It is free to switch and should take no more than 5 working days, but leaving a fixed contract early can cost an exit fee. 
Contracts and switching Deemed contracts A deemed contract is the arrangement the law creates when your business uses gas or electricity without an agreed contract. It keeps the lights on, but deemed rates are usually among the most expensive prices a supplier charges. 
Tax and regulation VAT on business energy Most businesses pay 20% VAT on electricity and gas. Some supplies qualify for a reduced rate, and from 1 October 2026 to 31 March 2027 qualifying electricity in Great Britain is zero-rated. Contracts and switching
Renewals, rollovers, deemed and out-of-contract rates, and how to switch without paying more than you need to.
Business energy credit checks and deposits Suppliers can run a credit check on your business before offering a contract, and may ask for a security deposit if they see credit risk. Ofgem's best practice guide sets out how that deposit should be worked out, reviewed and repaid, though following it is voluntary. 
Energy contracts when buying or selling a business Whether an existing energy contract transfers with a business sale depends on how the deal is structured. Buy the company itself and its contract comes with it unchanged. Buy the business as assets and you are a new legal occupier, which suppliers treat as a change of tenancy rather than an automatic transfer. 
Rollover contracts explained A rollover contract is what happens if you take no action at the end of a fixed-term business energy deal: your supplier renews you onto another fixed term, usually at a higher rate. Microbusinesses cannot be rolled over for more than 12 months, cannot be charged a fee to leave, and no longer have to give notice to get out. 
What happens if your energy supplier goes bust? If your supplier fails, Ofgem appoints a new one to take over your supply so your gas or electricity is not interrupted. Your contract usually moves to a deemed rate with the new supplier, but unlike domestic customers, business credit balances are not guaranteed to be protected. 
Business energy contract terms to check Business energy contracts have no cooling-off period, so the terms you agree are the terms you keep. These are the clauses worth reading line by line, what the rules say suppliers must show you, and examples from suppliers' published terms. How to switch business energy supplier Switching business energy means agreeing a contract with a new supplier, which then moves your supply across. It is free to switch and should take no more than 5 working days, but leaving a fixed contract early can cost an exit fee. 
Types of business energy contract Business energy contracts fall into two groups: contracts you choose, such as fixed, variable and flexible, and arrangements that apply when you have not agreed a new deal, such as deemed, out-of-contract and rollover. This guide explains each and how to tell which you are on. 
Volume tolerance and take-or-pay clauses Some business energy contracts set a range around your estimated usage and charge extra if you go outside it. Here is how these clauses work, what suppliers' published terms say, and a worked example of what a breach could cost. 
When to switch business energy The best time to switch is in the months before your fixed contract ends, so your new deal starts the day after. If you are on deemed, out-of-contract or microbusiness rollover rates, you can switch at any time without an exit fee. 
Business energy brokers Energy brokers find and arrange business energy contracts, usually paid by commission built into your rates. Here is how that works, what the rules require and how to check a broker before you use one. 
Business energy contract renewal Your renewal date is the one point in a fixed contract where you can move without an exit fee. Start comparing months ahead, read your renewal letter, and make a decision before the end date so you are not rolled over or moved onto expensive rates. 
Cancelling a business energy contract Most fixed business energy contracts can only be ended early by paying an exit fee, and there is no cooling-off period. But there are several points where you can leave without a penalty, and different rules apply if your business closes, moves or your supplier fails. 
Change of tenancy When your business moves in or out of premises, the energy supply has to follow the change. Tell the supplier early, take dated meter readings, and agree a contract for your new site so you are not left paying deemed rates. Deemed contracts A deemed contract is the arrangement the law creates when your business uses gas or electricity without an agreed contract. It keeps the lights on, but deemed rates are usually among the most expensive prices a supplier charges. 
Fixed vs flexible energy contracts The main choice in business energy is how much price risk you keep. This guide compares fixed, pass-through, flexible and variable contracts, and who each tends to suit. 
Letter of authority (LOA) A letter of authority lets a broker or other third party deal with your energy supplier for you. Some only let the broker see your data and get quotes; others let them agree a contract in your name. Read it before you sign. 
Out-of-contract rates Out-of-contract rates are what you pay when your fixed business energy contract ends and you have not agreed a new one. They are set by your old contract's terms, they are usually expensive, and microbusinesses can leave them at any time. Prices and bills
What makes up a business energy price, how wholesale markets work, and how to read and check your bill.
