Business 13 www.aftermarketonline.net MAY 2026 Your supplier must treat you fairly Managing business energy costs in an uncertain market Following the recent increases in energy network costs, Ofgen’s Jemma Baker outlines some of the things to consider if your energy contract is due to be renewed. The price you pay for energy for your business can vary across suppliers and the type and size of your business, but covers a range of costs, including the wholesale energy cost (the cost to buy energy), network costs (the infrastructure to transport energy), and environmental costs (government decarbonisation schemes). Typically, wholesale costs are about 40% of your electricity bill and 60% of your gas bill, but exact percentages vary. In April 2025, network costs increased to upgrade energy infrastructure. Wholesale energy costs are volatile and will continue to be affected by the situation in the Middle East. Our understanding is that the majority of businesses are not currently exposed to immediate price increases, as contract lengths are starting to return to 3 to 5 years in length. However, if your fixed price contract is coming to an end, you will need to negotiate a new contract with your supplier. If your current contract is coming to an end, talk to your supplier about what options are available. If you have an energy broker, they can do this for you. Consider your options Ask suppliers what contracts are available and consider both short and long-term options. It may be better for you to temporarily stay on deemed or out of contract rates if the current longerterm contract offers are high. There are several things to be aware of, though. When considering your contract options, you should be aware that suppliers may require security deposits due to the higher risk of businesses defaulting on payments. Also, energy suppliers are not obliged to offer businesses a contract, and offers may be harder to find. You certainly shouldn’t feel pressured into signing a contract, and there is no cooling-off period, so do check the terms and fees beforehand. Plus, if you discuss a contract over the phone, you should ask for it in writing before agreeing to it. Keep in contact with your supplier Your supplier must treat you fairly and bill you accurately based on your meter readings. To ensure you are only paying for what you use, submit regular meter readings or get a smart meter. It is also important that you keep your contact details up to date so that you receive your bills. If you are having problems managing your bill, you should talk to your supplier or your energy broker. Your supplier can also offer you advice on reducing your bill. Ways to get help Managing energy for your business is just one of many competing demands. There is support available to help you, though. You can contact reputable energy brokers who can talk to suppliers for you, or trade bodies, consumer groups and charities who can offer detailed advice and support, and the Energy Ombudsman for small businesses can help if you get into a dispute with your supplier and you cannot resolve your complaint. If your dispute is with your energy broker, they will provide details of their redress scheme provider to contact. Finally, you could be eligible for financial assistance or schemes that help you reduce energy costs, and a good place to start your search would be tinyurl.com/4ce6fbp7. tinyurl.com/2vjkpyzt
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