How is business energy different from domestic energy?
Business energy is not protected by the Ofgem domestic price cap. Businesses negotiate rates directly with suppliers, usually on 1-3 year fixed contracts. Business electricity is usually subject to 20% VAT and most businesses also pay the Climate Change Levy.
What is the Climate Change Levy?
The Climate Change Levy is a tax on energy supplied to business and public sector users. It is charged per kWh for electricity and gas, although qualifying renewable electricity tariffs with REGO certificates can be exempt.
When should I renew my business energy contract?
Start comparing deals around 6 months before your contract end date. If you do not renew or switch, many suppliers move businesses onto expensive deemed or out-of-contract rates.