Time-of-use tariffs for business What a time-of-use or day/night business electricity tariff is, how network charges vary through the day, where triad avoidance still counts, and how to work out whether shifting your usage is worth it. 
Business energy prices since 2020 Business energy prices roughly doubled between 2020 and their 2023 peak, driven by a sustained rise in wholesale gas prices that began in 2021 and accelerated after Russia's invasion of Ukraine in February 2022. Government ran two support schemes for businesses, and DESNZ figures show average prices easing back from that peak through 2024 and 2025, though still above pre-crisis levels. 
Capacity charges and kVA explained Your agreed supply capacity, measured in kVA, is the maximum amount of electricity your connection is allowed to draw at any moment. You pay a standing charge for that capacity whether or not you use it, and a higher rate applies to any demand above it. 
Estimated bills and meter readings An estimated bill uses an assumed reading rather than one taken from your meter. Suppliers must try to read your meter at least once a year, but sending your own reading regularly is the surest way to keep bills accurate. 
How wholesale energy prices work Wholesale prices are what suppliers pay generators and gas shippers for the energy itself, before network charges, policy costs and their own margin are added. Electricity and gas trade in separate markets, from years-ahead contracts down to same-day balancing. 
kW vs kWh explained A kilowatt (kW) measures power, the rate at which you draw electricity at any moment. A kilowatt-hour (kWh) measures energy, the amount actually used over time. Your bill charges you for kWh, because that is what you have consumed, not how fast you consumed it. 
Non-commodity costs: DUoS, TNUoS, BSUoS and policy costs Non-commodity costs are everything on your bill that is not the wholesale price of the energy itself: network charges, balancing costs, environmental and social schemes, and tax. They typically make up around half of a fully delivered business rate. 
Paying business energy bills Most business energy suppliers accept direct debit, standing order, bank transfer and card payment, but price and terms are rarely equal across them. Direct debit is usually cheapest and some suppliers require it, while paying late on a business contract can trigger statutory interest under commercial debt law. 
Reactive power charges explained Some business electricity connections are charged extra when their power factor, the efficiency with which they use the network's capacity, falls below a set level, commonly 0.95. This is billed separately from your normal energy use, in kVArh. 
Will business energy prices go up or down? No one, including us, can reliably tell you where business energy prices are heading. What we can do is explain what drives wholesale prices, point you to the published indicators that show current market expectations, and set out how to think about fixing your rate without needing a forecast. 
Average business energy bill There is no official average business energy bill, but government figures on prices and typical usage let you work out a realistic number for a business like yours. 
Business energy standing charges A standing charge is the fixed daily amount you pay for each gas or electricity supply. Here is what it covers, why it varies, and how to judge it against the unit rate. 
How to read a business energy bill A line-by-line guide to business electricity and gas bills, including how gas units become kWh, the most common billing errors and the back-billing rules. 
Is there a business energy price cap? There is no price cap on business gas or electricity. Ofgem's cap only covers household tariffs, so what you pay depends on the contract you agree. Here is why, and what protects you instead. 
Unit rate vs standing charge The quote with the lowest unit rate isn't always the one that costs least. It depends on how much energy you use. Here is how to work out the break-even point. Meters and supply
MPANs, MPRNs, half-hourly and smart meters, new connections and network operators.
Business gas meter types Most business premises have a diaphragm meter sized from U6 to U160. Larger sites move to rotary or turbine meters, with a corrector and daily reads once consumption passes industry thresholds. Here is how to tell which you have. 
Gas meter reading to kWh Your gas meter measures volume, not energy, so your supplier converts the units you use into kWh using a correction factor and the calorific value of the gas on the day. Here is the formula, with a worked example. 
Maximum demand meters A maximum demand meter records the highest amount of power your business drew in any half hour, not just how much energy you used overall. That peak figure sets the capacity charge on your bill, and going over it can cost more. 
Single-phase vs three-phase power A single-phase supply carries electricity on one live conductor, a three-phase supply on three. Three-phase carries far more power through the same size of cable, which is why most businesses running heavier equipment need it. 
