Charities should begin reviewing electricity and gas contracts at least 6–12 months before renewal. Early planning helps avoid expensive out-of-contract rates and provides time for trustee or board approval where required. It also allows organisations to secure pricing in advance of contract expiry, which can improve budget certainty. Proactive renewal planning reduces financial risk and supports long-term cost control.

Many UK charities may be eligible for a reduced VAT rate of 5% on energy used for non-business charitable activities, instead of the standard 20%. This can result in a meaningful reduction in overall energy costs, particularly for higher-consumption premises. To apply the reduced rate, the appropriate VAT declaration must be submitted to the supplier. Eligibility depends on how the energy is used within the organisation.

Where energy is used for non-business charitable purposes, charities may be eligible for exemption from the Climate Change Levy (CCL). CCL is charged per kWh on business electricity and gas and can add noticeable cost over time. Exemption requires completion of the relevant declaration with the supplier. Reviewing CCL status can be an important step in reducing overall energy expenditure.

Where energy is used for non-business charitable purposes, charities may be eligible for exemption from the Climate Change Levy (CCL). CCL is charged per kWh on business electricity and gas and can add noticeable cost over time. Exemption requires completion of the relevant declaration with the supplier. Reviewing CCL status can be an important step in reducing overall energy expenditure.

Many charities continue paying standard VAT simply because the correct exemption certificate was never submitted or updated with the supplier. This often happens during contract changes or supplier switches. Without the declaration on file, suppliers will automatically apply the standard 20% rate. Reviewing VAT status as part of energy procurement helps ensure eligible organisations are not overpaying.

If a contract expires without renewal, suppliers may apply default pricing, which is typically significantly higher than negotiated rates. For charities, this can directly reduce funds available for service delivery and frontline impact. Default tariffs may also fluctuate during the year, creating budgeting uncertainty. Early renewal planning is the most effective protection against this risk.

Yes. For lower-consumption premises such as community centres or small offices, standing charges can represent a larger proportion of total spend. Two contracts with similar unit rates may produce very different overall bills depending on standing charge levels. This is why total cost comparison is more important than headline p/kWh rates. Procurement should always consider the full tariff structure.

Yes. For lower-consumption premises such as community centres or small offices, standing charges can represent a larger proportion of total spend. Two contracts with similar unit rates may produce very different overall bills depending on standing charge levels. This is why total cost comparison is more important than headline p/kWh rates. Procurement should always consider the full tariff structure.

Yes. We manage both electricity and commercial gas procurement, including renewable options where appropriate. Coordinating contracts improves visibility across sites and reduces the risk of missed renewals. Managing dual-fuel contracts together can also simplify supplier communication and ongoing administration. Ongoing support continues throughout the contract term.

Because total energy cost includes standing charges, VAT treatment, CCL status and renewal timing – not just the unit rate. A low p/kWh tariff can still be expensive overall if standing charges are high or exemptions are not applied correctly. Renewing early and selecting the correct contract term improves budget certainty. Effective procurement focuses on total cost and long-term financial stability.