In short
Business energy by sector matters because your sector shapes when you use energy, how many supplies you have, which VAT rate applies and whether you pay the Climate Change Levy. Those factors decide which quotes are genuinely comparable. Charities, hospitality businesses and farms each have their own tax, usage and contract-timing questions.
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Why your sector changes how you buy energy
A business energy quote is built around your own supplies: how much you use, when you use it, the meters you have, the contract length you want and the supplier's own checks. Your sector does not set the price, but it shapes almost every one of those inputs.
A pub kitchen running from mid-morning to late evening uses energy very differently from an office that is empty at weekends. A farm may have several supplies spread across barns, pumps and a farmhouse. A charity may not pay the Climate Change Levy on some of its use and may be entitled to a reduced VAT rate. A restaurant group may have a contract for every site, each ending on a different date.
None of that means you need a special "sector tariff". It means the right questions to ask, and the right way to compare quotes, differ by sector. The guides below set those questions out, and the general guides on business energy contracts and how to switch business energy supplier cover everything that applies to every business.
How sector affects a business energy comparison
| Factor | Why it matters in a comparison | Read more |
|---|---|---|
| Usage pattern | Day and night use, weekday and weekend use, and seasonal peaks change which rate structure suits you and, for larger sites, how the supply is priced | Business electricity comparison |
| Opening hours | Long or late hours put more of your use outside a standard working day, which matters when a quote has day and night or multi-rate pricing | Hospitality energy |
| Number of sites | Several supplies usually mean several contract end dates; aligning them can make renewals easier to manage | Business energy contract renewal |
| VAT status | Domestic use, charity non-business use and very small supplies can qualify for a reduced rate; mixed premises use the 60% rule | VAT and Climate Change Levy |
| Climate Change Levy | Industrial, commercial, agricultural and public services businesses pay the main rates; some users do not | VAT and Climate Change Levy |
| Size of business | Ofgem's microbusiness and small business definitions bring extra protections and access to the Energy Ombudsman | Small business energy comparison |
| Moving premises | Taking on new premises often starts on a deemed contract until you agree one | Change of tenancy |
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Tell us about your premises and usage and we will explain the options that fit.
Sector buying guides
Each guide covers the questions that are specific to that sector, using HMRC, GOV.UK and Ofgem guidance rather than rules of thumb.
- Energy for charities. Reduced-rate VAT for non-business use, the temporary zero rate on qualifying electricity in Great Britain, the Climate Change Levy position for charities and the declarations suppliers ask for. See energy suppliers for charities
- Energy for pubs, restaurants and hotels. Long opening hours, heavy gas and electricity use, living accommodation above the business and how HMRC treats hotels and inns for VAT. See hospitality energy
- Farm energy contracts. Several supplies on one holding, remote meters, seasonal peaks, the farmhouse and the VAT mixed-use rule, and the Climate Change Levy for agriculture. See farm energy contracts
Size matters as much as sector
Two businesses in the same sector can need very different things from a contract because of their size.
Micro and small businesses. Ofgem treats a business as a microbusiness if it has fewer than 10 employees and an annual turnover or balance sheet of no more than 2 million pounds, or if it uses no more than 100,000 kWh of electricity or 293,000 kWh of gas a year. Microbusinesses get extra protections, including clear contract information and renewal price information before the contract ends. Our small business energy comparison guide and microbusiness energy rules explain what this means in practice.
Larger and multi-site users. Larger sites, and a growing number of smaller ones, have electricity settled half-hourly, so the shape of your consumption through the day matters to the price; see half-hourly business electricity. Ofgem describes flexible (or structured) contracts, which let companies buy energy in smaller portions rather than locking into one price, as suitable for large businesses that use a lot of energy. Fidelity Energy offers flexible procurement alongside fixed contracts, and our guide to fixed vs flexible business energy sets out who each approach suits.
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VAT and the Climate Change Levy by sector
Tax is where sectors differ most, and it changes what a fair comparison looks like.
| Who | VAT (HMRC Notice 701/19) | Climate Change Levy (GOV.UK) |
|---|---|---|
| Most offices, shops, factories and workshops | Standard rate for business use, unless the supply is within the de minimis limits | Main rates apply, except on small (de minimis) supplies |
| Charities using energy for activities they do not charge for | Reduced rate for non-business use; zero rate on qualifying electricity in Great Britain from 1 October 2026 to 30 June 2027 | Main rates not paid on non-business use |
| Hotels, inns and similar establishments | Standard rate: HMRC does not treat them as residential accommodation for fuel and power | Main rates apply |
| Premises with living accommodation (a flat above a pub, a farmhouse on the farm supply) | Mixed use: the 60% rule decides whether the whole supply or only the qualifying share gets the reduced rate | Main rates on the business use |
| Care homes and children's homes | HMRC lists them as residential accommodation, so supplies for that use are qualifying | HMRC says domestic use has the same meaning for CCL as for VAT, and the levy does not apply to domestic use |
| Farms and agricultural businesses | Standard rate for business use; domestic use in the farmhouse can qualify | Main rates apply to the agricultural sector |
The supplier applies VAT and CCL based on what you tell it and any certificate you give it, so check every quote treats tax the same way. This is a summary of the guidance, not tax advice. We do not quote CCL rates because GOV.UK sets them from each 1 April and they can change; GOV.UK publishes the current figures. Our VAT and Climate Change Levy guide has the detail.
