With over 50 commercial energy suppliers in the UK market, choosing the right tariff for your business can be overwhelming. This guide breaks down the different types of business energy contracts to help you make an informed decision.
Fixed vs. Variable Tariffs
Fixed-rate tariffs provide price certainty for 1-5 years, while variable tariffs can fluctuate with the market. In 2025, 68% of UK businesses opt for fixed tariffs to budget effectively.
Deemed Rates
If you move into new premises without agreeing to a contract, you'll be placed on 'deemed rates' which are typically 80% higher than negotiated rates. Always ensure you have an active contract.
Multi-Site Contracts
Businesses with multiple locations can benefit from consolidated billing and aligned contract end dates, potentially saving up to 30% on administrative costs.
Renewable Energy Options
Green tariffs now account for 42% of all commercial energy contracts. These not only reduce your carbon footprint but can also enhance your brand's sustainability credentials.
Peak/Off-Peak Rates
Time-of-use tariffs can benefit businesses that can shift energy-intensive operations to off-peak hours, with potential savings of 15-20%.
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