Finding out that your business energy costs are going up is frustrating, especially when those higher bills arrive with little warning. 

Whether your fixed contract has ended, you've been moved onto an out-of-contract tariff, or your supplier has increased charges under a variable agreement, rising energy costs can directly impact your business.

The good news is that energy price rises don't always mean you're stuck paying more. Switching suppliers and securing a more competitive deal can help you cut costs and regain control over your energy spending. 

Understanding why your rates have increased, what type of contract you're on, and when you're eligible to switch is the first step towards finding a better tariff.

In this guide, we'll explain the most common reasons business energy prices increase, when you're able to switch suppliers, and how comparing quotes can help you avoid overpaying for your gas and electricity.

Five-point summary of switching business energy suppliers after a price increase

1. Price increases often occur when fixed contracts end, or when businesses move onto out-of-contract or deemed rates.
2. Variable tariffs and pass-through clauses can also lead to unexpected cost rises during a contract.
3. You can switch immediately if you are on deemed, variable, or out-of-contract rates without exit fees.
4. Switching during a fixed contract is usually restricted unless contract terms allow cancellation or breach.
5. Comparing suppliers quickly after a price rise helps secure better rates and avoid prolonged overpayment.

What is a business energy price increase?

A business energy price increase is when a supplier raises the unit rates or standing charges applied to a commercial gas or electricity contract. This can happen at the end of a fixed term, when a business is placed on deemed or variable rates, or when a supplier applies a pass-through clause within an existing agreement.

Increased energy bills can also be linked to rising non-commodity costs. For instance, non-commodity costs like TNUoS and DUoS network charges can be passed through at cost and can change during your contract term. This is known as a contract reprice.

Remember, non-domestic energy customers in the UK are not protected by the same price cap rules as households, meaning business tariffs can rise faster and with fewer regulatory restrictions than domestic rates.

When might a business energy supplier increase rates?

While fixed commercial contracts are designed to give price certainty, there are times when your business might suddenly face higher energy bills.

At the end of a fixed-term contract

If your fixed contract expires and you haven't arranged a new deal, your supplier won't cut your power off. Instead, they will automatically roll you onto their out-of-contract rates. These are standard variable tariffs and can be among the most expensive rates on the market. If you notice a sudden spike in your bill, this could be why.

Out-of-contract rates are a type of default business energy tariff applied automatically when a fixed-term contract ends without renewal. The supplier sets them, and they can be significantly higher than negotiated market rates. Businesses on out-of-contract rates are free to switch immediately without penalty.

If you are on a deemed contract

If you move into new commercial premises and start using gas or electricity without formally signing a contract with the existing supplier, you are placed on a deemed contract. Deemed rates are significantly higher than negotiated fixed rates and can fluctuate with market conditions at any time.

A deemed contract is a type of default supply arrangement where a business uses energy at a premises without agreeing to formal terms with the supplier. Deemed rates are not negotiated, are set entirely by the supplier, and are usually the most expensive option available. You can leave a deemed contract at any time without exit fees.

If you are on a variable business energy contract

Unlike fixed contracts that lock in your unit rates, variable contracts track the wholesale energy market. If global energy prices rise, your supplier will usually pass those costs directly onto you, meaning you could see a significant business energy price increase multiple times throughout the year.

A variable business energy contract is a type of commercial energy tariff where unit rates move in line with the wholesale energy market. While rates can fall as well as rise, many businesses find variable tariffs harder to budget for than fixed deals.

If your fixed contract includes pass-through costs or price-change clauses

Not all fixed contracts are completely locked in. Some agreements come with clauses that allow suppliers to adjust their rates in line with changes to non-energy costs, such as government environmental levies or regional network charges.

A pass-through clause is a type of contract term that allows a supplier to pass on certain additional costs to the customer during a fixed-term agreement. These costs typically relate to government policy changes, climate levies, or distribution network charges rather than the wholesale price of energy itself. 

If your contract includes a pass-through clause, you should check your terms carefully before assuming any increase is an error. You can find out more in our guide to energy procurement.

