- Business energy has no equivalent of the domestic price cap: as of 2026, Ofgem's price cap applies only to standard variable domestic tariffs, not to non-domestic contracts.
- A business energy quote is built from two charges plus levies: a unit rate measured in pence per kilowatt hour (p/kWh) and a daily standing charge measured in pence per day.
- Business contracts are usually fixed for a set term, commonly 12 to 60 months, and most cannot be cancelled mid-term in a cooling-off period the way domestic deals can.
- If you move into premises or let a contract lapse, you are placed on a deemed contract, which typically carries some of the highest unit rates a supplier charges.
- Third party intermediaries (brokers) who sell to microbusinesses must follow Ofgem's rules introduced in December 2024, and microbusiness disputes can go to the Energy Ombudsman free of charge.
Compare business energy on unit rate, standing charge, contract length and exit fees together, not on headline price alone. There is no business price cap, deemed contracts cost the most, and microbusiness disputes can reach the Energy Ombudsman.
Last reviewed: June 2026
Why comparing business energy is different from switching at home
Comparing business energy is a more involved task than picking a domestic tariff, and the differences matter financially. A household switch is governed by the Ofgem price cap, comes with a 14 day cooling-off period, and lets you leave most deals with little or no penalty. None of that applies to a commercial supply. Business contracts are individually priced, fixed for a defined term, and binding from the moment they go live. Get the comparison wrong and a business can be locked into an uncompetitive rate for several years.
The other practical difference is how quotes are produced. Households see a published tariff list. Businesses are usually quoted bespoke prices that reflect the meter type, the annual consumption, the credit profile of the company, and the wholesale price on the day the quote is generated. Because those quotes are often valid for only a short window, comparing them means comparing like for like at the same moment, on the same consumption assumptions.
What to actually compare: the components of a business quote
A business energy price is not a single number. It is built from several charges, and a supplier that looks cheap on one line can claw the difference back on another. The four components below are where the real cost sits.
Unit rate (p/kWh)
The unit rate is the price you pay for each kilowatt hour of gas or electricity you consume. For a business that uses a lot of energy, this is usually the most important figure, because it scales directly with usage. A premises with high consumption should weight the unit rate heavily; a premises with very low consumption may find the standing charge matters more.
Standing charge (pence per day)
The standing charge is a fixed daily cost that applies regardless of how much energy you use. It covers the cost of maintaining the connection and meter. Two quotes with an identical unit rate can differ significantly once the standing charge is included, and low-usage sites can find a high standing charge wipes out an attractive unit rate entirely. Always compare the standing charge and unit rate as a pair.
Contract length and renewal terms
Business fixed terms commonly run from 12 to 60 months. A longer term gives price certainty but removes the ability to react if wholesale prices fall. Pay close attention to the renewal window: many contracts require notice in writing within a defined period before the end date, and missing that window can roll you onto a more expensive arrangement or trigger an automatic renewal.
Exit fees and termination terms
Unlike a domestic deal, a business fixed contract usually cannot be exited cheaply mid-term. Some suppliers charge an explicit termination fee; others recover lost margin through the way the contract is worded. Before signing, establish in writing what it costs to leave early and what happens if your business relocates or closes.
| Factor | What to look for | Red flags |
|---|---|---|
| Unit rate (p/kWh) | Quoted on your real annual consumption; broken out for gas and electricity separately | A headline rate with no usage assumption stated, or estimated consumption that looks too low |
| Standing charge (p/day) | Compared alongside the unit rate as a combined annual cost | A very low unit rate paired with an unusually high daily charge |
| Contract length | A term that matches your price view and business plans; clear start and end dates | Auto-renewal language or vague renewal notice requirements |
| Exit fees | Termination cost stated in writing before you sign | No written figure, or a refusal to confirm what early exit costs |
| Contract type | A negotiated fixed contract agreed before the start date | Being left on a deemed or out-of-contract rate by default |
| Broker (TPI) fees | Any commission disclosed and itemised in p/kWh | An intermediary who will not disclose how they are paid |
Deemed contracts versus negotiated contracts
The single biggest avoidable cost in business energy is being on the wrong type of contract. A negotiated contract is one you agree before the supply starts: you accept a quote, sign, and lock in a unit rate and standing charge for the term. A deemed contract is what you fall onto when no agreement is in place, for example when you move into new premises and start drawing energy from the existing supplier, or when a fixed term ends and you take no action.