Half-hourly meters A half-hourly meter records your electricity use every 30 minutes. Here is who has to have one, what the market-wide switch to half-hourly settlement means, and how HH bills are built. 
Meter serial numbers Your meter serial number identifies the physical gas or electricity meter at your premises. Here is where to find it, when you need it and how to check meter details officially. 
MPRN numbers Your MPRN is the reference that identifies your gas supply point. Here is where to find it, what to do if you can't, and how it links to your annual quantity (AQ). 
New business energy connections Getting power or gas to new or unconnected business premises means dealing with the network company first, then a supplier. Here is how each step works and what the rules require. 
Smart meters for business Which smart or advanced meter your business should have, what protections you get when one is fitted, and how new rules from September 2027 link smart meters to fixed-term contracts. 
What is a DNO? Your DNO owns the cables and substations that bring electricity to your premises. Here is who runs each region, what they do for your business and how their charges end up on your bill. Tax and regulation
VAT, the Climate Change Levy, back-billing, microbusiness protections and complaints.
Back-billing rules for businesses A mandatory 12-month limit stops suppliers back-billing domestic customers and microbusinesses for their own under-billing errors. Larger small businesses are not automatically covered by that hard limit, even under Ofgem's newer small business protections. 
Energy theft and meter tampering Meter tampering means interfering with a gas or electricity meter so it records less than you actually use, and it is a criminal offence as well as a serious safety risk. Suppliers are required to detect and investigate it, and there is a clear route to report it if you suspect it at your premises. 
SECR and ESOS energy reporting SECR and ESOS are two separate UK energy and carbon reporting schemes with different thresholds and requirements. This guide sets out who each one applies to, what they require, the current ESOS Phase 4 dates, and what happens if a qualifying business doesn't comply. 
Climate Change Levy The Climate Change Levy is a tax on the electricity and gas businesses use, added to your bill by your supplier. Here are the current rates, who is exempt and how the discounts work. VAT on business energy Most businesses pay 20% VAT on electricity and gas. Some supplies qualify for a reduced rate, and from 1 October 2026 to 31 March 2027 qualifying electricity in Great Britain is zero-rated. Saving energy
Practical ways to use less energy: audits, lighting, heating and when you use power.
Energy efficiency grants for business A run-through of the UK, Scottish, Welsh and Northern Ireland schemes that were open to businesses in September 2026, plus the tax reliefs that reduce the cost of energy efficiency equipment, and how to check before you apply. 
Business energy audits An energy audit tells you where your business uses energy, where it wastes it and what to fix first. Here is how to run a simple one yourself, where to get funded help, and when the law requires one. 
Cutting business heating costs Heating is usually the largest single use of energy in business premises. This guide shows what drives the cost, compares gas and electric heating, and sets out the fixes that make the biggest difference, starting with the free ones. 
How to reduce business energy costs There are two ways to cut an energy bill: pay less for each unit, and use fewer units. This guide covers both, starting with the checks that cost nothing. 
LED lighting for business Switching to LED is one of the most common energy upgrades for businesses, and one of the quickest to pay back. Here is what the published figures say, how to work out your own saving, and what to ask an installer. Green energy
Renewable tariffs, solar, batteries, heat pumps, EV charging and carbon reporting.
Battery storage for business What a commercial battery is for, how it can cut demand and network charges, the grid connection and fire safety rules to check, and the VAT, capital allowances and business rates treatment. 
EV charging for business premises How the Workplace Charging Scheme grant works for employers in 2026, which related OZEV grants have closed, whether free charging is a taxable benefit, and the tax and connection rules to check before you install. 
Heat pumps for business premises What a commercial heat pump is, how its running cost compares with a gas boiler, the Boiler Upgrade Scheme grant for small and medium non-domestic buildings, and the planning, connection, VAT and business rates rules to check first. 
Net zero for small businesses What working towards net zero actually involves for a small or medium business, what's voluntary versus required by law, the free SME Climate Commitment, and where to start. 
Power purchase agreements for business What a corporate power purchase agreement (PPA) is, the three main structures used in Great Britain, how they differ from a standard supply contract, and why government has found them difficult for smaller buyers to use. 
Smart Export Guarantee for business How the Smart Export Guarantee pays a business for electricity it exports from solar panels, wind or other eligible generation, what tied and untied tariffs mean, and what Ofgem's own data shows about current rates. 
