Business gas and electricity fixed rates (UK)
Understand how fixed-rate business energy works, what affects your unit rates, and how to compare whole-of-market options with clear, UK-specific caveats.
- Fixed unit rates for a set term (typically 1–5 years), with standing charges agreed upfront.
- Best for budgeting certainty—less ideal if you expect prices to fall or your usage is unpredictable.
- Get quotes based on your meter type, consumption, payment terms and business credit profile.
Estimates only. Rates and availability vary by meter type, region, usage and credit checks. Early exit fees may apply.
Business gas and electricity fixed rates: the fast answer
A fixed-rate business energy contract locks in your unit rate (p/kWh) for gas and/or electricity for a set period (often 12, 24, 36, 48 or 60 months). Your standing charge is also agreed upfront. You still pay more if you use more energy—but the price per unit stays the same for the term (unless your contract includes specific pass-through items or you change your metering arrangements).
Key point: “Fixed” usually means fixed unit rates, not a fixed monthly bill. Your invoice can still change with usage, VAT, Climate Change Levy (where applicable), and contract-specific pass-through charges.
When fixed rates tend to suit
- Budgeting needs: you want predictable p/kWh pricing.
- Stable operations: usage doesn’t swing wildly month to month.
- You want to avoid market volatility during your term.
When it may not suit
- You may move premises before the term ends.
- You expect energy prices to fall and prefer flexibility.
- You need short-term cover while you change meters or landlord arrangements.
What you’ll need to compare accurately
- Postcode and business name (for eligibility checks).
- Meter details: MPAN (electric) / MPRN (gas) and meter type.
- Estimated annual consumption (kWh) or recent bills.
Compare fixed-rate business energy (whole of market)
Tell us a few details and we’ll match you to available fixed-rate tariffs across business suppliers—then you can choose based on term, unit rate, standing charge and contract terms.
Tip: If you’re unsure of your annual kWh, use your last 2–3 bills (or your smart meter portal) and we can estimate. For multi-site portfolios, ask for a consolidated quote.
How fixed-rate contracts work (UK business)
- What’s fixed?
- Usually the unit rate (p/kWh) and standing charge for the contract term. Some contracts include pass-through elements—always check the quote breakdown.
- What can still change?
- Your bill can change with usage, VAT, Climate Change Levy (if applicable), and certain network or policy charges depending on contract structure.
- How long are terms?
- Common terms are 12–36 months. Longer terms (up to 60 months) can suit stable sites, but may carry higher exit costs if you leave early.
- What happens at the end?
- If you don’t renew, you may roll onto a deemed or out-of-contract rate. Start comparing well before renewal—many businesses begin 60–120 days ahead (supplier windows vary).
Get your fixed-rate quote
No obligation. We’ll use your details to check availability and contact you with options.
If you’re already in contract: We can still help you plan a renewal. Have your contract end date handy to avoid rolling onto out-of-contract rates.
Comparing fixed rates: what to look at (not just p/kWh)
Two quotes can look similar on unit rate but cost differently overall due to standing charges, contract structure, meter type, and how your business uses energy (day vs night usage, seasonal peaks, and maximum demand).
| What you compare | Why it matters | Questions to ask |
|---|---|---|
| Unit rate (p/kWh) | Drives most of the bill for higher-usage sites. | Is it a single rate, day/night (E7), or half-hourly profile? |
| Standing charge (p/day) | Can materially affect low-usage premises and seasonal businesses. | Is the standing charge fixed for the term? Any additional fixed fees? |
| Contract term | Longer terms can mean price certainty but reduce flexibility. | What are the renewal windows and termination notice requirements? |
| Exit fees / termination | Early termination can be expensive if you move or close. | Is it a fixed fee, remaining margin, or a formula? Is moving premises treated differently? |
| Meter type & settlement | Half-hourly (HH) and larger sites have different cost drivers. | Is your electricity HH? Any capacity/DUoS-related considerations? |
| Billing & payment terms | Payment method and credit profile can affect available rates. | Monthly direct debit? Deposit required? What are late payment charges? |
Decision checklist (quick)
- Confirm your meter type (standard, smart, E7, HH) and whether you have multiple MPANs/MPRNs.
