Business Energy

All business energy quotes need to be generated based upon your specific requirements.

This means, unlike with domestic energy, you can't simply choose the best one from a range of ready-made tariffs and the only way to make sure you're on the very best deal is to ring around each and every supplier to get a business energy quote based upon your specific needs.

Alternatively, you could save yourself a lot of time and hassle by filling in the form above and one of our business energy experts will call you to walk you through the process. We'll do all the hard work and compare prices from business energy suppliers across the board, all you need to do is choose the deal you like best and we'll handle the rest of the switch for you.

To ensure we can give you the most accurate quotes possible, try to have the following information to hand when speaking to one of our business energy team:

• Your current supplier's name
• Tariff name and end date
• Your supply type
• How much energy your business uses in kWh (kilowatt hours) or pounds

You should be able to find all of the above information on your latest energy bill.

Once you choose a deal and agree to switch, we'll let your new supplier know you're joining them, and inform your current supplier of the switch, so you can get on with running your business.

And because we compare prices from all business energy suppliers, you can be sure you're getting the very best-priced deal.

Although they come from the same place and, in many cases, the same supplier, there are big differences between the way domestic energy contracts and business energy deals work.

The biggest difference between the two is the option to leave your deal early. While most domestic energy contracts allow for early termination, usually on the condition that an early exit fee is paid, business energy users can't opt-out of their contract early, and must wait until their switching window opens. This is usually between one and six months before the contract's end date.

Similarly, unlike domestic deals, business energy contracts don't offer any cooling off period - once you've signed up, you can't back out - so it's vital to make sure any commercial energy deal you sign is exactly right for the needs of your business.

You'll also find that the rates offered on business energy deals are often cheaper than those offered to domestic customers. But, on the flipside, business energy users pay a higher rate of VAT on business energy. Even so, if you operate from a business premises, a business energy deal should work out more cost-effective.

Even if you run your business from home, you might still be able to take advantage of business energy rates if 50% or more of the energy you use is for business purposes. And if you're classed as a microbusiness, you'll have the option to you can tell your energy supplier you want to switch at any point during your agreement.

Although all business gas and electricity deals are tailored to meet the needs of each individual business, there are five main types of commercial energy contracts that are used by suppliers. They are:

• Fixed term - These deals lock in the rate you pay for each unit (kWh) of energy used for the length of the contract. Your bill will still fluctuate depending upon how much gas and electricity you use – the more energy you use, the higher your bills will be - but your rate won't be affected by any price rises.
• Variable-rate - The unit rate you pay for the energy you use can vary depending on market activity - if prices go up, so will your energy bills. You bills could even increase if you're using the same amount of energy. On the flipside, they could also go down, so you need to weigh up the pros and cons before signing up to a variable rate deal.
• Deemed rates - Are also known as 'out-of-contract' tariffs, these are rolling contracts with expensive rates. You'll be on deemed rates if you let your energy deal expire without arranging a new one.
• 28-Day - This is a contract for businesses who haven't switched since the energy market deregulation came into effect.
• Rollover - If you don't arrange a new deal before your current one expires, some suppliers will automatically sign you up to another deal, usually on more expensive rates. If you own a microbusiness, you're supplier can't roll you over like this, but you should still compare business energy deals and switch at renewal.

VAT on business energy bills is usually charged at a rate of 20%, but if your business uses less than 33 kilowatt hours of electricity and less than 145kw hours of gas per day - known as the 'de minimis' level - it might be eligible to pay a reduced rate of 5% VAT.

Your business may also be eligible for a reduced VAT rate if at least 60% of the energy is being used within:

• A care home or hospice, accommodation for students, the armed forces or the elderly, or a place of rehabilitation, which is the main place of residence for 90% of people living there.
• A religious environment, such as a nunnery, monastery or any other place of worship.
• Self-catering holiday accommodation, including houseboats and caravans.
• A free school or academy.

When comparing business energy prices, there are two rates you need to look out for, as they have the greatest impact on the cost of your energy bills:

• Standing charge - A daily amount that is paid to your supplier no matter how much energy you use, even if you don't use any.
• Unit rate - This is the rate you pay for the gas and electricity you use. Each unit is measured in kilowatt hours (kWh) and is fixed if you sign up to a fixed rate deal.

Your final bill will also include the following costs:

• Wholesale energy costs
• Transmission Use of System (TNUoS) charge
• Distribution Use of System (DUoS) charge
• Climate Change Levy (CCL)
• Metering costs
• VAT
• Metering costs

To make the greatest savings, you'll need to choose a deal that offers the lowest unit rates and standing charges.

But remember, the cheapest deal may not necessarily be the best for your business, so always take into account the reputation of the supplier and the level of customer service it offers.

When you compare business energy prices with The Energy Shop, we'll always take into account other factors, including customer service levels and satisfaction scores, so you can be sure of both great rates and a quality supplier.

To compare business energy suppliers the simple way, contact the team at The Energy Shop today.