The UK business buyer’s guide

Everything you need to buy connectivity, telephony, managed IT/cyber and energy well, what to weigh up, what the jargon means, and the traps that quietly cost businesses money.

What to weigh up

What matters most depends on who you are

A word on business energy

Business energy in the UK works very differently from home energy, which is part of what makes a comms and IT provider offering it genuinely unusual. There is no price cap on business supply. Instead, businesses sign fixed-term contracts, typically one to five years, negotiated upfront, and you generally cannot switch mid-contract. A bill comes down to unit rate (pence per kWh) multiplied by usage, plus a daily standing charge. Larger sites or those with half-hourly meters also pay capacity charges tied to their agreed kVA. The three numbers any buyer needs before approaching the market are annual usage in kWh, the MPAN (electricity) or MPRN (gas), and the current contract end date. Electricity and gas are contracted separately, so you will have two end dates to track. The most expensive mistake in business energy is timing. Do nothing and you roll onto "deemed" or "rollover" rates that are typically 30 to 80% higher than a negotiated contract, often around 50% more. Switching needs to be lined up to complete on the contract end date, or within roughly five working days if you are already out of contract. Most SMEs buy through a broker or TPI, who earns a commission "uplift" built into the unit rate, typically 0.5 to 3p/kWh. Challenge anything above around 3p. Regulation here is tightening: since October 2024, commission must be disclosed in writing to all business customers. Micro-businesses get additional Ofgem protections covering renewals, cooling-off periods and backbilling. The government has also confirmed that Ofgem will directly regulate TPIs, with broker registration phasing in from around 2027 to 2028. One thing worth being clear on: a Letter of Authority only lets a broker fetch quotes. It is not a contract to buy. So why would an SME want a comms and IT provider handling energy at all? Normally, energy, telecoms, connectivity and IT support are sold by completely different industries, each with its own regulator (Ofgem versus Ofcom), which means businesses end up juggling multiple suppliers, multiple contracts and multiple renewal dates. A single provider across all of them can consolidate billing, keep every renewal date in one place and give the owner one point of contact rather than four. There are also natural cross-sell moments: a full-fibre installation or a PSTN migration project is a sensible prompt to also check whether the business is sitting on an overpriced rollover energy contract. The value is real, but it depends on the provider being transparent about energy commission and not using the convenience of bundling to blunt price competition. Energy prices move independently of comms and IT costs, and they genuinely benefit from regular market testing at renewal.

Common ways businesses overpay

• Missing the contract end date and lapsing onto deemed or rollover energy rates (or an auto-renewed telecoms term) that cost 30 to 80% more. This is the single most common and entirely avoidable overpayment.
• Buying on headline price and ignoring setup and activation fees, per-user versus per-site pricing, mid-contract rises (often CPI+3.9%), and exit charges. The all-in cost over the full term is what matters.
• Leaving the PSTN/ISDN switch-off too late and forgetting the non-phone devices sitting on copper lines: alarms, door entry systems, lift emergency lines and some card payment terminals all need migrating before 31 Jan 2027.
• Not budgeting time for number porting, which takes 10 to 14 working days, and cutting over with no parallel-running period. The risk is lost calls or a missing business number during the switch.
• Signing a Letter of Authority and assuming the deal is done. An LOA only authorises a broker to obtain quotes; the actual supply contract is a separate document that still needs signing.
• Not asking about broker commission or uplift (disclosable in writing to all business customers since October 2024) and overpaying a hidden margin baked into the energy unit rate.
• Choosing an MSP without checking certifications (Cyber Essentials, Cyber Essentials Plus, ISO 27001), SLAs, scope boundaries and references, then finding out that security work, out-of-hours cover or project work is all chargeable extra.
• Over-buying a leased line when full-fibre broadband would do, or under-buying best-effort broadband when downtime is genuinely costing the business. The connection should match actual uptime requirements.
• Over-consolidating with one provider for convenience and creating concentration risk alongside weaker price discipline, with no regular market testing at renewal.
• Letting energy, broadband, phone and IT contracts all renew on different dates with no central register, so renewals get missed and there is never enough time to shop around. Start the process three to six months ahead.
• Ignoring resilience and business continuity. A single internet line with no failover (such as SD-WAN or a 4G/5G backup) now carries the phones as well, so one outage takes down both.
• On larger sites, paying for the wrong agreed kVA capacity. Too high and you waste money on capacity charges; too low and you risk excess-capacity penalties.

Jargon buster

FTTP (Fibre to the Premises)

Full-fibre broadband where the fibre-optic cable runs all the way into the building, not just to the street cabinet. It's the fastest and most reliable mainstream broadband available (often up to 1Gbps+), though it's still a shared, contended, best-effort service rather than a dedicated line.

FTTC (Fibre to the Cabinet)

Part-fibre broadband: fibre runs to the green street cabinet, then older copper carries the signal for the last stretch to the premises. Slower than full fibre and being phased out as FTTP rolls out and the PSTN switch-off progresses.

SoGEA

Single Order Generic Ethernet Access. Broadband delivered over the FTTC/copper network but without a separate phone line. It's a common stepping-stone product as the traditional PSTN phone line is withdrawn.

Leased line (Ethernet / DIA)

A dedicated, uncontended fibre connection used solely by your business, with symmetric (equal up/down) speeds and a strong SLA. 'DIA' stands for Dedicated Internet Access. Costs more than broadband, but you get guaranteed performance and fix times. The sensible choice for firms where downtime is not an option.

Contended vs uncontended

Contended (broadband) means bandwidth is shared with other users, so speeds can dip at busy times. Uncontended (leased line) means the capacity is yours alone, so performance stays consistent.

