Question 1

What is business energy comparison?

Accepted Answer

Business energy comparison involves reviewing commercial electricity and gas contracts from multiple suppliers to identify options that may be more competitive than your current arrangement. Unlike domestic comparison, commercial quotes are provided individually based on your consumption data, contract history and credit profile.

Question 2

How does commercial electricity pricing work?

Accepted Answer

Commercial electricity prices are made up of several components including the unit rate, standing charge, capacity charges, distribution use of system charges, transmission charges, VAT and the Climate Change Levy. The unit rate is the most visible element but the other components can have a significant impact on your total bill.

Question 3

What affects commercial gas prices for businesses?

Accepted Answer

Commercial gas prices are influenced by wholesale market conditions, your annual consumption, your credit profile, the length of contract you choose, your geographic location and the supplier's own pricing strategy. Prices can vary considerably between suppliers for the same business.

Question 4

When should I start reviewing my business energy contract renewal?

Accepted Answer

Most commercial energy contracts include a renewal window, typically between three and six months before the end date. Starting your review within this window gives you time to gather quotes, compare options and switch if appropriate without being rushed. Leaving it too late can result in rolling onto a deemed or out-of-contract rate, which is often significantly higher.

Question 5

Can I switch business energy suppliers mid-contract?

Accepted Answer

Switching mid-contract is generally possible but usually involves an exit fee. The size of the fee depends on your contract terms and how much of the contract remains. In some cases the savings available from switching may outweigh the exit cost, but this needs to be assessed on a case-by-case basis.

Question 6

Which suppliers are available for commercial energy in the UK?

Accepted Answer

The UK commercial energy market includes a range of suppliers from large established companies to smaller independent providers. The suppliers available to your business will depend on your consumption level, location and credit profile. Not all suppliers quote for all types of commercial customer.

Question 7

What is a half-hourly electricity meter?

Accepted Answer

A half-hourly meter records your electricity consumption in 30-minute intervals and transmits this data automatically to your supplier. Businesses with a maximum demand above 100 kW are required to have a half-hourly meter. The procurement process for half-hourly customers differs from standard commercial procurement and typically involves a more detailed tender process.

Question 8

How does multi-site energy management work?

Accepted Answer

Multi-site energy management involves coordinating the electricity and gas contracts across all of a business's premises. This can include aligning contract end dates, managing renewals across the portfolio, consolidating reporting and working with suppliers who can accommodate national accounts. The complexity increases with the number of sites and the diversity of energy profiles across the portfolio.

Question 9

What contract lengths are available for commercial energy?

Accepted Answer

Commercial energy contracts are typically available for one, two, three, four or five years. Longer contracts can provide price certainty but reduce flexibility. Shorter contracts allow more frequent reviews but may carry higher unit rates depending on market conditions at the time of renewal.

Question 10

What is energy procurement for businesses?

Accepted Answer

Energy procurement refers to the process of sourcing and securing commercial electricity and gas contracts. This can range from a straightforward like-for-like renewal to a structured tender process involving multiple suppliers, detailed consumption analysis and a defined procurement strategy aligned to the business's risk appetite and budget requirements.

Question 11

Does Free Energy Help support businesses across all UK regions?

Accepted Answer

Yes. Free Energy Help supports commercial customers across England, Scotland and Wales. This includes businesses in major cities, regional towns, rural areas and industrial locations. The commercial energy market operates nationally and suppliers quote for businesses across the UK, though local distribution charges can vary by region.

Question 12

What guides are available in the Knowledge Centre?

Accepted Answer

The Free Energy Help Knowledge Centre contains plain-English guides covering topics including MPAN and MPRN numbers, standing charges, half-hourly meters, capacity charges, kVA and maximum demand, VAT on business energy, the Climate Change Levy, letters of authority, fixed versus flexible contracts and how to read a commercial energy bill.

Question 13

Does Free Energy Help support specific industries?

Accepted Answer

Yes. We have experience supporting businesses across a wide range of sectors including manufacturing, engineering, warehousing, distribution, hospitality, hotels, restaurants, retail, care homes, property management, professional services, education, healthcare, construction, food production and agriculture. Energy requirements vary significantly by sector and we aim to understand the specific context of each business we work with.

Question 14

What does a business energy consultant do?

Accepted Answer

A business energy consultant helps commercial customers navigate the energy market. This can include gathering consumption data, approaching suppliers for quotes, explaining contract terms, managing the switching process and providing ongoing support during the contract term. An independent consultant is not tied to any single supplier and should present options based on what appears suitable for the customer.

Question 15

How do I check if my commercial energy invoices are correct?

Accepted Answer

Checking commercial energy invoices involves verifying that the unit rates and standing charges match your contract, that the consumption figures are based on actual rather than estimated reads, that VAT is applied at the correct rate and that any additional charges such as capacity charges or Climate Change Levy are correctly calculated. Errors on commercial invoices are not uncommon and can result in significant overcharges if left unchecked.

Question 16

What is electricity capacity and why does it matter?

Accepted Answer

Electricity capacity refers to the maximum amount of electricity your site can draw from the grid at any one time, measured in kVA or kW. Your capacity is set by your Distribution Network Operator and determines the size of your connection. If your business exceeds its agreed capacity, you may incur excess capacity charges. Reviewing your capacity can sometimes identify opportunities to reduce costs if your agreed capacity is higher than your actual maximum demand.

Question 17

What is an MPAN and why do I need it?

Accepted Answer

An MPAN, or Meter Point Administration Number, is a unique 21-digit reference number that identifies your electricity supply point. Every commercial electricity meter in the UK has an MPAN. You will need your MPAN when requesting quotes from suppliers, switching supplier or raising queries about your electricity supply. It can usually be found on your current electricity invoice.

Question 18

What is an MPRN and where do I find it?

Accepted Answer

An MPRN, or Meter Point Reference Number, is the equivalent reference number for gas supply points. It is a unique identifier for your gas meter and is required when obtaining gas quotes, switching gas supplier or contacting your gas transporter. Your MPRN can usually be found on your current gas invoice or by contacting your current supplier.

Question 19

How does VAT apply to business energy?

Accepted Answer

Most commercial electricity and gas supplies are subject to VAT at the standard rate of 20 percent. However, businesses that use energy predominantly for non-business purposes, or that have relatively low consumption, may be eligible to pay VAT at the reduced rate of 5 percent. Eligibility depends on the specific circumstances of the business and the nature of its energy use. This is a general overview and not tax advice.

Question 20

What is the Climate Change Levy and does my business pay it?

Accepted Answer

The Climate Change Levy is a tax on energy used by businesses in the UK. It applies to electricity and gas used for business purposes and appears as a separate line item on commercial energy invoices. Some businesses may be eligible for an exemption or reduced rate, for example if they hold a Climate Change Agreement or use energy from certain renewable sources. This is a general overview and not tax advice.

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