How to set up business utilities for your premises

To get your business premises up and running, you need to arrange contracts for essential utilities like electricity, gas, water, and broadband. Unlike at home, you must use commercial suppliers, and it’s wise to sort these contracts out as soon as you get the keys, as you’ll need power and internet to fit out your space and start operating.

Why are business utilities different?

Business utility contracts differ from the ones you have at home. Prices are often quoted excluding VAT, contracts are usually for a fixed term (e.g., 1-3 years) with penalties for leaving early, and there’s no cooling-off period. On the plus side, you can often get better rates and more business-focused customer support.

A step-by-step guide to setting up your utilities

1. Find your meter numbers: For electricity and gas, you’ll need to know your Meter Point Administration Number (MPAN) for electricity and your Meter Point Reference Number (MPRN) for gas. These unique codes identify the supply points to your property. You can usually find them on old bills left by previous tenants or on the meters themselves.
2. Take meter readings: The moment you get access to the property, take a reading from each meter. This ensures you only pay for the energy you use and not for any left over by the previous occupant.
3. Compare suppliers: The easiest way to find a good deal is to use a business utility comparison service online. These websites let you compare quotes from multiple suppliers at once. Be prepared to provide your business details, the property address, and your estimated annual energy consumption if you know it.
4. Review the contract details: Don't just look at the price. Before signing, check the contract length, any exit fees, and what the supplier’s policy is for when the contract ends. Some suppliers will automatically roll you onto a new, often more expensive, contract if you don’t give notice.
5. Organise your broadband: A reliable internet connection is vital. Business broadband packages offer benefits like faster repair times, better security, and a ‘static IP address’, which can be useful for hosting a server or running security cameras. Compare providers based on the speed and reliability they offer in your area.
6. Sort out your water supply: In the UK, your water and sewerage wholesaler is fixed depending on your location. However, for businesses in England and Scotland, the market is deregulated, meaning you can choose which company retails your water services (i.e., who manages your billing and customer service). This allows you to shop around for a better deal on the service charge.

Top Tip: When you first take over a premises, you'll likely be placed on expensive 'deemed rates' by the previous occupier's supplier. You are not tied into this contract. Switch to a new, cheaper tariff as quickly as possible to avoid overpaying.