Running a business comes with enough moving parts — and energy bills shouldn't be the thing that keeps you up at night. Whether you operate a small shop or manage a multi-site operation, choosing the right business energy supplier can make a genuine difference to your bottom line. Yet many business owners stay locked into the same contract year after year, assuming there's nothing better out there. The truth is, the commercial energy market is far more competitive than most people realise, and a little bit of comparison shopping can go a long way.

Why Energy Costs Hit Businesses Harder Than You Think:
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Residential energy prices get a lot of media attention, but commercial rates operate under a completely different set of rules. Businesses typically consume far more energy than households, which means even a small difference in the unit rate can translate into hundreds — or thousands — of pounds saved annually.

Unlike domestic tariffs, business energy contracts are usually fixed for 12, 24, or even 36 months. That's a long time to be stuck on an unfavourable rate. And because the renewal process tends to be manual rather than automatic, it's easy to roll over onto a deemed rate — often the most expensive option available — simply by missing a deadline.

Understanding the structure of your bill is the first step toward taking control. Most commercial energy invoices include a unit rate (what you pay per kWh of electricity or gas), a standing charge (a fixed daily fee), and various levies related to climate and infrastructure programmes.

How to Set Up a Commercial Energy Account:

Getting set up with a new supplier is more straightforward than most business owners expect. Here's a step-by-step overview of how the process typically works:

• Gather your current energy details. Before you can compare deals or switch, you'll need your current contract's end date, your annual consumption (in kWh), your meter point reference numbers (MPAN for electricity, MPRN for gas), and your most recent bill. All of this information is available on your existing energy statements.
• Use a comparison service. Platforms like SmartBiz Utility allow you to enter your usage details and instantly view competing tariffs from multiple providers. This saves hours of manual research and gives you a clear side-by-side view of what's available.
• Review and choose your tariff. Once you've compared your options, select the deal that best matches your contract length preference, budget, and any sustainability goals. Pay close attention to unit rates, standing charges, and exit fees before signing.
• Notify your existing supplier. In most cases, the new supplier handles the switch on your behalf — but it's good practice to check whether your current contract requires you to give formal notice within a specific window.
• Confirm the switch date. Switches typically complete within 21 days for gas and 5 working days for electricity, though timelines can vary. Make a note of the start date and confirm meter readings on the day of changeover to avoid billing disputes.
• Set up your account online. Once active, register for online account access so you can monitor usage, view invoices, and track consumption in real time.

Key Considerations Before You Commit:

Switching suppliers isn't just about finding the lowest rate. There are several important factors worth weighing before you sign a new contract:

• Contract length. Shorter contracts offer flexibility but can leave you exposed to price rises at renewal. Longer fixed-term deals provide stability but come with higher exit penalties if your circumstances change.
• Fixed vs. variable rates. A fixed rate locks in your unit cost for the contract term, protecting you from market volatility. A variable rate moves with wholesale prices — which can work in your favour when markets dip, but carries more risk.
• Green energy credentials. If sustainability is part of your business values, look for tariffs backed by renewable energy certificates (REGOs). Going green doesn't necessarily mean paying more, especially if you compare properly.
• Supplier reputation and service. Low rates mean nothing if billing errors go unresolved for months. Check independent review platforms for feedback on customer service, dispute handling, and account management quality.
• Hidden charges. Some contracts include fees for paper billing, late payment, or exceeding a usage threshold. Always read the full terms and conditions, not just the headline rate.
• Smart meter compatibility. If you don't already have a smart meter, check whether the supplier offers installation and whether their systems support half-hourly data reporting — useful for larger sites or businesses on time-of-use tariffs.
• Multi-site options. If your business operates across more than one location, some suppliers offer consolidated billing and account management across all sites, which simplifies administration considerably.

Timing Your Switch for Maximum Savings:

The best time to start comparing deals is three to six months before your current contract ends. This gives you negotiating room without the pressure of an imminent deadline. If you miss your window, you risk being rolled onto a deemed rate — typically the most expensive tariff a supplier offers.

If you're already mid-contract, it's still worth reviewing your options. Calculate whether potential savings outweigh any early exit fees. In periods of significant market movement, switching early can still make financial sense.

Frequently Asked Questions:

Can I switch energy suppliers if I'm still in a contract? 

Yes, but you may be charged an early exit fee. The amount varies by supplier and contract terms. It's worth calculating whether the savings from a better rate exceed the cost of leaving early — in many cases, particularly with longer contracts signed during high-price periods, they do.

How long does a business energy switch take? 

Most electricity switches complete within 5 working days. Gas switches typically take up to 21 days. During this time, your supply is uninterrupted — there is no physical disconnection involved in the switching process.

What information do I need to switch? 

You'll need your current supplier's name, contract end date, annual energy consumption in kWh, and your meter reference numbers (MPAN for electricity, MPRN for gas). All of this can be found on your existing energy bill.

Is business energy cheaper than domestic energy? 

Not always on a per-unit basis — but commercial contracts are negotiable in a way domestic ones aren't. Businesses with higher consumption often have more leverage to secure competitive rates, especially when working through a broker or comparison platform.

What happens if I don't renew my contract on time? 

If your contract expires without a new agreement in place, you'll typically be moved onto your supplier's deemed or out-of-contract rate. These are almost always higher than standard contract rates, sometimes significantly so. Setting a calendar reminder three to six months before your renewal date is one of the simplest ways to avoid this.

Are there energy deals specifically for small businesses? 

Yes. Many suppliers offer products tailored to small and medium-sized enterprises, with shorter contract terms, simpler billing, and lower consumption thresholds. A reputable business energy supplier comparison service can filter results by business size and consumption profile to show the most relevant options.

Taking the Next Step

Energy procurement doesn't have to be complicated. With the right information and the right support, it's entirely possible to reduce what your business pays for power without disrupting operations or spending hours navigating the market yourself. Review your current contract, gather your usage data, and use a trusted comparison platform to see what's available — the savings may well surprise you.

About Us:

I help companies compare business energy prices and discover cost-saving solutions, offering clear guidance, reliable insights, and smarter choices for efficient, sustainable energy management today.

Contact us

Call — 0800–058–4297
Email ID — info@smartbizutility.com
Suite 212, 76 Talbot Road, Manchester, Greater Manchester, M16 0PQ