Compare business energy suppliers
Compare energy suppliers, 20% of businesses save up to £635**
Or call the experts at Bionic on:0800 975 0781
**20% of businesses achieved this saving when switching their business energy through our trusted partner Bionic. Based on data between May and October 2020.
Why should I switch business energy suppliers?
Businesses often use a lot more energy than the average household. But it’s not just about overheads. If the power goes off, it impacts your bottom line and your credibility. You need excellent customer service to get problems resolved in record time.
Also, if your business begins to grow, your office gets bigger and you take on more staff, your business’ energy usage is bound to increase. This is a great time to switch your business energy supplier, to save you money as you continue to grow. The energy market is also a pretty volatile one, which means prices are regularly fluctuating. This makes comparing quotes and switching suppliers a habit well worth getting into.
When you compare business energy suppliers, you can find the deals and the customer service you feel will be best for your business, potentially saving you money and headaches.
We compare prices across many well-known business energy suppliers.
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How much is energy for businesses?
The cost of business energy is something that’s different for all companies. It all depends on your company’s size, both in terms of property and members of staff, your business’ energy usage, as well as the energy market itself. Even the location of your business could affect your business energy bills, because energy prices can vary between different regions.
How much could I save by switching business energy?
How much your business could save by switching commercial energy suppliers depends on its size, the number of staff and, ultimately, how efficiently it’s run. The exact amount is hard to pinpoint because all businesses are different. The energy market is also a volatile one, which means business energy prices are regularly fluctuating, impacting the energy cost to your business.
However, based on data through our trusted partner Bionic, 20% of businesses could achieve a saving of £635** per year on their energy bills by switching energy suppliers.
Let us help you to compare business energy deals for your business, to see what price you could get and if you could save by switching.
**20% of businesses achieved this saving when switching their business energy through our trusted partner Bionic. Based on data between May to October 2020.
What are the different business tariff options?
Before you compare business energy suppliers, you might want to decide which type of tariff would suit your business best. There are four main options to consider:
- Fixed term – the most popular type of energy tariff for businesses. Energy suppliers typically offer commercial customers a range of fixed term tariffs over one to four years. Although bills will vary depending on how much energy you use, the unit cost and standing charges remain the same for the agreed fixed term. This can help your business plan its energy costs for the fixed period. As a rule, the longer the fixed term, the more expensive the tariff is likely to be. But it does offer protection from any price increases while you’re on that tariff.
- Extended tariff – this type of tariff lets you extend the length of your current business energy contract with the same supplier. This could be a good option if you’re happy to stay with your current supplier, as you’ll likely be rewarded with a lower rate for your loyalty. However, it’s still worth comparing deals from other suppliers as you might be able to find a cheaper deal for your energy supply elsewhere.
- Flex approach tariff – this allows you to bulk-buy your energy in advance, so when it comes to using it, you already know how much you’ve paid. Bulk-buying this way also means you can benefit from wholesale prices. A flex approach tariff could work well for larger businesses that can afford a hefty down payment. However, you need to weigh up the potential long-term savings against the risk of high price hikes once your contract comes to an end.
- Pass through tariff – this allows you to split your bill between the fixed wholesale price and other charges, like the National Grid and Transmission Network Use of System, which can vary over the year. The idea is that the variable charges passed on to you, the business customer, may increase over time and offset the cheaper fixed wholesale price that you’ve been given. It could be a riskier option if you want more price certainty when it comes to paying your energy bills.
When comparing business energy tariffs, you may also want to think about the following:
- Business energy customers usually can’t get dual fuel deals, as suppliers primarily offer gas and electricity separately.
- Some suppliers offer discounts if bills are paid by direct debit.
- If you’re concerned about the environment, look for green energy options. Alternatively, opt for paperless billing or choose a supplier that gets involved in projects like tree planting.
Energy supply for large businesses
As a large business, you should expect to pay higher business energy prices. This is because you probably have a larger office or property space, with more staff adding to the meter reading. However, as a larger business, you can normally expect to pay less per unit of energy (kWh), which will soften the blow of having to use more energy overall. Even tiny changes in unit cost can make a big difference over the course of a year, so don’t snub a different deal, just because the saving is only 0.5p per kWh.
Of course, one of the best ways to save on your energy costs is to compare business energy prices.
What changes the price of business energy?
Here are some of the main things that can affect the price of business energy:
- Your business’ energy usage – if you’re a business that requires a lot of power, such as an industrial factory, then clocking up usage in your meter reading will cause your energy costs to rise.
