Commercial energy contracts in the UK are agreed between businesses and licensed Ofgem suppliers outside the domestic price cap framework. Micro-businesses (fewer than 10 employees, turnover under €2 million) receive additional protections under Ofgem's Supply Licence Conditions and the Business Energy Code of Practice. Larger businesses negotiate directly with suppliers or use brokers. VAT on business energy is 20% unless the business qualifies for the 5% reduced rate (Ofgem, HMRC, 2026). |
Commercial energy UK 2026: the contract structures that catch buyersUK commercial energy contracts come in five structures, each shifting risk differently. The 2026 reality of fixed, pass-through and flex. 
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