While residential customers are usually on the ball when it comes to switching energy suppliers to save money, many businesses are blissfully unaware of the savings they could make. But whether you’re an SME or a giant corporation, there are plenty of opportunities to reduce your business energy costs.
In this article you can read about some of the benefits of switching business energy suppliers, from saving on bills, to opting for a greener supplier who can help you achieve your sustainability and net zero targets sooner.
Can you switch business energy suppliers?
Absolutely. Switching business energy suppliers can reduce operating costs, particularly if your current contract is ending or you’ve been moved onto higher out-of-contract rates. While domestic energy consumers often rely on price caps for protection, the commercial world is a bit more competitive.
Business contracts are typically fixed-term. This means that if you don’t actively switch or renew, you risk being rolled over onto deemed rates, which are notoriously expensive. Commercial tariffs are also highly bespoke and quotes are tailored to your specific location, industry, and annual consumption, rather than the general tariffs used in residential energy supply.
Using a dedicated switching service can help you cut through the jargon of commercial tariffs and ensure you aren't caught out by hidden clauses or auto-renewal traps.
Your options when renewing your energy contract
When your current contract nears its end, your renewal window is the prime opportunity to decide which way to go for your future energy needs. You generally have four main paths:
Fix back in with same supplier
Staying with your current provider but signing a new fixed-term contract. While convenient, this option rarely offers the most competitive rates compared to a full energy switch.
Move to a new contract type
You might decide to move from a fixed-rate tariff to a flexible contract. This way you can potentially benefit from falling market prices, though it comes with more risk if prices spike.
Move to a new supplier
When you switch to a new business energy provider you’re likely to be offered introductory rates. These are typically significantly lower than renewal rates offered to existing clients.
Drop onto deemed rates
This is the option to avoid. If you don't switch business energy providers or renew with your existing provider before your contract ends, you’ll drop onto ‘deemed’ or ‘out-of-contract’ rates. These are typically the most expensive tariffs a supplier offers.
How to switch business energy supplier
When your contract approaches its end date, you typically have the option to renew with your current supplier, switch to another provider, or negotiate a new deal.
The energy switching process usually involves:
- Get advice: Speaking with an experienced energy broker like ourselves to review your current contract
- Gather details: Source information about your energy usage and meter type. You’ll need MPAN (for electricity) and/or MPRN (for gas)
If you’re unsure about your energy usage, our business energy calculator can help you to work out how much you would pay on both your gas and electric, where applicable. Even if you don’t have an energy bill to hand because you’ve only just taken on the property, we can provide an estimation based on your business size, industry and VAT rate.
Remember to check your existing contract: Most business energy contracts are fixed-term agreements, and leaving before the end date may trigger termination fees or penalties.
- Compare available business tariffs across different suppliers: Different suppliers offer a variety of contract structures and pricing models, and it’s important to choose one that suits your business’s needs - a broker will typically help you with this
- Agree a new contract term: Sign a contract of your preferred length with your chosen business energy supplier. Note that unlike domestic energy, most business contracts do not have a cooling-off period
- Arrange the transfer of supply: When using a broker they can typically complete steps 3 to 5 on your behalf
In most cases, the physical energy supply itself does not change; only your tariff and the company responsible for the billing and acting as your point of contact.
The benefits of switching
An energy switch for businesses can be as beneficial as signing a new client. In some circumstances the long term savings could even be more valuable to you. Switching suppliers can give your business access to more competitive rates, renewable energy tariffs, or contract terms better suited to your usage patterns.
Here are some of the main reasons to consider switching business energy suppliers:
|
Benefit |
Impact of the Switch |
Why it Matters |
|
Cost Savings |
Access to new customer rates and competitive unit prices |
Even a minor rate drop can save thousands annually, protecting your bottom line |
|
Budget Certainty |
Locking in a fixed-rate tariff |
Protects your business from global market volatility and unpredictable price spikes |
|
Better Service |
Selecting a provider known for responsive account management |
Reduces time spent resolving billing disputes or administrative errors |
|
Sustainability |
Moving to 100% renewable or green energy tariffs. |
Enhances your brand's ESG (Environmental, Social, and Governance) credentials and attracts eco-conscious clients. |
|
Contract Flexibility |
Choosing a term length (1, 2, or 3 years) that suits your growth |
Ensures you aren't trapped in a long-term deal if your business energy needs are likely to change. |
With the right support, switching business energy suppliers can be frictionless with zero disruption to the day-to-day running of your business.
Get a free energy health check for your business
The best business energy providers to switch to
The best business energy provider for you depends on the size, type and location of your company. Speaking to an experienced business energy adviser with knowledge of which energy firms are most suited to your industry and usage will help you ensure you choose the best option for your firm.
There is substantial competition in the business energy market, here are just a few of the key players:
-
British Gas Business: Those looking for a British Gas business energy switch usually do so due to their stability and comprehensive support
-
Octopus Energy: Known for excellent customer service and green credentials
-
SmartestEnergy: Often a great choice for micro businesses seeking suitable energy suppliers with tailored solutions
-
SSE/OVO: Strong options for larger industrial requirements
-
EDF: EDF business energy classifies businesses by their usage. You can fix for 1 to 4 years, and EDF offers a range of sustainable energy initiatives through smart meters, electric vehicles, and solar energy
-
E.on: Typically offers business energy for small to medium businesses under the E.on next banner. Companies using over 100,000 kWh of electricity or 293,000 kWh of gas per year, will be supplied via npower Business Solutions
Get a free business energy health check today
Before you commit to switching business energy providers, it’s important to know exactly where you stand. We offer a free business energy health check, which involves a full auditing of your current usage patterns. This information can be essential to negotiating the right energy contract going forwards.
Then, rather than taking the time to source prices from multiple energy providers yourself, we can simplify the business energy procurement process by comparing and switching commercial energy contracts for you. This will allow us to present you with the best commercial energy supply options that are tailored to your needs.
Business energy brokers like ourselves can often negotiate exclusive deals or discounted rates with energy suppliers that are not advertised publicly. This can be particularly useful for businesses with high usage or complex needs. We can also assist with contract timing, supplier negotiations, bill validation and manage the switching process from start to finish.
Get started now to review your current business energy supply and see comparable options with an experienced energy broker.
FAQs
You should look to switch every time your contract enters its renewal window, which is typically every 1 to 3 years. Staying loyal almost always results in a price hike, so regularly reviewing rates and switching will ensure you are always on the most current, competitive market rate.