Energy bills rarely get a warm welcome in any inbox, and 2026 has been no exception for UK business owners. Wholesale prices have jumped about thanks to global supply shocks, network costs have crept up again, and plenty of companies are quietly overpaying without realising it. If you have typed “business electricity suppliers” into Google recently, two names almost certainly came up: British Gas Business and Octopus Energy for Business.
One is the old guard of the UK energy market, a renowned name since long before switching supplier was even something people did. The other built its reputation on tech-led pricing, a strong reputation for service, and tariffs that reward businesses for using power at smarter times of day. Both supply thousands of UK companies. Only one of them is likely to be genuinely cheaper for your business.
In this article, we compare British Gas Business and Octopus Energy for Business on price, contracts, green credentials and customer service, so you can decide which one deserves your business in 2026. And if you would rather skip the research and see live quotes side by side, that is exactly what we do at SwitchUrEnergy.
The quick verdict Octopus Energy for Business tends to offer sharper rates for small and medium usage, along with a stronger app and useful green extras. British Gas Business tends to suit larger, multi-site operations that value scale and a familiar name. Your actual cheapest option depends on your postcode, usage and meter type, so treat the figures below as a starting point rather than a final answer. |
British Gas Business and Octopus Energy for Business at a Glance
Before the numbers, it helps to know what each supplier actually is.
British Gas Business is part of British Gas, owned by Centrica plc, a FTSE 100 energy group. It is one of the largest business energy suppliers in the UK by customer numbers, with decades of experience serving everything from corner shops to multi-site retail chains.
Octopus Energy for Business is the commercial arm of Octopus Energy, a British supplier that launched its dedicated business division in 2018. It has grown quickly by leaning on its in-house Kraken technology platform, which powers smart tariffs, live usage data and a slicker digital experience.
Feature | British Gas | Octopus Energy |
|---|---|---|
Ownership | Centrica plc | Octopus Group |
Known for | Scale, brand trust, engineer network | Smart tariffs, app, customer service |
Typical contract lengths | 1 to 3 years (up to 4 with British Gas Lite) | 12, 24 or 36 months |
Standard green option | Zero carbon electricity as standard | Zero carbon electricity as standard |
Trustpilot score (2026) | Around 4.4 out of 5 | Around 4.8 out of 5 |
Best suited to | Multi-site businesses wanting a familiar brand | Businesses wanting flexible tariffs, EV charging or solar export |
Business Electricity Rates in 2026: What You Will Actually Pay
This is the part everyone skips ahead to, so let's get into it. Business electricity does not carry an Ofgem price cap the way household energy does, which means your rate depends far more on usage, location, meter type and contract length than any single “going rate.”
Across the UK market in 2026, small businesses are typically paying somewhere between 22p and 30p per kWh on a fixed contract, with the cheapest deals nearer 18p to 22p per kWh. Fall onto a deemed or out-of-contract rate, and that figure can climb above 32p, sometimes touching 40p or more. That gap is exactly why letting a contract quietly roll over is one of the most expensive mistakes a business can make.
British Gas Business Pricing Explained
British Gas Business publishes maximum microbusiness rates rather than a single headline price, and in 2026 those ceiling rates sit at up to roughly 38p per kWh for electricity on standard terms. Very few businesses actually pay that maximum. Negotiated fixed deals for small and medium users typically land closer to 25p to 28p per kWh, and larger half-hourly metered sites can often do better again through custom pricing built around their load.
Octopus Energy for Business Pricing Explained
Octopus does not publish a single national rate card either. Instead, quotes are built around your postcode, meter and usage profile. As a rough guide for 2026, expect Octopus electricity rates of around 24p to 28p per kWh for sites using under 50,000 kWh a year, dropping to roughly 19p to 23p per kWh for medium users between 50,000 and 250,000 kWh, and 16p to 21p per kWh for larger half-hourly metered businesses.
Figure 1: Indicative UK business electricity rate bands for 2026, based on aggregated UK market rate data. Your actual quote will depend on usage, location, meter type and contract length.
Worked example Picture a small office using around 20,000 kWh of electricity a year. At 27p per kWh, that works out at roughly £5,400 before standing charges and VAT. Shave just 3p off the unit rate through a better deal, and the same office saves around £600 a year, which is enough to cover a decent laptop refresh or a few months of business rates. |
The honest answer to “which is cheaper” is that neither supplier wins outright. Octopus tends to be sharper on smaller and mid-sized usage bands, while British Gas can be competitive on large, multi-site or half-hourly contracts where its scale helps. The only way to know for certain is to compare live quotes against your own meter, which is where a free comparison through SwitchUrEnergy earns its keep.
Contract Types and Flexibility
British Gas Business Contracts
British Gas Business offers fixed-price plans from one to three years, with British Gas Lite extending that to four years for smaller, budget-conscious accounts. There is also a variable price plan, renewable energy contracts aimed at higher-usage businesses, and half-hourly tariffs for larger sites. Direct debit customers usually receive a discount, and exit fees on fixed deals typically sit between £60 and £150 per fuel if you leave early.
Octopus Energy for Business Contracts
Octopus offers 12, 24 and 36-month fixed contracts across electricity, gas or both. Where it stands out is its Agile Business tariff, which tracks wholesale prices in 30-minute blocks throughout the day. Businesses that can shift some usage away from the 4 pm to 7 pm peak, such as bakeries, gyms or light industrial units, can see worthwhile savings as a result. Octopus also asks for an advance payment when you sign up, usually equivalent to around three months' estimated costs, which is refunded in full at the end of the contract.
