Skip to main content

How To Compare Microbusiness Energy Rates

With escalating energy bills affecting UK businesses and their running costs, business owners should save where they can. The microbusiness and other small business sectors make up a large percentage of gas and electricity business users in the UK.

Finding the right business energy suppliers can make microbusiness contracts more affordable for small businesses. This, in turn, favourably affects their bottom lines. But, how do you go about comparing small business electricity rates?

A business energy supplier could charge an exorbitant exit fee if your small business wants to break its energy contracts early. It makes sense to research the energy market to avoid being locked into a contract that inflates your energy bills.

This article outlines how to compare energy prices and deals before you decide on a new contract.

Business Energy Comparison Background - Blue
Microbusiness energy prices

How Do Microbusiness Energy Contracts Differ From Other Business Energy Contracts?

Let’s investigate whether your company qualifies as a microbusiness. You will find out what this means for your business energy contract terms.

What defines a microbusiness?

A microbusiness is determined by the following factors:

  • A microbusiness uses a maximum of 293,000 kWh of gas annually, or less electricity per year than 100,000 kWh.
  • If your business employs fewer than 10 staff members and conforms to the previous point, it may qualify as a microbusiness. This will depend on the following point.
  • A microbusiness cannot turn over more than £1.8 million annually.

Supplier disputes

There are occasions when a business becomes more energy efficient through downscaling or adopting energy-saving processes. This could cause a supplier to dispute its status as a microbusiness. Should this happen, it’s wise to provide your supplier with as much evidence as possible in support of your claim.

Giving supporting evidence to the supplier will go a long way to resolving disputes. This information proves that you conform to microbusiness requirements:

  • Annual financial statements or similar recent proof of your business’s annual turnover.
  • Payroll evidence to show how many staff members you currently employ.
  • Readings and statements detailing your business’s electricity and/or gas usage.

How microbusiness energy contracts differ from other business energy contracts

Your microbusiness contract differs from regular business and domestic energy deals. Unlike a domestic energy deal, small businesses are still locked into initial fixed-term business contracts.

Ofgem regulations afford microbusinesses protection regarding their energy tariffs. Business electricity and business gas suppliers are required to adhere to a set of rules and guidelines

All businesses have fixed-term energy contracts when starting out with a new gas or electricity supplier. They can move on to more adaptable energy deals based on a standard variable rate when renewing. Most business energy contracts renew automatically, with increased tariffs, if contract holders don’t watch their contract expiry dates.

As a result, business customers who miss the contract end date may face inflated gas and electricity bills. They may also struggle to switch their energy supplier without paying inflated penalty exit fees.

Ofgem regulations mean energy providers must offer more transparent contracts and notice periods to microbusinesses. The result? A better energy deal with reduced energy bills.

Understanding a normal business gas and electricity contract’s terms and conditions before signing is your responsibility. With a microbusiness, you have more protection against automatic agreement renewals. This protection also counts for several other standard practices.

Some differences for microbusinesses created through the regulations include:

  • Back billing: Microbusinesses are protected by policies regulating back billing times. This means back billing is only allowed for three years by business electricity suppliers, and five years for business gas suppliers.For example, a provider cannot charge a microbusiness for costing errors on a bill older than four years.
  • Terms of contract: The energy broker or supplier responsible for handling your contract is legally obliged to highlight and clarify all terms and conditions. It must also ensure that a microbusiness owner is aware of all legalities and third-party costs involved.Ofgem regulations compel brokers and suppliers to provide written confirmation of any new microbusiness energy contract within 10 working days of signing. These terms are not legally enforced during or after the signing of regular business contracts.
  • Contract terminations: Your current business electricity or gas supplier must send out a renewal letter prior to your contract’s expiry. The letter must include information about the contract’s expiry date. It must also indicate what the prospective new contract’s rates will be.Further to this, the letter must include the specific dates of the cancellation window. This is the period during which you can terminate your contract without facing exit fees. A 30-day notice period for terminations is not obligatory. The only exception is if a provider has assigned a business an evergreen or rollover tariff for a stipulated period.
  • Contract renewals: Reputable business energy brokers and consultants inform clients of a supplier’s legal obligation to remind them of microbusiness contract renewal dates. This must happen before a contract enters its final three months.Ofgem requires this letter to include gas or electricity supply price changes for any automatic contract renewals. Information about current contract expiry dates must also be included.

At Business Energy Comparison, we assist you in securing the best business gas or electricity prices for your microbusiness. Our customers can compare SME energy prices with quotes from established UK suppliers. These will help you to save money on your gas or electricity usage.

Business Energy comparison

There are several factors to consider when comparing business energy deals. Energy procurement is not only about gas or business electricity prices. If you’re looking to switch energy suppliers, take the following into consideration:

Customer service

Investigate existing customer ratings and reviews of a business energy supplier’s customer service. These indicate whether you may struggle to get help when you need it. If the reviews show that service agents are accommodating and resourceful, you will likely receive prompt assistance. Mention of recent email responses also shows efficient service.

Visit the supplier’s website. The online capabilities of a provider may look inadequate and, if so, there is a possibility that the company itself may not be efficient.


Read the fine print of every energy quotation you receive. Providers may offer discounts on direct debit payments, which could reduce your energy rates. Bear in mind, however, that this is not always an ideal payment method for a microbusiness.

Depending on your usage, you may qualify for the Energy Bill Discount Scheme. The EBDS is a government scheme, replacing the Energy Bill Relief Scheme, offering discounts for businesses on higher energy usage.


You may want your microbusiness to maintain or improve its green image. If so, it makes sense to research how various UK energy providers generate their power. Look at each supplier’s renewable energy generation percentages to gauge how a contract could affect your company’s carbon emission ratings.

Also, look at other sustainability ratings that are important to you. Keep the Climate Change Levy in mind too – the more sustainable your business is, the less you will be taxed.

Design Elements

How Much Are Microbusiness Energy Rates?

Microbusiness energy rates vary depending on your location in the UK and the type of meter you have installed. With the energy market’s current volatility, quoted prices on electricity and gas can differ from the average at any time. The below prices don’t take EBDS discounts into account.

The average prices offered by energy providers on annual electricity and gas usage of 5,000 to 15,000 kWh to microbusinesses are as follows:


The average is 10.5p per kWh for gas, with a standing daily charge of 55p. This equates to an annual cost of £1,230 for microbusinesses.


Electricity for microbusinesses has a standing daily charge of 58p. The average price per kWh is currently 32.4p, with the annual average price being £3,415.

Start your journey and compare business gas and electricity rates with Business Energy Comparison today. Use our price comparison tool and in less time than it takes to make a brew, we’ll compile your best prices from the UK’ s best suppliers.

Frequently Asked Questions

Does Business Energy Comparison compare business utility providers?

We provide comparisons for business utilities through our business energy comparison tool. It is user-friendly and provides valuable insights when comparing providers for your microbusiness.

Does Business Energy Comparison provide comparisons for large business energy providers as well?

We offer our visitors the chance to compare energy quotes for all sizes of businesses. These range from microbusiness suppliers to large business energy providers.