With energy costs continuing to affect both households and companies, many business owners in the UK are wondering: “Does the energy price cap apply to businesses?”
The short answer is no—but there’s more to it than that.
In this blog, Scalex Technology explains what the energy price cap is, why it doesn’t cover businesses, and how your business can still protect itself from volatile energy prices.
What Is the Energy Price Cap?
The energy price cap is a limit set by Ofgem, the UK’s energy regulator, on the amount domestic suppliers can charge for standard variable tariffs. It was introduced in January 2019 to protect households from unfair pricing, especially those not on fixed deals.
The cap covers:
- Unit rates (price per kWh)
- Standing charges
- Profit margins for suppliers
💡 As of 2025, the cap is reviewed quarterly and updated to reflect wholesale market changes.
Does the Energy Price Cap Apply to Businesses?
❌ No. The energy price cap only applies to domestic customers.
Businesses are not protected by this cap, regardless of size, sector, or usage. This means that commercial energy contracts are fully market-driven—and suppliers can charge different rates depending on factors like:
- Business size and credit rating
- Location and usage patterns
- Market volatility and supply chain costs
- Contract length and type (fixed vs flexible)
Why Isn’t There an Energy Price Cap for Businesses?
Business energy is treated differently because:
- Commercial contracts are bespoke: Businesses negotiate their own energy rates, rather than relying on default tariffs.
- More supplier flexibility is needed: Suppliers need to reflect market costs to serve businesses of various sizes and demand levels.
- Businesses are expected to shop around: It’s assumed that commercial customers have the resources to compare suppliers or use energy brokers.
📌 Important: While there’s no price cap, large-scale government support schemes (like the former Energy Bill Relief Scheme) may be introduced during national energy crises.
How Can Businesses Protect Themselves From High Energy Prices?
Although there’s no cap in place, your business still has options to reduce costs and risk:
1. Switch to a Fixed Contract
Locking in a fixed rate can protect you from sudden price hikes and make budgeting easier.
2. Use an Energy Broker
Scalex Technology compares business energy quotes from trusted UK suppliers to find you the best available deal.
3. Monitor Energy Use
Install a smart meter or use half-hourly data to track consumption and identify waste.
4. Increase Energy Efficiency
Simple upgrades—like LED lighting, insulation, or HVAC scheduling—can slash usage by 10–30%.
5. Review Contracts Regularly
Don’t auto-renew or roll onto expensive deemed rates. We help clients renew strategically and on time.
What About Microbusinesses?
Some microbusinesses have limited protections, such as:
- 14-day cooling-off periods for new energy contracts
- Easier switching rules
- Clearer billing under Ofgem rules
However, they still don’t qualify for the domestic price cap.
To be classed as a microbusiness, you must meet one of the following:
- Fewer than 10 employees and < £1.8M turnover
- Electricity usage under 100,000 kWh/year
- Gas usage under 293,000 kWh/year
✅ Scalex Technology works with microbusinesses to secure fair, transparent energy deals across the UK.
Final Thoughts
While the UK energy price cap provides vital protection for households, it doesn’t extend to businesses. That makes it all the more important for businesses to take control of their energy contracts, monitor consumption, and work with experienced brokers.
🔍 Want Better Rates for Your Business Energy?
Let Scalex Technology help you secure the best possible energy deal—whether you’re a startup, SME, or large enterprise.
📞 Contact us today for a no-obligation quote and expert energy advice.
