Key takeaways, 2026
- Active suppliers: 17 brands quote UK SMEs ; five legacy majors plus a tier of specialists and challengers.
- Unit-rate bands: 22 to 30 p/kWh on electricity and 5.8 to 8.4 p/kWh on gas, depending on size and contract length.
- No dual fuel: gas and electricity are always quoted and signed as separate contracts, even with the same supplier.
- Taxes on top: 20% VAT (5% for charities and microbusinesses) plus CCL at 0.847 p/kWh electricity and 0.732 p/kWh gas.
25p
SME electricity, p/kWh
Median two-year fixed, 2026.
6.5p
SME gas, p/kWh
Median two-year fixed, 2026.
17
Active UK suppliers
Listed below, quoting SMEs in 2026.
90 d
Renewal window
Diarise to avoid rollover.
Why comparing suppliers still matters in 2026
Three years after the wholesale spike of 2022, business energy pricing has settled into a new normal: wholesale gas and power are roughly 40% below the peak, but still around double the 2019 baseline. The difference between the cheapest and the most expensive bespoke quote on the same site, on the same day, is typically 20 to 35%. That gap exists because suppliers price differently for credit risk, volume, contract length and renewable-mix exposure, and because some carry legacy hedging positions that constrain how aggressively they can quote.
Compounding the gap, a business that lets its contract roll into a deemed tariff by missing the renewal window will routinely pay 30 to 80% more than the equivalent fixed contract. The single biggest source of overspend in business energy is not the wrong supplier choice ; it is failure to renew on time. Active comparison every two to three years, well inside the renewal window, captures most of the available saving.
What you need before requesting a quote
A bespoke quote needs only a postcode to start, but the more precise your inputs the tighter the price band. Suppliers run the same calculation: annual kWh times wholesale curve times credit risk times standing charge times contract length. Five inputs unlock the accurate version.
Annual consumption (kWh)
Pull the total kWh from your last 12 months of bills. Most businesses guess this number wrong by 10% or more, which distorts every quote.
Current contract end date
Quotes are future-dated to your contract end. Without this, you risk signing a contract that activates before you can legally switch.
Current unit rate and standing charge
The benchmark every new quote is judged against. Listed line by line on your bill, typically just below the consumption summary.
Business name, address and credit standing
Suppliers run a soft credit check on the trading entity. A clean Companies House record and 12+ months of trading typically secure the standard quote ; impaired credit triggers a higher deposit or a price uplift of 1 to 3 p/kWh.
Business unit rates by size, 2026
The tables below show the typical bands for a two-year fixed contract signed in 2026. Bespoke quotes vary inside each band based on credit, location and renewal timing. All figures exclude VAT and CCL.
Business electricity rates, 2026
| Business size | Annual use | Unit rate (p/kWh) | Standing charge (£/day) | Typical annual bill |
|---|---|---|---|---|
| Micro | 5-15,000 kWh | 27.0 - 30.0 | £0.45 - £0.60 | £1,500 - £4,700 |
| Small | 15-25,000 kWh | 25.5 - 28.0 | £0.55 - £0.75 | £4,000 - £7,300 |
| Medium | 25-50,000 kWh | 23.5 - 26.5 | £0.65 - £0.90 | £6,200 - £13,800 |
| Large | 50-300,000 kWh | 22.0 - 24.5 | £0.85 - £1.40 | £11,500 - £74,000 |
Business gas rates, 2026
| Business size | Annual use | Unit rate (p/kWh) | Standing charge (£/day) | Typical annual bill |
|---|---|---|---|---|
| Micro | 5-15,000 kWh | 7.5 - 8.4 | £0.95 - £1.10 | £1,100 - £1,650 |
| Small | 15-30,000 kWh | 6.8 - 7.5 | £1.05 - £1.20 | £1,800 - £2,750 |
| Medium | 30-65,000 kWh | 6.2 - 6.8 | £1.15 - £1.40 | £2,500 - £4,900 |
| Large | 65-350,000 kWh | 5.8 - 6.5 | £1.30 - £1.80 | £4,500 - £23,000 |
Indicative bands based on aggregated 2026 quote data from the top UK business energy suppliers, two-year fixed contracts. VAT and CCL excluded. Bespoke quotes will vary by location, credit standing and renewal timing.