Quick tip If your business runs a predictable, always-on load, such as a server room or cold storage, a fixed contract almost always makes more sense than a dynamic one. Save agile-style pricing for operations that can genuinely move their energy use around the clock. |
Green Energy and Sustainability
Both business electricity suppliers include zero-carbon electricity as standard on their fixed-price business contracts, so you are not paying extra just to tick that box. British Gas backs this with a fuel mix of roughly 72 percent renewables and 28 percent nuclear, and offers paid upgrades to fully renewable or low-carbon tariffs for businesses that want a stronger sustainability story for clients or tenders.
Octopus leans further into renewable generation across its wider fuel mix and adds two extras worth knowing about if your business generates its own power: a flat-rate export tariff for solar generation, and a dynamic export option that pays the live wholesale rate for electricity sent back to the grid. If you already have panels on the roof, or you are planning to install them, that export flexibility is worth weighing up alongside the unit rate.
Customer Service and the Switching Experience
Price matters, but so does what happens when you actually need to pick up the phone.
Aspect | British Gas Business | Octopus Energy for Business |
|---|---|---|
Trustpilot rating | Around 4.2/5 (“Great”) | Around 4.8/5 (“Excellent”) |
Known for | Large engineer network, established complaints process | Fast response times, clear billing, strong app |
Worth checking | Resolution times on disputed bills | Advance payment required at sign-up |
Account management | Dedicated teams for larger, multi-site accounts | Digital-first, dashboard-led account management |
Switching business electricity suppliers is more straightforward than most owners expect. Once your notice period has been served, Ofgem's faster switching rules mean the move should complete within about five working days for microbusinesses. Your electricity supply is never interrupted during the process. Only the billing and contract change, not the power coming through the wall.
Which Should You Choose?
There is no universal winner here, only the better fit for your business.
Choose British Gas Business if you run a larger or multi-site operation, you value an established brand with a wide account management team, or you like the reassurance of dealing with one of the biggest energy companies in the country.
Choose Octopus Energy for Business if you want a modern app and dashboard, you are chasing a sharper rate on a small or medium meter, you run an EV fleet, or you have solar panels you would like to be paid fairly for.
If you are still unsure, that is exactly the kind of decision a whole-of-market comparison settles quickly, by putting both suppliers' live quotes next to each other against your actual usage rather than a national average.
How to Compare Business Electricity Suppliers and Save Money
A few practical habits make a genuine difference to what your business ends up paying:
Know your contract end date. Mark it in your calendar three months ahead, since that is when most business electricity suppliers must legally send renewal terms to microbusinesses.
Check your meter type. Half-hourly meters unlock different, often cheaper, tariffs than standard meters.
Compare like for like. Look at the total annual cost, including the standing charge, rather than just the headline unit rate.
Avoid deemed rates. If you move premises or your contract lapses, get a new deal signed quickly rather than drifting onto default pricing.
Use a comparison service. A broker such as SwitchUrEnergy can put quotes from British Gas Business, Octopus Energy for Business and other trusted UK energy services side by side, usually within minutes, at no cost to you.
Frequently Asked Questions
Is Octopus Energy for Business cheaper than British Gas Business?
It depends on your usage. Octopus electricity rates tend to be more competitive for small and medium businesses, while British Gas can be sharper for larger, multi-site or half-hourly metered accounts. Comparing live quotes against your own meter is the only reliable way to know for sure.
Do business electricity contracts have a cooling-off period?
Generally, no. Unlike domestic energy contracts, which come with a 14-day cooling-off period, most business contracts become binding the moment you sign. A small number of business electricity suppliers offer a goodwill window, but it is not a legal requirement, so read the terms before you commit.
What happens if I do nothing when my contract ends?
You will usually be moved onto a rollover or deemed rate, which can be significantly more expensive than a negotiated fixed deal. For microbusinesses, Ofgem caps rollover contracts at 12 months, but that is still 12 months of paying more than you need to.
Does the Ofgem price cap cover business electricity?
No. The price cap only applies to domestic customers. Business rates are set by suppliers and negotiated individually, which is exactly why comparing business electricity suppliers, rather than assuming your current rate is competitive, matters so much.
How long does it take to switch business electricity suppliers?
Once your notice period has been served, switching typically completes within a few working days for microbusinesses, and a few weeks for larger or more complex accounts. Your electricity supply itself is never interrupted during the process.
Can I switch if I am still in a contract?
Sometimes, depending on your current terms and whether exit fees apply. Many businesses time their comparison to start three to six months before their contract ends, so a new deal is ready to go the moment the old one expires.
Final Words
British Gas Business and Octopus Energy for Business are both solid choices, just for slightly different businesses. British Gas suits companies that want scale, familiarity and a wide support network. Octopus suits businesses chasing a sharp rate, a modern app, or extra value from an EV fleet or solar panels. What both business electricity suppliers in common is that neither is guaranteed to be the cheapest option for your business specifically, not until you have actually compared quotes against your real usage.
That is the job we do at SwitchUrEnergy. Tell us a little about your business, and we will compare rates from British Gas, Octopus and other trusted UK energy services suppliers so that you can switch to a better deal in minutes, not months. Get your free business energy quote to see where you stand today.