Symmetric speed

Equal download and upload speeds (e.g. 100Mbps both ways). Standard broadband is asymmetric (fast down, slow up). Symmetry matters for video calls, cloud backup, hosting and VoIP.

SLA (Service Level Agreement)

The contractual promise covering uptime and fault-fix times, with service credits or refunds if the provider misses them. Leased lines carry strong SLAs (e.g. 99.9% uptime, fix within hours); standard broadband is best-effort, with weaker or no guarantees.

PSTN / ISDN switch-off

The retirement of the UK's traditional analogue phone network (PSTN) and ISDN lines, now scheduled to complete by 31 January 2027. Phones, alarms, lift lines and card machines running on copper must move to internet-based (VoIP) alternatives.

VoIP (Voice over IP)

Making phone calls over the internet rather than a copper phone line. The umbrella technology replacing PSTN; includes hosted phone systems, SIP and UCaaS.

SIP / SIP trunk

Session Initiation Protocol, the standard that carries voice calls over the internet. A SIP trunk is a virtual phone line connecting your existing on-site phone system (PBX) to the network. It's the cheapest option per channel (roughly £3-5), though you keep and maintain a PBX yourself.

Hosted VoIP

A cloud phone system where the PBX sits in the provider's data centre and you use handsets or an app. No on-site phone hardware to maintain. Typically priced at £10-30 per user per month, and the simplest option for firms with no existing system to carry over.

UCaaS (Unified Communications as a Service)

A cloud platform combining calls, video, chat, voicemail and presence in one place (e.g. Microsoft Teams Phone, Zoom Phone). Suits firms already working inside those collaboration tools day to day.

PBX

Private Branch Exchange. A business's internal phone system that routes calls between staff and to the outside line. Can be on-site hardware (legacy) or cloud-hosted (modern).

Number porting

Transferring your existing phone numbers to a new provider so you keep them when you switch. Typically takes 10-14 working days and needs to be planned carefully to avoid losing the number during a cutover.

SD-WAN

Software-Defined Wide Area Network. It intelligently manages and combines multiple connections (e.g. fibre plus 4G/5G) across sites, prioritises important traffic and fails over automatically if a line drops. Used by multi-site businesses that need resilience and consistent performance.

MSP (Managed Service Provider)

An outsourced IT company that runs some or all of your IT for a recurring fee, covering helpdesk, monitoring, security, cloud admin and projects. Often priced per user per month, commonly around £60-90 for a full service.

MSSP (Managed Security Service Provider)

An MSP specialising in cyber security, covering monitoring, threat detection and response (SOC), patching and incident response. Some MSPs include this themselves; others bring in a separate MSSP.

Cyber Essentials / Cyber Essentials Plus

The UK government-backed baseline security certification. Cyber Essentials is a self-assessment covering five core controls; Cyber Essentials Plus adds an independent technical audit. Increasingly required to win contracts, satisfy cyber insurers and reassure clients.

ISO 27001

The international standard for information security management. More rigorous and costly than Cyber Essentials, and often expected of larger suppliers or those handling sensitive data.

SOC / SOC 2

A SOC (Security Operations Centre) is a team that monitors for threats around the clock. SOC 2 is a separate US-origin audit report on a provider's security controls, sometimes requested of IT and cloud suppliers.

Standing charge

A fixed daily amount on your energy bill that you pay regardless of how much energy you use, covering grid, network and metering costs. Quoted in pence per day (e.g. around 45p/day for electricity on a small business supply).

Unit rate

The price you pay per unit of energy consumed, in pence per kWh (e.g. around 28p/kWh for electricity on a small business supply). Your bill works out roughly as (unit rate x usage) + (standing charge x days).

kWh (kilowatt-hour)

The unit in which energy is measured and billed. One kilowatt of power used for one hour equals one kWh. Your annual usage in kWh is the key figure for getting accurate energy quotes.

kVA (kilovolt-ampere)

A measure of the maximum electrical capacity (supply size) available to your premises, set on larger or half-hourly metered sites. Your available or agreed kVA affects capacity charges. Paying for more than you need wastes money; too little risks penalties.

Deemed / out-of-contract rate

The expensive default tariff you fall onto if you occupy premises with no agreed contract, or let one lapse. Typically 30-80% more than a negotiated fixed deal (often around 50%). Worth avoiding by signing a contract in good time.

Rollover contract

A new fixed-term energy contract the supplier creates automatically when your old one ends, if you do nothing. Usually at uncompetitive rates. Restricted (not abolished) for micro-businesses. A key reason to keep track of your contract end date.

TPI / energy broker

Third-Party Intermediary. A broker who arranges your business energy contract and is paid via a commission uplift baked into your unit rate (typically 0.5-3p/kWh). Since October 2024 that commission must be disclosed to all business customers. Ofgem is moving to formally regulate TPIs.

Letter of Authority (LOA)

A document authorising a broker to obtain your usage data and quotes from suppliers on your behalf. Worth being clear on what it is: an LOA is permission to look, not a contract to buy. You sign the actual supply contract separately.

Half-hourly (HH) metering

Metering that records consumption every 30 minutes, used on larger electricity supplies. It provides accurate usage data and access to bespoke pricing, but comes with capacity (kVA) and other standing charges.

MPAN / MPRN

The unique reference numbers identifying your electricity supply (MPAN, the long 'S' number on your bill) and your gas supply (MPRN). Suppliers and brokers need both to quote accurately.

One Touch Switch (OTS)

The broadband switching process (live since 2024) where your new provider manages the whole move and cancels your old service, so you don't end up double-billed or temporarily without a connection.

Frequently asked questions

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