Navigating higher business energy costs with confidence

Many small and medium-sized businesses are feeling the pressure when it comes to their business energy costs. Volatility in wholesale energy markets, alongside rising network costs to support infrastructure upgrades, is making it harder to plan ahead and manage budgets with certainty. 

While these challenges are real, businesses are not without options. Clear guidance, early conversations and informed decisions can make a meaningful difference. Recent advice from Ofgem highlights practical steps businesses can take when reviewing contracts or preparing for renewal. Here, we explore what that guidance means in practice and how it can help you stay in control of your energy costs.

Key takeaways 

• Business energy prices remain high due to wholesale market volatility and increasing network costs
• Some businesses may find contract options less visible or harder to secure
• There is no cooling-off period for business energy contracts, so understanding terms upfront is essential 
• Speaking to your supplier early can provide more flexibility and confidence
• Written confirmation and avoiding pressure are key to protecting your business 
  Trusted support is available if managing energy costs feels challenging 

Why business energy prices remain challenging 

Business energy prices are influenced by factors beyond the control of individual organisations. Wholesale prices continue to respond to global events such as the recent Middle East crisis, while investment in energy networks is needed to maintain reliability and support the transition to a cleaner energy system. 

These combined pressures can affect both pricing and the availability of contract options, particularly for small and medium-sized businesses. As a result, forward planning has become more important than ever. 

What Ofgem’s guidance means for business customers 

Ofgem’s guidance is designed to help SME business customers navigate a more complex market with confidence. At its heart, the message is about preparation, awareness and understanding your position before committing to a contract. 

Some businesses may find that contract offers look different to what they are used to. Options may be fewer or structured in new ways, especially during periods of market uncertainty. This does not mean opportunities are unavailable, but it does mean taking the time to fully understand what is on offer and what works best for your business. 

Starting conversations with your energy supplier early can make a real difference. Early engagement helps avoid last-minute pressure and gives you more time to review options, ask questions and make informed decisions. 

What to check before agreeing a business energy contract 

Energy contracts play a central role in managing long-term costs, so it is important to look beyond headline prices. 

Review all terms, rates and fees 

When comparing contracts, consider unit rates, standing charges, contract length and any additional fees. Make sure you understand how each option could affect your costs over time and that you are comparing like-for-like tariffs. 

Remember there is no cooling-off period 

Business energy contracts do not include a cooling-off period. Once agreed, you are committed. Taking time to review the details upfront is essential to avoiding unexpected costs later. 

Balance price with flexibility 

In some situations, longer-term contracts may not provide the flexibility a business requires. Short-term options or temporarily remaining on deemed or out-of-contract rates, can sometimes provide breathing space while next steps are reviewed. These options are not right for every business, but they are worth understanding. 

Ask for written confirmation 

If rates or terms are discussed over the phone, always ask for written confirmation before agreeing. Clear documentation helps prevent misunderstandings and allows time for proper review. 

Avoiding pressure and protecting your business 

Periods of market challenge can sometimes lead to high-pressure sales approaches. Ofgem’s guidance encourages businesses to remain cautious and take control of the decision-making process. 

You should never feel rushed into agreeing a contract. Reputable suppliers and brokers will be transparent, willing to put information in writing and supportive of you taking the time you need. Verifying unexpected calls or emails is also an important step in avoiding potential fraud. 

Transparency and clarity are key to protecting your business and making confident energy decisions. 

Where to get support if you need it 

If you are worried about paying your business energy bills or unsure about your options, support is available. 

Starting with your supplier is often the most effective first step. Beyond that, trusted support can be found through trade bodies, consumer groups and reputable energy brokers. For eligible small businesses, the Energy Ombudsman can also help.  

Practical next steps for your business 

If energy costs are a concern or your contract is ending soon, these actions can help put you back in control: 

• Check when your current contract ends
• Start conversations with your supplier early
• Review all terms, fees and contract lengths carefully
• Compare options on a like-for-like basis
• Ask for written confirmation before agreeing
• Stay alert to unexpected or high-pressure sales calls 

Empowering confident energy decisions 

The journey to a more sustainable and resilient energy system is complex, and businesses are at different stages along the way. While market conditions remain challenging, informed planning and transparent conversations can make a meaningful difference. 

If you would like further guidance, our energy help and advice hub provides practical resources to help you understand your options and take control of your energy costs with confidence.