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Selectra
Updated May 2026

Compare business energy & save up to £1,305 a year

Your one-stop hub for commercial gas and electricity in the UK. Switch suppliers, claim the 5% VAT rate, fit a smart meter, go renewable: every guide for SMEs and large businesses is right here.

Ofgem-aligned advice. Whole-of-market view. Free expert quotes.

£1,305

Average annual saving

17+

UK business suppliers

5%

Reduced VAT for microbusinesses

5 min

To start a free quote

Business energy works very differently from a household tariff: there is no dual fuel, no automatic switch at the end of the contract, and a tangle of taxes (VAT, Climate Change Levy) sits on every kilowatt-hour. The right tariff can shave thousands off your overheads, the wrong one rolls you onto a punishing deemed-rate.

This hub brings together every guide, supplier review and meter explainer you need to take back control: from a 5-minute SME quote to a half-hourly metered I&C contract.

Every guide on one page

Filter all 12 business energy guides

Tap a category to narrow down by what you actually need: switching supplier, understanding a bill, sorting a meter, or going green.

Pillar

All business suppliers

17+ providers

Side-by-side directory of every UK business energy supplier with logins, contact lines, customer ratings and switching tips.

suppliers
Read the guide
Pillar

Business gas

Save up to 30%

How commercial gas tariffs work, what drives unit rates and standing charges, and how to negotiate a better deal at renewal.

tariffs
Read the guide
Pillar

Business smart meters

Free upgrade

Free smart meter rollout for SMEs explained: half-hourly readings, accurate bills, eligibility, installation and what changes for your bill.

meters
Read the guide
Pillar

VAT on electricity

5% reduced rate

Most businesses pay 20% VAT, but microbusinesses, charities and low-usage premises can claim a reduced 5% rate. Here is how to qualify.

tariffs compliance
Read the guide

Climate Change Levy (CCL)

Tax

The environmental tax on business gas and electricity, current 2026 rates, who pays the full amount and how to apply for the CCL exemption.

tariffs compliance
Read the guide

Renewable energy for business

Green tariffs

Switch to a 100% renewable commercial tariff, understand REGOs, on-site solar and PPAs, and turn your ESG commitment into a real saving.

sustainability
Read the guide

Energy meters explained

Guide

Profile classes 01 to 08, half-hourly, MPAN and MPRN numbers, AMR vs smart: a plain-English guide to every business energy meter in the UK.

meters
Read the guide

Three-phase meter

High demand

When your business needs a three-phase supply, the cost of upgrading, who pays for the installation and how to read a three-phase meter.

meters
Read the guide

Convert gas units to kWh

Calculator

Translate the cubic feet or cubic metres on your business gas meter into the kilowatt-hours your supplier actually bills you for.

meters
Read the guide

Restaurants & catering

High consumption

Average energy use for restaurants, where the bill comes from (kitchen, refrigeration, lighting) and the best tariffs for the hospitality sector.

industry
Read the guide

Shops & retail

SME

Cut energy costs in a retail unit: extended trading hours, refrigeration, lighting upgrades and the right tariff for high-street businesses.

industry
Read the guide

Hairdressers & salons

Microbusiness

Why salons can usually claim the 5% VAT rate, the typical annual bill, and the cheapest electricity tariffs for a high-water, low-volume business.

industry
Read the guide

3 steps to a cheaper bill

How a business energy switch works

Unlike domestic energy, business contracts cannot be auto-switched in 14 days. The process is straightforward when you know the milestones.

1

Gather your details

Find your annual kWh, current unit rate, standing charge, contract end date and supply numbers (MPAN for electricity, MPRN for gas). All on your last bill.

2

Compare the whole market

Either contact suppliers individually or, in a single phone call, get quotes from every UK business supplier through Selectra. We work for you, not the supplier.

3

Switch in your renewal window

Business contracts only let you switch in a renewal window (typically 1 to 6 months before the end date). Miss it and you roll onto a deemed rate up to 80% more expensive.

Average UK business rates

What does business energy actually cost?

The smaller the business, the higher the unit rate. Microbusinesses pay the most because their buying power is the smallest. Compare your bill against these benchmarks to spot if you are overpaying.

16.6–18p

Electricity / kWh, microbusiness

3.9–4.5p

Gas / kWh, microbusiness

£1,834

Avg microbusiness electricity bill

Source: Ofgem benchmark data. Standing charges (25p to 37p per day) sit on top. Larger businesses pay a lower unit rate but a much higher total bill.

Business energy FAQ

The Selectra expert answers your questions

The average SME that has never compared saves around £1,305 a year on combined gas and electricity by moving off a deemed or roll-over tariff. The exact figure depends on consumption, region and contract length. A 5-minute call with our advisors gives you a tailored estimate.

Business gas and business electricity are two separate markets in the UK, with different suppliers, contracts and prices. Even if you register both with the same provider, they remain two contracts. The upside is you can switch each one independently when its renewal window opens.

Only during your renewal window, typically 1 to 6 months before the end date of your current contract. Outside that window the supplier can refuse the switch. If you do nothing, you roll onto a deemed rate: Ofgem warns these can be up to 80% more expensive than a contracted price.

Most businesses pay 20% VAT. You may qualify for the 5% reduced rate if you are a microbusiness, charity or non-profit, or if your consumption is below the de minimis threshold (33 kWh of electricity or 145 kWh of gas per day on average). Ask your supplier for a VAT declaration form. See our VAT on electricity guide.

The Climate Change Levy (CCL) is a per-kWh tax on business energy, paid through your bill. You pay the full rate unless your business is exempt (very small consumption, agriculture, charity non-business activity) or you have signed a Climate Change Agreement. Our CCL guide covers the 2026 rates and exemptions.

Yes, the rollout covers profile classes 01 to 04 (microbusinesses and small businesses) at no upfront cost. The supplier funds the installation; you get half-hourly readings, accurate bills and the option of time-of-use tariffs. Read our smart meter guide to check eligibility.

For most businesses, a renewable tariff costs the same or only slightly more than a standard one and ticks an ESG box that customers, employees and investors increasingly notice. Look for REGO-backed contracts (Renewable Energy Guarantees of Origin) or a Power Purchase Agreement if you are a larger consumer. See renewable energy for business.

Ready when you are

Save up to £1,305 in one phone call

One call, every UK business supplier, a quote tailored to your meter, your consumption and your renewal window. No fee, no obligation, no scripted sales.