Understanding Your Energy Rights as a Small Business
As a small business in the UK, you have specific legal rights and responsibilities when it comes to your gas and electricity supply. Energy suppliers must treat small businesses fairly, following rules set by Ofgem, the energy regulator. These rules cover key areas such as clear contract terms, accurate billing, and fair treatment during disputes.
Small businesses are protected under various regulations, including the Gas Act 1986 and the Electricity Act 1989, which require suppliers to provide transparent information and prevent unfair contract practices. For example, suppliers must give you clear notice before renewing or changing your contract, and you have the right to dispute incorrect bills or poor service.
Understanding your rights is crucial for avoiding unfair practices and resolving any issues quickly. If you know where you stand legally, you can challenge unexpected charges, negotiate better terms, and make informed choices about your energy supplier. For a broader overview of your rights as a small business energy consumer, explore our main guide.
Check if Your Business is a Microbusiness
Understanding whether your business qualifies as a microbusiness is important, as it affects your rights and protections under UK energy regulations. Ofgem, the UK’s energy regulator, sets out specific criteria for microbusinesses, including limits on employee numbers, annual turnover, and energy usage. If your business meets these criteria, you may benefit from extra protections when dealing with energy suppliers, such as clearer contract terms and easier switching options.
To find out if your business meets the legal definition, including how the Companies Act 2006 applies, see this overview of the Microbusiness definition under the Companies Act 2006.
For step-by-step guidance on the exact criteria and how to confirm your business’s status, visit our dedicated page to check if your business is a microbusiness. This will help you understand your rights and what to expect from your energy supplier.
Dealing with Your Business Energy Bills
Small businesses often face challenges with their energy bills, including unexpected charges, estimated readings, or even missing bills. Under UK law, energy suppliers must provide clear and accurate bills, usually based on actual meter readings. If you notice a mistake – such as being billed for the wrong amount, or not receiving a bill at all – you have the right to query and dispute the charges. It’s important to regularly check your bills against your own meter readings, as errors can lead to overpayment or underpayment.
To help you understand your options and the steps you can take, we’ve created a dedicated guide on dealing with your business energy bills. This guide walks you through how to review your bill, raise a dispute with your supplier, and what to do if you suspect your meter readings are incorrect.
If you’re experiencing specific issues, such as problems with your energy bill, if you haven’t received an energy bill in a while, issues with your energy meter, or need to claim back credit, you’ll find step-by-step guidance in our related topics.
Managing Your Energy Supply When Moving Business Premises
When relocating your business, it’s important to manage your energy supply carefully to avoid unexpected costs, service interruptions, or legal issues. UK small businesses must notify their energy supplier before moving, settle any outstanding bills, and ensure the new premises have a valid energy contract in place. Failing to do so can result in being placed on expensive deemed or out-of-contract rates, as set out by Ofgem’s regulations for non-domestic energy supply.
To help you navigate this process, we’ve created a dedicated guide on dealing with your energy supply when you move business premises. This guide covers the steps you need to take before, during, and after your move, including how to notify your supplier, arrange a final meter reading, and set up energy at your new location.
If you’re interested in how these steps compare to moving home, our page on moving home energy supply considerations offers further insights.
Problems with Your Business Energy Supplier or Broker
Small businesses often face challenges with their energy suppliers or brokers, such as unexpected contract terms, poor customer service, or disputes over billing. If you work with a broker or third party, it’s important to know that they must act transparently and fairly, following rules set by Ofgem and the Business Protection from Misleading Marketing Regulations 2008. When issues arise, you have the right to raise complaints and seek resolutions, whether it’s with your supplier or a broker.
For detailed guidance on dealing with problems with your business energy supplier or broker, including your legal rights and practical steps you can take, visit our dedicated page.
If you’re experiencing other problems with your energy supply or supplier, or need to know how to complain about an energy company, further information is also available.
Switching Your Business to a New Energy Supplier
Switching your business to a new energy supplier can help you save money, get better service, or find tariffs that better suit your needs. Before making a switch, it’s important to consider your current contract terms – many business energy contracts are fixed-term, and leaving early may involve exit fees. The process is regulated by Ofgem, ensuring your right to switch, but you should always check your notice period and any restrictions in your agreement.
To get the best deal, take time to compare UK energy suppliers and review different tariffs. It’s also worth reading up on choosing your energy tariff to ensure the option you select matches your business’s usage pattern.
For a step-by-step guide on the legal and practical steps involved in switching your business to a new energy supplier, including how to avoid common pitfalls and what your rights are under UK law, visit our detailed guide. You can also explore general information about switching energy supplier to understand your protections and obligations throughout the process.
Additional Support and Resources for Small Businesses
Managing energy costs can be a challenge for small businesses, but there is support available to help you stay on top of your bills and reduce expenses. If you’re worried about rising costs, you may be eligible for financial assistance or flexible payment arrangements. Many energy suppliers are required by Ofgem regulations to offer support to businesses facing difficulty – this can include payment plans or advice on getting extra support from your energy supplier.
If you’re struggling to keep up with payments, it’s important to act early. You can explore a range of options to get help with your energy bills, including grants or government-backed schemes designed to ease the pressure on small businesses.
Not sure who supplies your gas or electricity? It’s essential to know your supplier for billing and support issues. You can find out who your gas or electricity supplier is by following a few simple steps.
Reducing your energy use is another effective way to cut costs. Even small changes in how you use energy can make a difference. Many of the tips used to save energy at home can also benefit your business, such as upgrading to energy-efficient lighting or improving insulation.
For more detailed guidance and tailored support, explore the links above or speak directly with your energy supplier about your options.
Related Legal Considerations
When energy issues disrupt your business – such as through prolonged power cuts, faulty supply, or unexpected increases in costs – they can sometimes lead to financial losses. In these situations, it’s important to understand how your business insurance might respond. Many commercial insurance policies offer cover for losses caused by energy disruptions, but the terms vary, so always check your policy details carefully.
If you experience losses due to energy supply problems, you may be able to make a claim under your business interruption or property insurance. However, insurers often require clear evidence that the loss was directly caused by the energy issue, and some policies may exclude certain types of incidents. The Consumer Rights Act 2015 and the Supply of Goods and Services Act 1982 also set out some protections for businesses, which could be relevant if your supplier fails to deliver energy as agreed.
Before making a claim, gather as much documentation as possible – such as supplier correspondence, bills, and records of the disruption. For more information on what to consider and how to proceed, visit our guide on insurance claims. This can help you understand the process and your rights if your business is affected by energy-related issues.
