Your renewal quote has landed. The unit rate looks acceptable, the salesperson is friendly, and there is a deadline attached. So do you sign?
Hold on. Business energy contracts are binding, and most suppliers offer no cooling-off period. There is also no Ofgem price cap for businesses, so your business electricity rates depend on the market, your usage and the contract you accept. The questions you ask before you sign matter far more than the ones you think of afterwards.
This guide gives you eight questions to put to commercial electricity suppliers, what a good answer sounds like, and which red flags should make you pause. You will find worked examples, comparison tables and a checklist for your next call, so you can request a business electricity quote that you can actually compare.
The 8 questions to ask commercial electricity suppliers at a glance
Short on time? Here is the whole checklist on one screen, with the kind of answer you want to hear.
# | Question to ask | A good answer sounds like |
1 | How are my business electricity rates built up? | A line-by-line quote showing unit rate, standing charge and what sits inside or on top |
2 | Is this fixed, variable or flexible, and for how long? | A named tariff type, a clear end date and a list of what can change mid-term |
3 | Which charges sit outside the headline unit rate? | A written list covering standing charge, capacity charges, Climate Change Levy and VAT |
4 | What happens when the contract ends? | Written renewal terms, the exact notice date and the rate you would roll onto |
5 | What does it cost to leave, and can you change my price? | An exit charge explained with an example, and a short list of price-change triggers |
6 | How will you bill me and handle problems? | Accurate bills, smart meter support and a named complaints route |
7 | How financially secure are you? | Clear ownership, a track record with business customers and honest answers on deposits |
8 | Can I see more than one quote, and who gets paid? | Several comparable quotes, with any commission shown in pounds |
Why the questions matter before you compare commercial electricity suppliers
A business electricity rate is not one number. It is a stack of layers, and only the bottom layer is the energy itself. Network charges, policy levies, supplier costs and taxes sit on top. Published estimates put these non-commodity costs at somewhere between roughly half and two thirds of a typical bill, depending on the source and the year.
That is why two quotes with the same headline pence per kWh can produce very different invoices. Each layer is a place where a supplier can fix a price, pass a cost through at actual levels, or add something you did not expect.
Keep this picture in mind. Every question below points at one or more of these layers.
1. How are my business electricity rates built up, and what is included?
Start here, because everything else builds on it. A headline price in pence per kWh tells you very little until you know what sits around it.
Ask the supplier to show the unit rate, the daily standing charge, any capacity charge, and whether the Climate Change Levy is inside the rate or added on top. Then ask whether the rate includes broker commission, and how much. For microbusinesses, Ofgem's rules require the total commission to appear in pounds in the Principal Terms.
Practical example: a salon uses 9,000 kWh a year at 28p per kWh with a 45p daily standing charge. That is £2,520 plus £164.25, or £2,684.25 before VAT. If the quote leaves out the levy, add about £72 (0.801p per kWh).
Tip: ask for the estimated annual cost, based on your real usage. It is the fairest way to compare two business electricity quotes. If a supplier will not put the numbers in writing, treat that as your answer.
2. Is this a fixed, variable or flexible contract, and for how long?
The tariff type decides how much price certainty you get. A fixed contract locks your unit rate and standing charge for the term, which can run from one to five years. Variable contracts move with the market. Larger sites may use flexible or pass-through deals, which need active management.
Ask which type you are being quoted, exactly what can change during the term, and what the price would be on a shorter or longer term. Longer is not automatically cheaper. On our comparison table, British Gas's four-year fix costs £12.95 a year more than its three-year fix.
Contract type | How the price behaves | Best suited to | Watch out for |
Fixed | Unit rate and standing charge locked for the term | Budget certainty, most small and medium sites | You miss out if the market falls, and exit charges apply |
Variable or tracker | Moves with the wholesale market | Businesses that can absorb price swings | Harder to forecast, and bills can rise |
Flexible | Energy is bought in stages rather than all at the start | Larger sites with someone managing the market | Needs active management |
Pass-through | Network and policy costs are billed separately at cost | Larger sites | Those charges can change over time |
Deemed or out-of-contract | The default rate when no contract is in place | Nobody, by choice | Usually the dearest option |
3. Which charges sit outside the headline unit rate?
The unit rate is one line on an invoice, not the whole bill. Ask for a written list of everything else, then check each item against the table below.