How comparing works through Forever Communications
Forever Communications works as an agent of Fidelity Energy, an independent business energy broker and consultancy that says it has helped UK businesses buy, manage and cut their energy since 2014. Fidelity Energy says it works with a network of 24+ suppliers, so your comparison covers that panel. If you want a particular supplier included, tell us when you ask for a quote.
What that means for a sector buyer:
- We collect your bills, supply details, contract end dates and anything sector-specific, such as a VAT declaration or a planned move
- Fidelity Energy prices your supplies across its panel on the same basis, so the quotes can be compared fairly
- We help you read the quotes, the contract terms and the broker commission before you decide
- If you accept a quote and the supplier accepts you, Fidelity Energy arranges the supply contract
Commission and fees. Fidelity Energy is normally paid commission by the supplier you choose. Under its terms, the commission is added to your unit rate and/or daily standing charge, and the estimated total is set out in your contract documents; Ofgem also requires broker fees to be shown in the principal terms of non-domestic contracts signed on and from 1 October 2024. You can instead ask at the start to pay Fidelity Energy by direct invoice, and its terms set out when a contract cancellation fee applies. Forever Communications is paid by Fidelity Energy out of the commission Fidelity Energy receives from suppliers. See energy broker fees.
Dispute resolution. Fidelity Energy is listed on the Energy Ombudsman's register of energy brokers, with membership active since 1 December 2022 (we checked on 1 November 2026). Our energy broker ombudsman page explains how to check the register and how complaints work.
Ofgem says there is no cooling-off period after you agree a business energy contract; our business energy cooling off period page explains what that means.
Your sector is not listed?
These guides start with three sectors that have particularly specific questions, but the same comparison works for offices, shops, workshops, manufacturers, care providers, schools, clubs and most other organisations. A few pointers:
- Care homes and children's homes are on HMRC's list of residential accommodation, so their VAT position differs from most businesses
- HMRC says supplies to schools and other educational institutions with charitable status are reduced-rated when used for non-business purposes
- Energy-intensive businesses with a Climate Change Agreement can get reduced CCL main rates; GOV.UK explains eligibility
- If you are moving into new premises, start with change of tenancy so you are not left on a deemed contract longer than you need to be
If you want help with a sector we have not covered, contact us with a recent bill for each supply and a line about what you do. For explanations of meters, tariffs and bills, our sister site Business Gas and Electric covers the product side.
Sector buying guides
How Forever Communications helps with business energy
Forever Communications is part of Forever Group, which looks after phone systems, business mobiles and connectivity for UK organisations. For business electricity and gas, we work as an agent of Fidelity Energy, an independent business energy broker that prices your requirements across its panel of suppliers. We are not an energy supplier, and neither is Fidelity Energy.
- Like-for-like quotes: we help you gather your bills, meter details and contract end dates so suppliers quote on the same basis
- Plain-English terms: we can talk you through unit rates, standing charges, contract length, renewal and the broker commission included in the price before you decide
- Better timing: we help you plan a renewal ahead of your contract end date, or move off deemed and out-of-contract rates
- More than the basics: Fidelity Energy also offers green (REGO-backed) electricity, flexible procurement, half-hourly supplies, multi-site contracts and bill validation
- Your choice: you decide which quote, if any, to accept; prices are set by the suppliers and confirmed at quote
We work with businesses, charities, hospitality, farms and multi-site organisations. Send us a recent bill and we can take it from there.
Frequently asked questions
Do business energy prices depend on your sector?
Quotes are built around your own supplies: how much you use and when, your meters, the contract length and the supplier's checks. Your sector matters mainly because it shapes those inputs, and because it affects the VAT rate and whether you pay the Climate Change Levy.
Which sectors pay the Climate Change Levy?
GOV.UK says businesses in the industrial, commercial, agricultural and public services sectors pay the CCL main rates on electricity, gas and solid fuels. Businesses using small amounts of energy, domestic users and charities engaged in non-commercial activities do not pay the main rates on those supplies. Energy-intensive businesses with a Climate Change Agreement can get a reduction.
Is my organisation a microbusiness for energy?
Ofgem's definition is fewer than 10 employees and an annual turnover or balance sheet total of no more than 2 million pounds, or annual use of up to 100,000 kWh of electricity or 293,000 kWh of gas. Microbusinesses get extra protections, such as renewal price information before the contract ends; see our microbusiness energy rules guide.
Can several sites be compared together?
Yes. We can put every supply into one quote request and show the contract end dates side by side, so you can see which sites can move now and which later. Whether they end up on one contract or several with aligned dates depends on the suppliers' terms, which are confirmed at quote.
Can you help if my sector is not listed here?
Yes. The comparison works the same way for most organisations. Contact us with a recent bill for each supply and a short description of what you do, and we can point out anything specific to your sector.
Still have a question about business energy by sector?
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