Business energy
Business energy
this winter
2026/27 — what to know
Compared across suppliers- The Ofgem price cap applies to households, not businesses — business energy prices come from your own contract.
- The household cap edges up again from January 2027, a reminder that wholesale and network costs remain elevated.
- Rising network and standing charges feed into business bills regardless of your unit rate.
- Winter is a sensible time to check your contract end date and plan your renewal rather than roll onto expensive out-of-contract rates.
Every winter the energy price cap makes headlines — and every winter business owners ask whether it applies to them. The short answer is no, and understanding why helps you make better decisions as the cold weather bites.
The price cap doesn't apply to businesses
Ofgem's price cap, which edges up again from January 2027, covers domestic tariffs only. Business energy has never been under the cap — your price comes from the contract you agreed with your supplier. So cap headlines are a signal about the wider market, not a limit on your bill. See does the price cap apply to businesses.
What's actually driving business costs
Two things matter beyond the wholesale price of energy itself:
- Network and standing charges — the cost of maintaining the pipes and wires is built into every bill. With major network investment underway, these network charges and standing charges remain a meaningful part of what you pay, whatever your unit rate.
- When you signed — fix in a calmer market and you lock a lower rate; renew in a spike and you pay more. Timing is everything.
The winter trap: out-of-contract rates
The costliest mistake in winter is letting a contract lapse. If yours ends and you don't renew, you roll onto out-of-contract rates — typically the most expensive prices there are. Know your end date and renewal window before winter catches you out.
What to do now
Check your contract end date, note your renewal window, and compare the market in good time rather than in a panic. A broker can compare suppliers for you — see how broker transparency rules protect you. Whether to fix or stay flexible depends on your appetite for certainty.
Want to know where your business energy stands this winter? We compare electricity and gas across suppliers — free, no obligation. Call 0845 862 1947 or get in touch.
Winter cap headlines don't set your business bill — your contract does. Check your end date, understand the network and standing charges in your price, and renew in good time to avoid the out-of-contract trap.