The standing charge tends to grow with site size. MoneySuperMarket's September 2026 panel averages run from 91.3p a day for micro businesses to 293.9p for large ones. The Climate Change Levy is 0.801p per kWh on electricity from 1 April 2026, rising to 0.827p from 1 April 2027. Most businesses also pay 20% VAT.
Also ask whether network and policy costs can be revised after you sign. Transmission charges have been rising, and suppliers price that risk in different ways.
Charge | What it is | What to ask |
Standing charge | A daily fee, charged even when you use nothing | Is it fixed for the full term? Is there a no-standing-charge option, and what unit rate comes with it? |
Capacity charge | A monthly charge linked to agreed import capacity on half-hourly meters | Is my agreed capacity right for my site? |
Climate Change Levy | 0.801p per kWh on electricity from 1 April 2026 | Is it inside the unit rate or added on top? |
VAT | 20% for most businesses, with a reduced rate possible for very low users, broadly below about 12,000 kWh a year | Which rate applies to my site? |
Network and policy costs | Grid and scheme charges such as TNUoS and DUoS | Are they fixed, or passed through at cost? |
4. What happens when my contract ends?
Ask this before you sign, not three months before renewal. Business contracts usually say what happens if you do nothing: either a rollover onto another fixed term, or a move to a standard variable or out-of-contract rate where the price can change without notice.
Ask whether the supplier will remind you of the end date in writing, what the last date to act is, and which rate you would land on. Notice rules differ by customer size and contract, so get the answer in writing. Microbusinesses have extra protection: Ofgem removed the termination notice requirement for most of their contracts, with evergreen contracts as the exception.
Drifting is expensive. MoneySuperMarket reports an average 35% saving for businesses that move from out-of-contract rates to a contract through its partner Bionic, and our October rates guide cites typical premiums of two to three times a fixed rate.
Practical example: a shop uses 15,000 kWh a year on a 27p fixed deal that rolls onto 45p. That is £2,700 more a year, or £225 every month (illustrative figures).
Some suppliers let you agree a new deal up to 12 months ahead, while others only write to you about 60 days before the end. MoneySuperMarket suggests comparing within six months. Put the dates in your diary today.
5. What does it cost to leave early, and can you change my price mid-contract?
Most fixed deals are binding, so the exit terms are part of the price. Ask for the early termination charge in writing, how it is calculated, and an example in pounds for your site. Then ask what happens if you close, sell or move premises: can the contract transfer, or does it end?
Next, ask about price-change clauses. Can the supplier alter your price during the term for reasons outside its control, such as a change in law? Which charges does that cover? If your usage could change sharply, ask whether any usage tolerances apply.
Finally, never agree on the phone before you have read the terms. Citizens Advice guidance says business energy contracts are binding when agreed verbally, and most suppliers offer no cooling-off period. A safe script is: 'Please email the full contract and Principal Terms. I will decide after I have read them.'
6. How will you bill me, and what happens when something goes wrong?
A keen rate is little comfort if invoices arrive late or wrong. Ask how often you are billed, which payment methods you can use and how easily you can query an invoice. Ask whether estimated bills are common, and what smart meter support exists. A smart meter will not change your unit rate, but accurate readings stop estimated bills.
Ask about deposits or advance payments too: how much, when they are refunded and how they are protected.
Finally, ask who handles complaints and what happens if you cannot agree. Businesses with fewer than 50 employees are entitled to free help from the Energy Ombudsman, which can order compensation of up to £10,000.
7. How financially secure are you, and can you back up your green claims?
Price matters, but so does staying power. Ofgem's capital rules were written for household suppliers, so a supplier serving only businesses sits outside them, as we explain in our guide to what happens if your supplier goes bust. If a supplier fails, your supply continues, but credit on your business account is not guaranteed.
Ask who owns the company, how long it has supplied businesses and whether it asks for a deposit. Then run your own check. Ofgem's news pages, Companies House accounts and independent reviews take ten minutes. Keep your direct debit close to your real usage so you are never lending the supplier money.
Last, if you want green electricity, ask how it is backed. Green tariffs are typically supported by Renewable Energy Guarantees of Origin, or by electricity bought directly from renewable generators. Ask which one you are getting.
8. Can I see more than one quote, and who gets paid when I sign?
Never sign the first quote. On our comparison table, the same 10,000 kWh site is priced from £2,828.67 to £3,232.28 a year across eight fixed plans. That is a gap of about £404 for identical usage.