Deemed rates are set by the supplier and tend to be among the highest they charge, because they carry more risk and no commitment from the customer. The same is true of out-of-contract or rollover rates that apply after a fixed term lapses. If you do nothing, you pay more. The practical lesson when comparing is simple: never let a contract expire without a negotiated replacement in place, and contact a supplier the moment you take over a new site rather than drifting on the deemed rate.
The Ofgem non-domestic framework
Business supply is regulated by Ofgem under the non-domestic arm of the retail market. Suppliers hold a supply licence and must follow conditions that govern how they treat business customers. Protections are strongest for microbusinesses, a category Ofgem defines by thresholds covering employee numbers, energy consumption and turnover. If your business sits within those thresholds you benefit from extra rules on contract information, the way deemed contracts are handled, and access to dispute resolution.
Larger businesses fall outside the microbusiness protections and are expected to negotiate on commercial terms, often with the help of a broker or a dedicated energy manager. Whichever category you sit in, it is worth confirming your status when you compare, because it changes the rules a supplier must follow and the routes open to you if something goes wrong.
The TPI: brokers and the rules they follow
A third party intermediary, or TPI, is a broker or consultant who arranges energy contracts on a business's behalf. Many businesses use one, because brokers can run a market comparison quickly and handle the paperwork. The trade-off is cost: a broker is usually paid through a commission built into the unit rate you pay, so their fee is recovered over the life of the contract.
From December 2024, Ofgem introduced rules requiring suppliers to deal only with TPIs who meet defined standards when selling to microbusinesses, alongside a requirement for greater transparency over broker commission. When you compare quotes sourced through a broker, ask directly how they are paid and whether the commission is itemised. A reputable intermediary will disclose this. If a broker will not tell you how their fee is built into the rate, treat that as a red flag and compare a direct quote from a supplier alongside it.
If something goes wrong: the Energy Ombudsman and ADR
Disputes do happen, over billing, transfers that go wrong, or contracts a business says it never agreed to. If you cannot resolve a complaint with your supplier, microbusinesses can escalate to the Energy Ombudsman, which provides free, independent alternative dispute resolution (ADR). You generally need to have complained to the supplier first and either reached deadlock or waited the defined period without resolution. The Ombudsman's decision is binding on the supplier if you accept it, and using the service costs the business nothing.
This protection is one of the practical reasons to confirm your microbusiness status when comparing. Larger businesses do not have the same automatic access to the Ombudsman and may need to resolve disputes through their contract terms or the courts, which makes careful comparison and clear written terms even more important up front.
A practical comparison routine
Bring the components together with a repeatable process. Start by finding your real annual consumption in kWh from a recent bill, because every quote should be priced on the same usage. Note your current contract end date and renewal notice window so you do not miss it. Then gather quotes, ideally including at least one direct from a supplier as well as any broker-sourced options, and compare the combined annual cost of unit rate plus standing charge rather than the headline p/kWh. Finally, confirm the contract length, the exit terms and any broker commission in writing before you commit. Comparing this way takes longer than glancing at a single rate, but it is the only way to know which deal is genuinely cheaper over the whole term.
Frequently Asked Questions
How do I compare business energy suppliers?
Start with your real annual consumption in kWh, then compare quotes on the combined cost of the unit rate and the standing charge rather than the headline rate alone. Also weigh contract length, exit fees and any broker commission. Price each quote on the same usage assumption so the comparison is like for like.
Is there a price cap for business energy?
No. As of 2026, Ofgem's energy price cap applies only to standard variable domestic tariffs. Business and other non-domestic contracts are individually priced and are not capped, which is why comparing carefully before you sign matters more for a business than for a household.
What is a deemed contract?
A deemed contract is the arrangement you fall onto when you use energy at a premises without an agreed contract in place, for example after moving into new premises or when a fixed term lapses. Deemed rates are set by the supplier and are typically among the highest they charge, so it is worth agreeing a negotiated contract as soon as possible.
What is a TPI?
A TPI, or third party intermediary, is a broker or consultant who arranges energy contracts for businesses. They are usually paid through a commission built into your unit rate. From December 2024, Ofgem rules require greater transparency on broker commission when selling to microbusinesses, so you can and should ask how a broker is paid.
How do I switch business energy supplier?
Note your contract end date and renewal notice window, obtain comparable quotes priced on your real consumption, and agree a new negotiated contract to start when the current one ends. Most business contracts cannot be left mid-term without a fee, so the practical time to switch is at renewal, giving notice within the required window.
