How to set up energy for a new business

The short version

When you take over premises and say nothing to anyone, the supplier already serving the building will normally carry on supplying you. That is called a deemed contract, and the rates are usually far higher than a proper fixed deal. The cure is simple: choose a supplier and agree a contract before you move in, or within days of moving in at the very latest.

Nothing here requires a broker or a special form. It does require a little preparation, because you need a few numbers from the building before any supplier can quote.

What you need before anyone can quote

Suppliers price a site from its meter identifiers and expected use. Gather these first:

• The meter numbers. Electricity has a long identifier called an MPAN; gas has an MPRN. If you cannot see a bill, here is how to find them.
• Expected annual use in kWh. If the site has history, the old supplier or landlord may know it. If it is new, estimate from similar premises.
• Your start date (the day you get the keys or the lease starts).
• Your business details: legal name, company number if you have one, trading address and a contact.
• Proof of occupancy, because the supplier has to be satisfied that you are the new occupier.

Suppliers set their own evidence requirements, so ask yours what it accepts. As examples, Citizens Advice suggests a letter from your landlord, confirmation from the solicitor or agent handling the move, a business rates statement, or a mortgage completion letter if you bought, according to Citizens Advice.

Day-by-day plan

Before you sign the lease

Check whether energy is included in the rent or service charge. In some multi-let buildings the landlord buys the energy and passes it on, which changes everything below. Ask who supplies the building now, and whether the supply was disconnected, since reconnection can carry a fee. If you cannot tell who the current supplier is, this guide explains how to find out.

Two to four weeks before the start date

Ask for quotes for electricity and gas. You can approach suppliers directly, use a comparison service or use a broker. Always ask what a quote does and does not include, and whether any broker fee is shown. Our quotes checklist covers the questions worth asking.

Start date

Photograph both meters with a visible date, even if they are smart meters. Send the readings to your new supplier. If the meter has an old, much higher reading than expected, you want proof of the day you started paying.

First month

Check that your first bill starts on the right date and uses your readings, not an estimate. Diary the contract end date now; renewal is where many small firms get caught. See business energy renewals.

What a deemed contract costs you

Indicative figures from Moneysupermarket Business (21 October 2026) put average fixed rates for a microbusiness at 28.4p/kWh plus 58.0p a day standing charge for electricity, and out-of-contract rates at 40.0p/kWh plus 254.0p a day. That publisher's page has some internal inconsistencies, so treat it as a guide, not a quote.

Worked example: a café using 15,000 kWh of electricity a year (all figures before VAT and levies).

	Unit cost	Standing charge	Annual total
Fixed deal	15,000 × £0.284 = £4,260.00	365 × £0.58 = £211.70	£4,471.70
Out-of-contract rate	15,000 × £0.40 = £6,000.00	365 × £2.54 = £927.10	£6,927.10

The gap is £2,455.40 a year, or roughly £204.62 for every month you stay on the default rates. Even a few weeks of delay is a real cost for a tiny business. Our out-of-contract cost calculator lets you try your own numbers.

There is no cooling-off period on business energy contracts, so read the price, term and any exit charges before you agree, including by phone.

If you did not sort it in time

You are not trapped. A deemed contract carries no termination fee, and you can choose a supplier at any point, as Ofgem confirms. Our guide on getting off deemed rates shows the steps. If you are a microbusiness, the supplier cannot require notice to leave an out-of-contract deal.

Do you need a business contract at all?

Yes if you use the premises to trade. A domestic tariff is for homes. If you only run a small operation from your house, see whether you need business energy when working from home. Also check whether you count as a microbusiness, because that unlocks extra protections.

A day-one checklist

Task	Electricity	Gas
Meter point number	MPAN (on old bills or from the landlord)	MPRN (on old bills or from the landlord)
Meter serial number	Printed on the meter	Printed on the meter
Opening reading	Dated photo on day one	Dated photo on day one; note whether it reads cubic metres or cubic feet
Supplier told	Date of call or email, and reference	Date of call or email, and reference
Contract agreed	Start date, end date, unit rate, standing charge	Start date, end date, unit rate, standing charge

If you take over from a previous occupier, also ask them or the landlord for the date they moved out, so any gap between occupiers is clear. Keep this table with your lease. If a first bill arrives with the wrong start date or an estimated opening reading, you have everything you need to get it corrected quickly.

New-build or no meter?

If the building has never had a supply, or the meter was removed, you need a connection first. That is a different process with its own lead times; read our guide to new business energy connections and start early.

Next steps

1. Ask the landlord or agent for the MPAN, MPRN and the current supplier.
2. Get at least two electricity and gas quotes at least two weeks before the start date.
3. Agree a contract that starts on your first day.
4. Photograph both meters on day one and send readings.
5. Note the contract end date and set a reminder well ahead.

Biz Energy is independent and takes no commission from any supplier or broker.