Updated: April 20, 2024
Business Gas and Electricity
Looking for the best gas and electricity deals for your business? Read our comprehensive guide to find out how you can save money on your energy bills
No impact on your credit score
Businesses generally consume energy in larger quantities than the average household, so it comes as no surprise that commercial gas and electricity can be costly. This is especially true if you end up on an unsuitable policy for your firm’s circumstances, but there’s a way you can ensure that isn’t the case.
With the help of a business energy broker, you can rest assured that your company’s energy needs are fully met without having to pay over the odds for this privilege. We work with experts in this field and would be more than happy to introduce you to one of them for a free, no-obligation chat.
Our guide to business gas and electric covers the following topics…
What is business gas and electricity?
Business energy is basically gas and electricity for companies. It works in a similar way to domestic utility services, although there are key differences you should be aware of. Firstly, commercial energy rates are generally less expensive than domestic as it is sold in bulk, rather than on a monthly basis.
Commercial energy contracts are usually longer than household deals – running up to five years, in some cases – and they don’t have a cooling-off period, so it’s vitally important that you choose the right deal for your firm’s needs. This is something a business utility broker can help you with.
Unlike with domestic energy, commercial power deals are single-fuel only, meaning that you will need separate quotes for your gas and electric. Both are provided on a case-by-case basis, with providers offering tailored quotes based on a company’s needs, circumstances and usage.
For a quote bespoke to your business, make an enquiry and we’ll introduce you to a commercial energy broker who has access to the entire market. They can offer expert advice and introduce you to the energy provider best positioned to offer a favourable deal to your company.
Speak to a expert today
How much does business gas and electricity cost?
As business energy quotes are offered on a bespoke basis, there’s no one-size-fits-all answer to this question, but we can tell you how quotes are calculated and how to get the best rates.
A business energy supplier will decide which rates you qualify for based on the following factors…
- Your firm’s annual gas/electric consumption
- Your company’s credit rating (having bad credit means potentially higher rates)
- The size of your business (single or multi-portfolio)
- The postcode you operate in
- Business type (sole trader, limited company etc)
- Type of meter you have (NHH, HH, NDM, Daily Meter, AMR/Smart Meter etc)
The cost of your energy will also depend on the type of contract you take out and they can broadly be divided into four categories: rollover, fixed term, deemed rate and flexible.
With a rollover contract, your deal automatically renews at the end of the term and this could mean paying a higher rate than you were on before. Account holders can, of course, manually cancel their deal when they’re not locked into a contract but this typically requires 30-days’ notice.
Experts recommend that firms on rollover contracts compare the market to check whether there is a better deal available elsewhere, and this is a service the brokers we work with can provide.
If your business is on a fixed-term energy contract, this means you have agreed on the rates you’ll pay for a set amount of time. Fixed contracts typically provide more budgetary certainty as your rates are known and secure regardless of what happens within the market while you’re contracted.
Deemed rates are for firms that have just moved into a new premises and are yet to formally agree an energy contract with a provider. Agreeing a bespoke deal is often cost-effective in these circumstances.
You can buy your energy strategically, often split into months, quarters or seasons. These deals are typically for larger firms who want to minimise the risk of buying multiple-years’ worth of energy.
Make an enquiry if you think you’re paying too much for your business energy. We can introduce you to an independent commercial energy broker for a free business health check. This will determine whether there’s a better deal out there for you, and there’s no obligation to proceed.
Can I switch my energy supplier?
Yes! And since most businesses are on rollover or evergreen contracts for their power, it usually pays to do so. In fact, companies typically save around 30% on their utility bills by switching to a new provider.
Changing your commercial energy supplier is straightforward if you use a broker. There will be no business disruption as the new provider will liaise with the old one to ensure a smooth transition.
The best way to go about switching is to speak to a whole-of-market commercial energy broker. They have access to their entire market and can match you with the gas and electricity providers who are best placed to meet all of your firm’s requirements at the most favourable rates.
Make an enquiry with us and we’ll introduce you to a broker for a free, no-obligation company health check, during which you’ll learn whether any money can be saved on your energy bills.
How to switch
You can switch suppliers with our help in three easy steps…
- Make an enquiry with us so we can introduce you to a whole-of-market commercial energy broker who specialises in businesses like yours
- The broker will gather information about your business energy needs during a free, no-obligation health check
- They will search the market on your behalf and find you the most favourable quote, tailored to your businesses energy needs and requirements
How to compare business energy prices
Since business energy quotes should be bespoke and tailored to your company’s requirements, the best way to compare deals is with the help of an expert broker. They have access to the entire market and can sift through all of the policies that fit your business’s needs in search of the best rates.
