A simples guide

A basic guide to business energy

If you’re running a business, your utility bills might not be top of your to do list. However, if you’ve not been paying much attention to your bills, you may be missing a trick to save some money.

Here, we’ll show you how, with just a little time, you could reduce your costs and get back to doing what it is that makes your business a success.


What do business utility costs depend upon?

When it comes to the residential energy market, one house is pretty much the same as another. Yes, they might differ in size, but their needs are pretty similar.

The same can’t be said for business energy needs. No two businesses are the same and depending on the type of business you’re in, utility needs can be very different as well as very complex.

Amongst other factors, the following will be taken into account by your provider:

  • Your business sector and type
  • Your business size
  • The amount of gas and electricity you consume
  • The credit rating of your company
  • The buildings supplied, number, location and so on.

These factors together will determine how many energy companies can serve your business, and therefore what variety of prices your firm will be quoted.

The more complex your business is, the greater the chance that your energy needs may be subject to a specific discussion with the supplier.

Contract types

When signing up to business energy contracts, it’s really important to understand the type of contract that you are getting in to. This not only impacts the price you pay, but also the flexibility you have to change requirements or supplier further down the track.

  • Rollover or Evergreen contract

This type of contract is automatically renewed until it's cancelled.

Many gas and electricity for business contracts are evergreen, meaning if you don't terminate them with a letter of notice they’ll automatically roll over. Some suppliers renew over 90% of their customers in this way and while it might be convenient, these customers are more than likely to be paying more than they need.

While suppliers have their own rules when it comes to rollover contracts, most write to you before letting you know about their intentions to roll you over. After this, you’ll have a window in which to cancel or your contract will be renewed.

It might be a good idea to make your own note of when the contract is due to end so that you can shop around at that point and try to save some money.

  • Fixed-term contract

A fixed-term contract fixes the unit rates of your gas and/or your electricity for a certain period of time. While the prices are fixed, your consumption obviously isn’t, so fixed price doesn’t mean fixed monthly cost! This is a good way to protect yourself from energy price increases for a set amount of time.

  • Deemed rate contracts

Also known as out-of-contract rates, these are tariffs that usually apply to a business that have just moved into a new property, or have cancelled their current supply but haven't yet switched to a new supplier.

How to save money on your business energy

As with household customers, inertia really is the friend of the utility company. Those that don’t switch utility tariffs may find themselves on standard tariffs paying considerably more than they need to.

Switching provider or tariff could save you money so it’s worth looking into.


Does it really make a difference?

Yes, it does. The prices that suppliers charge for business electricity, business gas and other utilities can vary.

It's really not unusual for one business to be paying a different rate on their gas and electricity bills to the building next door! In some cases, this could be as much as three times more, so yes, it really does make a difference.


A basic guide to business energy

How do I compare suppliers?

We’re here to help you save money on your business gas and electricity bills. All we need is a bit of your time and a few simple details.

We just need to know things like where your business is based, your current business supplier, your supply type and your MPAN number.

It’s probably useful to have a bill to hand for this part. Then we can search a range of energy providers to find prices from the leading commercial energy suppliers. Just bear in mind that you’ll need to complete a separate quote for gas and electricity.