How business energy comparison differs from home energy
When you compare home energy, you can see published tariffs and the Ofgem price cap sets a ceiling. Business energy works differently:
| Home energy | Business energy | |
|---|---|---|
| Price cap | Yes, set by Ofgem | No price cap |
| How prices are shown | Published tariffs | Individual quotes |
| VAT | 5% | Usually 20%, or 5% for low users |
| Climate Change Levy | Not charged | Charged on most business supplies |
| Contract length | Often flexible | Usually fixed for one to five years |
| Cooling off period | 14 days | Usually none once signed |
Because there is no cooling off period on most business contracts, comparing carefully before you sign really matters.
How to compare business energy rates like for like
Use this checklist every time you compare quotes:
- Same contract length. Compare one year with one year, or three years with three years.
- Same start date. Make sure every quote starts when your current contract ends.
- Your real usage. Quotes based on estimates can be misleading.
- Unit rate and standing charge together. Work out the total annual cost for each quote.
- Same meter and supply details. Check the MPAN or MPRN matches your site.
- Clear broker fees. Suppliers must show broker fees in your contract, so check them.
- Exit and renewal terms. Look for notice periods and what happens when the contract ends.
Working out the total cost
The quickest way to compare business energy rates is to turn each quote into one number:
(Annual kWh × unit rate) + (365 × standing charge) = annual cost before CCL and VAT
Do this for every quote and line them up. The lowest total, not the lowest unit rate, is usually the best deal for your business.
Comparison sites, suppliers and brokers
There are three common ways to compare business energy:
- Going to suppliers directly. You get each supplier’s own price, but it takes time and you cannot easily see the wider market.
- Online comparison sites. Useful for a quick view, but many still pass you to a broker or supplier to complete a quote.
- Business energy brokers. A broker collects quotes from a panel of suppliers and handles the switch. Read our guide on what a business energy broker does before choosing one.
EnergyJump introduces you to one trusted UK broker, so you get a proper comparison without a flood of sales calls.
Warning signs when comparing
- Pressure to sign on the same call before you have seen the contract.
- Quotes with no clear unit rate or standing charge.
- Broker fees that are not shown in the contract.
- Very long notice periods or automatic renewals you did not ask for.
Ready to compare? Use the form at the top of this page. You can also read about business electricity rates or compare business gas prices.