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Business energy comparison Compare the best suppliers & prices
We compare over 150 energy tariffs to help you save
Act now to maximise your 'Energy Bill Relief Scheme' business energy savings
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We Compare business energy with the top providers
Business Energy News Latest Announcement
The UK Government has announced the Energy Bill Relief Scheme. For 6 months from 1st October 2022, your business could save money on its energy costs. There's no need to apply for the discount, but to lock in the best fixed price contract deal and maximise the savings available for your business, you should still compare business energy prices.
We keep it simple with our 3 easy steps...
1
Fill in our simple form...
We ask a small set of questions which helps us understand your business and its needs.
2
Our expert team searches our network of energy suppliers to find you the best deal...
Once your quotes are ready, an expert from our trusted partner will be in touch.
3
Sit back and start counting your savings!
Pretty easy wasn't it?
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How does business energy work?
Whatever the size of your company, energy bills can be a drain on your running costs. Heating, lighting and equipment are all essential to keep you functioning and it’s all too easy to get stuck on a tariff that’s sky-high or simply not right for your needs.
At Compare Switch we understand that just as companies vary in size and scale, so do their energy requirements. When it comes to gas and electricity use, it’s certainly not a case of one size fits all. That’s why we strive to find you the best rates for your individual needs. We will even tailor a solution to fit your business. That’s because we specialise in business electricity, business gas, energy for small business and even corporate energy procurement.
There are two main types of business energy tariff, fixed rate and variable. Fixed term agreements are usually cheaper in the long term, protect against wholesale electricity and gas price increases and can be budgeted for by setting up a direct debit.
A variable rate contract benefits users if commercial electric and gas prices fall. Business energy is supplied on a contractual basis with terms lasting typically between one and three years.
We offer a number of other business energy services. These include feed in tariffs, meter installation, energy saving tips, smart meter solutions. We also have a handy guide on what to do in the event of a power cut.
What do I need to know about business energy?
When it comes to running your own business there’s no doubt that the bills stack up. Gas and electricity are essential commodities and, as such, will always form a portion of your monthly outgoings. However, there are choices that you can make to reduce the amount you’re paying for energy.
Just by switching business energy suppliers you can save up to 40% on your bills.
So how do you go about making an informed decision? Including which providers to use and which deals are best suited to your needs.
Business energy tariffs
There are two main types of tariff used. Because the size and scope of every company is different, so too are their requirements for gas and electricity.
Choosing the correct type of tariff reflects how you use gas and electricity as well as how you go about paying for it. Certain factors should be taken into account when selecting a commercial energy tariff for your company. You should consider your businesses financial situation, how much energy you use and where your company is located.
With a fixed rate tariff, your payments fixed at a set rate. The agreement protects you for a set period of time. In some cases this can be for as much as four years. After which you can enter into a new agreement or switch to a different supplier. This type of plan is well suited to those on a budget.
This arrangement ensures protection from price changes during the agreed period and prices are usually cheaper than with a variable contract.
Some providers also offer a percentage discount off every bill for customers who pay by direct debit. Read our handy guide on your energy bill explained.
However, there is a downside to this type of tariff,. That is that you are locked in for the agreed duration. As such, you are unable to switch deals or providers. Even if prices go down or better deals become available on the market.
Variable tariffs can offer cheaper energy rates at the time of agreement, however don’t offer the same level of protection against energy price rises as the amount that you pay for your business gas and electricity will fluctuate depending on the energy market.
A variable tariff represents the balance between paying lower energy costs in the short term and the risk of these rising in the long term. This may be a risk that small or start-up companies are willing to take to keep immediate overheads down. Within a variable tariff there are two main types of agreement.
These are a tracker price tariff which changes based on wholesale market movements and a blend and extend agreement which is an extension of your existing contract for a longer duration.
The blend and extend tariff obtains a unit rate that comprises of an average between your current contractual rate and that of the current available market rate.
There is no hard and fast rule to say that businesses can’t move between these two tariffs as long as notice is given to the current supplier as per the agreed contracted period.
Should I switch electricity and gas suppliers?
70% of firms experience difficulty comparing energy tariffs. 43% have never switched supplier according to research by the Federation of Small Businesses.
This is surprising when you take into account the scale of savings that could be made by businesses. There are a number of reasons why companies are reluctant to switch suppliers. First, a lack of understanding about the different suppliers. Second, customer loyalty. Third, concern about the time and effort it may involve to switch. Lastly, mistrust of lesser known suppliers. These perceived issues are standing in the way of making a switch to a different supplier.
