If your small business is looking to reduce overheads, improve the predictability of your finances, or better manage your environmental footprint, finding the right approach to your business energy needs is essential.
Here, we explain how small business energy works, the types of contracts and rates available, how to switch suppliers for the best deal, and the different ways you can use green or renewable technology to improve your wider energy strategy.
Are there exclusive small business energy rates?
Choosing the right contract structure is crucial to protect your cash flow from unpredictable shifts in wholesale energy markets. Most energy suppliers for small businesses offer a few core contract types:
-
Fixed rate: The most popular choice for smaller companies. Fixed tariffs lock in your standing charges and unit rates for a set period (typically 1 to 4 years), giving you more certainty with budgets and forecasts.
-
Variable rate: Your energy unit costs can fluctuate depending on wholesale market conditions. So you can benefit if energy prices drop, but prices could also move the other way. Variable rates are less predictable when calculating your future costs.
-
Deemed or out-of-contract rate: If you move into a new premises or let a fixed contract expire without renewing or switching, you will automatically be moved to a default variable or deemed rate. These are almost always the most expensive small business energy prices on the market.
-
Flexible procurement: Typically reserved for larger firms, flexible energy procurement allows you to purchase energy in blocks throughout the year to capitalise on market dips, rather than locking in a rate on a single day. However, this is time-intensive and requires ongoing management.
How to switch energy suppliers
Finding a cheap energy plan for a small business isn’t always straightforward and requires careful timing to avoid expensive exit fees. The most effective way to handle switching business energy suppliers typically involves using an energy advisor or broker:
-
Review your contract: An experienced advisor will review your business energy agreement to identify your contract end date and your official notice period. They can also help advise on the right approach if it’s a new business connection.
-
Check usage: Your advisor will collect and analyse your annual consumption details and find your specific meter numbers (MPAN for electricity, MPRN for gas) to ensure you get accurate quotes and comparisons.
-
Compare suppliers: Instead of contacting multiple suppliers individually, your energy broker can compare the wider market to identify the best small business energy supplier for your specific premises.
-
Switch suppliers: With all relevant details to hand after comparing suppliers, your advisor will coordinate the switch with your chosen provider. Because the infrastructure remains the same, you don’t have to worry about disruption to your electricity or gas supply during the switch.
If you’d like to speak to a small business energy advisor about switching suppliers, you can get started below.
Get a free energy health check for your business
Other services we can provide for small businesses
To help you ensure full control over your small business’s energy, we can connect you with specialist advisors who offer a range of services:
-
Bill validation: Commercial energy bills are notoriously complex. A bill validation service checks your historical invoices against your actual contract terms and meter readings to identify billing errors and recover overcharges.
-
Business energy audit: An on-site or virtual energy audit can identify where your premises are losing heat, power, or efficiency, and then provide clear, actionable steps to reduce your consumption.
-
Net Zero consultation: Tailored guidance can help your company measure its current carbon footprint, set realistic sustainability targets, and implement low-carbon technologies.
-
Bad credit business energy: If your business has adverse credit, securing an energy contract with the best rates can be challenging. Our advisors work with specialised small business energy suppliers who can work with you to provide solutions, such as flexible payment terms.
Best small energy business suppliers
Choosing the best energy supplier for your small business depends on a range of unique factors, but here are a few examples of popular UK energy providers that cater to smaller-sized businesses:
-
EDF Energy: Offers the option to use electricity or gas tariffs and has a dedicated small business team. They’re also the UK’s biggest generator of zero carbon electricity and offer features like a solar panel export tariff and company EV chargers.
-
Octopus Energy: Although they don’t have a dedicated team for small businesses, they can still offer energy plans for small and medium-sized enterprises (SMEs), including features like a smart export tariff that lets you earn money by sending power back to the grid.
-
British Gas: You can opt in to receive 100% natural renewable electricity for the same price as the standard zero carbon electricity, and your small business could access features like PeakSave, which allows you to reduce energy costs and support a greener grid when demand is lower.
-
E.ON Next: Focusing heavily on the SME market, E.ON Next offers 100% renewable electricity on some fixed-price tariffs for 1 to 3 years. You can also access a digital dashboard for insights into your energy consumption.
Renewable energy for small businesses
Embracing green or renewable technology is one of the most effective ways to lower your long-term small business energy costs while protecting your company against future environmental regulations:
-
Green energy tariffs: The simplest step toward sustainability. Green energy tariffs guarantee that your consumption is sourced in an environmentally friendly manner or that methods are used to offset your usage.
-
Smart meters: Installing a smart meter for your business can completely eliminate estimated billing and help you accurately track energy usage to become more efficient.
-
Solar panels: Generating your own clean electricity on-site with solar panels can reduce your reliance on the national grid and lower your costs.
-
Commercial heat pumps: Transitioning from traditional heating systems to heat pumps for your business that utilise air- or ground-source heat transfer systems is an excellent way to become more energy efficient.
-
Green energy grants for small businesses: Depending on your location and sector, your company may qualify for regional funding, green energy grants, or access to accounting strategies such as Full Expensing or the Annual Investment Allowance (AIA), which can provide substantial tax relief.
Get an energy health check for your business today
Securing the cheapest energy supplier for your small business requirements involves a deep understanding of wholesale market trends and supplier contract structures.
At Money Helpdesk, here’s how we help UK companies of all sizes take full control of their business’s energy:
-
Direct access to independent commercial energy brokers and advisors
-
Bespoke tariff and rate comparisons for small businesses
-
Complete guidance when switching your small business energy plan
-
Free initial consultation with zero obligation to proceed further
If you’d like to explore renewable alternatives or see how much your small business could save on its energy bills, you can get started by arranging an energy health check here.
FAQs
Installing solar panels allows your business to generate its own free, clean electricity during daylight hours, directly cutting your grid consumption.
It also improves your brand's corporate social responsibility (CSR) credentials and protects your business from future wholesale energy market price spikes.