Why has my business energy price risen at renewal?
Renewal prices follow the wholesale market and network costs on the day you renew, not what you paid before. If you did nothing, you may also have been rolled onto a dearer rollover or out-of-contract rate. Compare alternatives before the fixed term ends.
Business energy has no price cap. Your new price is whatever the supplier or market offers on the day, so a rise can happen even if your usage hasn't changed.
The usual reasons
- The market has moved. Your old fixed rate reflected prices when you signed. A new one reflects prices today.
- Network and policy costs. Supplier TotalEnergies said 2026/27 transmission network charges (TNUoS), which apply from April 2026, were about 60% higher than the previous year's, and these feed into business electricity prices. See non-commodity charges explained.
- You were rolled over or moved to a default rate. Ofgem says out-of-contract and deemed rates are usually dearer than fixed-term deals.
- Your risk profile changed. Lower usage, a poor credit check or a shorter term can all affect the price.
- A broker or sales uplift. Check the third-party costs in the Principal Terms.
How big can the gap be?
For context, DESNZ reported a Q2 2026 non-domestic average of 24.51p per kWh for electricity and 5.28p for gas (including Climate Change Levy). Moneysupermarket's October 2026 snapshot, a comparison site and so indicative only, put average microbusiness fixed electricity at 28.4p and out-of-contract at 40.0p.
Example: a business using 30,000 kWh a year pays 30,000 × (£0.400 − £0.284) = 30,000 × £0.116 = £3,480 more if it drifts onto out-of-contract rates. Try our out-of-contract cost calculator.
What suppliers must tell you
Microbusinesses must receive clear information on renewal prices before the contract ends. A supplier may roll a fixed term over for no more than 12 months, and only if the renewal information rules are met and you haven't given notice to stop it. Read more about rollover contracts.
What to do now
- Find your end date and the renewal letter. See finding your contract end date.
- Get at least two other quotes, including one direct.
- Ask your current supplier to beat them; see negotiating with your supplier.
- If on out-of-contract rates, switch: there is no termination fee.
Start looking as soon as your renewal letter arrives. Ask each supplier how far ahead of your end date it will quote, so you aren't forced to take whatever is offered at the last minute.
Fixed or flexible: does it change the answer?
Fixed contracts lock in a price, so the rise shows at renewal. On flexible or tracker deals, prices move within the term. If renewal shock hurts your budget, ask about shorter or staggered terms, and read about fixed vs flexible contracts. No option removes market risk completely.
Check the renewal letter itself
The letter should show the new unit rate, standing charge, contract length and end date, and any broker cost. Compare each with your old contract line by line, because a modest unit-rate rise can be paired with a bigger standing-charge increase. Add the two for a year using your own kWh, and use that annual total to judge the offer.
Next steps
Read our wider guide to business energy renewals.
Sources
General information only. Energy prices, rules and supplier terms change; check the latest position with your supplier, Ofgem or the Energy Ombudsman before you act.