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New research from the UK energy regulator Ofgem shows that an increasing proportion of businesses have switched energy suppliers in the last year. For many small and medium-sized enterprises (SMEs) this rising switching rate is a reminder that shopping around can still pay off. This article summarises the Ofgem findings, explains why switching is up, and gives a practical checklist for businesses thinking of changing supplier.
Citation: Ofgem , Non-domestic 2024 research report; Ofgem , Businesses and the energy sector: 2025. [See Sources section]
What the Ofgem research shows
- Ofgem’s non-domestic 2024 research report reports around a third of businesses surveyed (c. 33%) said they had switched supplier in the previous 12 months, up from lower levels a year earlier. [Citation: Ofgem non-domestic 2024 research report]
- A complementary Ofgem summary (Businesses and the energy sector: 2025) reports nearly a third (about 29%) of businesses switched supplier within the last year and that around 75% of those who switched said they found the process easy. [Citation: Ofgem Businesses and the energy sector: 2025]
- Ofgem’s State of the energy market (retail) report notes there are dozens of active business energy suppliers in the market , increasing choice for customers. [Citation: Ofgem state of the energy market report]
Why two different percentages? The 29% and 33% figures come from different Ofgem research reports with slightly different sample frames and question wording. Both point to the same clear trend: switching activity among business customers rose compared with recent years.
Why more businesses are switching now
Several factors explain the rise in switching among businesses:
- Price pressure and volatility: Following the energy price shocks of recent years, many businesses have reviewed their contracts and sought better deals or more predictable pricing.
- Increased competition: A larger number of specialist business suppliers, and new entrants in the market, mean more quotes and tailored products are available. Ofgem reports over 70 business suppliers operate in the market, increasing options for buyers. [Citation: Ofgem state of the energy market report]
- Easier switching and better information: More efficient onboarding, clearer contract terms, and digital comparison tools have reduced friction. Ofgem’s research found most businesses that switched found the process straightforward. [Citation: Ofgem Businesses and the energy sector: 2025]
- Sustainability and services: Some businesses switch to access green tariffs, on-site generation support, or bundled services (e.g. energy management, monitoring, flexible billing).
What this means for your business
Opportunities
Potential savings: Increased competition usually leads to better pricing and more flexible contract terms for businesses that compare suppliers.. Tailored options: Suppliers increasingly offer bundles, flexible payment plans, and green energy options suitable for businesses.. Service improvements: Faster onboarding, account portals and better customer service are becoming more common, particularly from newer suppliers.
Risks and things to watch
Exit fees and contract terms: Some fixed contracts have early-exit charges or complex renewal clauses , always review the small print.. Supplier stability: The retail market has seen supplier failures in recent years. Check supplier creditworthiness and reviews, and ask about contingency arrangements.. Accuracy of usage data: Quotes based on estimated or inaccurate usage can lead to higher bills. Use recent meter readings and your historic consumption figures where possible.
How to decide whether to switch , a step-by-step checklist
Gather documents and usage data.
Collect 12 months of energy bills (or meter readings) and note typical consumption and peak periods.
Check your contract.
Note contract end date, renewal terms and any exit fees. If you’re in a rolling contract, switching can be simpler.
Confirm your business status.
Check whether you are classed as a microbusiness or larger SME (Ofgem guidance explains rights and protections). [Link to Ofgem guidance].
Compare like-for-like quotes.
Use a reputable comparison service or request proposals from several suppliers. Compare unit rates, standing charges, VAT treatment, green certificates and any additional services.. Internal link opportunity: Link to Energy Switch’s business comparison page: https://www.energyswitch.co.uk/business-energy.
Ask about practicalities.
Ask each supplier about switching timelines, meter changes, and handover procedures. Confirm whether they will handle the switch or require action from you.
Check customer service and contingency plans.
Read supplier reviews and ask about what happens if the supplier fails (Ofgem has guidance on supplier failure procedures).
Make the switch and monitor.
After switching, check your first two bills carefully and compare actual costs with the quote. Keep records of all correspondence.
CTA: Compare business energy quotes and get a tailored quote today at https://www.energyswitch.co.uk/business-energy
Practical tips to get the best outcome
Use accurate meter readings when getting quotes , estimated consumption is a frequent cause of surprise bills.. Consider the total package (unit price, standing charge, customer service, meter management, green credentials) rather than unit price alone.. If you have onsite generation (solar, CHP), check how the supplier treats exported energy and import/export settlement.. Ask about VAT and billing: business energy invoices usually include VAT at 20% unless you qualify for specific reliefs , check with your accountant.
Q: Is there an Ofgem price cap for business energy?
A: No. The UK energy price cap set by Ofgem applies only to domestic customers on default tariffs. Business customers do not benefit from the domestic price cap, so switching and negotiating terms is an important way to control costs. [Citation: Ofgem guidance]
Q: How long does it take to switch business energy suppliers?
A: Switch times vary. With clear meter readings and no complex metering changes, switching can take a few weeks. Larger businesses or sites with half-hourly meters can take longer , ask suppliers for their estimated timelines.
Q: What is a microbusiness and does the classification matter?
A: Ofgem provides a definition of microbusiness (using staff, turnover and/or consumption thresholds) which affects some protections and the way certain offsite schemes apply. Check Ofgem’s guidance to confirm your status. [Citation: Ofgem non-domestic research]
Q: Are fixed-price contracts always best?
A: Not necessarily. Fixed contracts offer price certainty but can include exit fees. Variable or flexible products may be cheaper when wholesale prices fall , weigh risk tolerance against potential savings.
Further reading and official sources
- Ofgem , Non-domestic 2024 research report: https://www.ofgem.gov.uk/research/non-domestic-2024-research-report (switching stats and business survey findings)
- Ofgem , Businesses and the energy sector: 2025: https://www.ofgem.gov.uk/research/businesses-and-energy-sector-2025 (summary and switching ease stats)
- Ofgem , State of the energy market report: retail: https://www.ofgem.gov.uk/research/state-energy-market-report-retail (market structure and supplier numbers)
- Energy UK / ElectraLink switching reports (market switching volumes)
Final word
Ofgem’s research shows a clear rise in switching among UK businesses. For many SMEs this trend highlights a simple truth: competition can deliver better deals and services, but a successful switch depends on preparation. Gather accurate usage data, check contract terms, compare like-for-like quotes and choose a supplier you trust. When in doubt, use a reputable comparison service or speak to an adviser , and consider starting with a free quote at Energy Switch: https://www.energyswitch.co.uk/business-energy
Sources
Ofgem , Non-domestic 2024 research report. URL: https://www.ofgem.gov.uk/research/non-domestic-2024-research-report. Ofgem , Businesses and the energy sector: 2025. URL: https://www.ofgem.gov.uk/research/businesses-and-energy-sector-2025. Ofgem , State of the energy market report: retail. URL: https://www.ofgem.gov.uk/research/state-energy-market-report-retail. ElectraLink / Energy UK switching reports (for context).
