Business energy self-help guide
How to review your business energy contract step by step
A practical process for gathering the right information, comparing the complete cost and checking the terms before your business agrees its next electricity or gas contract.
Before you begin
This guide is designed to help a business owner carry out an organised first review. It does not recommend a particular supplier or contract, and the lowest headline unit rate is not always the lowest overall cost.
Useful principle: use the same consumption figure and assumptions for every option. Otherwise, the totals are not genuinely comparable.
Free downloadable guide
Take the complete review workbook with you.
Get the comprehensive 13-page PDF with printable checklists, comparison tables, a contract decision record and an action plan. Enter your details in the secure HubSpot form and the guide will open immediately.
SME Sorted can also help you work through the review free of charge.
50-second overview
Five checks before you compare a business energy contract
Watch this short overview first, then use the detailed steps below to carry out each check properly.
Read the video transcript
- Business energy is about more than the headline rate. A fair comparison starts with the complete picture.
- Find your contract end date and check whether you must give notice.
- Gather recent bills and record your annual energy use in kilowatt-hours.
- Compare unit rates, standing charges and the full estimated annual cost.
- Check the contract length, extra charges and how any broker is paid.
- Read the principal terms carefully before you agree, and keep a copy.
- SME Sorted can review your options free of charge if you prefer a second pair of eyes.
Preparation
Gather one reliable set of information
Set aside the information below before requesting or comparing prices. Recent bills usually provide most of what you need.
- Your current electricity and gas contract, if available
- Recent bills—ideally covering the last 12 months
- The contract end date and any notice requirements
- Your MPAN for electricity and MPRN for gas
- Details of planned changes to premises, equipment or opening hours
- A signed lease for the business premises
A signed lease is required before SME Sorted can arrange a business energy review.
Current position
Confirm your dates and contract status
Find the contract end date, any notice conditions and what happens when the current agreement ends. Ask your existing supplier to confirm these points in writing if the contract or bill is unclear.
When does it end?
Record the exact contract end date—not just the month.
What happens next?
Check whether out-of-contract, variable, deemed or rollover terms could apply.
Is notice required?
Record any notice method, address and deadline stated in the contract.
Do not leave this until the final bill. Business energy contracts may have different renewal and termination rules from household energy agreements.
Consumption
Measure what your business actually uses
Record annual consumption in kilowatt-hours rather than relying only on annual spend. Spend reflects the prices you currently pay; kWh describes the energy used.
Usually shown on the electricity bill as the supply number.
Usually shown on the gas bill as the meter point reference.
Use a consistent annual figure for each option.
Where possible, review a full year. Seasonal businesses in Devon and Cornwall may have very different summer and winter consumption, so one quiet month can give a misleading picture.
Forecast
Allow for changes in the business
Last year is a starting point, not necessarily a forecast. Write down any changes that could materially affect consumption during the proposed contract term:
- Different opening hours or seasonal trading patterns
- New machinery, refrigeration, heating or electric vehicles
- Extra premises, a planned move or part of the building becoming vacant
- Energy-efficiency work, solar generation or other operational changes
Keep the forecast realistic and record your assumptions so you can explain why the figure differs from the previous year.
Price comparison
Compare the complete annual cost
Convert each proposal into a consistent estimated annual cost. Do not compare one option using monthly spend and another using annual kWh.
Annual kWh × unit rate + annual standing charges + other stated charges = estimated annual cost
| Comparison item | What to record |
|---|---|
| Annual consumption | Use the same kWh figure for every comparison. |
| Unit rate | Record the pence-per-kWh rate for every applicable time band. |
| Standing charge | Convert the daily charge into an annual figure. |
| Contract term | Compare start date, end date and total commitment. |
| Other charges | Check metering, capacity, administration and pass-through costs. |
| Broker payment | Ask how the broker is paid and how that cost is reflected. |
| Price certainty | Identify which elements are fixed and which may change. |
Check whether figures include or exclude VAT and the Climate Change Levy, and use the same basis throughout.
Commitment
Compare the contract—not just the price
A slightly lower estimate may not be the better option if it creates an unsuitable term or transfers costs you expected to be fixed. Ask the same questions about every proposal:
Which prices are genuinely fixed?
Identify any elements that can change during the term, including pass-through charges and taxes.
How long is the commitment?
Confirm the start date, end date, minimum term and any consequences of leaving early or moving premises.
How is the broker or intermediary paid?
Ask for the fee or commission arrangement to be explained and how it affects the price you pay.
What happens if circumstances change?
Check the provisions for a change of tenancy, business closure, meter change or materially different consumption.
Final check
Pause before agreeing
Use this final checklist before signing a document or accepting an agreement verbally:
- The legal business name and supply address are correct.
- The MPAN or MPRN matches the correct premises and meter.
- The contract start date, end date and term are clear.
- You understand every unit rate, standing charge and additional charge.
- Any broker fee or commission has been explained.
- You know whether prices are fully fixed, partially fixed or variable.
- You have read the principal terms before agreeing.
- You have kept a copy of the quote, terms and acceptance record.
Prefer some help?
SME Sorted can review the options with you.
Share a recent bill and your contract timing. SME Sorted can help you understand the information and present up to three suitable options where available. The review is free and there is no obligation to proceed.
Nothing is switched without your agreement. SME Sorted may receive a commission from a provider if you choose to proceed.
Useful official information
- Ofgem: energy advice for businesses
- Ofgem: getting a business energy contract
- GOV.UK: Climate Change Levy rates
This guide provides general information, not legal, financial or energy-market advice. Supplier availability, prices and contract terms depend on the business, premises, usage and market conditions.