Business energy comparison

Opus Energy hasn’t gone bust, but it will cease trading from September this year when EDF Energy will take over its current non-domestic energy contracts. 

For more information, check out the section “Has Opus Energy gone bust” in our guide explaining what you should do if your business energy supplier goes bust or ceases trading. 

If you’re on a fixed Opus tariff, EDF has confirmed your prices, terms and conditions will stay the same for the duration of your contract. 

If you’re on a variable tariff, this will be matched to the closest EDF equivalent.   

If you’re affected, give Bionic a call to discuss your options. 

No, there is no price cap on business energy rates, it only applies to domestic rates. Business energy and household energy are different, this has largely to do with how energy is bought and sold, and the way contracts are drawn up.

For domestic customers, the price cap is reviewed every three months. Although this doesn't directly affect non-domestic rates, it's worth keeping an eye on it to see whether energy prices are expected to go up. If the price cap review says the level of the cap will rise, it's probably a good idea to review your existing business energy contract and compare rates.

Business energy prices are always changing. The only way to make sure you’re on the best deal is to carry out a business energy comparison and switch. And remember, signing up to a new deal as soon as your switching window opens can help you lock in lower rates and beat any energy price rises.

Because of the way business energy is bought and sold, rates are constantly changing. Different suppliers offer various deals depending on when you compare and switch - so the suppliers that offer the cheapest rates are always changing. When it comes to securing a reliable business energy deal, price isn’t the only thing you should consider though – you need to make you choose a deal that best suits your business needs.

Although business energy bills are often more expensive than domestic energy bills, there are several reasons why this might be. Businesses often use more energy and don't benefit from dual fuel discounts. 

A number of costs go into the total amount you pay for each month. To work out whether business energy tariffs are cheaper than household ones, it's worth looking at those costs that are standard on both types of bills:

• Unit costs - This is the amount you pay for the energy you use and rates are usually cheaper for business users and domestic customers. As a business customer, the unit rate you pay is determined by the size of your business, the amount of energy it uses, and the length of your contract. Domestic energy users generally pay a set amount based on the type of fixed-rate tariff they choose.
• Standing charge - This is a fixed daily amount that you pay regardless of the amount of energy you use. This covers the cost of supplying gas and electricity to your premises and keeping it connected to the energy network. This cost is often more expensive for business energy users.
• VAT - This is usually the biggest cost difference between business and household energy bills. While households pay a rate of 5% VAT on energy bills, VAT on business energy bills is 20%, although a discounted VAT rate of 5% is available for certain businesses. Find out more at our guide to VAT on gas and electricity for business.

• When your switching window opens - this is a timeframe during which you can compare and switch suppliers. Your switching window will depend on your supplier and the type of deal you are currently on.
• When you’ve moved into a new business premises - If you don’t organise a new energy deal as soon as you move, you’ll be placed onto ‘deemed rates’ and these are always more expensive than any you’ll find on a negotiated deal. 
• As soon as possible - Energy prices are always changing and although we’ve seen a drop in prices since the peak in lockdown, historically, they rise annually. So if you lock in your next deal earlier, you’re more likely to save than leaving it until your contract is up.

Your switching window is the earliest point at which you can compare prices and arrange a new deal, and it’s the responsibility of your supplier to let you know when this window opens. As standard, this will be 90 days before the end date of your contract, but timescales can differ so always check your contract. And if you run a microbusiness, bear in mind that the rules around switching are different to those of other SMEs.

However long your switching window, your supplier must provide you with written confirmation of it and also explain their automatic renewal policy and the terms of their deemed contracts.

When you compare business energy prices and switch with any broker, comparison site or third-party intermediary (TPI), you’ll need to sign a Letter of Authority (LoA).

As this is a recognised legal document, it follows a standard format and states that while a third party can gather information, negotiate and submit notice of termination on your behalf, they do not have the right to agree a contract without your consent.

When you switch with Bionic, signing this letter confirms that you’ve given us permission to handle the switch with both your old and new suppliers. But we can’t agree to a contract on your behalf until you’ve signed the LOA. This means you stay in complete control of the switch.

When you switch with Bionic, we use smart data to find a lot of the information we need to help you switch to a better deal. This means we only need your postcode to start a business energy comparison.

We’ll take care of the switch for you, and even look after your renewals to make sure you never overpay for energy again.

This depends on the size of your business. If you run a micro business, Ofgem's Faster Switching rules mean everything should be sorted within five days. For all other businesses, it can take up to 30 days. 

If you still have a contract with your current supplier, the switch won’t happen until this current contract ends. Even if you sign a new contract well ahead of your current contract's end date, you won't be switched to your new supplier until your current one ends.

And remember, you can only agree to a new non-domestic energy contract when your current one is up for renewal. This can be up to ten months before your current contract's end date, so it's worth keeping an eye on the date. If you sign up for the Bionic Digital Renewal service, we'll take care of this for you.

