Check if your business is a microbusiness or a small business

If your business meets certain criteria it might be classed as a ‘microbusiness’ or a ‘small business’. If your business is a microbusiness, your energy contract might be different than if it is a small business. 

If your business is based from home, you'll usually be a domestic energy customer instead of a business customer.

Microbusiness criteria

Your business is classed as a microbusiness if it has fewer than 10 full-time equivalent employees. It must also have a turnover or a balance sheet total of no more than £2 million. 

Your business is also a microbusiness if it:

• uses no more than 100,000 kWh of electricity a year

• uses no more than 293,000 kWh of gas a year

In this situation it doesn't matter how many employees your business has.

If your business doesn’t meet the criteria for a microbusiness it might be classed as a small business.

Small business criteria

Your business is classed as a small business if it has fewer than 50 full-time equivalent employees. It must also turn over no more than £6.5 million or have a balance sheet total of no more than £5 million. 

Your business is also a small business if it:

• uses no more than 200,000 kWh of electricity a year

• uses no more than 500,000 kWh of gas a year

In this situation it doesn't matter how many employees your business has.

Energy contracts

Your supplier should work out if you’re a microbusiness or a small business when you enter a contract with them. They might: 

• look at how much energy you used over the last year

• ask you to give them information about the energy you used with your previous supplier 

• estimate your energy use - especially if you have a new business

Check your bill or ask your supplier if you're not sure how much energy you use in a year.

Your business might be classed as a microbusiness or a small business for gas but not electricity, or electricity but not gas. It depends on the amount you use. This might mean you'll have separate contracts for gas and electricity.

You can agree energy contracts over the phone or online - you don’t need to sign something for a contract to start.

Your microbusiness or small business energy contract will differ from a domestic customer contract. For example:

• your contract can last up to 5 years - you should check when your contract ends

• you might not get a cooling-off period after you’ve agreed the contract

• your supplier might send separate bills for gas and electricity

• your contract can include broker costs if you use one - these must be clearly listed in the contract

If you’re having problems with your bills or payments, check how to deal with your business energy bills.

If you’re considering changing suppliers, check how to switch your business to a new energy supplier.