Have you reviewed your business energy in the last 12 months

Let’s face it—running a business in the UK today comes with more challenges than ever before. Inflation, global supply chain issues, and market volatility all play a role. But one area that continues to silently drain profits is energy. Business energy isn’t just about keeping the lights on or your office warm—it’s a strategic resource that impacts your bottom line.

Energy consumption for businesses varies drastically by industry. From small retail shops to large-scale manufacturing units, every kilowatt-hour counts. That’s why managing your energy well isn’t just a good idea—it’s essential. More UK companies are now seeing energy as a line item they can and should control.

But here’s the kicker: many business owners forget to look at their energy contracts annually. That’s like never shopping around for a better deal on rent, staff wages, or inventory. The truth is, your energy rates could be outdated or significantly higher than current market rates. If you haven’t reviewed your energy in the last 12 months, you might be throwing money down the drain.

And let’s not forget the environmental side. Sustainability isn’t just a buzzword anymore. Customers, partners, and even investors are placing greater importance on how green your operations are. By monitoring and adjusting your energy usage, you not only save money but also build a more responsible business image.

The Rising Cost of Energy in the UK

Energy prices in the UK have skyrocketed in recent years. Driven by geopolitical tensions, supply shortages, and regulatory shifts, business owners are being squeezed tighter than ever. The energy crisis that began in 2021 still echoes through the economy, with spikes and instability continuing to affect gas and electricity costs.

Small and medium-sized enterprises (SMEs) are particularly vulnerable. Without the bulk-buying power of larger corporations, SMEs often find themselves at the mercy of volatile rates. That’s why ignoring your energy contract or letting it auto-renew is a dangerous gamble. Even a modest reduction in unit rates can save thousands annually.

Let’s put that into perspective: if your annual electricity bill is £10,000 and you reduce your rate by just 10%, you save £1,000 straight off the bat. That’s money that could be reinvested into staff, marketing, or tech upgrades. And the only thing you had to do was review your energy plan.

Energy market dynamics are complex, but you don’t need to be an expert to make a smart move. Simply acknowledging that the cost landscape has changed and acting on it is already a step ahead of most businesses.

Understanding the Role of Energy Brokers

What Does an Energy Broker Do?

Energy brokers are essentially your middlemen in the energy market. They work between your business and various energy suppliers, helping you find the best deals based on your unique usage needs. Think of them as your personal energy shopper who does all the legwork, negotiating rates and uncovering hidden costs you might miss on your own.

But their role doesn’t stop there. A good energy broker also provides insight into your consumption habits, suggests more efficient ways to operate, and even helps with renewable energy options. In short, they simplify the complicated world of energy so you can focus on what matters—running your business.

Some brokers charge fees, while others earn a commission from the supplier. Transparency is key here, so always ask upfront how they’re paid. A trustworthy broker should clearly explain their commission structure and offer contracts with no hidden terms.

One of the biggest advantages of using a broker is access. While you might only get a handful of quotes on your own, brokers can tap into a wide range of suppliers and exclusive deals not publicly advertised. That gives you more options and better leverage in the market.

Why Businesses Use Energy Brokers in the UK

In the UK, navigating the energy market alone can feel like walking through a minefield blindfolded. Rates change constantly, and suppliers don’t always make it easy to compare like-for-like. That’s where brokers come in handy. They already have relationships with suppliers, understand market trends, and can decode the jargon on complex contracts.

For many UK businesses, time is also a huge factor. Sourcing quotes, comparing tariffs, and negotiating terms can be incredibly time-consuming. An energy broker handles this for you, often providing quotes within 24 hours and saving hours of admin work.

Another reason brokers are so popular in the UK? Compliance. Energy contracts are often full of fine print, including termination fees, renewal terms, and volume commitments. A good broker will make sure you’re not getting locked into a contract that’s difficult—or expensive—to leave.

The bottom line? Whether you’re a local café or a manufacturing firm with dozens of employees, a UK energy broker can streamline the entire process, help you avoid costly mistakes, and potentially unlock significant savings.

The Importance of Reviewing Business Energy Annually

Avoiding Expensive Rollover Tariffs

You might think ignoring your contract expiry date is harmless, but here’s the truth: it’s a fast track to expensive energy bills. When a contract ends and you haven’t arranged a new one, many suppliers automatically move you to a “rollover” or “deemed” rate. These tariffs are typically far higher than what you’d pay on a negotiated plan.

