Business Energy Comparison

The Climate Change Levy is an eco-conscious tax applied to all UK businesses that use energy. This particular tax is designed to encourage heightened energy efficiency. Every business operating within the UK has the option to engage in the Climate Change Agreement Scheme.

This initiative offers them the advantage of reduced levy rates, thereby providing not only an environmental incentive but also a financial one.

Yes. Charitable and non-profit organisations can benefit from a 5% reduction on their energy bills, a significant saving from the standard rate of 20%. Additionally, additional discount maybe available for those who opt to pay through direct debit. All discounts are subject to eligibility.

In 2023, while business energy costs have slightly declined, they are still considerably higher than average, largely due to the ongoing conflict in Ukraine. Here’s an in-depth look at how this distant turmoil affects business energy prices:

1. Reliance on Russian Gas: Europe has become heavily reliant on affordable natural gas from Russia over the past two decades. As the largest gas producer globally, Russia exports the majority of its gas to Europe through pipelines.
2. Economic Sanctions: The Ukraine conflict has resulted in economic sanctions between the West and Russia, significantly restricting the gas supply to Europe. This shortfall has led Europe to resort to more expensive imports of Liquid Natural Gas (LNG) from the Middle East and America, consequently driving up the wholesale gas price.
3. Conversion of Gas to Electricity: The UK’s National Grid depends on imported natural gas from Europe, which is transformed into electricity using gas-fired power stations. Therefore, any increase in gas prices directly affects the cost of electricity.

In the first half of 2023, business energy costs have somewhat lessened due to a relatively mild winter, along with European companies adapting to use gas more efficiently and boosting their renewable electricity production.

The Energy Supply Ombudsman, officially known as the Ombudsman Services: Energy, is an independent entity in the UK tasked with resolving disputes between consumers and energy sector companies. This free and unbiased service assists customers who have been unsuccessful in resolving their complaints with their energy supplier or network operator.

The Energy Supply Ombudsman handles a variety of complaints, including billing disputes, energy meter issues, switching problems, and customer service concerns, among others.

If a consumer has an issue with their energy service, they should initially attempt to rectify it directly with the energy company. If the problem persists without resolution for eight weeks, or if the consumer receives a deadlock letter, they can escalate their complaint to the Energy Supply Ombudsman.

Upon receiving a complaint, the Ombudsman will investigate and make a decision based on evidence from both parties. If the consumer accepts the Ombudsman’s decision, it is binding for the company involved. This means the company must follow the Ombudsman’s recommendations, which could include issuing an apology, taking corrective measures, or providing a financial award.

The Energy Supply Ombudsman is authorized by the Office of Gas and Electricity Markets (Ofgem), the UK regulator, and its services are provided free of charge to consumers.

Business and domestic energy contracts differ in several respects. The main difference lies in their contract structures – business energy contracts are generally more stringent, with substantial penalties for early termination.

This is because business energy providers acquire specific amounts of gas and electricity based on the anticipated needs for each business contract. Businesses usually consume more energy, hence if a contract is terminated prematurely, the provider could suffer losses if the costs aren’t appropriately covered.

Conversely, domestic energy switching is relatively easier due to lower consumption levels. Moreover, these contracts often become more flexible after the fixed-rate term concludes.

Yes, you absolutely can. By using a multi-site meter, you can conveniently merge your business energy costs into a single invoice. This allows you to manage the gas and electricity bills for all your properties under one energy contract.

A multi-site meter is an effective solution for business owners, as it streamlines administrative tasks and offers potential cost savings by eliminating the necessity of managing multiple energy contracts.

You could save £1,401* per year by comparing and switching your business energy deal through Utility Saving Expert.

Using 100% impartial market analysis, our results show the latest and most competitive rates.

The process of switching business energy suppliers is straightforward:

• Visit UtilitySavingExpert.com to use the comparison tool
• Add information about your business and energy use
• Compare the results to find the best commercial energy deal
• Confirm you’d like to switch and submit some final details

The energy deals you’ll be shown will be tailored to reflect your business needs. Within the search results, you’ll find information about the energy providers and estimates of annual and monthly costs for 1- to 5-year contracts.

It takes just a few minutes to complete the comparison online. Once you confirm you want to commit to a new deal, your new gas or electricity supplier manages the switch. They’ll even contact with your old supplier so you don’t have to.

Business customers won’t get the benefit of a 14-day cooling off period, so check you are comfortable with the terms and conditions before you switch.

Within 21 working days, your business energy supply will be switched.

Your power supply will continue as normal throughout the whole process and you won’t experience any downtime whatsoever. You can continue to power your business and premises as usual.

Typical business tariffs include the following options:

• Fixed term tariff: This is a contract type where you are charged a fixed price per unit for your gas and electricity usage. This means the price you pay for energy is set for the period of your contract.
• Variable rate tariff: This is a flexible rate that reflects the energy market climate. The rate you are charged per unit for your gas and electricity usage will go up or down in line with market fluctuations.
• Half-hourly meter tariff: With this tariff, you only pay for the energy you use. Half-hourly meters record and submit your energy usage to your supplier, who creates tailored pricing to reflect how your business uses energy.
• Green business energy: By choosing green energy deals, you’ll use be able to use renewable and sustainable energy sources to power your business, such as solar power, biomass, and wind power.

Some energy providers will offer charities special discounted rates, but all charities and non-profits qualify for certain exemptions and reductions relating to CCL and VAT.

These reductions will not automatically be applied to your energy bills. Let your provider know that you are representing a not-for-profit organisation to start benefiting from these savings. You may also be entitled to claim a rebate for overpayments within the last four years.