Taxes added on top: VAT and CCL
Every quote in the tables above is a pre-tax number. Two charges sit on top of the unit rate and standing charge on every bill.
VAT is 20% on most business energy. The reduced 5% rate applies to registered charities, sites consuming below 33 kWh of electricity or 145 kWh of gas per day (the de minimis threshold), and microbusinesses using fuel for a qualifying domestic-style purpose. You claim the reduced rate by filing a VAT declaration form with your supplier ; it is not applied automatically.
The Climate Change Levy (CCL) is an environmental tax applied per kWh: 0.847 p/kWh on electricity and 0.732 p/kWh on gas for 2026-27. CCL is added before VAT, so the 20% applies to a sub-total that already includes the levy. Charities, low-use sites and signatories to a Climate Change Agreement are exempt or pay reduced CCL.
Find your best-fit supplier, beyond price
Price differences between bespoke quotes are real but rarely huge. The bigger lever on a 2 to 4-year contract is matching the supplier to your operational reality ; green credentials, multi-site billing, smart-meter readiness, contract length or hard-to-place credit. Pick the levers that matter and we will narrow the 17 active suppliers down to the ones that genuinely fit.
Match suppliers to what your business actually needs
Selectra-verified attributes from each supplier's 2026 contract sheets. No price weighting ; pure operational fit.
1 Your business size
2 Your priorities (pick any that matter)
supplier matches suppliers match (showing all active suppliers) your criteria
No single supplier hits every criterion you picked.
Most combinations of green + multi-site + tech-first need a broker to source bespoke ; try relaxing one filter or send your shortlist to our desk.
Talk to the Selectra business deskUK business energy supplier directory
Click any supplier below for the full profile, including login portal, contact details, complaints route and a Selectra review of their current SME proposition.
British Gas Business
Largest UK business supplier ; smart meter rollout and SME fixed deals.
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British Gas Lite
BGL micro-business brand for sub-100,000 kWh sites with online onboarding.
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E.ON Next
Absorbed npower in 2022 ; renewable-backed electricity for SMEs and corporates.
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ENGIE
Corporate and I&C focus, multi-site contracts and PPA structures.
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Scottish Power
100% renewable generation portfolio ; fixed contracts up to four years.
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Haven Power
Drax I&C arm for half-hourly metered sites with flexible procurement.
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Yu Energy
AIM-listed challenger ; rapid quote turnaround for SMEs.
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Smartest Energy
Marubeni-owned I&C supplier focused on PPA and renewable export routes.
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Corona Energy
Gas-only B2B supplier serving large commercial and industrial sites.
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SEFE Energy
Formerly Gazprom Marketing & Trading ; now SEFE under UK government ownership.
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TotalEnergies Gas & Power
Direct supply for medium and large UK businesses with renewable tariffs.
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Crown Gas & Power
Co-operative-owned ; gas and electricity for SMEs and the public sector.
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Pozitive Energy
Independent dual-fuel supplier for SMEs and microbusinesses.
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Valda Energy
Tech-led entrant ; smart meter data and digital onboarding.
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Squeaky Energy
Renewables-only B2B supply with corporate PPA matchmaking.
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Yorkshire Gas & Power
Hull-based supplier for SMEs across gas and electricity.
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Ruby Energy
Rebranded from BES Utilities in August 2024 ; same Fleetwood team, SME dual-fuel.
View profileBefore you sign: four checks worth running
A business energy contract is locked the moment you sign it. There is no 14-day cooling-off period for non-microbusinesses and no easy exit if the price moves against you. Four checks before signature catch most of the common regrets.