"Unexpected increases in invoices, even within a fixed contract, can indicate issues, including incorrect meter readings or billing errors. Expanding or downsizing operations, adding new equipment, or shifting operating hours can change usage significantly. Supplier promotions, green energy schemes, or UK government rebates can create savings opportunities that may not have been available when the contract started." - Alex Staker, Head of Commercial Operations, Bionic

Can you switch business energy after a supplier price increase?

If your contract has already expired, or if you are currently on deemed or variable rates, you can switch immediately. You are not locked into a term, and you can shop around for a competitive fixed deal without facing exit fees.

For many firms, switching business energy suppliers after a price increase is a simple way to protect their margins. But if you are midway through a standard fixed-term contract, you generally can't negotiate a new contract until your renewal window opens. This can be up to 12 months before your contract is due to end. 

Even if you lock in your new contract well before your current expiry date, this won't start until your existing contract ends.

If you can leave your contract early, you may need to pay a hefty termination fee. The exception is if the supplier has raised your prices in breach of your original agreement, or if your contract explicitly grants a right to cancel following a pass-through increase. 

You should also be allowed to leave your contract early if you move premises. For more information, check out our guide to business relocation and change of tenancy (CoT).

Can you switch mid-contract if your supplier has repriced?

If your supplier raises rates in a way that breaches your original contract terms, you may have grounds to leave without paying exit fees. 

You should contact your supplier in writing to query the increase, check your contract for any cancellation rights linked to price changes, and keep a record of all communications. If you're unsure whether your supplier has acted within the contract, the Citizens Advice Business helpline or the Energy Ombudsman can offer guidance.

If you're currently tied into a fixed-term agreement, find out whether you can leave before your contract ends in our guide on switching business energy contracts early. 

What to do if you think the price increase is wrong

If your bill has jumped unexpectedly and you believe your supplier has made an error, take the following steps to resolve it:

• Verify your contract terms - Check whether your fixed period has actually expired or if a pass-through clause applies.
• Compare bills - Check your latest statement against a previous month to see if the increase is driven by higher unit rates, increased standing charges, or simply an estimated meter reading.
• Contact the supplier - Reach out to their billing team for an official explanation. Keep a clear log of all communications, dates and names.
• Log a formal complaint - If the supplier cannot justify the increase, use their official complaints procedure.

What if your complaint isn't resolved?

If your supplier does not resolve your complaint within eight weeks, you can escalate to the Energy Ombudsman free of charge. The Ombudsman covers micor businesses and small businesses and can order suppliers to take corrective action, including issuing refunds or adjusting charges. 

How to choose the right business energy supplier

Before you make the switch, you need to know exactly where you stand with your current contract. Start by digging out your current agreement to find your contract end date. This tells you exactly when your current deal runs out and when your switching window opens.

Next, check for any exit fees. If you try to switch before your fixed-term contract is officially up, your current supplier will likely hit you with an early termination fee. You may even find you need to pay up the remainder of the contract before you can leave.

What information will you need to switch?

To get accurate quotes, you'll typically need your current energy supplier's name, your annual energy consumption (shown on your bill), your meter number, and your contract end date. Having this ready means you can compare quotes faster and get a clear like-for-like comparison across suppliers.

Learn more about the most common energy mistakes UK businesses make and how to avoid them.

Why compare quotes for business energy?

When general market energy price rises start affecting your business, staying with your current supplier can be a costly mistake. It's unlikely that your current supplier's renewal rates will be as competitive as those you can negotiate with a new supplier. And their out-of-contract rates almost certainly won't be.

Comparing business energy quotes gives you a clearer picture of what's available from multiple suppliers and can help you find prices that will cut your costs.

A major benefit of comparing quotes is finding more competitive unit rates and standing charges. While the difference between tariffs may seem small on paper, even a slight reduction in your energy rates can result in significant savings over the course of a year, particularly for businesses with higher energy consumption.

