Get a business energy contract

Please enable JavaScript in your web browser to get the best experience. English Cymraeg Newid yr iaith i'r Gymraeg Get a business energy contract Types of business energy contracts you can get, and how to set one up. If you’re starting a new business, moving premises or changing energy suppliers, you’ll need to set up a business energy contract. The terms, pricing and regulations differ from standard home energy contracts. Find out more about what to do when moving premises or switching business contracts . The type of contract you can get usually depends on the size of your business, and how much energy you use. Before you agree to a contract, it’s important to know: It’s also important to know what happens at the end of your contract, for example if it will automatically renew, or if you will move to out-of-contract or deemed rates. If you work from home you are probably on a domestic energy contract. Check with your energy supplier to make sure. The type of contract you need if you run a business will depend on the: Different sizes of businesses get different protections. To qualify as a microbusiness, you must have fewer than 10 employees and an annual turnover or balance sheet total of no more than £2 million. You can also qualify if you use up to 100,000 kWh per year (electricity) or up to 293,000 kWh per year (gas). If you are a microbusiness, you have extra protections when arranging or renewing an energy contract. Your energy supplier must: Microbusinesses and small businesses can get support with their energy contracts from Citizens Advice. They can also get help with unresolved supplier complaints from the Energy Ombudsman. To qualify as a small business, you must have 11 to 50 employees and an annual turnover of up to £6.5 million or balance sheet total of no more than £5 million. You can also qualify if you use up to 200,000 kWh per year (electricity) or up to 500,000 kWh per year (gas). To qualify as a large business, you must have 50 or more employees and an annual turnover of more than £6.5 million or balance sheet total of more than £5 million. You can also qualify if you use more than 200,000 kWh per year (electricity) or more than 500,000 kWh per year (gas). Some suppliers may use either your business size or your annual energy consumption when deciding which contract or protections apply. There are a number of different types of business energy contracts. Energy suppliers may not offer all of them. Fixed rate contracts fix the price of unit rates and standing charges for the length of the contract. This means the cost per kWh remains the same no matter what happens to wholesale market prices. With a variable-rate contract, the price you pay for energy can increase or decrease during the contract period. This may be because your prices change when the wholesale market prices change. You will be put on a deemed contract automatically when you move into a new premises without arranging a formal contract. Deemed rates are usually higher than negotiated contract rates. You will also be put on a deemed rate if your energy supplier goes out of business . Some suppliers move you onto out-of-contract rates if your fixed-term contract ends without you agreeing to a new deal. Like deemed rate contracts, these rates are usually more expensive than fixed-term contracts. Some contracts automatically renew at the end of a fixed term contract if you have not made a new arrangement, or switched to a new supplier. The new arrangement will be for a fixed term (usually 12 months), and may be on a higher rate. Flexible contracts (sometimes called structured contracts) are suitable for large businesses that use a lot of energy. Rather than locking into a fixed price, they allow companies to buy energy in smaller portions when market conditions are better. You can arrange your business contract yourself, or you can use an energy broker, consultant or a price comparison service (also known as third-party intermediaries). Price co