Question 1

How do I compare business electricity prices?

Accepted Answer

To compare business electricity prices you'll need your current annual consumption (in kWh), your MPAN (Meter Point Administration Number), your contract end date and your current unit rate and standing charge. An independent broker like The Best Energy Rates can compare prices from 15+ UK suppliers on your behalf at no cost.

Question 2

What is a business electricity contract?

Accepted Answer

A business electricity contract is a fixed-term agreement between your business and an electricity supplier. It sets out the unit rate (pence per kWh) and standing charge you'll pay for the duration of the contract, typically 1 to 5 years.

Question 3

Can I fix my business electricity rate?

Accepted Answer

Yes. A fixed-rate business electricity contract locks in your unit rate and standing charge for the contract term, protecting you from market price increases. This gives you cost certainty and makes budgeting easier.

Question 4

What is a half-hourly electricity meter?

Accepted Answer

A half-hourly (HH) meter records your electricity consumption every 30 minutes and sends the data automatically to your supplier. Businesses with a maximum demand of 100kW or more are required to have a half-hourly meter. HH metering enables more accurate billing and access to time-of-use tariffs.

Question 5

What is an MPAN number?

Accepted Answer

An MPAN (Meter Point Administration Number) is a unique 21-digit reference number that identifies your electricity supply point. It appears on your electricity bill and is needed when switching supplier or requesting a quote. It is sometimes called a Supply Number or S-Number.

Question 6

What is a business electricity unit rate?

Accepted Answer

The unit rate is the price you pay per kilowatt-hour (kWh) of electricity you consume. It is expressed in pence per kWh. Your total electricity cost is calculated by multiplying your consumption by the unit rate, plus the daily standing charge.

Question 7

Do businesses pay VAT on electricity?

Accepted Answer

Most businesses pay 20% VAT on their electricity bills. However, businesses that use electricity primarily for non-business purposes, or that have low consumption (below 33kWh per day), may qualify for the reduced 5% rate. Charities and certain other organisations may also be eligible for VAT relief.

Question 8

What is the Climate Change Levy on business electricity?

Accepted Answer

The Climate Change Levy (CCL) is a government tax on energy used by businesses. It is charged per kWh of electricity consumed and appears as a separate line on your bill. Some businesses, including those in certain energy-intensive sectors, may be eligible for a CCL exemption or discount.

Question 9

How do I compare business gas prices?

Accepted Answer

To compare business gas prices you'll need your annual gas consumption (in kWh or cubic metres), your MPRN (Meter Point Reference Number), your contract end date and your current unit rate and standing charge. We compare prices from multiple UK gas suppliers to find the best deal for your business.

Question 10

What is an MPRN number?

Accepted Answer

An MPRN (Meter Point Reference Number) is a unique reference number that identifies your gas supply point. It is sometimes called a Gas Supply Number and appears on your gas bill. You'll need it when switching gas supplier or requesting a quote.

Question 11

Can I fix my business gas rate?

Accepted Answer

Yes. A fixed-rate business gas contract locks in your unit rate for the contract term, typically 1 to 5 years. This protects you from wholesale price increases and makes energy budgeting more predictable.

Question 12

Do businesses pay VAT on gas?

Accepted Answer

Most businesses pay 20% VAT on their gas bills. Businesses with low gas consumption (below 145kWh per day or 4,397kWh per month) may qualify for the reduced 5% rate. Charities and certain organisations may also be eligible for VAT relief.

Question 13

What is a business gas standing charge?

Accepted Answer

The standing charge is a fixed daily fee charged by your gas supplier regardless of how much gas you use. It covers the cost of maintaining the gas network and your connection to it. It is expressed in pence per day and appears on your bill alongside your unit rate.

Question 14

What is a deemed gas rate?

Accepted Answer

A deemed gas rate is the rate your supplier charges when you have no contract in place — for example when you move into new premises or your contract expires without renewal. Deemed rates are typically significantly higher than contracted rates and should be avoided by arranging a new contract as soon as possible.

Question 15

Can businesses switch water supplier?

Accepted Answer

Yes. Since the water retail market opened in 2017, businesses in England can choose their water and wastewater retailer. This means you can compare prices and switch to a supplier that offers better rates or service. The water network itself remains the same — only the retailer changes.

Question 16

How can I reduce my business water bills?

Accepted Answer

You can reduce business water bills by switching to a more competitive retailer, installing water-efficient equipment, fixing leaks promptly, reviewing your meter readings for accuracy, and applying for any available exemptions or reliefs. A water audit can identify where savings are possible.

Question 17

What is a business water meter?

Accepted Answer

A business water meter measures the volume of water your business uses. Metered businesses pay for the water they actually consume, rather than a fixed charge. Most business premises are metered, which means accurate meter readings are important for correct billing.

