Compare Business Energy Suppliers in the UK: 2026 Guide

LAST REVIEWED 2026-09-06

Why is comparing business energy different from switching at home?

Comparing business energy in 2026 is not the same as switching a domestic tariff. Domestic price caps do not apply to non-domestic contracts, so businesses must negotiate directly with suppliers or through brokers. The market is more complex, with bespoke contracts and varying terms.

Business energy contracts are typically tailored to the specific needs of the business, including consumption patterns, site characteristics, and credit requirements. Unlike domestic customers, businesses are not protected by a price cap, meaning rates can vary significantly between suppliers and over time.

Another key difference is the role of intermediaries. Many businesses use Third Party Intermediaries (TPIs) to manage their energy procurement. These brokers can help navigate the market, but their fees and incentives must be transparent under rules set by Ofgem.

When comparing, businesses should look at the total cost of the contract, including unit rates, standing charges, and any additional fees. It is also important to consider the length of the contract and any exit fees that may apply.

Finally, businesses should be aware of their rights under the microbusiness test. If a business has fewer than 10 employees and uses less than 100,000 kWh of electricity or 293,000 kWh of gas per year, it qualifies for additional protections, such as a longer notice period for contract renewals.

What should a business actually compare in a quote?

When comparing business energy quotes in 2026, the key components are the unit rate (pence per kWh), standing charge (daily pence), and any additional fees. These must be compared on a like-for-like basis, considering the contract length and terms.

Unit rates vary by region, consumption, and meter type. Standing charges cover the cost of maintaining the supply. Some quotes may include discounts for direct debit or online billing, but these should be scrutinised for their actual value.

Businesses should also check the contract duration. Longer contracts may offer lower rates but can lock in prices that may not reflect future market changes. Exit fees are another critical factor; they can be substantial and should be factored into the total cost.

It is also important to understand the difference between fixed and variable rates. Fixed rates provide certainty but may be higher than variable rates at the time of signing. Variable rates can fluctuate with the market, potentially leading to higher costs.

Finally, businesses should verify the supplier's terms regarding renewal. Many contracts roll over onto deemed rates if not renewed, which can be significantly more expensive. The microbusiness test threshold of 100,000 kWh is relevant here, as it triggers additional protections.

What are deemed contracts and how do they affect businesses?

A deemed contract is a default arrangement when a business does not have a negotiated contract with its energy supplier. This can happen when a business moves into a new premises and does not sign a contract, or when an existing contract expires without renewal.

Deemed contracts are typically more expensive than negotiated ones, as they are based on the supplier's standard rates. These rates are not subject to the domestic price cap, so they can be significantly higher than market rates.

Businesses on deemed contracts should be aware that they are not locked in and can switch to a negotiated contract at any time. However, they may be subject to notice periods and other terms outlined in the deemed contract.

Ofgem's microbusiness test provides some protection for small businesses. If a business uses less than 100,000 kWh of electricity or 293,000 kWh of gas per year, it may be eligible for a deemed contract with more favourable terms, such as a shorter notice period.

To avoid deemed contracts, businesses should keep track of their contract end dates and negotiate a new deal well in advance. Using a broker can help manage this process, but businesses should ensure the broker is transparent about their fees.

What is the Ofgem non-domestic framework and how does it protect businesses?

Ofgem, the UK energy regulator, has established a framework for non-domestic energy supply. This framework sets out rules for suppliers and intermediaries, aiming to ensure fair treatment for business customers.

Key elements include the microbusiness test, which defines a microbusiness as having fewer than 10 employees and an annual consumption of less than 100,000 kWh of electricity or 293,000 kWh of gas. Microbusinesses receive additional protections, such as a 30-day notice period for contract changes and access to the Energy Ombudsman.

The framework also regulates Third Party Intermediaries (TPIs). TPIs must be transparent about their fees and any commissions they receive from suppliers. This helps businesses understand the true cost of using a broker.

Suppliers are required to provide clear and accurate information in their contracts, including all charges and terms. They must also handle complaints in accordance with the ombudsman scheme.

