What is a business energy contract?
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In short: A business energy contract supplies gas and electricity to non-domestic premises — shops, offices, warehouses and home offices with business use — under commercial terms distinct from household price caps. Contracts specify unit rates, standing charges, contract length, renewal windows and whether prices are fixed or variable.
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Business contracts are not covered by Ofgem's domestic price cap — suppliers negotiate rates based on consumption, creditworthiness and market wholesale prices.
Micro-businesses — under 10 employees and low turnover thresholds — receive enhanced protections under Ofgem rules: clearer contract information, cooling-off periods on some switches and ban on rollover to punitive out-of-contract rates without notice.
Deemed and out-of-contract rates apply when contracts expire without renewal — often far above negotiated fixed rates. Set diary alerts 60 days before end date.
Half-hourly metering and pass-through charges affect larger users differently from small shops on standard business meters. See business energy explained guide.
Primary source: ofgem.gov.uk/information-consumers/energy-advice-businesses
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