This scenario is incredibly common—especially for busy business owners juggling multiple responsibilities. One missed email or forgotten renewal date can result in a year-long overpayment. Even worse, some contracts have automatic renewal clauses that tie you into new terms without your consent.

The solution? Mark your contract end dates on a calendar or set up reminders. Even better, let an energy broker track it for you—they often provide renewal alerts months in advance, giving you plenty of time to compare options.

Rollover tariffs are the energy equivalent of being charged premium hotel rates for missing your booking confirmation. You’re paying extra for nothing more than not paying attention.

Taking Advantage of Market Fluctuations

Energy prices aren’t static—they go up and down just like stock prices. By reviewing your contract annually, you give yourself the chance to lock in a lower rate when the market dips. It’s a proactive approach that puts your business in control instead of reacting to whatever rate your supplier sets.

For example, the wholesale energy market might see a price drop during warmer months due to reduced heating demands. That could be the perfect window to switch or renegotiate your contract.

Reviewing your energy annually also keeps you updated on green tariffs and sustainability options. As more suppliers introduce renewable plans, you may find a better rate that aligns with your company’s eco goals.

Plus, energy reviews are not just about cost—they’re about performance. Are you with a supplier who gives you accurate billing? Do they offer customer service when you need it? Is there room to reduce your usage through energy efficiency tools? These are questions a review can answer.

Signs It’s Time to Review Your Business Energy

You Haven’t Switched Suppliers in Over a Year

Still with the same energy supplier you signed up with three years ago? It might be costing you—big time. Just like insurance or mobile plans, energy suppliers offer attractive rates to new customers and often let loyal ones foot the bill for it.

The UK’s energy market is highly competitive, with dozens of suppliers constantly adjusting their prices. If you haven’t switched in over a year, there’s a high chance better deals are out there.

Staying loyal to one supplier without reviewing your contract could mean you’re missing out on savings, smarter technologies, or greener tariffs. Plus, switching has become much easier in recent years. The process is now quicker, with minimal paperwork and zero service disruption.

Even if you’re happy with your current provider, checking competitor rates gives you bargaining power. Armed with quotes from other suppliers, you can negotiate better terms or ask for loyalty rewards.

Signs It’s Time to Review Your Business Energy

Your Energy Bills Are Unpredictably High

Have your energy bills become inconsistent or unexpectedly high? That’s often a red flag that it’s time for a review. Price fluctuations might reflect changes in your tariff, supplier surcharges, or even inefficient usage habits. But without a proper review, you might just keep paying blindly month after month.

Unexpectedly high bills could stem from being on a variable rate, which shifts with market conditions. If the wholesale cost of energy increases—even slightly—your monthly bill can jump significantly. Worse, if you’re on a “deemed” contract (usually after a fixed-term deal ends), you’re probably being charged one of the highest rates on the market.

Regular energy reviews help you spot these issues early. They let you analyze your usage, identify trends, and catch billing errors or unnecessary charges. Sometimes, businesses pay for meter readings they never requested or maintenance charges they never agreed to—all hidden in the fine print of outdated contracts.

A proper review, whether done in-house or through an energy broker, will reveal exactly what you’re being charged for, what options are available, and how to restructure your contract for optimal efficiency. Simply reviewing your bill and usage reports quarterly can reduce energy waste and lead to smarter budgeting.

How to Review Your Business Energy Contracts

Understanding Your Current Tariff

Before you switch suppliers or negotiate better rates, you need to know exactly what you’re currently working with. What tariff are you on? Is it fixed or variable? Are there penalties for switching early? These are the kinds of questions that a proper contract review will answer.

Your tariff determines not just the unit price per kWh but also your daily standing charge, contract length, and terms for renewal or termination. Many business owners mistakenly assume they’re on a “competitive” rate because the supplier told them so years ago. But energy prices move fast, and last year’s deal could be this year’s rip-off.

Fixed tariffs offer price stability, which can be a blessing during volatile market conditions. However, if you’re on a variable tariff, your costs fluctuate with the market—great if prices drop, disastrous if they spike. If you don’t know what kind of plan you’re on, you’re effectively gambling with your overhead costs.

