Managing business energy costs is rarely the most exciting part of running a company, but it is one of the most consistently rewarding areas in which to invest a small amount of time. The UK business energy market is open, competitive, and accessible, meaning that businesses willing to review their contracts and compare available rates can almost always find a better deal than the one they are currently on.
Despite this, a substantial proportion of UK businesses remain on uncompetitive tariffs for extended periods. Some have simply never switched. Others do not know when their contract is due to expire. And many have drifted onto out-of-contract rates without realising the cost implications. Services like Utility Bidder allow businesses to compare gas and electricity rates from multiple suppliers in one place, removing the need to contact each provider individually and making the process significantly more manageable.
Step One: Know What You Are Currently Paying
The starting point for any energy review is understanding your current tariff in detail. Your gas and electricity bills will show a unit rate in pence per kWh and a standing charge per day. These two figures, combined with your annual consumption, determine your total energy cost. If you cannot locate this information on your bill, your supplier’s customer service team can provide it.
Also note your contract end date and any associated notice period. Most business energy contracts require notice of between 30 and 90 days before the end date if you wish to switch to a new supplier. Missing this window results in automatic renewal, often onto a deemed or out-of-contract rate that is far less competitive.
Step Two: Gather the Information You Need for a Comparison
Running a meaningful business energy comparison requires only a small amount of information. For electricity, you need your annual consumption in kWh, your MPAN number, your current supplier, and your renewal date. For gas, the same applies but using your MPRN and consumption figures. If you manage multiple premises, gathering this information for each site will allow a consolidated comparison that may unlock better rates based on total consumption volume.
Step Three: Use a Comparison Platform to Benchmark the Market
A business energy comparison platform queries multiple suppliers simultaneously and returns a ranked set of quotes based on your specific usage profile. This is far more efficient than approaching suppliers directly, and it surfaces options that a business would be unlikely to encounter through independent research.
When reviewing quotes, look beyond the headline unit rate. The standing charge, contract length, and any included service features all affect the true cost and value of a deal.
Step Four: Consider Both Gas and Electricity Together
Many businesses treat gas and electricity as separate procurement decisions, but reviewing both at the same time makes the overall picture clearer and can streamline the management of contracts going forward. Some suppliers offer combined business energy deals that cover both fuels, and while these are not always the cheapest option when compared individually, they can simplify administration and sometimes include additional service benefits.
Step Five: Switch and Set a Reminder for the Next Review
Once a better deal is identified and agreed, the transfer is handled by the new supplier. There is no interruption to energy supply. The switch typically completes within two to four weeks, and the new contract begins either immediately or from the end of the current agreement depending on timing. Setting a reminder three to four months before the next renewal date ensures the business maintains the discipline to review the market at each cycle.
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Frequently Asked Questions
Q: Do I need to contact my current supplier before switching? A: You do not need to notify your current supplier before running a comparison, but if your contract has a specific notice period you should submit formal notice within that window to avoid automatic renewal.
Q: What if my contract has a long time remaining? A: Switching before a contract ends usually triggers an exit fee. It is worth calculating whether the savings over the remaining period would outweigh that cost.
Q: Can a charity or non-profit compare business energy in the same way? A: Yes. Charities and non-profit organisations are classed as business energy customers and can access the same comparison and switching processes.
Q: What is a deemed rate and how do I get off one? A: A deemed rate is applied when a contract expires without renewal. These rates are typically higher than negotiated tariffs. The fastest way to exit one is to run a comparison and agree a new contract as quickly as possible.
Q: Is there any risk to my business energy supply during a switch? A: No. The physical infrastructure supplying gas and electricity to your premises does not change during a switch. Only the commercial relationship with the supplier changes, and this transfer is seamless with no interruption to service.
