Can I negotiate with my current business energy supplier?

What you can and cannot negotiate

Part of your bill is the supplier's own margin and contract terms. Other parts, such as network charges and levies, are passed on and fixed by others (see non-commodity charges). Realistically you can push on:

• the unit rate and standing charge;
• contract length;
• payment method and any security deposit;
• whether charges are fixed or pass-through;
• exit and late-payment terms.

How to approach it

1. Get your numbers. Last 12 months' usage and your current rates from the bill (how to read your bill).
2. Collect two or three competing quotes for the same usage and term.
3. Ask for the renewal quote early. Contract renewals follow a set process, covered in business energy renewals.
4. Ask directly whether they can improve it, then compare like-for-like, including standing charges and any broker commission.

Worked example

A shop uses 30,000 kWh a year. The supplier offers 27p/kWh; a rival quote is 25.5p/kWh. Difference per unit: 27 − 25.5 = 1.5p. Over a year: 30,000 × £0.015 = £450 before VAT. If the supplier matches the rival, you save that without switching; if it won't, the rival is worth £450 a year to you, minus any change in standing charge. Always compare the whole year's cost, not just the unit rate. Try the business energy cost calculator.

Timing matters

Your leverage is greatest while you are in or just reaching the renewal window. Once you are rolled onto an out-of-contract or deemed rate you have no exit fee, but those rates are usually dearer (indicative figures from a comparison site in October 2026 showed out-of-contract electricity at around 40p/kWh against around 28p/kWh on average micro-business fixed rates; Moneysupermarket Business, 21 Oct 2026). Do not drift: see what happens if you don’t renew.

If you use a broker

A broker's fee is built into your rates and must be shown in your contract's principal terms. Ask what your broker is paid: how to find out.

Negotiate in writing or follow up by email, so any improved price is documented before you sign. There is no cooling-off period on business contracts.

When to walk away

If the incumbent will not match a competitor's total cost, switch. The old supplier cannot stop a switch when your contract has ended and nothing is owed (see how to switch).

What not to expect

Suppliers are not obliged to match a rival, and offers made by phone are only as good as the written quote. Rates also move with wholesale markets, so an offer may expire within days. Read the terms in contract terms to check before accepting.

Next steps

1. Diary your contract end date.
2. Obtain competing quotes.
3. Ask your supplier to beat them; accept the best total cost.