- The size of your business – simply put, smaller businesses usually use less energy, while bigger businesses with more staff members tend to use more.
- The energy market – the energy market is known to be quite volatile. This means that the cost of energy can fluctuate regularly. It’s hard to say what will happen next, which is why fixed-term business energy contracts are popular, as they allow your business to plan its energy costs in advance.
How do I reduce the cost of gas and electricity for my business?
One of the easiest things you can do to get a cheaper deal on your business energy, is to compare quotes and switch supplier. If you’ve been on the same business tariff for years and years, you’re probably paying more than you need to, and a simple switch could see you making big savings with little effort.
Other than that, you could start to introduce energy efficient habits in the workplace and educate staff on their energy usage. For example, people should turn their computers off when they leave for the day, rather than leaving them in sleep mode, or you could install lights which activate with sensors, meaning they won’t be on unless people are in the area and need them.
How do I compare business energy suppliers?
Just answer a few questions about your business and its energy consumption – it’s as easy as that. All the details you need are on your bill, but we can look up the information for you, if you can’t find one.
If you do have a bill to hand, look out for:
- your current supplier’s name
- tariff name and end date
- how much energy your business uses in kWh (kilowatt hours) or pounds
If you don’t have a recent bill to hand then you can still search great deals, but be aware that the quotes might not be as accurate.
We’ll look for available tariffs based on what you’ve told us; you can then refine the results to make sure you get a supplier and package that really suits you and your business.
- Enter the postcode of your business. Using smart digital data, we can then access everything we need to give you a quote.
- Experts from our business energy provider, Bionic, will study the market to help you find the energy tariff to suit your needs, then give you a brief call to discuss it.
- Should you choose to switch energy providers, Bionic will look after everything for you, including future renewals.
Reduce your carbon footprint as a business
If you’re looking to reduce your business’ carbon footprint, there are an increasing number of business energy suppliers who offer renewable energy tariffs. There are so many options for green energy now, with wind, solar and hydroelectric being just the beginning. There are biomass, geothermal and even more sources of renewable energy out there, so find out if there’s an option that’s available to your business.
Renewable energy suppliers will source their own green energy and feed it into the grid, but your business could go a step further and implement its own green energy source. Just remember that you may need planning permission and regulatory/legal sign offs before installing renewable energy technology into your business, as you may need to make changes to your business’ property. While this might sound expensive, the energy you produce could save your business money in the long run, so it’s worth considering as an investment.
Frequently asked questions
How does switching business energy suppliers work and how long does it take?
Switching business energy supplier is simple. As with household energy, your business gas and electricity will be supplied through the existing pipes and cables. You can change supplier when your contract enters the ‘switching window’, which is usually between one and six months before its end date.
As soon as this happens, you should run a business energy price comparison. That’s because it’s a good idea to have your next energy tariff in place and ready to go for when your current contract ends.
To make the switch, just answer a few questions, such as what type of business you have, where it’s located, and how much energy it uses. If you can, grab your latest bill when you start a quote. All the answers will be on there. But don’t worry if you can’t find one, we can, if you’ll let us, look up the information we need with just your business’ name and postcode. While your usage information helps us get a more accurate quote, we can get you an estimated one without it.
Once you’ve answered everything, we’ll check the market and one of our energy experts will give you a quick call when you’re free to run you through the available tariffs based on your needs – all you need to do is choose one. Bionic will sort out all the finer details and arrange for the switch to take place.
Will my business supply be disrupted?
There won’t be any disruptions to your supply when you switch commercial energy suppliers. Your new energy supplier will liaise with your old one and make all the arrangements for the switch over.
As with domestic switches, you’ll be expected to take an up-to-date meter reading and pay off any outstanding bills.
Can I get charity or not-for-profit business energy?
Charities and not-for-profit organisations are eligible for a 15% reduction in VAT, taking it down to 5%. Plus, they are exempt from the Climate Change Levy (CCL), which is a tax on commercial energy use, reducing bills by a further 5%.
If you think your not-for-profit organisation is entitled to money off energy, contact your supplier and ask for a VAT declaration form.
Find out more about VAT relief for charities at GOV.UK
Can I get a business energy feed-in tariff too?
The Feed-In Tariff (FiT) scheme ended for new applications on 1 April, 2019. It has been replaced by the Smart Export Guarantee (SEG), which enables small-scale energy creators to get payments for electricity sent to the National Grid. To get payments, you’ll need to apply to a SEG Licensee – these are electricity suppliers, but the one you apply to doesn’t have to be the same company as your energy supplier. How much you get paid will depend on the licensee.