Businesses that are not microbusinesses still have rights under the framework, but they may not have the same level of protection. It is important for all businesses to understand their rights and obligations when entering into an energy contract.

How do brokers and TPIs work, and what rules do they follow?

Third Party Intermediaries (TPIs), commonly known as brokers, help businesses find and manage energy contracts. They act as intermediaries between the business and the supplier, often providing advice and comparing deals.

TPIs are regulated by Ofgem under the non-domestic framework. They must be transparent about their fees and any commissions they receive from suppliers. This transparency is crucial for businesses to understand the true cost of using a broker.

Brokers can be useful for businesses that lack the time or expertise to navigate the energy market. They can negotiate on behalf of the business and help secure competitive rates. However, businesses should be aware that brokers may not always act in the best interest of the business, especially if they receive higher commissions from certain suppliers.

When choosing a broker, businesses should ask about their fee structure and whether they are independent or tied to specific suppliers. It is also advisable to check the broker's credentials and any accreditations they hold.

Ultimately, the decision to use a broker is a personal one. Some businesses prefer to deal directly with suppliers, while others find brokers beneficial. The key is to ensure that any broker used is transparent and acts in the business's best interest.

What should a business do if something goes wrong with its energy supplier?

If a business has a complaint about its energy supplier, the first step is to contact the supplier directly. Suppliers are required to have a complaints procedure in place and must respond within a reasonable time.

If the complaint is not resolved within 8 weeks, or if the supplier sends a deadlock letter, the business can escalate the matter to the Energy Ombudsman. The Ombudsman is an independent body that can investigate and make a binding decision.

For microbusinesses, the Energy Ombudsman is available as a free service. Larger businesses may also be eligible, but it is important to check the terms of the ombudsman scheme.

Before escalating, businesses should keep records of all communication with the supplier, including emails, letters, and phone calls. This evidence will be useful if the case goes to the Ombudsman.

It is also worth noting that the domestic price cap does not apply to non-domestic contracts, so businesses cannot rely on this as a basis for complaint. Instead, they should focus on the terms of their contract and any breaches by the supplier.

What is a practical comparison routine for business energy in 2026?

A practical routine for comparing business energy in 2026 involves several steps. First, gather current bills and identify the contract end date. This is crucial to avoid rolling onto deemed rates.

Next, determine the business's consumption in kWh. This can be found on the bill. If the business uses less than 100,000 kWh of electricity or 293,000 kWh of gas per year, it qualifies as a microbusiness and has additional protections.

Then, obtain quotes from multiple suppliers or through a broker. Compare the unit rates, standing charges, and any additional fees. Ensure that quotes are based on the same consumption and contract length.

Check the contract terms, including the length, exit fees, and renewal process. Some suppliers may offer lower rates for longer contracts, but this could be a disadvantage if market prices fall.

Finally, consider the supplier's customer service and financial stability. A cheaper deal may not be worth it if the supplier provides poor service or goes out of business. Reading reviews and checking financial ratings can help make an informed decision.

How do the 2026 price cap changes affect business energy?

The domestic price cap does not apply to business energy contracts, but changes to the cap can indirectly affect the market. In July 2026, the typical consumption values for the cap were reset to 2,500 kWh for electricity and 9,500 kWh for gas.

On 26 August 2026, Ofgem announced the Q4 2026 cap at £1,723. This is the maximum rate that domestic suppliers can charge for default tariffs. While this does not directly apply to businesses, it can influence wholesale prices and supplier costs.

From 1 October 2026, the Q4 cap came into force, and VAT on domestic electricity was cut to 0% until 31 March 2027. This reduction in VAT is only for domestic customers, not businesses. Businesses continue to pay VAT at the standard 20% rate, or 5% if they meet the reduced rate criteria.

Businesses should monitor market trends and consider fixing their energy prices if they anticipate increases. However, fixing may not always be the best option, as prices could fall.

It is also important to note that the price cap timeline is for domestic tariffs. Business energy prices are not capped, so they can be higher or lower than the cap depending on market conditions.

How can a business find its current energy supplier?

To find the current energy supplier for a business, the first step is to check the most recent energy bill. The bill will clearly state the supplier's name and contact details.

