Business energy comparison: how it works, what a quote contains and where it falls short

Why business comparison is different

For households, Ofgem's price cap sets a ceiling and you can see the same tariffs everywhere. Businesses have no price cap and no cooling-off period once you agree a contract, and prices are often quoted individually for your site, so there is no single public list of prices to look up. You get a quote, and the quote has a short life, sometimes a matter of hours, because wholesale prices move.

Most businesses end up comparing in one of three ways. Our page on broker vs going direct vs a comparison site weighs them up. Here we focus on how the comparison itself works.

How comparison sites and panels work

A business comparison site asks for your postcode, usage and current supplier, then shows prices from the suppliers it works with. Ofgem points out two things to check: which suppliers are included, and whether the site is paid commission by suppliers. A site can be useful and free to you while still being paid by the supplier you choose, in which case the commission is built into your rates. See is comparing business energy free and how comparison sites choose suppliers.

A "panel" is the list of suppliers a broker or site has agreements with. Even a large panel is not the whole market. Some suppliers do not sell through intermediaries at all, and some only offer certain products direct. So a comparison is a comparison of that panel, not of every offer in the UK.

What you need to get a proper quote

• Your MPAN (electricity) and MPRN (gas), found on your bill. See find your MPAN and MPRN.
• Your annual usage in kWh, ideally from the last 12 months of bills.
• Your contract end date and current supplier.
• Your meter type, and whether you want day and night rates.
• Your business type and, for credit checks, company details.

Without these a site can only show estimated prices. See what information you need to compare and business energy quotes.

What a quote should contain

Item	Why it matters
Unit rate (p/kWh)	Charged on every kWh you use
Standing charge (p/day)	Charged even when you use nothing
Contract length and end date	Defines when you can leave without a fee
Fixed or pass-through charges	Network and policy costs may move during the term
Broker fee	Must be shown in the Principal Terms
Exit and renewal terms	What happens when it ends, and any termination fee

Ofgem rules mean broker costs must be shown in the Principal Terms of the contract: from 1 October 2022 for microbusinesses and from 1 October 2024 for all non-domestic contracts. For microbusinesses, the cost has to be given as a total in pounds and pence for the whole term (estimates are allowed). Read broker commission for what to look for.

Worked example: the cheapest rate is not always the cheapest quote

Imagine two quotes for a small shop. Rates are made up for illustration.

Annual usage	Quote A (27p + 60p/day)	Quote B (25p + 120p/day)
8,000 kWh	2,160 + 219 = £2,379	2,000 + 438 = £2,438
12,000 kWh	3,240 + 219 = £3,459	3,000 + 438 = £3,438

(8,000 × 0.27 = £2,160; 365 × 0.60 = £219; 8,000 × 0.25 = £2,000; 365 × 1.20 = £438.) At 8,000 kWh quote A wins by £59; at 12,000 kWh quote B wins by £21. Quote B has the lower unit rate, yet on low usage it costs more. Always run the numbers on your own usage with our business energy cost calculator.

How to compare fairly

1. Same assumptions: same usage, contract length and start date in every quote.
2. Total annual cost, not unit rate alone.
3. Check tax treatment: VAT is 20% on most business use, but 5% on small amounts and qualifying non-business use. Climate Change Levy is 0.801p/kWh from 1 April 2026. Quotes may show prices with or without these. Use the VAT and CCL calculator.
4. Ask what is in the price: broker fees, any uplift, any pass-through items.
5. Get one direct quote from your current supplier and from a supplier of your choice. Ofgem notes your current supplier may offer the best option.
6. Read the terms before agreeing. A phone agreement can be binding, and there is no cooling-off period. See is a phone agreement binding.

Tip: Ask any intermediary which suppliers it will approach, how many offers it will give you and how it is paid. Ofgem recommends exactly these questions.

For context: typical prices

DESNZ's September 2026 Quarterly Energy Prices put the non-domestic average for April to June 2026 at 24.51p/kWh for electricity and 5.28p/kWh for gas, including CCL. A Moneysupermarket Business page dated 21 October 2026 listed average fixed micro-business prices of 28.4p/kWh plus 58.0p/day for electricity and 8.8p/kWh plus 44.9p/day for gas (it describes itself as indicative). Your quote could differ sharply. See business electricity prices per kWh.

Comparing gas and electricity together or separately

Some suppliers offer a discount or a single bill if you take both fuels; others are only competitive on one. A dual-fuel deal is worth having only if the combined annual cost is lower than the best electricity quote plus the best gas quote taken separately. Remember that your microbusiness status is assessed fuel by fuel, so splitting the fuels does not cost you protections.

Worked example: one supplier or two?

A café uses 15,000 kWh of electricity and 25,000 kWh of gas a year (all figures invented for the method).

• Dual-fuel quote: electricity 26.5p + 60p/day, gas 7.0p + 40p/day. Electricity 15,000 × £0.265 + 365 × £0.60 = £3,975 + £219 = £4,194. Gas 25,000 × £0.07 + 365 × £0.40 = £1,750 + £146 = £1,896. Total £6,090.
• Separate quotes: electricity 25.8p + 65p/day from one supplier = £3,870 + £237.25 = £4,107.25; gas 7.2p + 30p/day from another = £1,800 + £109.50 = £1,909.50. Total £6,016.75.

Splitting saves £73.25 a year here, but you would then have two contracts, two end dates and two renewal windows to watch. Whether £73 is worth that is your call; the point is to see the number before deciding.

A note on when to compare

Because quotes reflect wholesale prices on the day, the same site can get noticeably different prices a few weeks apart. Start gathering quotes well before your end date so you are not forced to accept whatever is on offer in the last week, and check how early your current contract lets you agree the next one.

Limits of comparison

• Quotes expire quickly.
• Some suppliers will not quote high-risk or poorly rated credit profiles, or demand a deposit. See credit checks.
• You cannot always compare while in contract. See can I compare while in contract.
• Service quality is not captured by price. See how to judge a supplier.

Next steps

• Find your end date and usage, then request quotes in the same format.
• Switch when you are ready: how to switch business energy supplier.