Business Energy FAQs
Were here to help. If you have a question about business energy, we’ve probably heard it before and we’ll do our best to answer it.
Some of our frequently asked questions about business energy meters and contracts.
Are all energy contracts the same?
No. There are three main types of energy supply contracts.
The contract duration is fully fixed for both energy and non-energy costs. However, HMRC set and adjust VAT and CCL levy’s annually.
Part Fixed or Partial Pass Through
This type of contract generally guarantees the unit rate (p/kWh) and the standing charge throughout the contract duration. However, “Third Party” charges within the contract can be Increased to the customer, if the costs to the supplier rise above set tolerances.
In addition to the contract version above, some suppliers may provide contracts that are not fully inclusive of all “Third Party” costs and therefore can include a “Pass Through” element. Although the charges included in the agreement will be fully fixed, it will exclude certain taxes or levies.
A pass-through contract separates costs in two, between the energy element, which is paid throughout the contract term and non-commodity and third-party costs, (which can be up to 60% of total contract cost). The supplier then passes these non-commodity costs direct to the customer .
What is a variable tariff?
What is an energy tariff?
What is a deemed contract?
What is a standing charge?
What is a half hourly (HH) meter?
A half-hourly electricity meter ( HH meter) is a special type of metering system which utilises AMR (automatic meter reading) technology to provide a more accurate electricity reading. The system relies on a fixed or mobile data link which sends updated meter reads to the energy supplier every half hour.
For a more in depth look at half hourly meters. Read a quick guide to half hourly meters.
What is an economy 7 or day and night meter?
What is an electricity meter profile?
What is an MPAN?
What is an MPRN or Meter Point Reference Number?
What is a three rate meter?
What is a business credit score?
How will a low credit score affect your options?
Having a low credit score will cause issues and will limit your choice of suppliers and energy tariffs. Some suppliers will simply decline your businesses while other suppliers may just prevent you from gaining access to their lowest price tariffs.
An energy supplier may choose to accept your business, even with a low credit score, however they may insist on some additional measures, such as:
- Request a security deposit.
- Insist on payment by Direct Debit.
- Install a prepayment meter.
How can I find out when my contract ends?
My contract end date is not on my bill?
Please check the definition of a Micro Business (below). If you are a Micro Business, yet your supplier is recognising you as a Non-Micro Business. Then you should contact them and explain that you are a Micro Business.
What is a Micro Business?
A company is classed as a micro business if it meets one of the following criteria:
- Employs fewer than 10 people and has an annual turnover or balance sheet no greater than €2 million;
- Uses not more than 100,000 kWh of electricity per year, or;
- Uses not more than 293,000 kWh of gas per year.