If you're in debt with your current supplier, they'll object to your switch until the debt is cleared.

No. The switching process is usually straightforward, and your business will face no disruption when you change supplier. And you won't need to worry about your new provider installing anything at your business premises, as they’ll use the same pipes and cables as your old supplier.

If you’re moving into a new business premises, your energy contract will either be transferred to the new property, or it will be cancelled. If it’s cancelled, you’ll be on an expensive ‘deemed rates’ contract with that property’s existing supplier, and you should set up a new deal as soon as possible.

To find more, check out our guide to your business energy when relocating.

Yes, you can still switch if you're a large or industrial business. If you use a large amount of energy or have a half-hourly meter, energy suppliers will categorise you under a large business classification.

At Bionic, we have a team dedicated to large business energy users and offer a bespoke procurement and bill validation service. To find out more, visit our guide to industrial and large business energy.

If you work from home, even as a sole trader, you may be eligible for a business energy deal. While you don’t necessarily need to take out a business contract, doing so means you can take advantage of cheaper business rates by running a commercial energy comparison.

To qualify for a commercial business contract, you’ll need to prove that you work from home and that more than half of the energy you use there is for business purposes, this applies if you are a sole trader or run a micro business. Find out more about energy contracts if you work from home in our guide.

Yes, British small businesses are the backbone of our economy and play a big part in our customer community. If you run a micro business then your contract might work differently to other non-domestic energy contracts. For more information, and to find out whether you run a micro business, check out our guide to micro business energy contracts. 

When your business energy contract ends, you'll automatically be rolled onto your supplier’s more expensive out-of-contract rates - to avoid overpaying, you’ll need to do a business energy comparison and switch energy suppliers, or switch to a better deal with your current supplier.

Depending on your supplier, you may be rolled onto a new fixed-term contract – often with slightly higher rates – although this is becoming less common. Alternatively, you might be moved on to a 30-day rolling contract until you formally organise a new one.

Yes. Energy contracts are legally binding, and you don't need to physically sign one -  you can agree to a contract over the phone. That’s why it’s best to talk through your contract details or see everything in writing before you agree to sign.

If you don’t arrange a new fixed energy deal to start when your current contract ends, your existing supplier will automatically renew your contract. The good news is that this means you won’t be left without an energy supplier. The bad news is that you’ll be placed on your supplier’s more expensive out-of-contract rates.

You can switch from these contracts at any time. If you find yourself in this position, you should compare quotes and switch to a fixed rate as soon as possible.  When signing up for your new contract, you have the option to opt into our automatic renewal scheme.

When you switch with Bionic, our Digital Renewal service means you never need to worry about being hit by an expensive contract gap. Our tech-enabled experts can keep an eye on the date of your renewal window and compare deals on your behalf. If you like the deals we’ve chosen, we can switch contracts without you having to lift a finger.

Out-of-contract rates are a default tariff that your supplier uses when:

• Your current contract has ended and you haven’t arranged a new one with your existing energy provider or another supplier.
• Your switch to another energy supplier has been delayed, meaning there’s a gap between the end of one contract and the beginning of another.

The only way to avoid paying out-of-contract rates is to sign up to a new energy deal, either with your current supplier or a new one. 

The simplest way to get an energy deal that meets the unique demands of your business is to let the tech-powered experts at Bionic do the leg work for you. We work closely with a selected panel of trusted energy suppliers, to make sure you get great rates and outstanding service.

Whichever type of tariff you choose, you’ll need to bear in mind that business energy suppliers don’t offer dual fuel deals - even if you agree to an energy deal with the same supplier, these will still be two separate energy contracts.

And consider that the rates you pay will depend upon a number of factors, including how much energy you use, where your business is located, and its financial situation - a poor credit score could see you paying higher rates, as your business is seen as a higher risk.

MPAN stands for Meter Point Administration number, and is used by suppliers to identify the electricity supply at your property. Also known as the ‘Suppy Number’ or ‘S Number’, this is a 21-digit number that begins with an ‘S’ and should be displayed on your electricity bill, but not on the meter itself.

MPRN stands for Meter Point Reference Number, and is used by suppliers to identify the gas supply at your property. Also known as an ‘M Number’, your MRPN will be between six and ten digits, which you can find on your business gas bill or on your meter.

For everything you need to know about meter numbers, check out Bionic’s guide to MPAN and MPRN.

If you run an energy-intensive business that requires more than one meter, or you operate across a number of different sites, you might have multiple energy contracts, with multiple contract end dates from multiple suppliers.

If this is the case, a multi-site energy contract could save you time and money, as it will cover the billing for more than one meter, whether at a single business premises or in multiple locations. To find out more, check out our guide to multi-site energy.