Frequently Asked Questions

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A micro business energy refers to energy usage by small businesses that meet specific criteria: 

• Uses no more than 100,000 kWh of electricity per year.
• Uses no more than 293,000 kWh of gas per year.
• Has fewer than 10 employees (or their full-time equivalent).
• Has an annual turnover or balance sheet of no more than a certain amount (e.g., £2 million)

Ask you advisor how we can help you reduce the amount of VAT you pay on your business energy bills.

 The Climate Change Levy (CCL) is an environmental tax imposed on businesses in the UK to encourage energy efficiency and reduce carbon emissions. It applies to businesses in sectors such as industrial, commercial, agricultural, and public services. 

How It Works:

Businesses pay the main rates of CCL on their electricity, gas, and solid fuels.

The levy is charged by energy suppliers and appears on business energy bills.

There are reduced rates for businesses that have entered into a Climate Change Agreement (CCA) with the Environment Agency.

Certain businesses, such as charities engaged in non-commercial activities, may be exempt.

Below are the CCL rates from 1 April 2024 to 31st March 2026 for Business Energy Supplies:

Electricity:  0.775p per kWh

Gas:  0.775p per kWh

A Letter of Authority (LOA) is a legal document that allows a business to authorize a third party—such as an energy broker or consultant—to act on its behalf when dealing with energy and water suppliers.

What does an LOA typically include?

Identification: Business details (name, address, registration number) and the authorized third party’s information.

Scope of Authority: Defines what the third party can do, such as negotiating contracts, handling billing inquiries, submitting meter readings, or organizing maintenance.

Duration: Specifies how long the LOA is valid—often 12 - 36 months but can vary.

Payment Terms: If applicable, outlines how the third party’s fees will be paid.

Signatures: Must be signed by an authorized person within the business (e.g., owner or director).

Different levels of LOAs exist, with Level 1 allowing limited actions (like requesting account details) and Level 2 granting broader powers, including signing contracts.

Would you like help drafting one?  Use our LOA generator tool (link on website footer)

A business water audit is a thorough assessment of a company's water usage to identify inefficiencies, reduce costs, and improve sustainability. It typically involves:

Usage Analysis – Reviewing water bills, meters, and operational processes to understand consumption patterns.

Leak Detection – Checking for leaks and inefficiencies in plumbing, equipment, and cooling systems.

Efficiency Recommendations – Suggesting ways to reduce water wastage through better practices or upgrades, such as installing water-efficient fixtures.

Compliance Check – Ensuring the business meets local regulations on water usage and wastewater management.

Cost Savings – Identifying areas where reduced consumption can lower utility bills.

Many companies perform water audits to improve environmental responsibility and cut expenses. Would you like to explore how your business could benefit from one?  Get in touch today and request a free desktop report.  We offer full fix & reclamation audits on a performance related basis. 

A Change of Tenancy (COT) in energy and water contracts happens when the ownership or occupancy of a property shifts—whether due to new tenants, business takeovers, or changes in lease agreements.

Here’s how it works:

For Businesses: If a company moves into a new premises or another business takes over an existing space, the energy and water suppliers need to be informed to update the contract details.

For Residential Properties: If a tenant moves out and a new one moves in, the supplier must be notified to ensure the new occupant is correctly billed.

Key considerations:

The outgoing party should provide final meter readings and settle any outstanding bills.

The incoming party needs to register their details with the supplier, potentially negotiating a new contract.

Suppliers may require proof of tenancy change, such as a lease agreement or completion statement.

If this is something you’re dealing with, we can help you understand the process further or even draft notifications for suppliers—just let us know what you need!

Typical Proofs required to process a COT:

Most suppliers will require the below documents as a minimum requirement to process a change of tenancy.  It is important to note that a change of tenancy is a general term used for both leased and purchased premises.

• Copy of lease agreement
• Mortgage completion letter
• Solicitors letter confirming the lease or purchase of the property
• ID may be requested by some suppliers
• Copy of Rates bill
• Details of outgoing tenant/owner may be requested if available

Members have access to a COT helpline to guide them through the process.

The PSTN switch-off refers to the retirement of the Public Switched Telephone Network (PSTN), which has been the backbone of traditional landline phone services for decades. In the UK, telecom providers are transitioning from analogue phone lines to digital technology, such as Voice over Internet Protocol (VoIP).

The switch-off is happening because the old network is becoming outdated and difficult to maintain. The transition is expected to be completed by January 2027. Businesses and consumers will need to move to digital alternatives to ensure continued service.

Would you like to know how this might affect you?  Contact the office or your local membership office and they will be able to discuss this in more detail.

An energy audit for a business is a systematic review of how your company consumes energy, aiming to identify inefficiencies and opportunities for cost savings. It involves analyzing electricity, gas, and other energy usage patterns across equipment, lighting, HVAC systems, and operational processes.

A professional audit typically includes:

Assessment of energy bills to understand consumption trends.

Inspection of equipment and facilities to spot inefficiencies or outdated systems.

Recommendations for improvements, such as switching to LED lighting, upgrading HVAC systems, or optimizing production processes.

Potential financial incentives, like government grants or tax breaks for energy-efficient upgrades.

Ultimately, an energy audit can lead to reduced energy costs, improved sustainability, and compliance with environmental regulations. If you're considering one for your business, the Cooperative can help you explore the steps to get started.

Under Ofgem's rules, energy suppliers cannot charge you for energy used over 12 months ago if:

You did not receive an accurate bill for that energy, despite asking for one.

You weren't informed about the charges in a statement of account.

Your Direct Debit was set too low to cover the full amount, and this wasn’t corrected.

However, if a customer has unreasonably obstructed the supplier—such as blocking access to their meter or ignoring payment requests—the supplier may issue a back-bill.

If you've received a back-bill that violates these rules, you can challenge it with your supplier and escalate the complaint to the Energy Ombudsman if necessary.

Would you like help drafting a complaint letter?  Contact your local Membership Director.