6 Warning Signs Your Business is Paying Too Much for Energy

Energy is one of the biggest overheads for UK businesses - but are you paying more than you should?

If you’re out of contract, tied into an unsuitable deal, or haven’t reviewed your rates in over a year, the answer is often yes.

Here’s how to spot the warning signs and what to do about them.

The Hidden Cost of Default Rates

When your contract ends and no action is taken, your business is often automatically rolled onto a “deemed” or “out-of-contract” rate. These are also known as penalty tariffs and can typically be 40–60% higher than standard rates. Suppliers apply these premiums to cover uncertainty, and thousands of businesses end up on them without realising.

Example:

If you’re spending £1,000/month on energy at a deemed rate, switching to a new fixed contract could cut that to £600–£700 - without changing how you operate.

What’s Lurking in Your Current Deal?

Even if you’re “in contract,” that doesn’t guarantee you have the best terms. Many business energy contracts include:

• Broker commission fees as part of your unit rate
• Standing charges that haven’t been reviewed in years
• Extra fees such as meter reading surcharges or admin costs

At Resolve, we’re open about every element of your pricing.

Broker commission is a normal part of most contracts - including ours  - but we explain exactly how it works and why it’s there. We believe you should know where every penny goes and how it affects your bill.

Energy bills can be complex. Without a clear breakdown, it’s impossible to tell whether you’re paying fair market rates or funding unnecessary extras.

How Business Energy Pricing Works

Here’s a quick breakdown of what makes up your bill:

• Unit rate (p/kWh): The price you pay for each unit of electricity or gas you use
• Standing charge: A daily fee to remain connected to the grid
• Government levies: Charges to fund renewable energy and other schemes
• Broker margin: The fee for arranging and managing your contract
• VAT and CCL: Taxes that vary by business type and usage

If you don’t know what each of these looks like on your current deal, you’re not fully in control of your costs.

6 Signs You’re Overpaying

1. Your bills have increased but your usage hasn’t
2. You haven’t had a review with your broker in over a year
3. You don’t know your contract end date
4. Your bill doesn’t clearly separate unit rate and standing charge
5. You’ve moved premises and stayed with the same supplier without renegotiating
6. You’ve never been offered basket pricing or a group rate

If any of these apply, it’s time to have your deal reviewed.

Basket Buying Power = Better Rates

At Resolve, we negotiate in volume. By pooling the energy needs of businesses across the UK, we secure rates and terms that are usually reserved for larger corporations.

This gives you:

• Better rates than negotiating alone
• Stronger contract terms
• More leverage in a volatile market

The Cost of Doing Nothing

Allowing your contract to auto-renew or lapse onto a default rate can quietly drain profit.

Example:
A catering business in Merseyside approached us after being on a deemed rate for six months. We:

• Audited their usage and rates
• Negotiated a two-year fixed supply
• Reduced their annual bill by 38%

No disruption. No change to their physical supply. Just better terms and pricing.

FAQs: What Business Owners Ask Us

Can I switch mid-contract?

Most fixed contracts have early exit fees, so leaving part-way through isn’t always cost-effective. We can audit your deal, check if you’re on the right rates, and identify the best time to take action - including your renewal window - so you avoid overpaying.

What info do I need for a quote?

Just a recent energy bill. We’ll analyse your usage, rates, and contract status, then recommend your best options.

Do you charge for quotes?

No. Our quotes and bill reviews are free and come with no obligation.

What Next?

Energy markets are complex, and suppliers don’t always make it easy to compare deals. But the cost of staying in the dark is simple: higher bills and unnecessary stress.

At Resolve, we’ll monitor the market, review your bills, and negotiate on your behalf so you get clear, competitive rates without the guesswork.

Request your free bill review today and see how much you could save - no pressure, no jargon, just clarity.