- Estimate annual kWh (gas and electricity separately) using bills or a 12‑month view.
- Pick a realistic term: 12–24 months for flexibility; 36+ months for longer budgeting certainty.
- Ask about exit fees and what happens if you move site mid-term.
- Compare total estimated annual cost, not only the headline p/kWh.
Who fixed rates are best for
- SMEs wanting budget certainty and fewer bill surprises from price swings.
- Hospitality, retail and offices with consistent opening patterns.
- Businesses renewing from a variable or deemed contract and wanting to reduce exposure to changes.
Who should consider alternatives
- Short leases or uncertain trading horizons (risk of early termination).
- Sites about to undergo refurbishment or equipment changes that could materially shift usage.
- Complex HH profiles that may benefit from a bespoke procurement strategy rather than a simple fixed rate.
Two realistic examples (with stated assumptions)
Scenario A: small office on single-rate electricity
Assumptions (illustrative): 12-month fixed electricity contract, non-HH meter, monthly billing. Annual usage 12,000 kWh. Standing charge 60p/day. Unit rate 26.0p/kWh. VAT at 20%. (CCL treatment depends on eligibility and fuel; not included in this simplified example.)
| Line item | Estimate |
|---|---|
| Energy (12,000 kWh × £0.26) | £3,120.00 |
| Standing charge (365 × £0.60) | £219.00 |
| Subtotal (ex VAT) | £3,339.00 |
| Estimated total (inc 20% VAT) | £4,006.80 |
Why it matters: on lower usage, the standing charge can be a meaningful share. Comparing quotes on total annual cost helps avoid “cheap unit rate, pricey standing charge” surprises.
Scenario B: café with gas + electricity
Assumptions (illustrative): 24-month fixed for both fuels, monthly billing. Electricity usage 28,000 kWh at 25.0p/kWh, standing charge 75p/day. Gas usage 45,000 kWh at 7.2p/kWh, standing charge 35p/day. VAT at 20%. (CCL and any pass-through items not included in this simplified example.)
| Line item | Estimate (annual) |
|---|---|
| Electricity energy (28,000 × £0.25) | £7,000.00 |
| Electricity standing charge (365 × £0.75) | £273.75 |
| Gas energy (45,000 × £0.072) | £3,240.00 |
| Gas standing charge (365 × £0.35) | £127.75 |
| Subtotal (ex VAT) | £10,641.50 |
| Estimated total (inc 20% VAT) | £12,769.80 |
Why it matters: dual-fuel quotes can simplify admin, but you should still compare each fuel’s unit rate and standing charge. Some businesses prefer separate suppliers if the best-value deal differs by fuel.
Important: These examples are for understanding quote components. Your actual bill can differ due to metering (HH vs non-HH), day/night splits, pass-through items, CCL/VAT treatment, and supplier-specific fees.
Costs, exclusions and common pitfalls (UK)
Fixed-rate contracts are straightforward once you know where businesses are most often caught out. Use the checks below before you agree a deal.
1) Deemed & out-of-contract rates
If you move into a new premises or your contract ends without renewal, you may be placed on a deemed/out-of-contract tariff. These can be significantly higher than negotiated fixed rates.
Do this: start comparing before your end date and confirm your termination/renewal window in writing.
2) Exit fees and moving premises
Leaving early can trigger termination charges. Some suppliers allow a “move with you” process, others treat it as a contract end.
Ask: What is the exit fee calculation? What happens if I relocate within the UK? Are there admin fees?
3) Meter type mismatch (HH, E7, smart)
Quotes depend on your meter and consumption profile. If your site is half-hourly settled, pricing and contract structure can differ.
Do this: confirm MPAN/MPRN and provide recent reads or bills to avoid repricing.
4) Credit checks, deposits and payment terms
Some suppliers may request a deposit or offer different rates depending on credit assessment and payment method (e.g., monthly direct debit vs invoice terms).
Ask: Is a deposit required? Are there fees for paper billing? What are late payment charges?