Find out more about the Smart Export Guarantee at Ofgem.
Businesses that install renewable heating systems might be eligible for the Government’s Non-Domestic Renewable Heat Incentive, which offers payments for generating and using renewable energy.
How has coronavirus (COVID-19) impacted business energy?
Both domestic and business energy customers should not see a disruption to their energy supply during the coronavirus pandemic.
If you’re a business that’s struggling to pay your energy bills because of the pandemic, there are a number of grants and loan schemes available from the Government. For more information, read the Government’s financial support for businesses during coronavirus.
You may also want to check whether switching tariffs or energy supplier could help reduce your business energy bills.
What is green business energy?
Green energy comes from renewable sources – like sunlight, wind or even plants. And just like with domestic energy, some of these options will be available to commercial energy customers.
Alternatively, you might choose one that doesn’t use fracking, an environmentally damaging way to extract natural gas. There are also smaller ways you can be green, like choosing paperless billing and being as energy efficient as possible.
Businesses will naturally use more energy than the average home, so being aware of your firm’s impact on the environment is no bad thing. If being green is important to you, just click the ‘green’ option under ‘tariff type’ when you compare quotes.
List of business energy suppliers
Our list of business energy suppliers shows who you can turn to for a commercial energy package:
- British Gas Lite
- British Gas
- Scottish Power
- Total Gas and Power
- BG Plus
The above list of business energy suppliers features familiar providers who you might expect to offer commercial energy packages as well as smaller companies that might be able to offer you a great deal on gas and electricity for your business.
What should I do if I'm moving business premises?
You can take your existing energy supplier along with you or switch to a new one. Either way it’s important to have something in place, otherwise expensive out-of-contract charges may apply.
If you stick with your current supplier, you’ll need to give them notice of your move – about a month should be enough. You’ll also need to let them know the date you’re moving out and the date you move in to your new premises, as well as the new address. You should take meter readings at your old and new locations on the day you move out and in.
Do your business energy quotes include VAT and CCL?
It’s your choice. When you get to the prices page, you can opt to have quotes shown with or without VAT and CCL (climate change levy).
What are half hourly meters and how do they work?
Half hourly meters record electricity use for businesses every… 30 minutes. They provide automatic readings, and must legally be used by UK businesses who use 100,000kWh of electricity or more per year.
They essentially act as a smart meter for large businesses, with the readings sent automatically to your supplier.
How do business energy prices change for small businesses?
For smaller businesses, you can obviously expect to pay less for your business energy, because you’re probably not using as much energy as larger business. Although, that may depend on the type of business you’re in. However, smaller businesses tend to pay more per unit cost for their energy. Because larger businesses normally use more energy, they’re basically awarded a small discount for doing so. The discounts are small though, and so small businesses should still expect to pay less for their business energy.
When is the best time to switch business energy suppliers?
The best time to switch business energy suppliers is when your current deal is coming to an end. This is when you won’t need to pay any exit fees, and you’ll want to avoid being rolled onto the supplier’s standard tariff, which usually costs a lot more. If you’re not currently on a fixed-term business energy contract, or are in the ‘switch window’, you should look to switch as soon as possible and get yourself a better deal.
How long does it take to switch business energy suppliers?
How long it takes to switch business energy suppliers can vary between businesses, but the general rule is about four to six weeks. If, for some reason, your current energy supplier attempts to block your switch, this can slow things down. If your switch is taking longer than six weeks, you should contact your supplier and get an update. They must reply to you within 14 days.
With it taking between four and six weeks to switch your business energy, you should plan ahead and compare quotes to find the right deal in plenty of time, before your existing tariff ends and you’re rolled onto a standard one which will usually cost a lot more.
How many times can you switch your business energy supplier?
There’s no limit to the number of times you can switch business energy supplier, but the terms of your business energy contract may make it less appealing to switch so regularly. If you’re on a fixed-term tariff, you could be locked in for five years, which means you’ll need to pay an exit fee to get out of your existing deal. If the savings are more than the fee, you could still go ahead and break your agreement with your existing supplier.
As you come to the end of your existing deal, or have already come out of your fixed-term contract, you will be able to switch your business energy supplier without having to pay exit fees.
How do I check who my business energy supplier is?
If you’re not sure who your business energy supplier is, you can find out by looking at an energy bill or statement. If you can’t find one, or have just moved to a new business location, you can call the Meter Point Administration Service (MPAS) in your region, to find out who the current energy supplier is.