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What defines a large business?

A large business is usually characterized by significant energy consumption, which can be attributed to the scale of its operations, the size of its premises, or the number of employees.

Large businesses generally consume more than 55,000 kWh of electricity or 200,000 kWh of gas annually. Examples include manufacturing plants, expansive office buildings, or retail chains with multiple branches.

If your business hasn't switched energy suppliers before, you may be paying out-of-contract rates or have been placed on a rollover contract. For high-energy-consuming businesses, this can result in unnecessarily high energy costs.

Find out how much you could save by comparing energy quotes for large businesses today.

How does the Climate Change Levy (CCL) affect large businesses?

If you use small amounts of energy—specifically less than 33kWh of electricity or 145kWh of gas per day—your supply is treated as domestic and you are exempt from the levy.

The CCL introduces an additional charge on energy bills, raising the cost of traditional energy sources. However, energy generated from renewable sources is exempt from this levy.

As a result, large businesses are financially encouraged to switch to green energy contracts or incorporate renewable energy to reduce costs and avoid the CCL.

Solar panels

Is energy for large businesses different from SME energy?

Yes, energy needs and contracts for large businesses differ significantly from those of SMEs. SMEs, typically employing up to 250 people, often operate on a single site with lower energy usage, making fixed-rate tariffs an ideal option. On the other hand, large businesses have a wider range of energy contract options, including flexible plans that allow them to take advantage of market changes. While large businesses often benefit from more competitive rates compared to SMEs, their energy contracts tend to be more complex. This makes it even more crucial for large businesses to compare energy plans carefully.

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Which contract type is best for my large business?

The ideal contract for your large business will depend on several factors, such as your usual energy consumption, risk tolerance, budgeting preferences, and environmental sustainability goals.

Our expert consultants are here to guide you through the energy market and help identify the best contract type and suppliers for your business. With our award-winning service, you'll gain access to insights on market trends through your own portal for both fixed and flexible contracts. Contact us today to see how Mo Utilities can help you save time and money.

What types of energy plans can large businesses choose from?

Large businesses have more flexibility and options when it comes to negotiating energy contracts, compared to smaller businesses. The right energy contract for your business will depend on factors such as industry, size, location, and energy usage. Below is an overview of common contract types for large businesses

Fixed contracts allow businesses to lock in a set energy price per unit for the duration of the agreement, typically ranging from one to four years. Although energy costs may still vary depending on consumption, these contracts protect businesses from rising market prices, providing more predictable budgeting.
Part-flexible contracts combine fixed and fully flexible elements. Businesses can fix the price of part of their energy usage while maintaining the flexibility to benefit from market fluctuations on the remaining consumption. This option provides a mix of security and potential savings.
Fully flexible contracts give businesses the freedom to take full advantage of market price fluctuations. These contracts offer the potential for savings when prices drop but also carry the risk of higher prices. They are best suited for businesses that are comfortable navigating the energy market.
In pass-through contracts, the energy cost is separated from non-commodity charges, like network or policy costs, which are passed through at the market rate. The energy unit price can be fixed, but other charges may fluctuate depending on market conditions, leading to less predictability in overall costs.
Green energy contracts offer businesses the option to purchase 100% renewable energy or a mix of renewable and traditional energy sources. These green tariffs can be included in fixed, flexible, or pass-through contracts, giving large businesses the opportunity to choose a sustainable energy plan that aligns with their environmental goals.
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What other factors influence your energy plan as a small business?

Aside from the size of your business, several key factors can influence both your energy plan and its cost:

The industry in which your business operates plays a major role in determining your energy usage. Businesses in sectors like manufacturing or hospitality generally consume more energy than those in retail or professional services.
Fixed-rate contracts offer predictable costs, helping with budgeting, while variable-rate contracts allow businesses to capitalize on changes in market prices.
The kind of meter you use, and whether you have multiple meters for different sites, will affect your energy plan, particularly for businesses with several locations.
Energy prices can vary by region, and some areas may provide incentives or grants for businesses working to enhance their energy efficiency.
The more energy your business uses, the higher your overall energy costs will be.

Frequently Asked Questions

Unlike residential accounts, large business utility prices are not capped by standard tariffs. Instead, they require bespoke contracts based on the company's annual usage, operational hours, and credit profile.
A typical commercial energy bill consists of commodity costs (wholesale energy, negotiable) and non-commodity costs (transmission, distribution, and administrative charges set by third parties).
Large commercial properties are assigned an agreed supply limit (maximum demand). If your facility draws more energy than this agreed limit at any time, the utility provider will apply a heavy penalty, known as an excess capacity charge.

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