COMMERCIAL FOCUS • JANUARY 2026

Commercial Energy Contracts 2026

Compare, negotiate & save £1,000-£25,000+ annually. Expert guidance for medium to large businesses, multi-site operations & commercial landlords.

Contact Us
£25,000+
Potential Annual Saving
1-5+ Years
Contract Length Options
30-100%
Rollover Overcharge
3-9 Months
Ideal Switch Window

What Are Commercial Energy Contracts?

🏭

Higher Usage Levels

Designed for medium to large businesses with consumption above typical SME levels. Pricing scales with volume.

💼

Bespoke Negotiated Pricing

Rates are customized based on usage patterns, credit history, and contract duration. Not one-size-fits-all.

💰

Total Contract Cost Matters

Compare total contract cost including all charges. Headline rates are meaningless without full commercial context.

🏢

Multi-Site Management

Supports portfolio-level contracts for businesses with multiple locations, warehouses, or retail units.

Commercial vs Small Business Energy Contracts

Feature Commercial Energy Small Business Energy
Pricing Structure Bespoke / Negotiated Semi-Fixed / Standard
Contract Length 1–5+ Years (Flexible) 1–3 Years (Limited)
Usage Level Medium to High Low to Medium
Multi-Site Support Common & Optimized Rare & Basic
Negotiation Required Essential for Best Rates Limited Availability

Average Commercial Energy Costs (UK 2026)

Business Type Annual Energy Cost Commercial Considerations
Medium Office
Professional
£8,000 – £15,000 Extended hours, server rooms, HVAC systems
Warehouse
Logistics
£15,000 – £40,000 High bay lighting, heating, loading bay doors
Hospitality Venue
Hotel / Restaurant
£20,000 – £60,000 24/7 operation, commercial kitchens, guest heating
Manufacturing
Industrial
£30,000 – £100,000+ Machinery, process heating, compressed air systems
Multi-Site Business
Portfolio
£50,000+ Consolidated billing, portfolio optimization required

⚠️ Rollover & Deemed Commercial Contracts Explained

If you don't act before contract end: You automatically move to expensive deemed or rollover rates. Unit rates increase 30-100% immediately. Discounts disappear. Commercial customers often overpay thousands monthly without realizing. Long contracts amplify these losses significantly.

Contract Length: How Long Should You Fix?

1 Year

Short-Term Flexibility

Higher per-unit rates. Suitable for businesses expecting major changes, relocation, or uncertain growth.

4-5+ Years

Maximum Stability

Lowest rates, least flexible. Ideal for risk-averse organizations or those with guaranteed long-term premises.

Multi-Site & Portfolio Energy Contracts

Consolidated Billing

Single invoice for all locations. Simplifies accounting, reduces administrative overhead, and improves cash flow management.

Portfolio-Level Pricing

Bulk purchasing power across all sites. Negotiate better rates based on total consumption rather than individual site usage.

Centralized Management

One point of contact for contract management, renewals, and supplier relationships. Streamlines energy procurement.

Usage Optimization

Compare performance across sites. Identify inefficient locations and implement standardized energy-saving measures.

Fixed vs Flexible Commercial Energy Contracts

🔒

Fixed Commercial Contracts

✔ Locked pricing for contract term
✔ Predictable budgeting
✔ Protection from market volatility
✔ Recommended for most businesses

📈

Flexible / Pass-Through

✔ Potential savings in falling markets
✔ More control over purchasing
✖ Exposure to price spikes
✖ Higher risk & complexity

🏭

Manufacturing & 24/7 Operations

High baseload consumption benefits from fixed contracts. Predictable costs support production budgeting and pricing.

🏨

Hospitality & Seasonal Businesses

Variable consumption patterns may suit flexible contracts, but fixed rates still provide crucial budget certainty.

How to Compare Commercial Energy Contracts Correctly

1

Gather Commercial Data

Postcodes, MPAN/MPRN details, annual kWh usage for all sites, current contract end dates, and credit profile.

2

Compare Total Contract Cost

Focus on total annual cost across all sites. Include standing charges, unit rates, and portfolio discounts.

3

Evaluate Contract Terms

Assess contract length, exit fees, rollover conditions, payment terms, and service level agreements.

4

Negotiate & Secure

Use comparison data to negotiate. Secure fixed pricing with clear terms. New supplier handles multi-site transition.

How Much Could Your Commercial Business Save?

Medium businesses save £1,000–£5,000 | Large sites save £5,000–£20,000+ | Multi-site portfolios save £25,000+

Optimize Your Commercial Energy Strategy

Compare commercial energy contracts, negotiate better rates, and protect your business from costly rollover traps.