A business energy contract sets the price and terms under which a supplier provides electricity or gas to a business premises. The amount you pay will normally include a price for each kilowatt hour (kWh) of energy consumed together with a standing charge and other applicable charges or taxes.
With a fixed-rate contract, the agreed unit rate and standing charge are fixed for the contract period. A variable contract allows the price to change during the agreement. Businesses can also find themselves on deemed or out-of-contract rates if they move into premises without arranging a contract or allow an existing agreement to expire. These rates are generally more expensive than a negotiated contract.
Business contracts also have specific start dates, end dates and termination conditions. Unlike domestic energy tariffs, they do not normally have a cooling-off period once agreed. Businesses should therefore check the contract length, pricing structure, renewal arrangements and any broker commission before accepting an offer.