5) VAT and Climate Change Levy (CCL)
Business energy bills may include VAT and CCL. Eligibility for reduced VAT (e.g., 5%) can depend on usage and business type; CCL treatment varies and exemptions may apply in specific circumstances.
Do this: check your current VAT rate on bills and ask suppliers how CCL is applied for your supply.
6) Pass-through charges and “all-inclusive” wording
Some contracts are fully fixed/all-inclusive; others pass through certain third-party charges. This affects how predictable your bills will be.
Ask: Is this quote all-inclusive? If not, which items are pass-through and how often can they change?
Practical safeguard: before you accept a fixed rate, request a written summary showing unit rates, standing charges, term, payment method, and termination terms. If anything is unclear, pause and ask—business contracts can be less standardised than domestic.
FAQs: fixed business energy rates in the UK
Are business energy prices capped like domestic?
Not in the same way. The domestic price cap relates to household default tariffs. Business energy is typically contract-based, and pricing is set by supplier offers, risk, and your site details.
Can I switch if I’m in a fixed contract?
You can usually secure a renewal to start when your current contract ends, but leaving mid-term may trigger exit fees. Always check your contract’s termination clause and notice period.
What’s the difference between fixed, variable and deemed rates?
Fixed locks unit rates for a term. Variable can change (often with market conditions). Deemed applies when you take over a supply without agreeing a contract—often higher and intended as temporary cover.
Do I need my MPAN/MPRN to get a quote?
It helps, especially for accuracy. Many quotes can start with postcode and usage, but final pricing may require MPAN/MPRN and meter details to avoid repricing.
Does having a smart meter reduce my unit rate?
Not automatically. Smart metering can improve billing accuracy and data visibility. Pricing is driven more by consumption, profile, region, credit checks and supplier risk appetite.
What if my business is home-based?
It depends on whether your supply is classed as domestic or business and how the premises is metered. If you’re on a domestic meter but trading from home, suppliers may still treat it as domestic—always confirm with your provider.
Can I get a fixed rate for multiple sites?
Yes. Multi-site pricing can be arranged, but it typically requires MPAN/MPRN lists and annual kWh by site. Some suppliers can align contract dates; others price per site.
How far in advance can I renew a fixed contract?
Renewal windows vary by supplier and contract, but many businesses start comparing 2–4 months before end date. If you renew too early, you may be quoted with a longer lead time or different terms.
Trust, methodology and sources
Editorial details
- Written by: EnergyPlus Editorial Team
- Reviewed by: Energy Specialist
- Last updated: June 2026
How we assess fixed-rate business energy
This guide focuses on what materially changes your quote and contract outcomes in the UK. When we describe “best for” scenarios, we weigh:
- Total cost drivers: unit rate + standing charge, and contract structure (all-inclusive vs pass-through).
- Risk factors: exit fees, term length, relocation risk, credit/deposit requirements.
- Operational fit: meter type (HH/non-HH), day/night usage patterns, multi-site complexity.
- UK compliance context: consumer protections differ for microbusinesses vs larger firms.
Assumptions & limitations (read this)
- Examples are illustrative estimates using simplified bill components.
- Actual bills may include CCL, differing VAT treatment, and meter/profile-specific charges.
- Supplier pricing changes frequently and may depend on credit checks, payment method, and contract start date.
- Some businesses are classed as microbusinesses and may have additional protections; eligibility depends on criteria set by regulators and suppliers.
Independent UK sources
- Ofgem guidance and updates (UK energy regulator)
- Citizens Advice: business and consumer energy help
- GOV.UK: Climate Change Levy collection
Transparency: EnergyPlus is a whole-of-market comparison service. Quote availability and rates depend on supplier participation, your business details and supplier underwriting. We don’t promise the cheapest rate for every business—our aim is to help you make a well-informed choice.
Ready to secure a fixed business energy rate?
Get whole-of-market fixed-rate options based on your meter type and usage—then choose a term that fits your business.
Reminder: If your contract end date is close, act early to avoid rolling onto out-of-contract rates. Exit fees may apply for early termination.
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