Energy Supplier Rules UK: Business Compliance Guide
We're not a law firm — we help you find the right legal support. For advice on your situation, speak to a legal adviser or find a solicitor.
If you run a commercial property or manage one on behalf of others, the rules governing energy supply sit in the background of almost every decision you make, from choosing a tariff to handling billing disputes with tenants. The regulatory picture has shifted noticeably in recent years, driven by the UK's legally binding net zero target and a wider push to reshape how gas and electricity are generated, sold and consumed.
That means the obligations placed on suppliers, and the protections available to business customers, keep evolving. This page walks through the main pieces of legislation that shape energy supply in the UK, explains how consumer protection sits alongside sector-specific rules, and sets out what commercial property owners should be paying attention to.
It is written as a plain-English starting point, not a substitute for guidance on a specific issue you are facing.
Overview
Energy supplier regulation in the UK is the body of law and licence conditions that controls who can sell gas and electricity, how they must behave towards customers, and what standards they are held to on pricing, metering, complaints and switching. The framework is built around two foundational statutes, the Electricity Act 1989 and the Gas Act 1986, which between them set up the modern market structure and the licensing regime enforced by Ofgem.
Layered on top are consumer protection rules, including the Consumer Rights Act 2015, which apply when suppliers deal with end users. For commercial property owners, the rules matter in two directions. You are often a customer of an energy supplier yourself, paying for common parts or unoccupied units, and you may also be passing energy costs through to tenants under service charges or sub-metering arrangements. Understanding where supplier duties end and your own obligations begin can save a significant amount of friction and cost.
Key steps
- Identify who the supplier actually is. Before anything else, work out which licensed supplier holds the contract for each meter on your property. Large sites sometimes inherit multiple suppliers after acquisitions or tenant changes, and the supplier on record determines who owes duties under their licence and who you should be raising queries with.
- Check the basis of your contract. Commercial energy contracts sit outside some of the domestic protections, so the written terms matter more than many owners realise. Review renewal dates, termination windows, out-of-contract rates and any broker arrangements, because these drive most of the disputes that land on commercial landlords' desks.
- Understand your position on pass-through charges. If you recharge energy costs to tenants through a service charge or a sub-meter, you need to be clear about whether you are acting as a reseller. There are rules on how much can be charged on to an end user, and getting this wrong can create both legal and reputational problems.
- Keep an eye on efficiency and reporting duties. Separate from supplier rules, commercial property owners face obligations around minimum energy efficiency standards for lettings and, for larger organisations, energy and carbon reporting. These interact with your supply decisions because metering data, green tariffs and on-site generation all feed into compliance.
- Have a process for complaints and switching. Suppliers must operate complaints procedures and, where disputes cannot be resolved, business customers meeting certain size criteria can escalate to the Energy Ombudsman. Knowing this route, and the timelines involved, puts you in a much stronger position when something goes wrong.
Common questions
Q Which regulator oversees energy suppliers in the UK?
Ofgem, the Office of Gas and Electricity Markets, is the independent regulator for the gas and electricity sectors in Great Britain. It grants supply licences, sets and enforces licence conditions, and takes action where suppliers fall short. Northern Ireland has its own regulator. Ofgem's role covers both domestic and non-domestic supply, although the specific protections differ between the two.
Q Do consumer protection rules apply to business energy contracts?
Some do and some do not. The Consumer Rights Act 2015 is aimed primarily at individuals acting outside their trade or profession, so a limited company buying energy for its premises usually falls outside it. However, micro-businesses have specific protections under Ofgem's licence conditions, and general contract law principles still apply, including rules on unfair terms and misrepresentation.
Q What is a deemed contract and when does it apply?
A deemed contract arises when energy is being supplied to a property without a formal contract in place, for example after a lease assignment or when a new occupier moves in and has not yet chosen a supplier. The existing supplier continues to provide energy on default terms, which are often expensive. Moving to a negotiated contract quickly usually saves money.
Q Can a landlord recharge tenants for energy they use?
Yes, in many cases, but there are limits on how this is done. Where a landlord acts as an intermediary between the licensed supplier and the occupier, the amount passed on is generally capped in ways designed to stop profit being made on resale. The exact position depends on the type of property, the metering arrangement and the lease terms.
Q What happens if my energy supplier goes out of business?
Ofgem operates a supplier of last resort process. When a licensed supplier exits the market, Ofgem appoints another supplier to take on its customers so that supply continues without interruption. Credit balances are generally protected for domestic customers, although the position for business customers can be more complicated and depends on the circumstances.
Q Are energy efficiency obligations the same as supplier regulations?
No. Supplier regulations govern how gas and electricity are sold to you. Energy efficiency rules, such as the Minimum Energy Efficiency Standards for let commercial property, govern the building itself and what EPC rating is required before it can be lawfully let. Both sit within the wider net zero framework, but they bite in different ways and at different points.
Q Where can business customers take a complaint they cannot resolve?
If a complaint with a supplier cannot be resolved directly, eligible micro-businesses can refer the matter to the Energy Ombudsman, usually after a set period has passed or once the supplier issues a deadlock letter. Larger business customers may need to rely on the contract itself and, if necessary, court or alternative dispute resolution routes.
Sources
This guide is based on primary UK law and official guidance.
- Guidance · UK GovOfgem – Regulating the energy industryofgem.gov.uk
- LegislationElectricity Act 1989legislation.gov.uk
- LegislationGas Act 1986legislation.gov.uk
- LegislationConsumer Rights Act 2015legislation.gov.uk
- Official SourceEnergy Ombudsmanenergyombudsman.org
Legal disclaimer
This article is for general information only. It is a tool to help you find your way — not legal advice, and not a substitute for speaking to a qualified adviser about your situation.