Question 18

Do businesses pay VAT on water?

Accepted Answer

Business water supplies are generally zero-rated for VAT purposes, meaning no VAT is charged. However, some ancillary services may attract VAT. Check your water bill carefully and contact your retailer if you have questions about the charges applied.

Question 19

What types of business energy contract are available?

Accepted Answer

The main types are fixed-rate contracts (unit rate locked for the term), flexible contracts (rate moves with the wholesale market), blend-and-extend contracts (extending an existing contract at a blended rate), and deemed or out-of-contract rates (the default rate when no contract is in place). Most small and medium businesses benefit from a fixed-rate contract for price certainty.

Question 20

How long are business energy contracts?

Accepted Answer

Business energy contracts typically run for 1, 2, 3, 4 or 5 years. Shorter contracts offer more flexibility to renegotiate as market conditions change. Longer contracts can lock in a favourable rate if prices are low. The right term depends on your business's risk appetite and energy strategy.

Question 21

What happens when my business energy contract ends?

Accepted Answer

If you do not arrange a new contract before your current one expires, you will typically be rolled onto your supplier's out-of-contract or deemed rate, which is usually significantly higher than a contracted rate. It is important to start comparing prices at least 6 months before your contract end date.

Question 22

Can I exit a business energy contract early?

Accepted Answer

Most business energy contracts include early termination fees if you leave before the end of the agreed term. The fee is typically calculated based on the remaining contract value. In some circumstances — such as supplier error or mis-selling — you may be able to exit without penalty. We can advise on your options.

Question 23

What is a rollover contract?

Accepted Answer

A rollover contract occurs when your business energy contract automatically renews at the end of its term, usually at a higher rate. Many suppliers include rollover clauses in their contracts. To avoid being rolled over, you must notify your supplier within the notice period specified in your contract — typically 30 to 90 days before the end date.

Question 24

What is a notice period on a business energy contract?

Accepted Answer

The notice period is the window during which you must inform your current supplier that you intend to switch or renegotiate at the end of your contract. Missing the notice period can result in your contract automatically rolling over. Notice periods vary by supplier but are typically between 30 and 90 days before the contract end date.

Question 25

How do I read my business electricity meter?

Accepted Answer

For a standard digital meter, read the numbers from left to right, ignoring any numbers after a decimal point or shown in red. For a dial meter, read each dial from left to right, noting the lower number when the pointer is between two digits. Submit your reading to your supplier regularly to avoid estimated bills.

Question 26

Why is my business energy bill estimated?

Accepted Answer

Your bill will be estimated if your supplier does not have an actual meter reading. This can happen if you have not submitted a reading, your smart meter is not communicating, or an engineer has not visited. Estimated bills can be higher or lower than your actual consumption. Always submit actual readings to ensure accurate billing.

Question 27

How often should I submit business meter readings?

Accepted Answer

You should submit meter readings at least monthly, and always at the start and end of a contract or when switching supplier. Regular readings prevent estimated bills and ensure you are only charged for the energy you actually use.

Question 28

What is a meter reading dispute?

Accepted Answer

A meter reading dispute arises when there is a disagreement between you and your supplier about the accuracy of a meter reading or the resulting bill. Disputes can occur due to estimated readings, meter faults or data errors. We can help you raise and resolve meter reading disputes with your supplier.

Question 29

Do businesses need a smart meter?

Accepted Answer

The government's smart meter rollout includes business customers. While installation is not currently mandatory for most small businesses, smart meters offer benefits including automatic meter readings, more accurate bills and access to consumption data. Some suppliers require a smart meter as a condition of certain contracts.

Question 30

How does a business smart meter work?

Accepted Answer

A business smart meter automatically records your energy consumption at regular intervals (typically every 30 minutes for electricity) and sends the data directly to your supplier via a secure wireless network. This eliminates the need for manual meter readings and enables more accurate billing.

Question 31

Will a smart meter work if I switch supplier?

Accepted Answer

In most cases, yes. Second-generation (SMETS2) smart meters are designed to work across different suppliers. First-generation (SMETS1) meters sometimes lost their smart functionality when switching, though most have now been enrolled onto the national network and should continue to work.

Question 32

Can I refuse a smart meter for my business?

Accepted Answer

Currently, businesses are not legally required to accept a smart meter. However, some suppliers may make smart meter installation a condition of certain tariffs or contracts. If you have concerns about smart meter installation, speak to your supplier or contact us for independent advice.

Question 33

What is a business energy standing charge?

