What is Business Energy?

What Is Business Energy
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How much is your business energy? Are the bills exorbitant? Are you dealing with an unresponsive supplier? Does your supplier give you accurate bills? Well, these are common issues surrounding business energy. If these are the issues affecting you, look for a new supplier. The wrong tariff is chosen, your business would be spending more on energy throughout the contract. If you are already in a contract, you will have to go the same way. This guide can be helpful if you are looking for better contracts and deals.

What is Business Energy?

If you have started your business, you need a better solution to the problems you may encounter along the way. This is the time to look for better energy deals out there. There are several suppliers out there. The research will help you narrow down to the right supplier. This guide will help you get it right when it comes to business energy.


Business energy has to do with large-scale energy supply and consumption. It is not as simple as domestic energy that has a lot less hassle than business energy. If your supplier is offering you sustainable energy sources, you might get attracted to them. It is advisable to opt for such sources but you may need a responsive supplier.

Don’t rush into comparing quotes. It’s important to understand the difference between business and domestic energy. From here, you can go through the different types of contracts available for you. Contracts range from fixed to flexible. Bespoke plans and different pricing are offered to you. What you have to do is to keep every concern in your mind. Choose a suitable tariff that is following your usage.

Business Versus Domestic Energy

They are different from each other in a lot of ways. There is a difference in the contract term, the flexibility of the contract, pricing, switching supplier, and value-added tax paid on energy. You cannot compare them if you are about to get into a new business. As a domestic consumer, it may not seem to be a hassle. For business, consider it a monster to deal with. If you lose much on purchasing energy only, it is impossible to generate much revenue.

Unlike domestic energy, business energy isn’t that straightforward. There are a few issues you should familiarize yourself with.

Here are a few things worth noting:


the rates that come with business energy are usually cheaper. This is because businesses purchase energy in bulk. On the other hand, domestic energy is more expensive. Business energy is less expensive because you the supplier get the energy on the wholesale market. This can reduce the price for both. Because of the large amount given to businesses, it is less expensive.

An advantage that domestic energy has over business energy is that of having a value-added tax. Domestic users do not have to pay that much tax as commercial users have to.

Not easy to get out

Commercial energy is bought in bulk. However, your business cannot end the contract early. The contract term has to be completed. On the other hand, domestic energy rolling contracts allow the users to end the deal whenever they want. Energy is supplied on the same tariff until the user wants to change their decision.

Longer Contracts

Longer Contracts

It’s important to note that contracts from commercial energy suppliers are usually longer. Of course, you can choose between fixed and variable-based tariffs. However, these tariffs can last longer. On average, they can last up to five years. Thus, you can’t look for a new deal until your contract is over. You must wait until the renewal period enters. Visit Utility Bidder for more information regarding moving to new suppliers.

You have to make long contracts because the businesses cannot afford to change after a short period. They have to continue it for a set period even if they are encountering a problem. It is a problem that makes the user pay over the odds.

No Cooling Off Period

For domestic energy, it takes at most 17 days to be executed. The cooling period takes 14 days of this period. Within these 14 days, you have the liberty to cancel your contract without facing any penalties. On the other hand, this offer isn’t there in commercial energy. There is no get-out clause when it comes to commercial energy. Thus, before signing a commercial contract, make sure that you are certain. Be sure of what you are doing.

Businesses estrange in the contract. There is no way to end the contract. The exception is when they go bankrupt. If a business changes address, there has to be made a new contract.

Single fuel only

Business energy contracts are explicit in nature. Of course, finding a supplier who can give you both gas and electricity can be convenient and economical. However, there are no dual contracts when it comes to business energy. You cannot get a supply of electricity or gas from one supplier. You will have different quotes for both electricity and gas.

Dual fuel tariff is often cheaper as the supplier offers you discounts on it. Business energy runs on single fuel tariffs. Along with being costly, another problem is that you have to manage two suppliers at one time.

Off The Shelf-Based Solutions

Domestic energy suppliers give you an opportunity to compare tariffs to get a cheaper option. However, commercial energy is different. Here, the suppliers will assess your needs and tailor a good quote for you. Of course, this may give you the best deal. However, it will be challenging to compare different quotes. If you have to, you will need to call each supplier, which can be a big hassle. But all hope is not lost. You can use a broker to compare different deals out there.

You have to read the meter correctly. Inform the supplier about the latest reading. You can be overpaying because you cannot end the contract and within a continuous period, you are likely to consume more. You have a fixed price right from the outset of the contract when you sign up for the supplier. In the case of domestic energy, they have a cooling-off period. They can pay a small amount of money to switch suppliers.

The Bottom-Line

Budgeting is no problem when the price is fixed. It is a plus point for businesses. Fixed price is also better because there are no price fluctuations. If you have chosen the right deal while signing up, it can benefit you in the future. The overall price is lower than the domestic consumer. It is why we cannot call business energy contracts altogether problematic. Pricing can get you in trouble at the time of renewal of the contract.

Not all business energy suppliers are effective. Some suppliers are unresponsive, exploitative, and unreliable. So, you don’t have to suffer at the hands of a bad supplier. You are the boss. You are the party that pays the energy bills. Thus, you deserve the best services. Switching to another supplier will help you get the right deal. Use the above guide to get the best energy deal for your business.

For beginners, navigating through a humungous market is not possible. You have to get a guide for making the right decisions at the right point in time. In finding better, you may stumble upon something best. It is a chance event. You have to be completely aware of the costs.

Thank you for reading!