In short
There is no business energy price cap. Ofgem's energy price cap protects households on standard variable tariffs, and Ofgem says you are not protected by it if you have a business energy contract. Businesses rely instead on their contract terms, Ofgem's rules for suppliers and, for micro and small businesses, the Energy Ombudsman. Comparing before renewal matters more.
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The short answer: no
Ofgem sets the energy price cap as the maximum a supplier can charge for a unit of energy and the standing charge together, and says it protects people on tariffs where the unit rate can go up or down with the market (standard variable tariffs). Ofgem's own guidance lists who is not protected by the cap, and that list includes anyone who has a business energy contract (as well as anyone who agreed a fixed tariff).
So if your premises are supplied under a business energy contract, the price cap does not set or limit your rates. The price you pay is whatever you agreed with your supplier, or, if you have no agreed contract, the supplier's deemed rates or out-of-contract rates.
Why businesses are treated differently
Household energy is sold on standard published tariffs to millions of customers with broadly similar needs. Business energy is priced contract by contract. Each supplier sets a price for your business from your consumption, meters, location, credit position and the length of contract you choose, and the market moves daily.
That means the protection a household gets from a cap comes, for a business, from its contract and from choosing that contract well. It also means two businesses next door to each other can pay very different prices for the same energy, depending on when and how they bought it.
What protects business energy customers instead
| Protection | Who it covers | What it does |
|---|---|---|
| Your contract terms | All business customers | Fix your unit rates and standing charges (on a fixed contract) and set out fees, notice and what happens at the end of the term |
| Standards of Conduct | All business sizes since 1 July 2024 | Ofgem rules requiring suppliers to treat business customers fairly |
| Broker costs in principal terms | All non-domestic customers, for contracts signed since 1 October 2024 (microbusinesses since 1 October 2022) | Suppliers must show broker fees in the contract's principal terms and provide the information on request |
| Microbusiness rules | Microbusinesses | Clear contract information, renewal price information before the contract ends, and limits on termination notice for evergreen contracts |
| Back-billing limit | Microbusinesses (and households) | You do not have to pay for energy used more than 12 months ago that was not accurately billed, unless you acted unreasonably |
| Broker redress scheme | Customers whose broker is paid by the supplier | Ofgem says a broker paid by an energy supplier must be a member of an approved redress scheme, such as the Energy Ombudsman's broker scheme |
| Energy Ombudsman and Citizens Advice | Micro and small businesses | Help when a complaint to your supplier is not resolved |
Our microbusiness energy rules page explains the extra protections in detail, including Ofgem's definition of a microbusiness.
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What this means when you buy
Without a cap, the decisions you make when buying carry more weight:
- Compare before you renew. Your current supplier's renewal offer is not capped. Compare it against other quotes during your switching window. See business energy contract renewal
- Avoid drifting onto default rates. Deemed and out-of-contract rates are not capped either, and Ofgem says they are usually more expensive than a negotiated or fixed-term contract
- Decide how much certainty you want. A fixed contract sets your rates for the term; a flexible one leaves more exposed to the market. See fixed vs flexible business energy
- Read before you sign. There is no cooling-off period once you agree a business energy contract; see the business energy cooling off period page
- Check the commission. If you use a broker, the principal terms show what is included in your rates; see energy broker fees
Sole traders and businesses run from home
Ofgem says that if you work from home you are probably on a domestic energy contract, and suggests checking with your supplier. If that domestic contract is a standard variable tariff, the price cap applies to it in the normal way: it is the type of contract, not the type of customer, that matters. If your premises are on a business energy contract, the cap does not apply.
The same works the other way. Ofgem points out that some homes are supplied through a business energy contract, for example housing connected to a business such as a flat above a shop or pub, or farm accommodation, and that business energy customers are not protected by the cap. Mixed-use premises like these may get a reduced rate of VAT on the domestic part of the supply under HMRC's qualifying-use rules, but that is a tax rule, not a price cap. See VAT and Climate Change Levy.
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Deemed and out-of-contract rates are not capped
A common misunderstanding is that a business without a contract falls back onto something like the household cap. It does not. If you use energy at premises without a contract, for example after moving in, your supplier charges its deemed rates. If your fixed term ends and no new contract is agreed, some suppliers move you onto out-of-contract rates. Ofgem says both are usually more expensive than a negotiated or fixed-term contract, and neither is capped.
If you think you may be on either, check your latest bill or ask your supplier which rates you are being charged. Ofgem says that without an agreed fixed-rate contract you can switch to a new supplier at any time. Our guides explain how: deemed rates and out-of-contract rates.
Brokers and the changes ahead
Ofgem does not license energy brokers directly today. Its supplier licence rules reach them indirectly: a broker paid by an energy supplier must be a member of an approved redress scheme, and suppliers must show broker fees in your contract's principal terms. The UK government has set out its intention to appoint Ofgem as the regulator of third-party intermediaries in the retail energy market, including brokers and price comparison websites, and Ofgem ran a call for input on the sector in summer 2026. None of that is a price cap, but it does mean you can check who you are dealing with now.
Forever Communications works as an agent of Fidelity Energy, and Fidelity Energy Ltd is listed as an active member on the Energy Ombudsman's broker register. See energy broker regulation in the UK and energy broker ombudsman and complaints.
A quick check of your current position
- Find your contract end date on your contract, renewal letter or supplier account.
- Check what kind of contract you are on: fixed, variable, rollover, out-of-contract or deemed. If you are not sure, your supplier can tell you.
- Check your notice terms and whether there is a switching window or exit fee.
- Check whether you are a microbusiness under Ofgem's definition, as that changes your protections.
- Gather a recent bill for each supply so quotes can be priced on your real consumption.
With that in hand you can compare properly, whether the answer turns out to be a new supplier or your current one.
How Forever Communications can help
We cannot cap your prices, and we will not claim to. What we can do is help you buy well. Forever Communications works as an agent of Fidelity Energy, which compares a panel of 24+ suppliers (its own figure). We collect your bills and contract dates, Fidelity Energy prices them across its panel, and we help you understand each quote, the commission and the terms before you decide.
Start with our business energy comparison overview or the list of what to have ready for business energy quotes. When you are ready, contact us.
Frequently asked questions
Does the energy price cap apply to businesses?
No. Ofgem's price cap protects households on standard variable tariffs. Ofgem says you are not protected by the price cap if you have a business energy contract.
Is there a price cap for small businesses?
No. There is no price cap for any size of business on a business energy contract. Microbusinesses get extra protections from Ofgem instead, such as renewal price information and limits on termination notice periods for evergreen contracts.
Why is there no price cap on business energy?
Business energy is priced contract by contract for each business rather than on standard tariffs, and Ofgem's price cap is set for household standard variable tariffs. Businesses rely on their contract terms and Ofgem's rules for suppliers.
What protects businesses from high energy prices?
Mainly the contract you choose: a fixed contract sets your rates for the term. Ofgem's Standards of Conduct apply to suppliers' dealings with all business sizes, microbusinesses get extra protections, and micro and small businesses can take unresolved complaints to the Energy Ombudsman.
Does the price cap apply if I work from home?
Ofgem says home workers are probably on a domestic energy contract, so check with your supplier. If your home is supplied on a domestic standard variable tariff, the cap applies to that tariff. It does not apply to premises, including homes, supplied under a business energy contract.
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