Business energy rates vs. household energy rates
The difference between business energy and domestic energy mainly comes down to the way you find deals. However, there are differences in terms of contract details, lengths and the overall cost to consider as well.
What’s the difference between business energy and domestic energy contracts?
| Domestic energy | Business energy | |
|---|---|---|
| Cost | Could be either fixed or variable depending on the type of deal. Usually high because of energy market volatility | Could be either fixed or variable. Usually lower unit rates because business energy suppliers bulk-buy the energy in advance |
| Contract length | Usually between 12 and 24 months | Usually around five years |
| Sign-up process | Comparison is made easy through price comparison websites which show all current deals available | Suppliers offer bespoke quotes based on each business which means there isn't an easy comparison service available. Many businesses use energy brokers to do the legwork on their behalf |
| Dual fuel | Dual fuel deals are widely available and commonly signed up to | Dual fuel deals aren't offered for businesses, meaning they have to take out separate gas and electricity contracts |
| Exit fees | Usually around £50 per fuel on a fixed deal but not usually payable for variable tariffs | Exit fees are not available on business energy contracts, meaning businesses are locked in to their contracts until they end |
| Cooling-off periods | 14 days | No cooling-off periods |
How does comparing business energy differ from comparing domestic energy?
There are various differences you must be aware of when looking to compare business versus domestic energy tariffs. From rates to contract lengths to whether you need a dual fuel deal, business and domestic energy tariffs can often vary a lot from one another.
One major difference is that you cannot enter a business energy contract online. Whilst domestic energy contracts can be entered and left relatively easily and usually online, business energy contracts require a little more work.
Because energy companies require more information from you before they are able to provide your business with an accurate quote, it’s unlikely you’ll be able to switch business energy supplier online.
Instead, you’ll need to contact an energy supplier and provide them with details regarding your business. This includes:
- How much energy you use
- What time of day or night your business functions
- The industry your business is a part of
- Your business location
- How many sites you require energy for.
It’s also worth noting that business users can take advantage of longer contract lengths and the possibility of discounted energy rates but, unlike with domestic deals, commercial energy contracts don’t offer dual fuel options, so you’ll need to arrange separate gas and electricity contracts.
As businesses generally use more energy, they are granted greater choice over the intricacies of their deals. This gives business owners plenty of scope to find the perfect energy deal for their requirements. It also makes finding the best deal a little more difficult. That’s why we recommend using our expert guidance when switching business energy supplier.
How to switch business energy supplier
As mentioned, switching business energy supplier can be slightly more complicated than changing domestic energy contracts. Firstly, you can only switch to a new business energy supplier when your contract with your existing contract is at an end. Therefore, you should only begin to look for a new business energy supplier if you have entered what is referred to as the ‘contract renewal window’.
This period usually begins three to six months before the end of your current contract. If you are in this window then you can begin to look at getting a new deal.
How Uswitch business energy comparison works
Your comparison is free.
If you decide to switch, we’ll be paid a commission by the new supplier that is included in the prices we quote.
We find your details
Just enter your business address and we'll use industry data to accurately find and understand your energy usage.
We talk through your quotes
One of our UK-based experts will search our supplier panel and give you a call to talk you through the results on screen.
You choose the deal you want
With all the information to hand, you choose the deal that best suits your business and we'll handle the switch for you.
Compare UK business energy suppliers with Uswitchforbusiness
Compare prices from trusted UK business energy suppliers and get your next business energy deal in minutes.
By clicking ‘Compare business tariffs', you agree for us to search your current energy supplier and usage through industry-held data.
