Get energy for your business

Businesses need a business energy contract for the energy they use.

If you run a business, the way you pay for the energy it uses and the type of contract you need will depend on:

• number of people you employ
• income your business makes over a year
• amount of electricity and gas your business uses a year

If you get your electricity and gas from different energy suppliers, you will get a separate bill for each type of energy your business uses. If you get both electricity and gas from the same supplier, you could get one bill.

If you work from home

Most people who work from home will be on a domestic contract and do not need a separate business energy contract.

Microbusinesses

If your business has fewer than 10 employees and turns over less than 2 million euro (about £1.8 million) it is classed as a microbusiness.

Your business is also a microbusiness if it has more than 10 employees but uses less than 100,000 kilowatt hours (kWh) of electricity per year or 293,000 kilowatt hours (kWh) of gas per year.

If your business is classed as a microbusiness, you will need to set up a business energy contract.

You may be classed as a microbusiness for one energy type and not the other, depending on how much energy you use.  

You will need to get quotes for both electricity and gas. Check your bill or contact your energy supplier if you are not sure how much energy your business uses in a year.

Costs included in business energy contracts

There are different costs included in business energy bills. These costs make up the unit rate that you are charged per unit of electricity or gas you use measured in kilowatt hours (kWh). The costs also include a standing charge if you have one, depending on which type of contract you have.

These costs include:

• taxes like VAT, Climate change levy (CCL)
• government schemes and levies, for example:
  • renewable obligations scheme
  • contract for difference
  • Feed-in Tariffs (FIT) (electricity only)
  • Green Gas Levy (gas only)
  • Green Gas Support scheme (gas only)
  • Renewable Energy Guarantees of Origin (REGO) (Great Britain and Northern Ireland)
• wholesale costs, the cost to buy energy for customers
• network costs:
  • Transmission Network use of System charge (TNUoS)
  • Balancing Services Use of System charges  (BSUoS)
  • Distribution Use of System charges  (DUoS)
  • Transmission and Distribution Losses (Tloss and Dloss)
  • Assistance for Areas with High Electricity Distribution Costs (AAHEDC)
  • Reactive power charge
• third-party services like sales commissions and brokerage
• other supplier costs, like:
  • bad debt, a cost to cover a customer’s debt that they cannot afford to pay back
  • excess capacity charge, a cost to cover when customers use more than their agreed supply capacity
  • costs to serve, a cost to cover energy suppliers cost to run their business and get energy to you, such as administrative and operational costs
  • Meter Operator Charge (MOP), a charge for providing your electricity meter, maintaining it and communications

Details included on energy bills

The details included on business energy bills will depend on:

• size of your business
• type of energy business contract you have
• type of meter you have for example, a half-hourly or non-hourly meter, or smart meter
• your energy supplier

Some energy suppliers give more details than others.

Moving your business to a new premises

When you move into a new business premises you could be put onto a deemed rate contract if you have not agreed a contract before moving.

If you are on a deemed rate contract

If you are on a deemed rate contract the rates you pay could go up and down more often than if you are on a fixed rate contract. You can choose and set up an energy contract with a supplier any time after moving. Check if and how to switch energy suppliers.

Before moving into a new premises, you should:

• check terms and conditions of your existing business energy contract
• check if your current energy account is in credit or in debt
• check if you can set up an energy business contract for new premises before moving
• check if energy costs are included in the tenancy agreement
• tell your old energy supplier that you are moving