The energy price cap went up 4% on 1 October and got the headlines. If you’re reading this as a business owner, ignore it. There is no price cap on business energy, and the number that matters to you this autumn isn’t on Ofgem’s press release. It’s the end date on your own contract.
Cornwall Insight estimates that a typical small business’s energy bill has risen around 25% since February, driven by wholesale prices pushed up by the Middle East conflict and pressure on European gas storage. It also warns that many business contracts renew in October and will lock in at worse rates than owners hoped. The worst outcome is the one that happens by default: the contract ends, nobody acts, and you roll onto your supplier’s out-of-contract rates, which are usually well above a negotiated deal.
For a limited company renting a unit, that means finding the contract, noting the renewal window and getting quotes before it opens, not after. For a sole trader working from home, the domestic cap does cover your home bill, so the 4% rise is your number. Just keep claiming the business-use share properly, and check the zero VAT on electricity is actually showing on your bill.
The counter-argument is that fixing now means fixing near a high, and prices might fall by spring. They might. But waiting is a bet on the Middle East and the winter weather, and most small firms can’t afford to lose that bet. A known price you can plan around is worth more than a cheaper price you might get.
Do you know, today, the date your business energy contract ends?