Then ask who gets paid. Brokers and comparison services are usually paid by the supplier, and that commission is built into your rate. For contracts signed from 1 October 2024, broker fees must be displayed for all non-domestic customers. Ask any intermediary for the figure in pounds, whether it compares the whole market or only a panel of suppliers, and whether it appears on the Energy Ombudsman Broker Register.
We hold ourselves to the same standard. SwitchUrEnergy is free to use and earns from supplier partners when you switch. We show the contract term and any exit fees before you commit, and a Letter of Authority never lets us sign a contract without your consent. We compare a wide network of licensed suppliers, but not every supplier in the market.
Red flags and green flags to listen for
How a supplier answers matters as much as what it says. Use this table as a quick filter on your next call.
Topic | Green flag | Red flag |
Pricing | A written quote with unit rate, standing charge and estimated annual cost | Only a headline pence per kWh figure |
Pressure | Time to read the terms, with the quote valid for a stated period | 'The price expires today' |
Contract | Principal Terms and full conditions emailed before you agree | A request to agree verbally on the call |
Exit | An exit charge explained with an example in pounds | 'Don't worry about the small print' |
Commission | Any broker fee shown in pounds | 'Our service is free', with no detail |
Renewal | A written reminder and a clear notice date | Vague answers about what happens at the end |
A worked example: lowest unit rate, highest bill
A site uses 8,000 kWh a year and receives three business electricity quotes.
Quote | Unit rate | Standing charge | Annual cost before VAT | Three-year total |
A | 27p | 45p a day | £2,324.25 | £6,972.75 |
B | 25p | 110p a day | £2,401.50 | £7,204.50 |
C | 29p | 20p a day | £2,393.00 | £7,179.00 |
Quote B has the lowest unit rate, yet it costs £77.25 a year more than Quote A, or £231.75 over three years. Even Quote C, with the highest unit rate, beats it. These figures are illustrative, not live quotes, so always compare annual cost.
How to get a business electricity quote you can compare
A fair comparison starts with identical inputs. Before you request a business electricity quote, work through these steps.
Gather your details: your MPAN (the 13-digit meter number on your bill), annual kWh, meter type, current supplier and contract end date.
Give everyone the same brief: the same term, payment method, and treatment of the levy and VAT.
Ask for the paperwork: Principal Terms, the full contract and the exit charge, in writing.
Do the sum yourself, using the formula below.
Compare the whole term: multiply by the number of years, then add any deposit or fee.
Decide in your own time, not on the call.
Prefer to talk it through? Call (0203) 9500885, Monday to Friday, 9am to 5pm, or start your quote online.
FAQs about commercial electricity suppliers
Here are the answers of your most asked queries.
What are commercial electricity suppliers?
They are licensed companies that supply electricity to business premises under a non-domestic contract. The term is often used interchangeably with business electricity, though it can also cover larger sites such as schools and hospitals.
Is there a price cap on business electricity rates?
No. Ofgem's cap covers households. Business electricity rates are negotiated, so they depend on wholesale conditions, your usage, your credit profile and the contract length.
How long does it take to switch commercial electricity suppliers?
Through SwitchUrEnergy, business switches typically complete within two to six weeks, and your supply continues without interruption.
Can I leave a business electricity contract early?
Usually only by paying the exit charge, because most fixed deals are binding. If you are out of contract or on a deemed tariff, you can normally switch, as Citizens Advice guidance explains. Check your own paperwork first.
What information do I need for a business electricity quote?
Your business address, recent usage from a bill and your current contract details. Your MPAN helps too.
Is it free to compare business electricity prices with SwitchUrEnergy?
Yes. Our comparison is free to you. We earn from supplier partners when you switch through us, and we show the contract term and any exit fees before you commit.
Final Words
The best commercial electricity suppliers will not mind a long list of questions. They answer plainly, put the numbers in writing and give you time to think. Suppliers that rush you, dodge the standing charge or push for a verbal yes are telling you something too.
Take these eight questions to your next call, then compare at least three quotes by annual cost. Ready to start? Get your business electricity quote in a few minutes, or call (0203) 9500885. Comparing is free, and our panel includes renowned business electricity suppliers.
Disclaimer: This article is general information, not financial or legal advice.