Your business energy contract sets the price, term and conditions for your electricity or gas supply. Use this guide to check an offer before agreeing: what is fixed, what can change, when you can leave and what you will pay overall.
| Type | How it works | Ask before agreeing |
|---|---|---|
| Fixed rate | Agreed rates apply for the contract term. | Which charges are fixed, and which can change? |
| Variable rate | Prices can rise or fall during the agreement. | How are changes calculated and notified? |
| Flexible purchasing | Energy is bought in portions; generally intended for larger users. | Who makes buying decisions and manages the risk? |
| Rollover | The agreement renews under its existing terms. | What notice is needed to stop renewal? |
The price you pay for each unit of energy consumed. This is the main component of your bill and the rate that varies between suppliers and contract types.
A fixed daily charge for being connected to the energy network, regardless of how much energy you use. This varies by region and supplier.
A levy that may appear on business energy bills. Ask whether the quote includes it and whether any exemption or relief applies to your supply.
Record the notice deadline separately from the supply end date. Arranging your next contract early does not itself release you from the current one.
The cost of the energy itself on the wholesale market. This is the component that fluctuates with market conditions and is what your contract rate is based on.
Check whether network, metering and other charges are included in the quoted rates or billed separately. Use the same assumptions for each offer.
Business energy use is normally subject to 20% VAT. Relief depends on the supply, qualifying use and applicable dates; do not assume that a pub or other business automatically qualifies. Check HMRC's current guidance below.
Ask for a written breakdown of any broker fee or commission and the services provided. Compare the overall cost, not just a headline unit rate.
For a customer account of help with a disputed contract, read the Lamb Inn case study. The outcome relates to that specific case.
Reviewed 21 September 2026. See Ofgem's business contract guidance, Ofgem's switching guidance and HMRC's fuel and power VAT notice. The terms offered for your supply determine your contract obligations.
No. The bill still depends on consumption. Check which rates are fixed and which charges can change under the quoted terms.
Compare the offered terms against your lease, budget and plans for the venue. There is no single duration that suits every business.
They are different arrangements. Deemed rates can apply when you take over premises without an agreed contract; out-of-contract rates can follow an expired agreement. Check the account status with the supplier.
Ask for the fee or commission, how it is paid, the services included and the supplier panel being compared before you agree.
Share your current contract and a recent bill. We can help compare the available options and explain the terms before you decide.