Accepted Answer

A standing charge is a fixed daily fee charged by your energy supplier regardless of how much energy you use. It covers the cost of maintaining the energy network and your connection to it. Standing charges are expressed in pence per day and vary between suppliers and tariffs.

Question 34

Why is my business standing charge so high?

Accepted Answer

Standing charges vary depending on your meter type, your location, the capacity of your connection and your supplier's pricing structure. Businesses with large meter connections or half-hourly meters typically pay higher standing charges. Comparing suppliers can sometimes reduce your standing charge.

Question 35

Can I get a zero standing charge business energy tariff?

Accepted Answer

Some suppliers offer tariffs with no standing charge, but these typically have higher unit rates. Whether a zero standing charge tariff is cost-effective depends on your consumption profile. Low-usage businesses may benefit, while high-usage businesses usually pay more overall. We can model both options for your specific usage.

Question 36

Is the standing charge included in my business energy quote?

Accepted Answer

Yes. Any reputable energy quote should include both the unit rate (pence per kWh) and the standing charge (pence per day). Always compare both figures when evaluating quotes, as a low unit rate can be offset by a high standing charge.

Question 37

What is a variable rate business energy contract?

Accepted Answer

A variable rate contract means your unit rate can go up or down during the contract term, typically in line with wholesale energy market movements. Unlike a fixed-rate contract, there is no price certainty. Variable rates can be advantageous when wholesale prices are falling but carry risk when prices rise.

Question 38

Are variable rate contracts good for businesses?

Accepted Answer

Variable rate contracts suit businesses that are comfortable with price risk and have the flexibility to manage their energy costs actively. For most small and medium businesses, a fixed-rate contract provides more predictability and is easier to budget for. We can advise on the best contract type for your circumstances.

Question 39

Can I switch from a variable to a fixed rate contract?

Accepted Answer

Yes. If you are on a variable rate contract, you can usually switch to a fixed-rate contract at any time, subject to any notice period or exit fees in your current agreement. Switching to a fixed rate locks in your unit rate and protects you from future price increases.

Question 40

What is a deemed rate?

Accepted Answer

A deemed rate is the default rate your energy supplier charges when you have no contract in place. This typically happens when you move into new premises, your contract expires without renewal, or you have never arranged a contract. Deemed rates are almost always significantly higher than contracted rates.

Question 41

How do I avoid paying deemed rates?

Accepted Answer

The best way to avoid deemed rates is to arrange a new energy contract before your current one expires, or as soon as you move into new premises. Start comparing prices at least 6 months before your contract end date. If you are already on a deemed rate, contact us and we can arrange a new contract quickly.

Question 42

How long can a supplier charge deemed rates?

Accepted Answer

There is no fixed time limit on deemed rates — a supplier can continue to charge them until you arrange a new contract. The longer you remain on a deemed rate, the more you overpay. We recommend arranging a new contract as quickly as possible if you are currently on a deemed rate.

Question 43

Can I claim back money paid on deemed rates?

Accepted Answer

In most cases, deemed rates are a legitimate charge and cannot be reclaimed simply because they are higher than contracted rates. However, if you were placed on a deemed rate due to supplier error, or if the rate was not clearly communicated, you may have grounds to dispute the charges. We can advise on your specific situation.

Question 44

What do I need to do about energy when moving business premises?

Accepted Answer

When moving into new business premises, you should take meter readings on the day you move in, notify the existing supplier that you are the new occupier, and arrange a new energy contract as quickly as possible to avoid being placed on deemed rates. We can manage this entire process on your behalf.

Question 45

Who is the energy supplier for my new premises?

Accepted Answer

If you do not know who supplies energy to your new premises, you can find out by contacting the electricity distribution network operator for your area (for electricity) or Xoserve (for gas). Alternatively, we can identify the existing supplier on your behalf.

Question 46

Do I have to stay with the existing supplier when I move in?

Accepted Answer

No. You are free to switch to a different supplier at any time after moving in. However, you will initially be placed on the existing supplier's deemed rate until a new contract is arranged. We recommend comparing the market and arranging a new contract as quickly as possible.

Question 47

What happens to my energy contract when I move out of business premises?

Accepted Answer

When you vacate business premises, you should take final meter readings, notify your supplier of your move-out date and provide forwarding details for your final bill. If you have a fixed-term contract, early termination fees may apply. We can advise on the best way to manage your exit.

Question 48

What is a change of tenancy for business energy?

Accepted Answer

A change of tenancy (COT) occurs when a new business takes over a premises and needs to register as the new energy customer. The process involves notifying the existing supplier, providing opening meter readings and arranging a new energy contract. Failing to complete a COT correctly can result in billing disputes.

Question 49

How do I register as the new energy customer at my premises?