To draw up a list of personalised quotes, your broker will ask you some simple questions about how much gas and electricity your firm uses and where it is based. They will then present you with a list of policy options, with monthly and annual costs included as well as how they differ depending on the contract length, and information about the providers such as how eco-friendly they are.
This is by far the best way to ensure you end up with the most comprehensive market comparison, but it doesn’t hurt to do some research yourself to get a rough idea of the rates on offer.
There are online calculators and rates tables available across the web if you’re looking for estimates. Just keep in mind that these tools are not whole-of-market, nor are they bespoke to your business.
Make an enquiry with us to be matched with an energy broker for a free, no-obligation chat.
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Should I fix my energy prices?
This is a question you should put to a commercial energy broker as the answer will very much depend on your business’s circumstances and requirements. Taking out a fixed-rate energy deal has several benefits, chief among them the budgetary certainty it can bring at times when the market is volatile.
Fixing yourself into gas and electric contracts can be beneficial if you’re on a costly evergreen, rollover or deemed rates contract, but there may be alternatives to consider.
For larger operations, your broker might suggest looking into a flexible rates contract to minimise the risk of buying multiple-years’ worth of energy. Make an enquiry and one of the experts we work with will assess whether fixing yourself into an energy deal is the most cost-effective option.
Which energy supplier is best for business?
The market leaders in the business energy sector include British Gas, Contract Natural Gas (CNG), Corona Energy, DONG Energy, Gazprom, Dual Energy and EDF Energy, but it’s impossible to determine which ones of these companies is right for your firm without a thorough assessment of its needs.
The energy provider that is ‘best’ for you is the supplier that’s best placed to offer the most favourable rates to a company like yours. What one provider considers higher risk – and therefore imposes higher rates as a result of – might be overlooked by another supplier. For example, some energy companies are better positioned than others to offer competitive rates to companies with bad credit.
Since the market is vast, finding your perfect energy supplier can be difficult if you go it alone. This is where a commercial energy broker comes in. The experts we work with have access to the entire market and can match you with the provider who is the best fit for your firm. Make an enquiry to get started.
Speak to an expert
Whether you’re switching commercial energy supplier or taking out your first policy, finding the right plan for your firm’s needs and circumstances can make a massive difference financially.
A whole-of-market business energy broker, like the ones we work with, can make sure you end up with the best rates on your gas and electricity by finding you a deal that fits your requirements.
Call 0808 189 0463 or make an enquiry and we’ll match you with a broker for a free, no-obligation business health check, which will tell you where there’s money to be saved.
FAQs
This will depend on factors such as the size of your firm and the industry it trades in.
On average, a small business with standard consumption can expect to pay around 14-16p per kWh plus a daily standing charge. Larger firms with a higher consumption would usually be charged less due to their buying power.
The VAT rate on business energy is usually charged at 20%, but some firms can benefit from a reduced rate of 5% if they use less than 33 kilowatt hours of electricity or less than 145kw hours of gas per day.
Your company is classed as a micro-business if it either uses less than 100,000 kWh of electricity and 293,000 kWh of gas per year, or has 10 or fewer employees and turnover of less than £2 million per year.
If your company fits this criteria, you may be entitled to extra support from your energy supplier.
Yes it’s possible – but if you’re unsure about your credit position or what type of credit score your business has, the best tariffs might be more difficult to come by. Some mainstream energy supplies may offer inflated rates or turn you away altogether.
The good news is that it’s still possible to find a favourable deal for your commercial energy despite your adverse credit. There are providers who specialise in customers with credit issues, and the advisors we work with know who they are.
Joining together with other businesses in your sector could help your company access superior rates and deals. The energy brokers we work with have clients across all industries and can pool your resources with theirs to form a buyers club. With collective buying power on your side, the best rates on the market could be easier to secure.
If you think your business has been mis-sold an energy policy and is being overcharged for fuel as a result, the advisors we work with may be able to help.
They will thoroughly investigate the circumstances surrounding your existing deal and potentially negotiate your exit from the contract, before finding you a more suitable energy provider based on your firm’s needs and requirements.
Craig Watson
Commercial Energy Expert
About the author
Craig is a commercial energy advisor who has been working within the industry for over a decade.
He’s recently worked as company owner and Operations Director with Experienced Energy Solutions, and is passionate about helping businesses save time, money and energy.
Delivering market-leading consultation on all things energy related, Craig supports his customers by offering a fully transparent approach to help break energy management into a language anyone can understand.
Craig is also a co-founder of Birmingham Net Zero and has previously held positions with leading gas and electricity suppliers as well as award winning energy consultants.