- Compare the all-in delivered cost, not the headline p/kWh. The all-in includes the unit rate, standing charge × 730 days, CCL and VAT. A supplier 0.5 p/kWh cheaper on the unit rate can still be more expensive once a higher standing charge is added ;
- Read the renewal and termination clauses. The contract sets out the renewal window (usually one to six months before expiry) and the termination fee for early exit. Match these against your operational visibility ;
- Check the supplier's Ofgem standing and recent reviews. Ofgem publishes complaint volumes and licence enforcement actions. Cross-reference against Trustpilot and the Energy Ombudsman's annual report ;
- Ask for the green credentials in writing. If renewable supply matters, request the supplier's most recent fuel mix disclosure. Some "100% renewable" tariffs are backed by REGOs only, not direct generation.
Frequently asked questions
Around 17 suppliers with a Selectra profile actively quote UK SMEs in 2026, down from around 35 before the 2021-22 wholesale price spike. The market has split into three layers: the legacy majors (British Gas Business, E.ON Next, Scottish Power, ENGIE), a middle tier of large specialists (Haven Power, SEFE Energy, TotalEnergies, Smartest Energy) and a long tail of regional or sector-focused challengers (Yu Energy, Valda, Pozitive, Crown, Yorkshire Gas & Power and others). Coverage of micro and small businesses is broadest ; large I&C sites have fewer choices.
A fixed contract locks your unit rate and standing charge for the full term (one to four years), so your rate is immune to wholesale swings but you pay an exit fee to leave early. A variable or deemed tariff floats with the market: there is no exit fee, but the rate is typically far higher and can move at short notice. The large majority of UK businesses sign a fixed contract for budgeting certainty ; variable is mainly a short bridge between fixed deals or while you arrange a switch.
Outstanding debt does not block a switch in itself, but a new supplier will run a credit check on the trading entity and an unpaid balance with your current supplier can trigger an objection to the switch until it is cleared. Clear any arrears, then time your new contract to start the day your current one ends. If your account is in genuine financial difficulty, ask your existing supplier about a repayment arrangement before you switch.
There is no single cheapest supplier. Business quotes are bespoke, built from your annual kWh, credit rating, contract length and the wholesale curve on the day. The cheapest brand for a 12,000 kWh microbusiness will rarely be the cheapest for a 250,000 kWh medium site. The only reliable comparison is to get three to five bespoke quotes on identical contract lengths and judge them on the all-in delivered cost (unit rate plus standing charge plus CCL plus VAT), not the headline p/kWh.
No. Even when you register gas and electricity with the same supplier, the two fuels are billed under separate contracts with their own end dates, exit fees and renewal windows. You can ask for both contracts to be aligned to the same end date to simplify renewals, but the unit rates are quoted and signed independently.
A deemed contract is the default tariff your supplier moves you onto when no fixed contract is in place ; typically after a takeover of premises or when a fixed contract expires without renewal. Deemed rates are unregulated for non-microbusinesses and can sit 30 to 80% above the best fixed contract. They have no exit fee and no notice period, so the right move is to switch out as soon as possible.
Standard fixed contracts run from one to four years. The 12-month option exists at most suppliers but rarely beats a two or three-year fixed on price, because suppliers price short-term volatility into the unit rate. A three-year fixed in 2026 is currently around 1 to 2 p/kWh cheaper than a 12-month equivalent for electricity. Multi-site and I&C contracts can extend to five years on flexible terms.
Not without paying an exit fee equal to the remaining contract value. You can however sign your next contract up to 12 months in advance and have it activate the day your current one ends. Most suppliers will accept renewal paperwork inside a defined renewal window during the final one to six months ; outside that window, ask for a future-dated quote rather than an immediate switch.
Ofgem operates the Supplier of Last Resort (SOLR) mechanism. Your supply continues without interruption, but your account moves to a designated replacement supplier within a few days. Your balance is honoured ; your unit rate moves to that supplier's deemed contract until you switch again. The wave of failures peaked in 2021-22 and has slowed materially since, but the SOLR safety net remains in place.
The first step is the supplier's internal complaints process, which has an eight-week deadline to either resolve the issue or issue a deadlock letter. Microbusinesses (under 10 staff and below 100,000 kWh electricity or 293,000 kWh gas) can then escalate to the Energy Ombudsman, whose decision is binding on the supplier but not on you. Larger SMEs and I&C sites have no Ombudsman route and must pursue civil claims.