How To Switch Your Business Energy

A big part of being successful in business is being able to spot opportunities to make money - but spotting opportunities to save money is just as important, too.

A major expenditure for a lot of businesses is their energy costs. Finding the best deals that suit the business type and energy usage should always be a high priority.

We're here to tell you more about how you can switch your business energy supplier, the information you will need to do this, what business tariffs are available, and the suppliers you will be able to choose from.

How to compare and switch business gas and electricity suppliers

At Business Energy UK, our comparison service is quick and easy to use.

We compare the prices of the major energy suppliers, as well as a range of smaller independent energy companies, to ensure you see all the best business energy deals available to you.

All we need from you is a little bit of information to get going. Our completely impartial service is simple to use, making it easy for you to compare business energy prices in one place.

Information needed to switch business energy

You can find most of the important information you will need on your most recent energy bill.

Some of the important information you will need includes:

Your business postcode
Your current supplier and contract information
Your current terms, including the end-date and notice periods
Your current energy costs per unit (this will be on your bill in kilowatt-hours – kWh) as well as your standing charges if applicable
Your current annual energy usage

Business energy tariff options

When it comes to finding the right tariff for your business needs, we do all the homework/hard work for you. It's important, however, to understand your average energy usage and operating hours when you're choosing one of our deals.

Some of the more common business energy deals you'll encounter with us are as follows.

Fixed-Rate Tariff

Fixed-rate tariffs let the business know exactly what they will be paying for their energy.

Because of this, it will be important that you find the best rate for your business, as you'll then be locked into this rate for the duration of your contract.

Deemed Rate Tariff

Deemed rate tariffs are 28-day rolling contracts - you'll find yourself on one of these if you have failed to cancel or agree on a new contract when your current deal expires.

Rates tend to be inflated, but you only need to give 28 days notice if you want to switch.

Variable Rate Tariffs

Your price is not set to a specific rate and varies depending on the energy market. Variable rates offer greater flexibility and typically shorter contract terms that you can cancel with the agreed notice period.

Green Business Energy Tariffs

As more businesses are looking to increase their green credentials and reduce their carbon footprint, renewable energy options continue to grow.

Whether you want to make the most of commercial incentives or are just trying to take more social responsibility, you can consider green business energy tariffs.

A green energy tariff sees the supplier matching all or a percentage of the electricity you use with renewable energy. This is then fed back into the National Grid.

The idea is that the more people that sign up for this, the more green/renewable energy will be used in the national supply.

The most common renewable energy provided comes from wind and solar farms.

Multi-site Energy Contracts

Multi-site energy contracts are ideal for businesses that run across multiple sites. With this contract, information will be gathered from across all sites and taken into account.

Rolling Contract

Rolling contracts are similar to deemed rate tariffs on inflated rates but tie you into a year-long contract. These are not as common as deemed rate tariffs offer a much more flexible and fair plan.

No Standing Charge Tariff

A standing charge is a small daily fee that charges you, regardless of your energy use for that day.

If you are looking at changing to a no standing charge tariff, it is important to make sure the new rate does not cost you more over the duration of the contract.

UK business energy suppliers

When talking about business energy suppliers in the UK, you might have heard the term 'Big Six'. These are the biggest companies that take the majority of the market share. In fact, figures from Statista show that in 2020 they had 70% of the domestic energy market in the UK.

That 70% is broken down across the big six as follows;

British Gas; 18%
E.ON UK; 15%
SSE; 15%
EDF Energy; 10%
Scottish Power; 9%
npower; 3%

At Business Energy UK, we understand that not every business supplier will suit an individual business. That's why we compare across 24 business energy suppliers, including the big six and smaller suppliers. This ensures you find the best business energy contract for your individual business needs.

Frequently Asked Questions

What happens if I don't switch when my business contract ends?

If this happens, you will move on to a deemed rate tariff or rolling contract, depending on the agreement you have in place with your current supplier.

If you want to switch and your supplier says you cannot, it is their responsibility to explain why this is as quickly as possible. They will also have to go through what options are available if you believe that you should have the option to switch.

According to Ofgem, the independent energy regulator for Great Britain, if you have any issues with your supplier while switching, you can contact Citizens Advice for further guidance.

Can businesses get dual fuel energy deals?

Not all businesses will require gas and electricity, but some will. You might be used to a dual fuel domestic energy deal, but unfortunately, this is not an option for businesses.

Even if you find the best business gas and electricity deals with the same energy supplier, they would still offer separate quotes for each.

When agreeing to both gas and electricity tariffs, choosing the same length of the contract is advisable. This will make it easier to manage in the long term and help avoid any confusion.

How much can my business save by switching energy suppliers?

It would be impossible to say exactly how much your business could save. This depends on the type of business you run, your energy usage habits, and how long you have had your current business energy rates.

When negotiating business energy contracts with a supplier, it is important to know how much energy you use. We recommend that you compare business energy suppliers - even if you think you are getting a great deal currently.

Does it take long to switch business energy suppliers?

Many factors can impact how long it will take to switch your business energy provider. Depending on when your current contract is due to end, you might face a cancellation charge.

It can sometimes be worth paying a cancellation charge if your new rates will save you money in the long term, but our handy comparison tool will be able to work this out for you. Ideally, you will want to time your switch for when your current deal ends for a smooth transition.

To avoid delays, ensure you have passed over all requested information for your new supplier and double-check that this information is correct.

You can expect a switch in energy suppliers to typically take anywhere between 3 to 6 weeks, but this can vary.

What happens if my business moves premises?

If your business is moving, you will have to contact your energy provider. As your business gas and electricity provider will have to supply your new location, the sooner you get in contact to arrange this, the better.

Potential costs you could incur from an energy supplier when moving premises include;

Connection fee - If this is a new build that has never had an electricity or gas connection before, you may have to pay a connection fee.
Reconnection fee - Sometimes, an energy supplier might have had issues with the previous tenant resulting in them disconnecting the supply. If this is the case, the supplier may require a reconnection fee or security deposit.
Early termination fee - If you are looking to end your current contract early and switch business energy suppliers, or your move comes before your existing contract expires, you may be required to pay an early termination fee. If you plan to use the same energy supplier, it may be worth negotiating as they will be keen to keep your business.