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Business Energy Guides

Plain-English guides to choosing business gas and electricity contracts, with advice for specific sectors. Business energy has no price cap, so comparing contracts before your renewal date makes the biggest difference.

Business energy basics

Is business energy covered by the Ofgem price cap?

No. The Ofgem price cap only applies to domestic tariffs. Business energy prices are set by each contract, which is why comparing quotes before your renewal date matters so much.

How much VAT and Climate Change Levy do businesses pay on energy?

Business energy normally carries 20% VAT plus the Climate Change Levy (CCL). If your usage is very low (under 33 kWh of electricity or 145 kWh of gas per day on average) the supply counts as "de minimis": VAT drops to 5% and CCL is not charged. Check your bill shows the correct rate.

Am I a microbusiness, and why does it matter?

You are a microbusiness if you have fewer than 10 employees (or equivalent) and annual turnover or balance sheet of no more than €2 million, or if you use under 100,000 kWh of electricity or under 293,000 kWh of gas a year. Most cafés, takeaways and small restaurants qualify, and microbusinesses get extra Ofgem protections — including being told how much of the price goes to a broker, and access to the Energy Ombudsman for complaints.

What happens if my business contract ends and I do nothing?

You may be rolled onto a new contract or moved to "out-of-contract" or "deemed" rates, which are usually much more expensive. Note your contract end date and the notice window in your terms, and start comparing quotes a few months before it ends.