There is no price cap for business energy
The Ofgem price cap you hear about on the news protects households only. It has never applied to a business meter. A business supply is priced by contract: the unit rate and standing charge you pay are whatever you agreed when you signed — or, if you never signed, whatever your supplier's out-of-contract tariff happens to be. Nobody sets an upper limit on those rates.
That is why two identical shops on the same street can pay very different prices for the same energy. The difference is almost always the contract, not the supplier.
The two numbers that matter
Unit rate (pence per kWh) — what you pay for each unit of gas or electricity you use. This is the number most people compare, and the one a broker can usually improve.
Standing charge (pence per day) — a fixed daily fee you pay even if you use nothing. It covers keeping your meter connected to the network. On a small business electricity meter this is often 40–60p a day, which adds up to £150–£220 a year before you have used a single unit. Always compare standing charges as well as unit rates.
The three contract types
Fixed contract. Your unit rate is locked for 12, 24 or 36 months. This is the only thing that genuinely caps your price. The trade-off: you cannot leave early without an exit fee, and if you miss the renewal window you drift onto much worse rates.
Deemed rates. What you pay when you move into premises and start using energy before signing anything, or when a contract ends without a new one. Ofgem says these must not be "unduly onerous", but in practice deemed and out-of-contract rates typically run 40–80% above a negotiated fixed deal. If you have never actively chosen a contract, this is very likely what you are on.
Rollover. Some contracts renew automatically if you do not give notice in time — often at uncompetitive rates and for another full year. Diarise your contract end date and the notice window, which is usually 30–90 days before the end.
What else is on the bill
Beyond the energy itself, a business bill includes network charges, policy costs (such as schemes supporting renewable generation) and VAT — usually 20% for businesses, though some small businesses using little energy qualify for the 5% reduced rate. From 1 October 2026 to 31 March 2027 the government has removed VAT from electricity bills for customers covered by the household price cap, which also applies to some small businesses — check with your supplier whether yours qualifies. A broker's quote should always show the full picture, not just a headline unit rate.
What this means for you
Because there is no cap, the only way to know whether you are overpaying is to compare. We check prices across 35 UK business energy suppliers from a recent bill, and handle the switch if a better deal exists. It costs you nothing — we are paid by the supplier you choose.