Commercial solar panels What solar panels cost for a business premises, how much electricity they produce in the UK, and the planning, grid connection and tax rules to check before you get quotes. 
Renewable energy for business Green business energy covers everything from REGO-backed tariffs to long-term deals with a wind farm. Here is what each option means, what it proves, and how to report and talk about it. Your business
Home businesses, landlords, the nations, debt, closing or buying a business.
Business energy debt and arrears If your business cannot pay its energy bill, contact your supplier before it contacts you. Disconnection is meant to be a last resort, and a supplier can only cut off supply for debt after applying to a court for a warrant, with notice at every stage. 
Business energy in Northern Ireland Northern Ireland is not part of the Great Britain energy market. It has its own regulator, its own electricity system operator, and its electricity market is shared with the Republic of Ireland, so the suppliers, rules and VAT treatment can differ from England, Scotland and Wales. 
Business energy in Scotland Scottish businesses buy gas and electricity in the same GB-wide market as the rest of Great Britain, from the same national suppliers. What differs locally is which company runs your local electricity network, and the free support and funding on offer. 
Business energy in Wales Welsh businesses buy gas and electricity in the same GB-wide market as the rest of Great Britain, from the same national suppliers. What differs locally is which company runs your local electricity network, and the support available through Business Wales. 
Energy bills when a business closes Closing your business does not end your energy contract automatically. You need to notify your supplier, give a final meter reading and settle the account, and you may still owe an exit fee if you are mid-contract. Formal insolvency brings specific legal protections around continuity of supply. 
Energy for landlords and commercial property Ofgem's Maximum Resale Price rules stop a landlord profiting when they resell gas or electricity to a domestic tenant, but they generally do not apply once the end use is a business tenancy. Here is where the line sits, and what landlords can and cannot charge. 
Gas safety for business premises As an employer or self-employed person, you must keep gas appliances, pipework and flues at your workplace in a safe condition, and only let a Gas Safe registered engineer or other competent person work on them. Landlords letting premises with residential accommodation face a stricter legal duty: a safety check at least once every 12 months, with records kept. 
Running a business from home: energy Most people who work or trade from home stay on a domestic energy contract. A supplier will usually only move you to a business contract if your premises is used mainly for business, or a large share of your energy use is clearly commercial. 
Business energy for a new business A new business needs its own business energy contract for its premises. Agree one before you move in if you can, because using energy without a contract puts you on the current supplier's deemed rates, which are usually expensive. 
Business energy complaints Complain to your supplier or broker first, in writing. If it isn't sorted within 8 weeks, or you get a deadlock letter, micro and small businesses can take it to the Energy Ombudsman for free. 
Microbusiness energy Microbusinesses get extra protection in the energy market, from renewal letters and limits on rollovers to a 12-month cap on back-billing. Here is how to tell if you qualify and what the rules say. 
Multi-site business energy If your business runs several shops, offices or depots, buying energy site by site gets messy fast. Aligning end dates, choosing how you buy, and keeping good site data can make your energy easier to manage and easier to compare. Glossary
Business energy jargon, decoded
179 terms explained in plain English, from agreed supply capacity to volume tolerance.
- Annual quantity (AQ)
- An estimate, in kWh, of how much gas a supply point will use in a year under seasonal normal weather. It is calculated centrally from your meter readings and used to share out gas each day, validate new readings and set the transportation charges for your supply, so it is not the same as your actual usage and can differ from it.
- Deemed contract
- The contract you are automatically on when you are using energy at a premises without having agreed terms with the supplier, for example after moving in without signing anything. Deemed rates are usually higher than a negotiated contract.
- Standing charge
- A fixed daily charge on your bill for having a supply connected, charged regardless of how much energy you use. It covers network and operating costs that do not vary with consumption.
- Unit rate
- The price charged per kWh of gas or electricity used, separate from the standing charge. Multiplying your unit rate by your usage gives the energy cost element of your bill, before non-commodity costs and tax.
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How we write our guides
Every guide is written from primary sources: Ofgem, HMRC, DESNZ, legislation.gov.uk, the network operators and suppliers' own terms. We list those sources at the end of each guide, show when it was last checked, and never use other comparison sites as a source. If something changes, we update the guide. Spotted something out of date? Tell us at hello@businessenergyexpert.com.
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