But it's not just about finding the cheapest deal. Arranging a new contract means you can lock in a contract length that suits your business plans, evaluate customer service standards, and explore renewable energy tariffs. Taking these factors into account can help you choose a supplier that delivers the right balance of cost, flexibility, reliability, and environmental responsibility.

When you get a quote with Bionic, we compare unit rates and standing charges across our panel of business energy suppliers. That means you instantly get a view of multiple suppliers, rather than calling each supplier individually. 

Bionic's business energy experts will answer any questions and support you with the switch so you can weigh up your options and make the right call for your business.

Wondering when your new supplier will take over? Learn more about how long it takes to switch business gas and electricity.

At Bionic, we can compare unit rates, contract lengths, and renewable energy tariffs to help you make an informed decision with confidence. 

Whether you're facing a price increase, approaching the end of your contract, or looking to switch from expensive out-of-contract rates, we'll guide you through the process and help you understand your options. With our Digital Renewals service, we can even track your renewal dates in the future, so you'll never roll over onto an expensive rate again.

With Bionic, you can compare energy, broadband, and business services in one place, making it easier to stay on top of your costs.

Get in touch to start a business energy quote.

Switching business energy after a price increase FAQs

Need more information on switching suppliers after a price increase? Check out the answers to some of the most frequently asked questions below:

Can I switch business energy suppliers after a price increase?

Yes, in many cases you can. If you are on a deemed contract, a variable tariff, or an out-of-contract rate, you can switch immediately without paying an exit fee. If you are still within a fixed-term contract, you may need to wait until your renewal window opens — typically 6–12 months before your end date — or pay a termination fee to leave early. The exception is if your supplier has raised rates in breach of your original contract terms.

What causes sudden increases in business energy bills?

The most common causes are your fixed contract expiring and your supplier moving you onto more expensive out-of-contract rates, being placed on a deemed contract when you move into new premises, or your variable tariff tracking a rise in wholesale energy prices. Some fixed contracts also include pass-through clauses that allow suppliers to adjust charges if government levies or distribution costs change.

What are out-of-contract energy rates?

Out-of-contract rates are a type of default business energy tariff applied automatically when your fixed-term deal ends without renewal. Your supplier sets these rates, and they are not negotiated, meaning they are typically much higher than market rates. You can leave an out-of-contract tariff at any point without a penalty.

Can I leave a fixed business energy contract early?

It's often difficult to end a fixed business energy contract early. If your supplier does allow for this, you'll need to pay an early exit or termination fee. The size of the fee varies by supplier and contract. But if your supplier has raised your rates in breach of the original contract terms, or if your agreement includes a specific cancellation right following a pass-through adjustment, you may be able to leave without a penalty. Always check your contract terms first.

What is a deemed business energy contract?

A deemed contract is a type of default supply arrangement that applies when a business uses energy at premises without formally agreeing terms with the existing supplier. This often happens when a business moves into new premises. Deemed rates are set by the supplier and are not negotiated, meaning they tend to be significantly higher than fixed market rates. You can switch away from a deemed contract at any time.

How can I check if a price increase is correct?

Start by reviewing your original contract to check whether your fixed period has ended or whether a pass-through clause applies. Then compare your latest bill against previous statements to identify whether the increase is in unit rates, standing charges, or both. If something looks wrong, contact your supplier's billing team in writing and keep a log of all communications. If the supplier cannot justify the increase, raise a formal complaint using their official process.

How quickly can I switch business energy suppliers?

Switching typically takes four to six weeks from the point a new contract is agreed. During this time, your current supplier will be notified, a transfer objection period will apply, and your new supplier will take over supply on the agreed start date. You should continue paying your current supplier until the switch is confirmed. Bionic can help manage this process so nothing falls through the cracks.

Why should I compare energy quotes after a price rise?

Comparing quotes after a price rise gives you a view of the full market so you can see whether you're paying more than you need to. Even a small reduction in your unit rate can add up to meaningful savings over a year, particularly if your business uses a lot of energy. It also gives you a chance to choose the right contract length, explore renewable tariffs, and pick a supplier that suits your business. When you get a quote with Bionic, we do the comparing for you across our panel of trusted suppliers.