A close reading of your energy contract will also show you hidden fees, such as:

Early termination penalties
Rollover clauses
Metering and maintenance costs
Green energy surcharges

Once you know your current setup, you’re in a much stronger position to negotiate, switch, or renegotiate with your existing supplier. Knowledge truly is power when it comes to energy contracts.

Comparing Rates and Suppliers

Once you’ve figured out your current terms, the next logical step is to shop around. Comparison is the single most effective way to reduce energy costs. But here’s the key: don’t just look at unit rates. You need to compare the entire package—standing charges, contract terms, green credentials, and customer service ratings.

You can use online comparison platforms, but they often only show deals from suppliers who pay to be listed. That’s why many businesses prefer working with energy brokers, who access exclusive rates from a broader pool of suppliers and can offer more impartial advice.

When comparing offers, consider these factors:

Unit Rate (p/kWh) – Lower isn’t always better if the standing charge is higher.
Standing Charge – A daily flat fee added to your bill regardless of usage.
Contract Term – Longer contracts offer stability but might lock you in during a market downturn.
Renewable Energy Options – If sustainability matters to your brand, this is worth exploring.
Customer Service – Read reviews and ratings to gauge service reliability.

Here’s a tip: don’t just compare prices—ask for a breakdown of total estimated annual cost. That gives you a clearer idea of what you’ll actually pay, including all fees and charges.

Finally, timing matters. Energy markets fluctuate daily, so even a few weeks’ delay can result in higher rates. Once you find a deal that ticks your boxes, don’t hesitate too long—lock it in before the rates change.

Benefits of Annual Energy Contract Reviews

Saving Money on Your Utility Bills

If there’s one reason to review your business energy annually, it’s this: cost savings. Whether you’re a sole trader running a local shop or managing multiple locations, energy costs can eat into your profits fast. Reviewing your energy plan helps you avoid overpaying and unlock more competitive deals.

Many businesses that review their contracts regularly save hundreds—if not thousands—of pounds each year. That’s not an exaggeration. Just shaving 2p per kilowatt-hour off your current rate could lead to substantial savings, depending on your usage. For high-consumption businesses like manufacturers or hospitality venues, the impact is even more dramatic.

When energy contracts go unchecked, businesses often fall into the trap of:

Paying out-of-contract rates (which are typically 80% higher)
Remaining locked into old, uncompetitive tariffs
Missing out on time-sensitive promotional offers or discounts

An annual review gives you the opportunity to renegotiate or switch to a better deal before you’re stuck with a high-cost contract. It’s about being proactive instead of reactive—think of it like having your accountant review your books, but for your utilities.

Improving Energy Efficiency

Beyond just switching tariffs, reviewing your energy contract also prompts a deeper look at your energy usage. It opens the door to identifying wasteful practices, outdated equipment, or inefficient heating and lighting systems.

Here are just a few ways a contract review can boost your efficiency:

Usage Analysis: Many suppliers or brokers can provide detailed breakdowns of when and how your energy is used.
Smart Meter Installation: These devices offer real-time monitoring and can highlight areas for savings.
Energy Audits: Some brokers offer free or discounted audits, showing where energy is being wasted.
Behavioural Changes: Simply adjusting operating hours or educating staff on usage can make a difference.

Increased efficiency means less consumption, which directly impacts your bills—and it’s better for the planet. You might even find opportunities to install energy-saving solutions, such as LED lighting, motion sensors, or better insulation.

The point is, contract reviews are often the first step in a wider energy strategy that goes beyond just cost-cutting—they improve how your business operates.

Common Mistakes Businesses Make With Energy Contracts

Letting Contracts Auto-Renew

One of the biggest and most costly mistakes businesses make? Doing absolutely nothing. That’s right—just letting your energy contract auto-renew could be costing you big time. Many suppliers rely on customer apathy. When your contract ends, they quietly shift you to a new deal, often at a much higher rate.

Auto-renewals are often set at the supplier’s “default” rate, which is rarely the most competitive. Worse, once the renewal period kicks in, you might be locked in for another 12 months (or more), unable to switch without paying hefty penalties.

This happens because most business energy contracts don’t come with the same switching protections that residential customers enjoy. There’s no mandated cooling-off period. Miss the renewal window, and you’re stuck.

