What are your microbusiness energy rights?
Your microbusiness energy rights are a set of extra protections Ofgem says apply when you arrange or renew an energy contract, plus limits on back billing and a route to the Energy Ombudsman if a complaint goes nowhere. They are not the same as the rules for a big company, and they are not the same as the household ones either.
Plenty of owners only find out they exist when a renewal letter lands with a price they did not expect. This guide sets out what Ofgem says, in plain English, so you can check your own contract against it.
Doing nothing is the supplier’s favourite option. Knowing your microbusiness energy rights is the quick fix.
Who gets microbusiness energy rights?
According to Ofgem, you qualify if you have fewer than 10 employees and an annual turnover or balance sheet total of no more than £2 million. You can also qualify on usage alone: up to 100,000 kWh of electricity a year, or up to 293,000 kWh of gas a year.
These thresholds decide whether microbusiness energy rights apply to you. It is worth asking your supplier in writing which category they have you in, because the protections follow the category rather than your own sense of how small the business is.
If you run the business from home, Ofgem says you are probably on a domestic energy contract, and it suggests checking with your supplier. Small businesses sit in a separate band: 11 to 50 employees, with turnover up to £6.5 million or a balance sheet total of no more than £5 million, or usage up to 200,000 kWh of electricity or 500,000 kWh of gas a year. Ofgem treats large businesses differently again.
How do microbusiness energy rights help when a contract is ending?
Ofgem says your supplier must give you clear information about your contract and information about renewal prices before the contract ends. That is your cue to compare, not to wait.
For evergreen contracts, which roll on automatically, Ofgem says the supplier must limit termination notice periods to 30 days. It must also acknowledge a request to end the contract within 5 working days. Ofgem lists both points against evergreen contracts only, so a fixed term contract works differently. Ofgem also notes that when an evergreen contract renews, the new term is usually 12 months and may be at a higher rate.
On a fixed rate contract, Ofgem says there is usually a switching window that opens a few months before the end, and you can sometimes switch in it without a fee. Check your own contract for the dates, because Ofgem says most suppliers will not let you switch before the end of your contract unless you have already agreed a termination clause or you pay an exit fee.
Our fixed price business energy guide covers what to do when a tariff ends.
Key takeaways
- A microbusiness has fewer than 10 employees and turnover or balance sheet of up to £2 million, or uses up to 100,000 kWh of electricity or 293,000 kWh of gas a year.
- Suppliers must give renewal price information before a contract ends.
- On evergreen contracts, notice is limited to 30 days and a request to end must be acknowledged within 5 working days.
- Back billing rules stop most bills for energy used more than 12 months ago.
- There is no cooling off period after you agree a business contract, Ofgem says.
Do microbusiness energy rights limit back billing?
In most cases, yes: to 12 months. It is one of the most useful microbusiness energy rights. Ofgem’s back billing rules say you do not have to pay for energy you used more than 12 months ago if you have not had an accurate bill for it, have not been told what you owe through a statement of account, or your Direct Debit was set too low to cover what you owed. The rules apply to households and microbusinesses.
There is an exception. Ofgem says you will still have to pay if you have acted unreasonably, for example by blocking access to your meter, ignoring requests for payment, or stealing electricity or gas.
If you think a supplier has broken the rules, Ofgem says to contact them straight away, and they should refund any money taken in error. Our energy back billing guide goes through the steps.
What if you have a complaint about your supplier or broker?
Start with the supplier. Ofgem says your supplier must try to fix the problem you reported within 8 weeks and resolve the complaint. After that you can go to the Energy Ombudsman if the problem is still not fixed, you cannot agree a fix, you are unhappy with the decision, or you receive a deadlock letter, which is one saying the company cannot fix your problem or has done all it can.
The Energy Ombudsman is separate from Ofgem and covers energy suppliers, energy brokers, network operators and heat network suppliers. Ofgem says the Ombudsman will give you its decision within 6 weeks of you escalating, and set the company a list of actions. Ofgem says it does not get involved in individual disputes, so the Ombudsman is the last step in your microbusiness energy rights.
Our Energy Ombudsman complaint guide explains how to prepare your evidence.
Three checks to make your microbusiness energy rights work
Using your microbusiness energy rights starts with dates. Put the end date and the start of the switching window in your calendar, and ask the supplier in writing for your renewal prices before the contract ends. Our business energy deemed rates guide shows what waiting can cost.
Second, keep your meter readings and bills. If a back bill ever lands, an accurate record is your best answer, and the 12 month rule is easier to rely on when you can show what you were billed and when.
Third, check the middleman. Ofgem says most brokers are paid a commission by the supplier you choose rather than charging you an upfront fee, and that a broker paid by a supplier must belong to an approved redress scheme. It points to the Energy Ombudsman broker register and the Utilities Intermediaries Association accredited member list. There is no cooling off period, so check before you sign. Our business energy broker guide covers commission.
None of this changes the price on your bill. It makes sure you are the one making the choice rather than the default.
Frequently asked questions about microbusiness energy rights
- Who is covered by microbusiness energy rights?
- Ofgem says a business with fewer than 10 employees and an annual turnover or balance sheet total of no more than £2 million, or one using up to 100,000 kWh of electricity or 293,000 kWh of gas a year.
- How much notice can a supplier ask for on an evergreen contract?
- Ofgem says termination notice periods on evergreen contracts must be limited to 30 days, and a request to end the contract must be acknowledged within 5 working days.
- Can my supplier send me a bill for energy I used two years ago?
- Usually not. Ofgem’s back billing rules say you do not have to pay for energy used more than 12 months ago in certain cases, unless you have acted unreasonably.
- Is there a cooling off period on a business energy contract?
- No. Ofgem says there is no cooling off period after you agree your contract, so check the terms and any broker fees first.
- How long does the Energy Ombudsman take to decide?
- Ofgem says the Energy Ombudsman will tell you its decision within 6 weeks of you escalating a complaint.
Sources
- Ofgem: Get a business energy contract. Source for the microbusiness and small business thresholds, the working from home note, the absence of a cooling off period, the renewal price requirement, the evergreen 30 day notice and 5 working day acknowledgement, and the broker commission and approved redress scheme rules.
- Ofgem: Switch your business energy supplier. Source for the fixed term switching window opening a few months before the end, and for exit fees and termination clauses on early switching.
- Ofgem: What to do if you get a back bill. Source for the 12 month back billing limit, the three circumstances it covers, its application to households and microbusinesses, the acting unreasonably exception and the refund of money taken in error.
- Ofgem: Complain about your energy supplier or network operator. Source for the supplier’s 8 week window, the deadlock letter, the Ombudsman’s 6 week decision, the bodies the Ombudsman covers, and Ofgem not investigating individual disputes.
Checked 19 October 2026. Check your own contract and Ofgem’s site for the latest position.
