Set Up a Business Energy Contract

Please enable JavaScript in your web browser to get the best experience. BETA This site is currently in BETA. Help us improve by giving us your feedback . Types of business energy contracts, using a broker, and what to do if you’re not happy with your business energy supplier. Small businesses, including microbusinesses, small to medium enterprises or large businesses need to set up a business energy contract for the energy their business uses. Business energy contracts can last for up to five years and you will usually have a contract for each type of energy you use. Most energy suppliers will not let you switch suppliers before the end of the contract. The amount of energy your business uses is recorded by suppliers every half an hour. This is part of a process called ‘settlement’. This means that suppliers can work out how much energy your business uses instead of it being estimated. The settlement process only applies to certain businesses. Check if the first two digits of your Meter Point Administration Number or Supply Number on your electricity bill start with 05, 06, 07 or 08. If it does, your supplier is taking half hourly readings from your meter. You can set up a business contract yourself or use a third party like an energy broker. Energy brokers will charge a fee for their service. You will be placed onto a deemed contract when you move into a new business premises and use electricity or gas before agreeing a contract with a supplier. Your energy supplier will automatically move you over to a deemed contract if your old energy contract expires and it does not say what will happen after it ends. These are the rates you will pay if your contract says what will happen when your contract comes to an end. An out of contract rate is different to a deemed contract. You will pay a fixed price for each unit of energy you use, measured in Kilowatt per hour (kWh) for the length of your contract. If energy prices go up, you will still pay the same price for each unit of energy you use. But if energy prices go down, the price you pay will be the same. Some contracts may include a condition that means that your supplier can change the rate you pay during the contract. Check if your contact includes any other conditions. You will pay different amounts for the energy you use based on the cost of energy. This means that the amount you pay can go up or down during the length of your contract. If you do not change your contract before it expires, your supplier will automatically rollover your contract. This means that you will stay on the same terms and conditions as your current business energy contract. Microbusinesses cannot have a rollover contract for more than 12 months. If you move to a new contract, you must tell your supplier before the current contract expires. If you are not happy with your supplier, you should speak to your supplier and broker if you have one to try to resolve the problem. If you cannot fix the problem, you can try to resolve it through the Energy Ombudsman. If you are not happy with your supplier, you can take it to be resolved by the civil courts. Citizen’s Advice publish data on how well business energy suppliers handle complaints. Check how your energy supplier ranks in the non-domestic energy supplier performance league table . An energy broker can help you find an energy contract for your business. They can also help you understand: They will charge a fee for their service. Sometimes you may need to pay these fees upfront, but some brokers may also charge a service fee that is included in the energy bill from your supplier. Your supplier must provide details of any service fees included in the bill if you ask for it. You can find a broker by searching for one or some may contact you directly. Before you choose a broker, you should: Read how to avoid unfair terms in sale contracts on GOV.UK . You should be careful of anyone who might be mis-selling energy contracts. You could potentially end up payi

Source: Original reporting via Office of Gas and Electricity Markets (Ofgem)