To avoid this trap:

Know your contract end date and set calendar reminders.
Read the small print about auto-renewal policies.
Engage a broker to manage your contract lifecycle and alert you before renewal dates.

Auto-renewals are convenient—but only for the supplier. For your business, they can quietly erode your profits, month after month.

Not Understanding Contract Terms

Let’s be honest: energy contracts are full of jargon. Terms like “pass-through charges,” “unit rates,” “standing charges,” and “non-commodity costs” can confuse even the savviest business owner. But not taking the time to understand your contract can lead to unpleasant surprises down the road.

For example, many business owners don’t realise that their contract includes:

Termination fees for switching early
Volume commitments that penalize you for using too little or too much
Clauses allowing mid-contract price hikes

Another common oversight is not checking whether prices are fixed or variable. A variable tariff might seem appealing when rates are low—but if market prices surge, your business could suddenly face steep monthly bills.

If reading energy contracts gives you a headache, consider this your sign to get help. A good energy broker or consultant can break down your terms in plain English and help you avoid contracts that are designed to trip you up.

Remember: every clause in a contract matters, and ignorance isn’t bliss when your money’s on the line.

Choosing the Right Energy Broker for Your Business

What to Look for in a Trusted Broker

Choosing the right energy broker is just as important as choosing the right supplier. A good broker works for you—not just for the commission. They should offer honest advice, tailored quotes, and full transparency about how they get paid.

Here are some qualities to look for:

Industry Experience: Look for brokers who’ve been in the market for a few years and understand UK regulations and market trends.
Wide Access to Suppliers: The more suppliers they work with, the better your chances of getting a competitive deal.
Transparent Pricing: A trustworthy broker will clearly explain whether they’re paid by commission or charge a flat fee.
Customer Support: Make sure they offer help not just during the switch, but throughout your contract period.
Contract Management Tools: Top brokers offer digital dashboards or alerts that keep you informed of renewal dates and market changes.

Avoid brokers who pressure you into making a quick decision or avoid giving full contract terms. The right partner should make you feel informed, empowered, and in control.

Questions to Ask Before Signing Up

Before you agree to work with a broker, ask them a few key questions:

How do you get paid? – Commission-based brokers are common, but the best ones are upfront about their earnings.
Do you compare the whole market? – Some brokers only show offers from a limited number of suppliers.
What happens after the switch? – Make sure they provide post-sale support in case issues arise.
Can you help with energy efficiency? – Some brokers offer value-added services like usage reports or smart meter installation.
Will I be tied into a contract with you? – You should never be locked into using one broker long-term.

By asking the right questions and doing a bit of research, you’ll find a broker who genuinely has your business’s best interests at heart.

Switching Business Energy Suppliers – Step-by-Step

Step 1: Review Your Current Contract

Before making any move, start by examining your current energy contract. Check for:

End date
Current rates (unit price and standing charge)
Exit fees or termination clauses
Notice period for switching

Most energy suppliers require a 30-day notice before you leave. If you’re within that window, you’re in the “switching zone” and ready to shop around.

Understanding your current deal gives you a benchmark. You’ll know whether the new quotes you receive are truly competitive or not. If you’re unsure how to read your bill or contract, an energy broker can break it down for you.

Step 2: Compare Energy Prices and Tariffs

Now that you know what you’re paying, it’s time to see what else is out there. Use a combination of:

Energy comparison websites
Independent brokers
Supplier websites

Make sure you’re comparing like for like—unit prices, standing charges, and any additional fees. Some tariffs might look cheap at first glance but carry hidden costs or long-term obligations.

Take note of:

Contract length – Short-term flexibility vs. long-term price stability
Green energy options – Especially important if your company has sustainability targets
Billing preferences – Some suppliers offer paperless billing discounts
Customer service scores – Poor support can turn a cheap deal into a nightmare

Pro tip: Always ask for the “total estimated annual cost” instead of just the rate per kWh. That’s the most accurate way to judge which deal is best.

Step 3: Choose a New Supplier and Confirm the Switch

Once you’ve selected the best tariff, the new supplier will handle most of the switching process. You’ll just need to:

Provide a recent meter reading
Sign a new agreement (either digitally or by phone)
Cancel your old contract if it doesn’t switch automatically

Switches usually take around 2-4 weeks, and there’s no disruption to your supply. Your new supplier uses the same wires, pipes, and meters—it’s just the name and rates that change.

