How is business energy different from a home tariff, and how do I get the best price?
Business energy is bought on fixed-term contracts (often 1-5 years) negotiated up front. There's no domestic-style price cap, and you can't switch freely mid-contract. Your bill is unit rate (pence per kWh) multiplied by usage, plus a daily standing charge. To get a decent deal: have your annual usage in kWh, your MPAN/MPRN and your contract end date ready; get quotes 3-6 months before renewal; and avoid lapsing onto 'deemed' or 'rollover' rates, which can be 30-80% more expensive. Electricity and gas are usually contracted separately, and you generally can't have overlapping suppliers, so timing the switch matters.
Should I use a broker for energy/telecoms, and how do they get paid?
Brokers (energy 'TPIs') can save time and money, particularly if you'd rather not ring round suppliers yourself. The catch is how they're paid. In energy, commission is an 'uplift' baked into your unit rate, typically 0.5-3p/kWh. Anything above around 3p is worth challenging. Since October 2024, brokers must disclose commission in writing to all business customers, so ask for the uplift in pounds and pence before you sign anything. Also worth knowing: a Letter of Authority only lets a broker get quotes on your behalf. It is not a contract to buy, which you must sign separately.
Can I be locked in, and how do I switch without getting stung by exit fees?
Yes. Business telecoms and energy contracts have minimum terms and early-termination charges. For telecoms, Ofcom requires that small businesses (10 or fewer employees) aren't auto-renewed into a new minimum term without active consent, and that exit terms be fair and proportionate. Since January 2025, you can usually exit penalty-free if a provider raises prices mid-contract beyond what was clearly disclosed. To switch cleanly: note every contract's end date and notice period, give notice in writing on time, use One Touch Switch for broadband, and port your phone numbers. For energy, switch as your contract ends to avoid deemed rates.
Should I put telecoms, IT and energy with one provider, or shop each separately?
Bundling connectivity, phones and IT (and sometimes energy) with one provider cuts admin, gives you a single point of contact and simplifies billing. That's genuinely useful for time-poor small firms. The trade-offs are concentration risk (one outage or one dispute affects everything) and usually weaker pricing than shopping best-of-breed at each renewal. A common middle path is to consolidate the closely related stuff (internet, phones, IT) with one trusted provider while keeping energy separate and competitively tendered. Energy pricing moves independently of the rest and benefits from regular market testing.