Business energy contracts: gas and electricity

The best contract for a large business depends on your priorities, risk appetite, and purchasing strategy.

If your business needs budget certainty and predictable electricity costs, a fixed contract may be the right fit. If you want more control over when energy is bought and are comfortable taking a more active approach, a flexible contract may be better suited. Some businesses also choose a route that combines a fixed-term structure with more flexible purchasing decisions across the contract period.

A fixed business energy contract is an agreement where some or all of your energy costs are set in advance for the term of the contract.

For large businesses, this can take different forms. Some contracts fix both commodity and non-commodity costs upfront, helping provide stronger budget certainty. Others fix the commodity element while allowing selected government and regulatory charges to be passed through at cost. This means the contract structure matters just as much as the headline rate. If you want to explore fixed business energy contracts, it is worth looking closely at how each option treats non-commodity elements.

A flexible business energy contract gives a business more control over how and when it buys energy.

Instead of fixing all energy volume in one transaction, a flexible purchasing strategy allows the business to buy energy in stages across the contract term. This can help smooth exposure to market peaks, create more opportunities to secure a better average price, and support a longer-term energy buying strategy. Flexible purchasing can work well for larger businesses that want closer access to market insight and a more active approach to energy management.

Business energy procurement is the process of planning how your organisation will buy electricity or gas.

For large businesses, this usually starts with understanding demand, sites, meter types, usage patterns, and contract end dates. From there, you can compare contract structures, decide how much price certainty you need, and review how non-commodity charges will be treated. Good procurement is not only about finding a unit rate. It is also about choosing the right contract structure, buying at the right time, and making sure the agreement supports wider operational and financial goals. Tools that help you understand energy prices and compare business energy options can support that process. 

A business should usually start reviewing its renewal options well before the contract end date.

As a guide, some businesses may be able to agree a new energy contract up to six months before their current contract expires. Starting early gives you more time to compare options, review market conditions, and avoid a rushed renewal decision.

Yes, large businesses can buy energy across multiple sites.

 Multi-site purchasing often involves different usage profiles, meter types, reporting needs, and operational requirements across the portfolio. That is why larger organisations often need a more tailored approach, especially where there are complex estates, multiple Half-Hourly (HH) meters, or central reporting requirements. A well-planned strategy can help improve visibility, simplify decision-making, and support better control of energy costs. Services that help you manage energy usage and platforms such as My Energy Coach can also support better reporting and portfolio visibility. 

The price of a business electricity contract is influenced by a range of factors, not just wholesale electricity prices.

For large businesses, the total cost can be affected by the wholesale market, contract type, volume, timing, purchasing strategy, meter profile, and the treatment of non-commodity charges. Network costs, policy charges, balancing costs, and metering-related charges can also have a significant impact on the final price paid. This is why it is important to compare contract structures carefully, not just the headline unit rate.

Non-commodity charges are the parts of an electricity invoice that do not relate directly to the electricity a business consumes.

They include government-originated charges and third-party industry costs, such as network, balancing, metering, and policy-related charges. Depending on the contract, these charges may be included within the agreed unit rate or shown separately on the invoice as individual line items. For many large electricity users, non-commodity charges are now a major part of the total cost of power, which is why understanding them is an important part of business energy procurement.

Yes, businesses can buy renewable electricity as part of their wider energy procurement strategy.

Renewable electricity can be available with fixed or flexible purchasing contracts, and some products can support zero market-based Scope 2 reporting. For larger energy users, there may also be options to buy renewable electricity from specific technologies such as wind, solar, or hydro, or to explore longer-term structures such as a Corporate Power Purchase Agreement. Businesses reviewing their wider net zero strategy may also want to explore renewable electricity for large businesses.

When a business energy contract expires, it is important to review your options before the end date rather than leave it to the last moment.

Starting the business energy contract renewal process early gives you more time to compare fixed and flexible contract options, review how non-commodity charges will be handled, and choose a structure that suits your future energy strategy.

For large businesses, early renewal planning can also make it easier to align energy buying decisions with budgeting, reporting cycles, and operational priorities. If your estate is changing at the same time, it may also help to review any plans for new energy connections.

Otherwise, you will move to Deemed and Default rates until a new contract is agreed.