Some suppliers even offer transition support, ensuring billing is smooth and there are no surprises.

Sustainable and Green Energy Options for Businesses

Why Go Green?

Sustainability is no longer optional—it’s a competitive advantage. Customers, partners, and even investors are increasingly focused on environmental impact. And with the UK’s target of reaching net zero by 2050, businesses that adopt green practices now are ahead of the curve.

Switching to renewable energy is a powerful move that improves your brand image and often qualifies you for tax breaks, grants, or carbon offset credits.

But sustainability isn’t just about optics—it’s also about resilience. Renewable energy sources like solar, wind, and hydro are less affected by global supply disruptions. By choosing a green tariff, you insulate your business from some of the volatility of fossil fuel markets.

Green Energy Tariffs Explained

Green energy tariffs aren’t always straightforward. Here’s what you need to know:

100% Renewable Tariffs: These use energy from renewable sources like wind, solar, and biomass. The supplier may not send your business that exact power, but they match your usage by purchasing renewable certificates.
Carbon Offset Tariffs: If the energy comes from fossil fuels, the supplier funds offsetting programs like tree planting or methane capture to neutralize emissions.
Self-Generation: Some businesses install solar panels or wind turbines to generate their own power and even sell back the surplus.

While green tariffs were once more expensive, they’ve become more affordable and are often competitively priced with fossil fuel-based plans.

When comparing green tariffs, ask your broker or supplier:

Are these truly 100% renewable or just offset?
Are the sources UK-based or imported?
Do I receive a Renewable Energy Guarantee of Origin (REGO) certificate?

Going green isn’t just a nice thing to do—it’s a smart business decision.

Government Regulations and Support for UK Businesses

Understanding Energy Legislation

The UK government enforces various regulations around energy procurement, usage, and reporting. Understanding these can help you stay compliant and even save money.

Some key regulations include:

Energy Savings Opportunity Scheme (ESOS): Mandatory for large businesses, this requires regular audits and reporting on energy use.
Streamlined Energy and Carbon Reporting (SECR): Certain companies must include energy use and carbon emissions in their annual reports.
Climate Change Agreements (CCAs): These offer tax relief for energy-intensive industries in exchange for efficiency improvements.

Failing to comply with these regulations can result in fines, legal action, or damage to your reputation. But staying informed ensures you’re not caught off guard and can even reveal new financial incentives.

Grants and Incentives for Energy Efficiency

To encourage businesses to reduce carbon emissions, the UK government and local councils offer various grants and schemes. These might cover:

LED lighting upgrades
Solar panel installations
Energy-efficient heating and cooling systems
Smart meters and control systems

Some notable schemes include:

The Energy Technology List (ETL) – Offers tax relief for energy-saving equipment.
Boiler Upgrade Scheme (BUS) – Helps fund the installation of low-carbon heating systems.
Carbon Trust Green Business Fund – Offers advice and support for SMEs on energy efficiency improvements.

Staying updated on these schemes can save you thousands and help modernise your operations.

Conclusion

Have you reviewed your business energy in the last 12 months? If not, you could be missing out on major savings, efficiency gains, and sustainability opportunities. In a volatile energy market, being passive costs you. Being proactive puts you in control—of your costs, your impact, and your future.

From avoiding rollover rates to choosing greener, cheaper tariffs, annual reviews are a must for every smart UK business. Whether you go it alone or work with an energy broker, make energy management a regular part of your business planning.

It’s not just about keeping the lights on. It’s about keeping your business smart, lean, and competitive.

FAQs

1. How often should I review my business energy contract?
At least once a year. Market rates change frequently, and staying on an outdated tariff can cost you significantly.

2. What happens if I don’t switch before my contract ends?
You may be placed on a “deemed” or “out-of-contract” rate, which is typically much higher than negotiated rates.

3. Can small businesses benefit from using an energy broker?
Absolutely. Brokers can often find better deals, simplify the switching process, and offer support tailored to small business needs.

4. Are green energy tariffs more expensive?
Not necessarily. With growing competition and incentives, many renewable tariffs are now on par with traditional ones—and can even save you money.

5. Is there any downtime when switching energy suppliers?
No. The physical infrastructure remains the same. Only the company billing you and the rates change, so your supply is never interrupted.

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