1. Get off deemed rates
If you have never actively chosen a contract — you moved in and just started paying, or an old contract expired — you are almost certainly on deemed or out-of-contract rates. These typically run 40–80% above a negotiated fixed deal. Fixing this is usually the single biggest saving available, and it takes one phone call or one broker quote.
2. Never let a contract roll over
Many business contracts renew automatically for a full year if you miss the notice window, often at poor rates. When you sign any contract, immediately diarise the end date and the notice deadline (usually 30–90 days before). Treat that date like a tax deadline.
3. Compare the standing charge, not just the unit rate
A deal with a tempting unit rate but a high daily standing charge can cost a low-usage business more overall. Always compare the estimated annual total for your actual usage — a broker's comparison does this for you.
4. Check you are on the right VAT rate
Most businesses pay 20% VAT on energy, but businesses with very low usage (under about 33 kWh of electricity or 145 kWh of gas a day) can qualify for the 5% rate, and charities often qualify too. From 1 October 2026 to 31 March 2027 the government has also removed VAT from electricity for some smaller customers. Ask your supplier to confirm which rate you are on — it is a five-minute check that can be backdated if wrong.
5. Submit regular meter readings
Estimated bills drift upwards over time and the correction always seems to arrive at the worst moment. A monthly reading — or a smart meter — keeps every bill accurate and makes any comparison quote far more reliable.
6. Kill the out-of-hours load
Walk the premises an hour after closing and note what is still on: display fridges, lighting circuits, printers, water heaters, the drinks fridge nobody uses. For many small premises, out-of-hours waste is 10–20% of total consumption. Timer plugs and a closing checklist cost almost nothing.
7. Turn heating down one degree
Dropping the thermostat by just 1°C cuts heating energy by roughly 8% for a typical building, and most staff will not notice. Check that timers match actual opening hours — heating an empty shop on a Sunday is pure cost.
8. Switch to LED lighting if you have not already
If any halogen or fluorescent fittings remain, LEDs use around 75–80% less electricity for the same light and last years longer. For a premises with lights on all day, payback is often under a year.
9. Review your capacity charges (larger users)
If your electricity bill shows a capacity or availability charge (kVA), check it against what you actually need. Many businesses pay for far more capacity than they use, and reducing it is a permanent saving on every future bill.
10. Re-quote every renewal, even if you stay
Loyalty is not rewarded in business energy. Get a market comparison at every renewal even if you end up staying put — the quotes are free, and they either win you a better deal or confirm you already have one.