Accepted Answer

Contact the existing energy supplier with your business details, the date you took over the premises and your opening meter readings. The supplier will register you as the new customer. We can manage this process on your behalf and arrange a competitive new contract at the same time.

Question 50

Am I liable for the previous tenant's energy debt?

Accepted Answer

In most cases, you are not liable for energy debt accrued by a previous tenant. However, disputes can arise if meter readings were not taken at the point of handover. Always take dated photographs of your meters on the day you move in to protect yourself from being billed for a previous occupier's consumption.

Question 51

How long does a change of tenancy take?

Accepted Answer

A change of tenancy can usually be processed within a few days once the supplier has the required information. We can expedite the process and ensure everything is handled correctly, minimising the time you spend on deemed rates.

Question 52

How is my business energy bill calculated?

Accepted Answer

Your business energy bill is calculated by multiplying your consumption (in kWh) by your unit rate (pence per kWh), then adding the standing charge (pence per day multiplied by the number of days in the billing period). VAT and the Climate Change Levy are then applied on top.

Question 53

What is the difference between a unit rate and a standing charge?

Accepted Answer

The unit rate is the price you pay per kWh of energy you consume. The standing charge is a fixed daily fee you pay regardless of consumption. Both figures appear on your bill and should be considered when comparing energy quotes.

Question 54

I think my business energy bill is wrong. What should I do?

Accepted Answer

If you believe your bill is incorrect, first check whether it is based on an actual or estimated meter reading. Submit an actual reading if one has not been provided. If the bill still appears wrong, contact your supplier's billing team. If the dispute is not resolved, we can assist you in escalating the matter.

Question 55

What is a bill validation service?

Accepted Answer

Bill validation is the process of checking your energy bills for errors, overcharges and incorrect rates. Studies suggest a significant proportion of business energy bills contain errors. Our bill validation service reviews your bills and recovers money where overcharges are identified.

Question 56

What does 'kWh' mean on my energy bill?

Accepted Answer

kWh stands for kilowatt-hour, which is the standard unit of energy measurement. One kWh is the amount of energy used by a 1,000-watt appliance running for one hour. Your energy consumption is measured in kWh and multiplied by your unit rate to calculate the energy element of your bill.

Question 57

How do I switch my business energy supplier?

Accepted Answer

To switch business energy supplier, you need to compare prices, choose a new supplier and sign a new contract. Your new supplier will manage the transfer process, including notifying your existing supplier. The switch typically takes 4 to 6 weeks and your energy supply will not be interrupted.

Question 58

Will my energy supply be interrupted when I switch?

Accepted Answer

No. Switching business energy supplier does not interrupt your energy supply. The same physical network delivers your energy — only the company billing you changes. You will not experience any downtime or disruption during the switch.

Question 59

How long does it take to switch business energy supplier?

Accepted Answer

Most business energy switches complete within 4 to 6 weeks, though the exact timescale depends on your current supplier and contract terms. We manage the entire process and keep you informed at every stage.

Question 60

Can I switch business energy supplier mid-contract?

Accepted Answer

You can switch mid-contract, but early termination fees will usually apply. These are typically calculated based on the remaining contract value. In some cases, the savings from switching to a lower rate can outweigh the exit fee. We can model this for you before you make a decision.

Question 61

What information do I need to switch business energy supplier?

Accepted Answer

To switch, you'll typically need your MPAN (electricity) or MPRN (gas), your current annual consumption, your contract end date and your current unit rate and standing charge. We can often obtain this information on your behalf from your current bill or supplier.

Question 62

How can I pay my business energy bill?

Accepted Answer

Most business energy suppliers accept payment by direct debit, BACS transfer, cheque and online banking. Direct debit is the most common method and often attracts a discount. Some suppliers also accept credit or debit card payments. Check your supplier's payment options when arranging your contract.

Question 63

Can I pay my business energy bill monthly?

Accepted Answer

Yes. Most suppliers offer monthly direct debit as a payment option. Your monthly payment is typically based on your estimated annual consumption divided by 12. Your account will be reconciled periodically based on actual meter readings.

Question 64

What happens if I miss a business energy payment?

Accepted Answer

If you miss a payment, your supplier will typically contact you to arrange payment. Persistent non-payment can result in late payment charges, a change to your payment terms, or in serious cases, disconnection. If you are experiencing financial difficulty, contact your supplier as early as possible to discuss your options.

Business Energy FAQs

Business Electricity

Business Gas

Business Water

Business Energy Contracts

Meter Readings

Smart Meters

Standing Charges

Variable Business Rates

Deemed Rates

Moving Business Premises

Change of Tenancy

Business Energy Bills

Supplier Switching

Payment Methods

Business Energy Brokers

Business Energy Procurement

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