If the bill is not available, the business can contact the previous occupant of the premises or the landlord. They may have information about the supplier.

Another option is to use the Energy Networks Association's 'Find The Supplier' tool. This service allows users to enter their postcode and find out which supplier is registered for their property.

For electricity, the local distribution network operator can also provide information. For gas, the gas transporter can help identify the supplier.

Once the supplier is identified, the business can contact them to discuss the current contract and options for switching. It is important to have the business's account number and address ready.

How can a business contact its energy supplier?

Contacting a business energy supplier can be done through various channels. Most suppliers have dedicated business customer service lines, which can be found on their website or on the bill.

Email and online chat are also common options. Some suppliers offer online portals where businesses can manage their accounts, view bills, and submit meter readings.

When contacting the supplier, it is helpful to have the account number and business details ready. This will speed up the process and ensure that the query is handled efficiently.

If the business has a complaint, it should follow the supplier's complaints procedure. This is usually outlined on the bill or the supplier's website.

If the issue is not resolved, the business can escalate to the Energy Ombudsman after 8 weeks or upon receiving a deadlock letter. The Ombudsman can be contacted via their website or phone.

Glossary: the terms on an energy bill explained

Deemed contract: A default contract applied when a business has not signed a negotiated agreement. Rates are typically higher and not subject to the domestic price cap.

Microbusiness: A business with fewer than 10 employees and annual consumption under 100,000 kWh electricity or 293,000 kWh gas, qualifying for extra protections.

Third Party Intermediary (TPI): A broker that helps businesses arrange energy contracts. Must be transparent about fees and commissions under Ofgem rules.

Energy Ombudsman: An independent body that resolves disputes between energy suppliers and customers. Available after 8 weeks or a deadlock letter.

Standing charge: A fixed daily charge that covers the cost of supplying energy to the premises, regardless of consumption.

Unit rate: The price charged per kilowatt-hour (kWh) of energy consumed. Varies by supplier, region, and contract.

Frequently asked questions

How do I find the business energy supplier?

To find your business energy supplier, check your latest energy bill for the supplier's name and contact details. If you don't have a bill, contact the previous occupant or landlord. You can also use the Energy Networks Association's 'Find The Supplier' tool by entering your postcode. For electricity, the local distribution network operator can help; for gas, the gas transporter can assist. Once identified, contact the supplier directly to discuss your contract.

How do I contact the business energy supplier?

Contact your business energy supplier through their dedicated business customer service line, email, or online chat. Many suppliers offer online portals for account management. Have your account number and business details ready for faster service. If you have a complaint, follow the supplier's complaints procedure. If unresolved after 8 weeks or upon receiving a deadlock letter, escalate to the Energy Ombudsman.

What is the microbusiness test for energy?

The microbusiness test is a set of criteria used by Ofgem to determine if a business qualifies for additional protections. A business is considered a microbusiness if it has fewer than 10 employees and an annual consumption of less than 100,000 kWh of electricity or 293,000 kWh of gas. These businesses are entitled to certain safeguards, such as a 30-day notice period for contract changes and access to the Energy Ombudsman.

Does the domestic price cap apply to business energy?

No, the domestic price cap does not apply to non-domestic energy contracts. Business energy prices are not capped, meaning suppliers can charge rates that reflect market conditions. This is why it is important for businesses to compare quotes and negotiate contracts. The price cap timeline, including the Q4 2026 cap of £1,723, only affects domestic customers.

What is a deemed contract and how can I avoid it?

A deemed contract is a default arrangement when a business does not have a negotiated contract. It can occur when moving into a new premises or when a contract expires without renewal. Deemed rates are typically higher. To avoid it, track your contract end date and negotiate a new deal in advance. If you are on a deemed contract, you can switch to a negotiated one at any time, subject to notice periods.

What are the VAT rates on business energy?

Business energy is subject to VAT at the standard rate of 20%. However, a reduced rate of 5% applies to businesses that use less than 33 kWh of electricity or 145 kWh of gas per day. This reduced rate is often available to small businesses and charities. The temporary 0% VAT on domestic electricity from October 2026 does not apply to businesses.