Farm energy contracts

What makes farm energy different

Farms buy electricity and gas from the same suppliers as any business, on the same kinds of contract. What sets them apart is the shape of the estate:

• Several supplies on one holding. Dairies, grain stores, workshops, pumps, cold stores, let cottages and the farmhouse may each have their own meter and supply
• Different end dates. Supplies added over the years often have contracts that end at different times, so some can drift onto out-of-contract rates
• Remote meters. Meters in outbuildings and fields are easy to miss, which can mean estimated bills
• Seasonal peaks. Drying, cooling, milking, irrigation and lambing or calving seasons all change when and how much energy is used
• Home and business together. The farmhouse may share a supply with farm buildings, which affects VAT

If your farm is not connected to the gas grid, the comparison on this site covers your electricity supplies; heating oil and bottled gas are bought separately. For explanations of meters and tariffs, see our sister site Business Gas and Electric.

Start with a supply list

The most useful thing you can do before asking for quotes is list every supply on the holding. For each one, note:

Once the list exists, you can see which supplies are fixed, which have rolled over and which are on out-of-contract rates. Our guides to business energy contract renewal and out-of-contract rates explain what each position means, and business energy quotes lists what to have ready.

VAT and the Climate Change Levy on farm energy

Climate Change Levy. GOV.UK says you pay CCL at the main rates on electricity, gas and solid fuels if your business is in the industrial, commercial, agricultural or public services sector. Farm supplies used for the business are therefore normally subject to the main rates, shown on your bill. Energy-intensive businesses that have a Climate Change Agreement with the Environment Agency can get a reduction; GOV.UK explains how to check eligibility. CCL rates change on 1 April each year, so we do not quote them here.

VAT. HMRC's guidance on fuel and power (VAT Notice 701/19) says supplies are standard-rated for business use unless they are for qualifying use. For a farm:

For a mixed supply, HMRC says the supplier should obtain a certificate from you stating the exact percentage of qualifying use at the premises, signed by a responsible person, and that suppliers make reasonable checks. An incorrect certificate may lead to a penalty, so base the percentage on real use and ask your accountant if you are unsure. The temporary zero rate covers qualifying electricity in Great Britain only; gas is not included and Northern Ireland stays at 5%. See VAT and Climate Change Levy for the full picture.

If the farmhouse is on a domestic contract in your own name, Ofgem's household rules apply to it rather than business contract rules.

Seasonal usage and how it affects quotes

Farm consumption rarely runs evenly through the year, and that matters when you compare:

• Use a full year of consumption. A quote based on a quiet quarter, or a busy one, will not reflect your real annual use
• Check how each quote is structured. A single unit rate, day and night rates or other structures suit different usage patterns; see business electricity comparison
• Check whether a supply is settled half-hourly. Larger sites, and a growing number of smaller ones, are; for those, when you use energy through the day matters to the price, so share half-hourly data if you have it; see half-hourly business electricity
• Plan around your busy season. Avoid leaving renewal decisions until harvest, lambing or calving, when nobody has time to read terms

Remote meters are worth reading regularly. Ofgem's back-billing rules say a microbusiness should not have to pay for energy used more than 12 months ago if it was not accurately billed, unless it acted unreasonably, but accurate readings avoid the problem in the first place. If your farm meets Ofgem's microbusiness definition, extra protections apply; see microbusiness energy rules and small business energy comparison.

Green energy options for farms

Farms can ask for renewable electricity in the same way as any business. Green electricity can be backed by Renewable Energy Guarantees of Origin (REGOs), certificates Ofgem issues to renewable generators, one per megawatt hour of eligible renewable output; see REGO certificates. Fidelity Energy offers green energy procurement, including REGO-backed electricity and biomethane (green gas), and says you can choose how much of your electricity comes with renewable certificates and how much biomethane to blend into your gas.

Two points to keep in mind:

• buying renewable electricity does not by itself remove the Climate Change Levy: GOV.UK's renewable exemption only covers electricity generated before 1 August 2015
• ask what proportion of the supply is certified and what evidence the supplier will provide

Fidelity Energy also lists commercial solar and EV charging among its services, if you are weighing up on-site generation alongside a supply contract. See green business energy for how to compare green quotes.

How Forever Communications helps farms compare

Forever Communications works as an agent of Fidelity Energy, an independent business energy broker that says it works with a network of 24+ suppliers, so your comparison covers that panel. We help you build the supply list, Fidelity Energy prices the supplies across its panel, and we go through the quotes, the commission and the terms with you before you decide.

Commission and fees. Fidelity Energy is normally paid commission by the supplier you choose. Under its terms, the commission is added to your unit rate and/or daily standing charge, and the estimated total is set out in your contract documents; Ofgem also requires broker fees to be shown in the principal terms of non-domestic contracts signed on and from 1 October 2024. You can instead ask at the start to pay Fidelity Energy by direct invoice, and its terms set out when a contract cancellation fee applies. Forever Communications is paid by Fidelity Energy out of the commission Fidelity Energy receives from suppliers. See energy broker fees.

Dispute resolution. Fidelity Energy is listed on the Energy Ombudsman's register of energy brokers, with membership active since 1 December 2022 (we checked on 1 November 2026). Our energy broker ombudsman page explains how to check the register and how complaints work.

There is no cooling-off period once you agree a business energy contract, so read is there a cooling-off period for business energy contracts? first.

If you are taking on land or buildings, start with change of tenancy so a new supply does not sit on deemed rates. When you are ready, contact us with a recent bill for each supply.