{"id":5519,"date":"2022-02-03T07:07:00","date_gmt":"2022-02-03T07:07:00","guid":{"rendered":"https:\/\/www.conferencecall.co.uk\/blog\/?p=5519"},"modified":"2022-02-03T17:27:00","modified_gmt":"2022-02-03T17:27:00","slug":"do-you-need-a-business-energy-deal","status":"publish","type":"post","link":"https:\/\/www.conferencecall.co.uk\/blog\/do-you-need-a-business-energy-deal\/","title":{"rendered":"Do you need a business energy deal?"},"content":{"rendered":"<p>Energy prices are barely out of the news these days &#8211; soaring wholesale gas prices have put household and business energy prices up to record levels. And today&#8217;s <a href=\"https:\/\/www.ukpower.co.uk\/ofgem-energy-price-cap-explained\" target=\"_blank\" rel=\"noopener\">energy price cap<\/a> announcement means domestic energy bills will increase by \u00a3693 for millions of households from April 1 this year.<\/p>\n<p>But if you&#8217;re a business owner and you have a dedicated premises for your business, you won&#8217;t be protected by the price cap. This situation has seen some commercial suppliers put their out of contract rates up by as much as 120%.<\/p>\n<p>In this instance, it makes sense to <a href=\"https:\/\/bionic.co.uk\/business-energy\/\" target=\"_blank\" rel=\"noopener\">compare business energy<\/a> and switch if you can get better rates. If you run a large business or SME, it makes sense to take out a business energy deal as you can often negotiate cheaper gas and electricity rates than if you have a domestic energy deal at your business premises. But what if you work from home or run a micro business?<\/p>\n<p><!--more--><\/p>\n<h2>Will the energy price cap affect your business?<\/h2>\n<p>If you run a business, you might be wondering if the energy price cap announcement will affect your energy prices. It won&#8217;t directly affect them unless you have a domestic energy deal at your premises. It you have a business energy deal, your rates might be indirectly affected.<\/p>\n<p><iframe width=\"600\" height=\"355\" src=\"https:\/\/www.youtube.com\/embed\/lmuAGmVYb-E\" title=\"YouTube video player\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen=\"\"><\/iframe><\/p>\n<h2>What is a micro business?<\/h2>\n<p>A micro business is one that one that operates on a very small scale, but there are various definition of exactly what a micro business is:<\/p>\n<p><strong>The European Union (EU)<\/strong> defines a micro business as&nbsp; definition of a micro business is one that has less than 10 employees and has a turnover or balance sheet of less than \u20ac2 million (\u00a31.7 million).<\/p>\n<p><strong>The Office for National Statistics (ONS)<\/strong> defines a micro business as a subset of Small to Medium Enterprises (SMEs), which differ from SMEs as they tend to be owner-manager entrepreneurial (OME). And, as with the EU definition, SMEs consist of teams fewer than 250 employees, microbusinesses have a headcount of up to just nine employees.<\/p>\n<p><strong>Her Majesty&#8217;s Revenue and Customs (HMRC) <\/strong>define a micro business as one that has less than 10 employees and a turnover under \u00a32 million.<\/p>\n<p><strong>Ofgem, the UK energy regulator,<\/strong> defines a micro business as one that:<\/p>\n<ul>\n<li>Uses less than 200,000 kWh of gas a year, or<\/li>\n<li>Uses less than 55,000 kWh of electricity a year, or<\/li>\n<li>Has fewer than ten employees (or their full-time equivalent) and an annual turnover or annual balance sheet total not exceeding \u20ac 2 million.<\/li>\n<\/ul>\n<h2>Does your micro business need a business energy deal?<\/h2>\n<p>If your business meets the Ofgem definition of a micro business, then you should take out a business energy deal designed specifically for your type of business &#8211; you&#8217;ll benefit from the cheaper rates offered to business owners without the restrictive terms of a SME and large business energy deal.<\/p>\n<p>While SMEs and large businesses are tied into their business energy deal for the entire duration they signed up for &#8211; there&#8217;s no early release clause and once you sign up, you&#8217;re locked in &#8211; micro business energy deals are much more like domestic deals and benefit from the following:<\/p>\n<ul>\n<li>The maximum notice period for terminating a micro business contract is 30 days<\/li>\n<li>Suppliers must include the current prices, new prices and annual consumption on renewal letters for fixed-term contracts to make comparisons easier; and<\/li>\n<li>Suppliers must take all reasonable steps to acknowledge termination notice within five working days of receipt.<\/li>\n<li>Micro-businesses on fixed-term contracts should now receive a renewal letter from their supplier around 60 days before it ends.<\/li>\n<\/ul>\n<h2>Do you need a business energy deal if you run your business from home?<\/h2>\n<p>If you run your business from home and at least half of the energy you use if for business purposes &#8211; including computers, lighting and heating, but not things like fridges and freezers &#8211; then you can get a business energy deal. The same applies if you work from home.<\/p>\n<p>It&#8217;s worth doing your sums before you sign up for a business energy deal though as, although rates are often cheaper, the rate of VAT you pay is higher on business energy than domestic energy &#8211; 20% compared to 5%.<\/p>\n<p><em><a href=\"https:\/\/www.conferencecall.co.uk\/conference-call\"><img decoding=\"async\" class=\"alignnone wp-image-1777 size-full\" src=\"https:\/\/www.conferencecall.co.uk\/blog\/wp-content\/uploads\/2015\/05\/conference-call-banner.jpg\" sizes=\"(max-width: 600px) 100vw, 600px\" srcset=\"https:\/\/www.conferencecall.co.uk\/blog\/wp-content\/uploads\/2015\/05\/conference-call-banner.jpg 600w, https:\/\/www.conferencecall.co.uk\/blog\/wp-content\/uploads\/2015\/05\/conference-call-banner-300x59.jpg 300w\" alt=\"\" width=\"600\" height=\"118\"><\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Energy prices are barely out of the news these days &#8211; soaring wholesale gas prices have put household and business energy prices up to record levels. And today&#8217;s energy price<\/p>\n<div class=\"more-link-wrapper\"><a class=\"more-link\" href=\"https:\/\/www.conferencecall.co.uk\/blog\/do-you-need-a-business-energy-deal\/\">Read More<span class=\"screen-reader-text\">Do you need a business energy deal?<\/span><\/a><\/div>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[7,32,27],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Do you need a business energy deal? - ConferenceCall.co.uk blog<\/title>\n<meta name=\"description\" content=\"If you run a micro business, run your business from home or work from home, do you need a business energy deal? 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