The Feed-in Tariffs (FIT) scheme was a government programme promoting sustainability that rewards local businesses and residents for generating green energy. The scheme ran for nine years but no longer accepts new applications.

You can compare business energy suppliers with Utility Saving Expert. Use our free comparison tool and enter some relevant information about your business, including how much gas or electricity you use.

Click compare and browse through the results. When you’ve found a competitive deal with a business energy supplier you like, confirm you’d like to switch.

Finally, add some details such as billing information for your new supplier. After this is complete, the rest of the switch will be handled for you.

If your deal ends before you have switched to a new supplier or negotiated a new rate with your existing energy firm, you may be signed up for an:

• out-of-contract rate, or a
• rollover contract

Both of these options are expensive. To avoid being moved to an expensive tariff, you should compare and switch your business energy when your contract is over.

The Department for Business, Energy and Industrial Strategy is part of the UK Government, and contributes to its ambition to create an economy where businesses can invest, innovate and grow.

One of the responsibilities of the Department for Business, Energy and Industrial Strategy is to secure affordable and clean energy supplies.

Charity and not-for-profit organisations can receive their power supply at a reduced rate of 5% VAT, as opposed to the standard rate of 20%, if they use at least 60% of their energy for non-business purposes.

In addition to being entitled to a VAT reduction of 15%, charities and non-profits are also exempt from the Climate Change Levy (CCL), which reduces bills by a further 5%.

Some energy suppliers will also offer deals with special discounts for charities.

If you want to switch business energy, you will need:

• The name of your current gas or electricity supplier
• Details of your current commercial energy tariff
• Your contract end date
• The type of energy supply you are using
• How much energy your business consumes
• Your meter number

The coronavirus (COVID-19) pandemic has forced many businesses to shut temporarily, leaving a great deal of business premises empty. Disruptions from COVID-19 have impacted both energy production and demand.

Commenting on how the outbreak has contributed to a reduction in the demand, production and price of oil, PWC shared advice for energy companies who are employing crisis management.

A recent IHS Markit North Sea Industry Trends report stated that North Sea service companies continue to struggle, whereas the IEA reported that renewable power sources have so far demonstrated resilience in the face of the COVID-19 crisis.

Ofgem advises businesses finding it hard to pay their bills to refer to the government guide on financial support for businesses during coronavirus, with information on loans, tax relief and cash grants, including the new Coronavirus Business Interruption Loan Scheme.

You can also compare energy deals to see if switching tariff or energy supplier will be cheaper for your business. It’s best to avoid disconnecting your supply because this will incur additional costs, and so will reconnecting your supply in future.

You need to continue to pay your standing charge even if your business is closed. However, if your business is struggling to afford this, you might be able to negotiate with your supplier directly to come to an agreement.

Green business energy refers to energy sources that are less harmful to the environment. You might also see these referred to as clean, renewable and sustainable.

If you decide to power your business with natural sources like the sun or the wind, you’re using green business energy.

To see the most accurate deals, you should have the following details to hand before you compare and switch business energy:

• Name of gas or electricity provider
• Current tariff details
• Type of energy supply
• Data on business energy consumption
• Meter numbers
• The date your contract is due to end

It’s a good idea to refer to a recent energy bill, but you can always start your search using estimates if you don’t have access to your commercial bills at the moment.

If your business is moving to a new commercial space, make contact with your commercial energy provider at least one month before your moving date. This gives them time to start the process of transferring or cancelling your supply. You will be billed until your moving date.

Compare energy deals using our comparison system to find a new deal that offers the best value for money for your business.

Your supplier will ask for information such as:

• Moving date
• Meter reading (on the day of your move)
• Forwarding address
• Contact details for your landlord or the new owners

If you prefer, you can ask your current provider to continue supplying your business with energy in your new location.

Some businesses use half hourly (HH) electricity metering to manage their energy consumption, which is especially beneficial if they use a lot of power.

These meters send precise readings to electricity suppliers every 30 minutes. They are sometimes referred to as business smart meters or 00 meters.

The data captured by half hourly meters is so detailed that they offer valuable insight into how your business consumes energy, so you can identify the activities or time of day associated with increased usage. This is helpful for both business process analysis and improving energy efficiency.

Half hourly meters are cost effective because you only pay for the energy you use.

The UK energy consumption tables show that the most common types of energy in the UK are:

• Natural gas
• Electricity
• Petrol
• Bioenergy and waste

In 2020, the share from renewable energy generation exceeded 40 per cent for the first time. Coal production recently reached a record low.

To find out when your energy contract ends, you can call or email your business energy supplier. You may also be able to find these details by checking a past bill or logging into an online portal.

You can start comparing business energy deals when your current contract enters its switching window. Depending on your deal, this may be between one to six months before your contract ends.

Although you can look for a new contract during this time, you can’t actually switch supply until your existing commercial energy contract ends.

The type of UK businesses that use the most energy are:

1. Commercial and miscellaneous services (14,615 ktoe)
2. Public administration (5,579 ktoe)
3. Manufacturing and industrial services (3,615 ktoe)
4. Chemical manufacturing (3,502 ktoe)
5. Food, drink and tobacco manufacturing (2,967 ktoe)
6. Mineral products manufacturing (2,582 ktoe)
7. Printing and publishing (1,831 ktoe)
8. Agriculture (1,505 ktoe)
9. Mechanical engineering (1,513 ktoe)
10. Iron, steel and metal manufacturing (1,497 ktoe)

This data was gathered by energy supplier Gazprom Energy in their January 2021 report on the industries, sectors and businesses that use the most energy.