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Does the Energy Price Cap Apply to Businesses?

The short answer is no — and understanding why explains most of the difference between domestic and commercial energy buying.

7 June 2026 5 min read

The cap is a domestic mechanism

Ofgem's price cap limits what suppliers can charge domestic customers on standard variable tariffs. Business contracts sit outside it entirely — commercial pricing is negotiated per customer, per meter, per day.

What protection businesses do have

Micro-businesses have specific rights: clearer contract information, restrictions on rollover contracts, and access to the Energy Ombudsman for complaints. Larger firms rely on contract terms rather than regulation.

The practical implication

Because no cap protects you, the price you pay is determined almost entirely by when you buy and how many suppliers competed for your business. Process, not regulation, is what keeps commercial energy costs down.

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