A business' band determines the amount of standing charge it pays

Some customers place more demand on the grid than others. Bands make sure that these customers contribute a fair amount to keeping the grid running.

In other words, businesses in higher bands pay higher 

All business customers fit into one of 4 bands

For non-half-hourly customers, your band comes from the amount of electricity you use in a year:

For half-hourly customers, your band comes from your site's power capacity and voltage level:

What is my business' electricity band?

You can see this by following these steps:

2. Scroll down to the bottom of the screen

3. Click 'Take me back to the old dashboard' 

5. Look through your balance history to see all your past payments and charges

We're working on the new online account at the moment. Soon, your balance history will be on the front page.

Where can I see my business' payment and balance history?

Where can I see my business' payments and balance history?

All customers pay a standing charge to stay connected to the energy network

This is a fixed daily charge that keeps your business on the grid. 

It’s one of the main ways suppliers charge you for your energy, along with the cost of the amount you consume.

Your standing charge stays the same no matter how much you use.

Think of it like line rental on your landline phone: even if you don’t make any calls, you still pay to keep your phone line active.

These are the components that make up the overall charge:

These costs vary according to your meter type and where you live. For example, customers who live further away from power generators pay more in transmission charges.

Why does my business pay a standing charge?

For Octopus Energy Business customers only:

We purchase all your energy at the start of your fixed contract. If you choose to end your contract early, we then have to sell back any energy you haven’t used. As the price of energy changes all the time, we charge an exit fee on our longer term contracts to compensate for any losses we may incur when selling this energy.

All 24m and 36m fixed tariffs released since August 2022 have exit fees applied. You won’t be charged an exit fee if you are changing tenancy, or if you switch away within the final 60 days of your fixed contract. Should you be charged an exit fee, your advance payment will contribute towards the cost.

Why do you charge an exit fee on some tariffs?

Our exit fees are calculated as a percentage of your remaining contract value, so they will decrease as you get closer to the end of your contract. We work out your remaining contract value by forecasting how much energy you will use in the remainder of your contract. To ensure we forecast this accurately, do submit regular monthly meter readings where possible!

How is the exit fee calculated?

We will send you monthly reminders on the 25th of each month, and the window to submit a reading is from that point to the 1st of the new month. For example, we will email you on the 25th of June asking for a reading, and as long as you submit the reading on or before the 1st of July, it will be used for your monthly invoice. If the reading is submitted outside of this window, we will estimate your usage.

When should I submit a meter reading each month?

Smart meters are energy industry game changers, and we're buzzing about their potential. The technology will save UK consumers a lot of time (no more meter readings!)

We're installing second generation (SMETS2) smart meters area-by-area for customers that want them.

register your interest in getting a smart meter here

 and we'll get in touch when we're installing near you.

Can I get a smart meter and how long does that process take?

We can link to any SecureTM SMETS1 smart meter (hint: there'll be a Secure logo on the front of the meter), or any SMETS2 smart meter and make it smart again — we will connect to these meters automatically when you switch to us.

If it's not a Secure meter, it won't be compatible, and will become "dumb" — that is, it will work just like a normal meter. You'll lose the "smart" benefits, so will have to give us meter readings manually, and your In-Home Display might not work.

This supplier compatibility issue is one of the tricky things about the current smart meter model (SMETS1) being installed around the UK. As the newer model, SMETS2, gradually becomes available, we expect SMETS1 to become fully transferable between suppliers as well.

 I have a smart meter, how do I know if it’s compatible with your system?

We don't have a link for business referrals yet - but you can still get the reward!

Just sign up directly through our website or over the phone. Then, email or call us to let us know who referred you. We'll add the credit to your account.

Why won't the referral link work for business?

Why won't the referral link work for business

Firstly, you need to contact your current supplier and clarify the reason as to why they objected, as they do not inform us of the reason. Then, once you have resolved the outstanding issues with them, please let us know and we will reapply for your switch.

I’ve received an objection, what do I do?

Please try adding a '0' to the front of your company number and this will allow you to proceed.

Why is my company number not valid?

We will usually switch your business over to us within 3 working days of you signing up.

How long does it take to switch electricity and gas across?

If you have gone through our sign up process and have been told that you failed the credit check, but you still want to go ahead and switch, an advance payment of 50% is required. To arrange this please email us at 

I’ve failed my credit check, what do I do now?

Yes, you can have multiple accounts (a portfolio) registered under the same email address.

Can I use the same email address to create another account?

Can I sign up with the same email address that I use for my domestic energy account?

We do require an active direct debit for business accounts, but if you would like to make BACS payments or cheque payments alongside this you can do.

Do I have to set up a direct debit?

Yes, you will have to contact your current supplier to give notice. Please bear in mind many suppliers require a 30 day notice period. If you don't do this before signing up, your current supplier will most likely object to the switch.

This is because the previous supplier will assume you haven't initiated the switch, since they haven't heard from you to say you wish to leave. Once you've given notice, we'll handle the rest of the switch for you.

Do I need to contact my current supplier?

If you cancel your switch to us before your advance payment has been taken, we will cancel the advance payment request. If you wish to cancel your contract with us after you’ve come on supply and before your contract end date, we reserve the right to keep part/all of the advance payment plus charge any specific exit fees to cover any outstanding debit on your account and/or any costs due to early termination. To discuss the advance payment with one of our wonderful team members, please email us at 

 - alternatively you can give us a call on 

I want to cancel my contract with you, do I get my advance payment back?

We take an advance payment to offer you the best rates we can. It helps smooth the ups and downs of supplying businesses, and compensates for periods of estimated usage.

We take three months as standard, so it’s simple for you to budget your outgoing and it covers us both if you choose to switch. This money will be held until you switch away and will not count towards your energy bill.

Once your account balance is fully cleared at the end of your contract, you will receive a full refund of the advance payment.

 Why do you take an advance payment?

Since the advance payment is a non-energy charge and fully refundable at the end of your contract, it is always charged at 20% VAT.

If you use below 12,000 kWh per year on average, or qualify for reduced VAT and CCL exemption (i.e charities, care homes etc), your subsequent energy bills will always be at 5% VAT.

Business

Categories