Business gas and electricity

What a business needs to get gas and electricity

Every business premises that uses mains energy has three things behind the bill: a supplier that sells you the energy and sends the bill, a network operator whose cables and pipes deliver it, and a meter that records how much you use. You choose the supplier and the contract. The network operator depends on where you are, and you do not choose it.

Business energy differs from home energy in ways that matter when you sign:

• No price cap. Ofgem's energy price cap protects households on standard variable tariffs. It does not apply to business energy contracts.
• No cooling-off period. Once you agree a business contract, including by phone, you are bound by it. Ofgem says a verbal agreement is binding.
• Prices are quoted, not published. There are very few published business prices. Suppliers quote for your site, based on your use, meter and credit position, and may decline to supply.
• Contracts are negotiated. Term length, tariff type, payment terms and end-of-contract arrangements vary between offers, so the small print matters as much as the unit rate.
• Size bands change your protections. Ofgem sorts businesses into micro, small and large by staff, turnover or energy use, and microbusinesses get extra protections.

If you run a business from home, you are probably on a domestic contract. Ofgem suggests checking with your supplier.

The products: electricity, gas and dual fuel

Most businesses buy one or both of two fuels. Each has its own supply point, its own reference number and often its own contract.

Bottled gas and LPG are separate products from mains gas and are not covered on this site.

Tariff types at a glance

A tariff is the price structure you agree. Business suppliers do not all offer every type, and Ofgem notes that the type you can get usually depends on your size and use.

• Fixed-rate: unit rates and standing charges fixed for the term. See fixed rate business energy.
• Variable-rate: prices can rise or fall during the contract.
• Flexible (structured): energy bought in portions over time, aimed at large users. See flexible energy contracts.
• Pass-through: some non-energy costs are passed on as they change. See pass-through energy contracts.
• Multi-rate: different day and night rates, such as Economy 7 for business.
• Rollover, out-of-contract and deemed: what you pay if a contract ends or you have none in place. Ofgem says out-of-contract and deemed rates are usually more expensive, and a rollover may renew at a higher rate.

Our business energy tariffs page sets every type side by side, with who each suits and what happens at the end of the term.

Meters and the numbers to have ready

A quote is only as good as the information behind it. Before you ask for one, gather:

1. A recent bill for each fuel. It shows the supplier, tariff, unit rate, standing charge and often your contract end date.
2. Your MPAN for each electricity meter. It is usually in a box marked 'S' on the bill. See what an MPAN number is.
3. Your MPRN for each gas meter. It is on the gas bill and sometimes on or near the meter. See what an MPRN number is.
4. Your annual consumption in kWh, from the bill or your supplier. Suppliers need it to price the contract.
5. Your meter type. Standard, two-rate, smart, AMR or half-hourly. Our business electricity meters guide explains each.
6. Your current contract end date and notice terms, so a new contract can be arranged inside the switching window.
7. Business details: legal name, registered address, company or charity number, and the address of each site.

If you cannot find something, that is fine. Send what you have and we can help track down the rest.

What goes on a business energy bill

Every business gas or electricity bill is built from the same few parts, even if suppliers lay them out differently:

• Unit rate: the price per kWh of energy used. Multi-rate tariffs have more than one.
• Standing charge: a daily fixed charge you pay whether or not you use energy. Read business energy standing charges.
• Meter readings: marked as actual or estimated. Estimated bills are corrected when a real reading comes in.
• Capacity charges on half-hourly electricity sites, based on the supply capacity agreed with the network operator. See electricity capacity charges.
• Climate Change Levy (CCL): an environmental tax most businesses pay on electricity and gas. See Climate Change Levy for business.
• VAT: business energy is normally charged at the standard rate, unless some or all of it is for qualifying use. See reduced rate VAT on business energy.

Network, balancing and government scheme costs are usually built into the unit rate rather than listed, and are explained under non-commodity costs. Our business energy bills explained guide takes you through a bill line by line.

How Forever Communications helps

Forever Communications is not an energy supplier. We act as an agent introducing businesses to Fidelity Energy, an independent business energy consultancy and broker that works with a network of business energy suppliers. Here is how the work splits:

• We explain the products, tariffs and bills on this site, help you gather bills, MPANs, MPRNs and meter details, introduce you to Fidelity Energy and can stay your point of contact.
• Fidelity Energy gets quotes from the suppliers it works with, handles the contract you choose and looks after the account during the contract.
• The supplier supplies the energy, bills you and holds the contract with you.

Fidelity Energy is normally paid commission by the supplier, added to the unit rate and/or standing charge and shown in your contract's principal terms; Forever Communications is paid by Fidelity Energy from that commission. The full picture, including complaints and the Energy Ombudsman, is on how we work with Fidelity Energy. Pricing depends on your sites and use, so ask us for a quote.

Comparing and switching suppliers

This site explains what business gas and electricity are and how they work. If you are ready to put offers side by side or change supplier, our sister site covers business energy comparison and switching.

Common situations we can help with

• Moving into new premises: avoid being left on deemed rates. See business energy when moving premises.
• A new or bigger supply: see new business electricity and gas connections.
• Landlords and property managers: void properties, tenant recharges and aligning end dates. See business energy for landlords.
• Manufacturing and industrial sites: half-hourly metering, capacity and Climate Change Agreements. See energy for manufacturers.
• A greener supply: see green electricity for business and green gas for business.

Whatever your starting point, contact us with a recent bill and a line about your sites, and we can explain the next step.