Key takeaways
A business energy quote is a commercial offer that must state the unit rate (p/kWh), standing charge (p/day), contract start and end date, exit fee and, if obtained via a broker, the commission the broker earns.
Third-party intermediaries (TPIs) - energy brokers - must disclose their commission in writing before you sign, under Ofgem rules that took effect in October 2024.
Dual fuel quotes combine gas and electricity from one supplier but are not always cheaper than two separate contracts - compare each fuel component independently.
Out-of-contract deemed rates are set by the supplier with no Ofgem ceiling and are typically 40% to 100% above contracted rates; receiving quotes before your notice window closes is the single highest-impact action a business can take.
Kael Tripton does not route enquiries to brokers, earn commission on energy contracts, or operate as a TPI under any commercial arrangement.
Reviewed: June 2026Key facts
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What a business energy quote must contain
A business energy quote is a contractual offer. A compliant and comparable quote must include the unit rate (pence per kWh) - this is the primary cost variable for any given consumption level. It must also include the standing charge (pence per day or pounds per quarter), which is a fixed daily cost regardless of how much energy is consumed. The contract start date and end date define the term. The exit fee - sometimes called an early termination charge or break clause - is what the business pays if it leaves before the end date.
For quotes obtained through a TPI (broker), the quote must now also include the commission the broker earns for placing the contract. This is a requirement under Ofgem's non-domestic retail market reforms effective October 2024. Commission is typically embedded in the unit rate as an uplift above the rate the supplier would offer directly. The disclosure must state this uplift in pence per kWh or as a total value over the contract term.
How TPI brokers price business energy quotes
A TPI or energy broker acts as an intermediary between the business and the energy supplier. The broker negotiates a rate with one or more suppliers from their commercial panel, adds their margin, and presents the resulting rate to the business as the best available. The business pays the broker's commission embedded in every unit of energy they consume over the contract term.
Commission structures vary. Some brokers take a flat fee per year of the contract. Others add a per-kWh uplift. A 0.5p per kWh uplift on a 5-year contract for a business consuming 100,000 kWh annually represents 2,500 pounds of commission. This does not appear as a separate line item on the energy bill unless the broker provides written disclosure. Under the post-October 2024 Ofgem rules, that disclosure is mandatory. A broker who does not provide it in writing before requesting a signature is in breach of Ofgem requirements and can be reported to the Energy Ombudsman.
Why business energy quotes differ from domestic comparison
Domestic energy comparison works through Ofgem-accredited comparison websites where suppliers are required to publish standardised tariff information and the price cap limits how high any tariff can go. Business energy has no equivalent. Suppliers are not required to publish commercial tariffs publicly and there is no Ofgem-mandated comparison platform for non-domestic contracts. Different brokers may hold different rate cards from the same supplier, meaning two broker quotes for the same site from the same supplier may differ.
The only way to verify a broker quote against a true market rate is to obtain a direct quote from the named supplier on identical terms - same AQ, same contract length, same start date - and compare unit rate and standing charge line by line.
Dual fuel contracts: combined vs separate
Some suppliers offer a combined gas and electricity contract with a discount of approximately 1% to 3% versus separate contracts. Whether this is genuinely cheaper depends on the component rates. To evaluate a dual fuel quote, separate the electricity unit rate and standing charge from the gas unit rate and standing charge. Compare each against the best available single-fuel contract for that fuel type from any supplier. If both components are at or below the best single-fuel rates available, the dual fuel deal is genuinely competitive. If one fuel is priced above the individual market rate, the discount is absorbed by the premium on that component.
Contract lengths and out-of-contract risk
Business energy contracts typically run for 1, 2, 3 or 5 years. Longer contracts are priced using forward market curves and may offer either a lower average unit rate (if the forward market is in backwardation) or a higher rate (if the market is in contango) relative to shorter terms.
The end date and notice period are the most operationally critical elements of any contract. Most fixed-term business energy contracts require 30 to 90 days written notice before the end date to trigger a renewal or switch. Missing this window results in the contract rolling onto an out-of-contract or deemed rate - set by the existing supplier with no Ofgem ceiling, typically 40% to 100% above the contracted rate. The financial impact of spending even three months on a deemed rate can exceed the savings from a year of careful procurement.
What to check before accepting any business energy quote
Confirm in writing: unit rate (p/kWh), standing charge (p/day), contract start and end date, exit fee (total or calculation basis), broker commission in p/kWh or total value if applicable, VAT rate applicable, and whether CCL is included or exempt.
Check whether the unit rate is all-in (inclusive of network charges) or commodity-only (network charges added separately). Pass-through and flex contracts show network charges separately; fixed all-in contracts include them. Comparing a commodity-only rate against an all-in rate without adjusting for network costs will make the commodity-only quote appear cheaper than it is.
Confirm the annual quantity (AQ) used to price the contract matches your actual consumption. A quote priced on a lower AQ than your real usage will produce out-of-budget costs. A quote priced on a higher AQ may mean paying above-market rates for a volume commitment you cannot fill.
Related guides
Disclaimer: This guide is for informational purposes only. Kael Tripton Ltd is not regulated by the FCA and does not provide regulated financial advice. Business energy contracts are commercial agreements; always read the full contract terms before signing. Unit rates and standing charges change frequently - verify current prices directly with suppliers or via Ofgem-published data.
Frequently asked questions
Do business energy brokers have to disclose their commission?
Yes, since October 2024. Ofgem's non-domestic retail market reforms introduced a mandatory requirement for TPIs to disclose the commission they earn from suppliers before the business customer signs a contract. The disclosure must be in writing and state the commission clearly. If a broker does not provide this, the business can report the breach to the Energy Ombudsman, which has jurisdiction over TPI conduct under Ofgem's framework.
What is an out-of-contract rate in business energy?
An out-of-contract rate (also called a deemed rate or rollover rate) is the unit rate a supplier applies when a fixed-term contract has expired and no new contract has been signed. These rates are not capped by Ofgem for non-domestic customers and are typically 40% to 100% higher than the contracted rate. They can be avoided by setting a calendar reminder for the notice window before the contract end date and obtaining comparison quotes before that window closes.
What information do I need to get a business energy quote?
The minimum information needed for an accurate business energy quote is: your MPAN (electricity) or MPRN (gas), your annual quantity (AQ) from your current bill, your preferred contract start date, and your preferred contract length. Suppliers may also ask for a recent bill, business credit details or Companies House registration for credit assessment purposes.
Is a verbal business energy quote binding?
No. Business energy contracts must be agreed in writing to be binding. A verbal quote is not a contract. Only sign or formally accept a business energy contract once you have received all key terms in writing - unit rate, standing charge, exit fee, contract dates and broker commission disclosure where applicable.
Can I get a business energy quote without a broker?
Yes. Businesses can approach electricity and gas suppliers directly to request quotes. Most major non-domestic suppliers including British Gas Business, E.ON Business, EDF Business, Shell Energy Business and Octopus Business Energy will quote directly. Obtaining both a direct supplier quote and a broker quote for the same supply point and contract term allows a direct comparison, including whether the broker's commission represents value for the service provided.
What does AQ mean on a business energy quote?
AQ stands for annual quantity. It is the estimated volume of energy - in kWh for electricity, or in kWh converted from cubic metres for gas - that a supply point is expected to consume over 12 months. AQ is the foundation of every business energy contract price because suppliers use it to calculate their total revenue and risk exposure for the contract term. It appears on your current bill or can be requested from your current supplier. Always provide the same AQ figure to every supplier or broker you approach so that unit rates are quoted on an identical basis.
