Businesses are often overcharged on their energy bills without knowing it, sometimes by suppliers they have trusted for years. According to Ofgem, ten energy suppliers paid around £7 million in compensation to more than 34,000 customers in 2025 after overcharging them over a six-year period. In a market where prices keep changing, those small errors and standing charges add up fast. If you have ever glanced at your energy invoice and asked whether it is really the best deal for your business, it is worth a closer look.

How much have prices moved this year?

Year-ahead wholesale power, which drives one-year fixed prices, was £143.14/MWh on 2 November 2026, more than double its February average of £67.58. Year-ahead gas has nearly trebled over the same period, from 67p to 184.5p a therm, so a renewal priced now will cost more than one priced before the Middle East conflict began.

A new rule is also on the way for smaller sites. From 1 September 2027, every new fixed-term contract for small and medium business premises must include a term saying you have a smart or advanced meter, or agree to have one, and suppliers must start telling customers about this from 1 January 2027. If your contract ends in the next year, check today's business electricity prices before you decide.

Line chart of year-ahead wholesale gas and power in 2026 against February's average: gas at 275 and power at 212 on 2 November

The Hidden Cost of Doing Nothing

For most businesses, the energy contract sits quietly in the background until something goes wrong. The biggest risk is usually not a bad decision but doing nothing at all. When a fixed contract ends without a new one in place, suppliers move customers onto out-of-contract rates. They are typically much higher than the fixed deal that just expired, sometimes by 50 per cent or more. The same applies to deemed rates, which kick in when a business takes over premises without arranging a fresh contract. The supplier sets the price, and you have very little room to push back until you negotiate a new deal. Loyalty rarely pays in energy. Long-standing customers often end up on worse terms than new ones, simply because nobody renegotiated.

When Can You Switch? Your Step-by-Step Plan

What to Check Before You Sign

A few things to handle before you put your name on anything. Settle any outstanding charges with your current supplier, and check whether early termination fees apply if you are still mid-contract. Sometimes those fees outweigh the savings from switching early, so it is worth doing the maths first.

Once you sign, you are tied into the  contract for its full length, so read it carefully. The unit rate, standing charge contract length, and any pass-through clauses all matter. Pass-through contracts can look great on the headline rate, but they leave you exposed to other charges that can creep up without warning. A fully fixed contract is usually the safer bet if you want a predictable bill. And if you are using a broker, you will be asked to sign a  Letter of Authority. That just lets them gather quotes from suppliers on your behalf, and it is usually valid for 12 months.

Watch the Market Before You Sign

Wholesale gas and electricity prices move every day, driven by weather, storage levels, world events, and demand. The price quoted on a Tuesday may not be available on a Friday, and most supplier quotes are only valid for 24 to 72 hours, and Energy UK says some stay open for only a few hours when markets are volatile. Signing a 36-month contract on the wrong day can cost a business thousands.

This is why we publish the Purely Daily Market Report, a free email covering wholesale price movements. Also sharing the drivers behind them, and what they mean for businesses coming up for renewal. If your contract ends in the next 12 months, sign up. It takes the guesswork out of timing your switch and helps you spot the right moment to lock in.

Your Renewal Checklist: Do's and Don'ts

Take Control of Your Energy Costs

Reviewing contracts at the right time delivers three things: lower unit rates through competitive tendering, protection against future price rises through fixed deals, and predictable budgeting. In a challenging market, those savings often make the difference between rising costs and stability.

Finding the right contract should be simple. If you would like a free quote, please fill in the box below, or compare business energy rates from 18 suppliers.

For more information, contact us on 0161 521 3400 or email us at info@purelyenergy.co.uk

Written by Elizabeth Heverin and edited by Faith Labong at Purely Energy.