However, switching is not the long and complicated task that many believe it to be and the savings can make the change well worth it.
We also maintain a current list of our Top 10 business energy suppliers to help you understand the energy market.
How to switch energy suppliers?
1
Know when your existing contract is due to expire
Typically, your supplier will send you a renewal letter. This will detail the new prices they intend to charge for your estimated use. Usually this is sent 60 days before the end of your current contract, however this can vary. At this point you can either choose to renew your contract at the rate suggested. Alternatively, you could save money by switching to a different supplier with a new contract.
2
Compare the best deals
Compare business energy deals for your company using our comparison finder tool. Simply follow the online instructions and we'll guide you through the whole process of finding your new deal.
Upon comparing business energy prices it's useful to have a copy of a recent bill in front of you. On this document you'll also find important reference numbers. You will need to provide these numbers in order to switch to a new supplier. These are the Meter Pointer Reference Number (MPRN) for gas. As well as the Meter Point Administration Number (MPAN) for electricity.
3
Arrange the switch within 30 days of expiring
So, you have found the best deal for your company with a provider that you are happy with. Next, you need to arrange to move to the new deal in plenty of time. Ordinarily you have up to 30 days before your existing deal expires to switch to a new supplier.
This is referred to as Notice Period End Date. You must inform your supplier of your intention to switch before this date.
4
Use a business energy broker
Use a business energy broker such as Compare Switch. We will process the switch and inform your existing supplier that you are taking your business elsewhere.
Read more about business energy in our FAQ
How does prepaid energy for business work?
Some businesses choose to bulk buy energy in advance of using it so they know how much they’ve paid. This is called the Flex approach. Using this type of approach, a company can take advantage of a favourable market rate and purchase gas or electricity at a good price, months or even sometimes years in advance when costs are low.
This works well for some businesses however, can be a risky choice if you are caught out of contract when prices are high.
Business electricity suppliers and price comparison
There are no generic business electricity tariffs available which makes comparing suppliers even more important. Each contract – the price and duration – is unique to your company.
Even though you might choose the same supplier for electricity and gas the contracts will be separate and may contain different start and end dates.
Most businesses have the standard 20% VAT rate applied to their electricity bills although there are some exceptions to this. If you are a charity, non-profit organisation or SME with low electricity usage then you may qualify to apply for a reduced VAT rate of 5%.
If you pay via a monthly direct debit then your supplier may give you a small discount.
Business gas suppliers and price comparison
To ensure your rates will be in line with your current business gas consumption it’s useful to have a recent bill to hand when comparing prices.
Over the course of a year, a company paying 4 pence less per kWh can easily save over £1,000.
Gas contracts typically last between one and three years.
Energy comparison for developers and landlords
From 1st April 2018 private landlords will have to ensure that before a property is let out it must have a minimum energy certificate band of E or above. That’s following the introduction of the Energy Efficiency Regulations 2015. Landlords who do not follow this will be served with a compliance notice followed by a penalty of up to £10,000.
These new regulations are worth taking into account when considering the duration of your new contract. Improvements to the energy performance of commercial properties are likely to drive down your associated costs if you are renting your premises.
How much could I save by switching?
- 40% of UK businesses have never switched providers!
- We're helping businesses across the country make the switch and save money.
- We're here to support you by finding the best energy prices.
- We've helped businesses switch and save money.
- We promise to beat your renewal quote.
Manufacturer saving £2,460 on business energy
Based on their gas and electricity consumption, a Crewe-based manufacturer has secured a business energy saving which equates to over £2,460 against the amount their previous supplier had quoted in their renewal letter. Within a few minutes of using our comparison solution they had compared the whole market and arranged their switch to Opus Energy – an independent utility supplier specialising in saving businesses money in a hassle-free way.
Hairdresser saving £257 by switching suppliers
A Bolton-based hairdressers with an average business energy use said that they were delighted with the service, "They really do know their stuff when it comes to business electricity and gas contracts. I was advised on the different suppliers and their tariffs which ultimately allowed me to make an informed decision. Plus, I saved money!" By using BusinessComparison they saved £257 per year.
Large retailer saved £13,885 on new energy deal
One of the UK's largest retailers of disability and mobility products found that they saved time and money using this comparison service. In the past they, “would call around all the different suppliers,” which “was extremely frustrating.” They used the personalised service to save £13,885 on their energy bills and now they receive a call from their account manager to make sure they are saving money every year.
