Octopus Energy Business Referral: Switch and Get £75 Credit

Last updated: 13 April 2026

What Is Octopus Energy for Business?

Octopus Energy is the UK's largest energy supplier, serving over 7.7 million households and more than 40,000 business customers. Their Octopus Energy business referral programme gives new business customers £75 credit when they switch using a referral link. This is separate from the domestic scheme, which offers £50.

Octopus for Business supplies 100% renewable electricity as standard, backed by Renewable Energy Guarantees of Origin (REGOs). All business tariffs use carbon-free power, so you can reduce your Scope 2 emissions without paying a premium. Octopus also holds a 4.8 out of 5 Trustpilot rating from over 780,000 reviews and has been the only energy supplier Which? has recommended nine years in a row.

Whether you're a sole trader, limited company, partnership, or charity, Octopus offers straightforward online sign-up with no need to go through a broker. For domestic energy, see our personal Octopus referral page.

How Much Does Octopus Business Energy Cost?

Business energy pricing works differently from domestic. The most important thing to understand is that the Ofgem price cap does not apply to business energy. The price cap (currently £1,641 per year for typical domestic use from April 2026) only covers households. Business energy rates are set by the market, meaning they can be higher or lower than domestic rates depending on wholesale prices, your usage, and your tariff type.

This sounds daunting, but in practice it means businesses that shop around and switch directly (rather than using a broker) can often secure competitive rates. Octopus publishes transparent pricing during the quote process, so you see exactly what you'll pay before committing. For more on how Ofgem regulates energy suppliers, see our post on whether Octopus is regulated by Ofgem.

VAT on Business Energy

Most businesses pay the standard 20% VAT rate on electricity and gas. However, you may qualify for the reduced 5% rate if any of the following apply:

De minimis threshold: If your business uses less than 1,000 kWh of electricity per month (roughly 33 kWh per day) or less than 4,397 kWh of gas per month (roughly 145 kWh per day), HMRC treats it as equivalent to domestic use. Many sole traders, small offices, cafés, and shops fall below these limits without realising.

Mixed-use premises: If more than 60% of the energy at your premises is used for domestic purposes (for instance, a flat above a shop), the entire supply can be charged at 5%.

Charities: Registered charities carrying out non-business activities qualify for 5% VAT on energy used for those activities.

If you think you qualify for the 5% rate but your supplier is charging 20%, you can submit a VAT declaration form to request the reduced rate. You can also claim refunds for up to four years of overpayments. Full details are in HMRC's Notice 701/19 on VAT for fuel and power.

Climate Change Levy (CCL)

The Climate Change Levy is an environmental tax on business energy designed to encourage efficiency. From April 2026, the CCL rate for both electricity and gas is 0.801p per kWh. It appears as a separate line on your bill.

Good news for small businesses: if your usage falls below the de minimis thresholds mentioned above, you're typically exempt from CCL as well as eligible for 5% VAT. Charities carrying out non-business activities are also exempt. Full details are on the GOV.UK Climate Change Levy rates page.

Who Can Switch to Octopus Business?

The Octopus Energy business referral is open to a wide range of business types:

Sole traders and freelancers can switch, including those who work from home. If you're on a domestic energy tariff at home, you would switch your entire household supply (since there's typically one meter). However, you can still claim business energy costs as an expense for the portion used for work.

Limited companies, partnerships, and LLPs with commercial premises can switch straightforwardly. Octopus serves businesses across all sectors, from retail and hospitality to manufacturing and logistics.

Charities and non-profits are also eligible and may benefit from the reduced 5% VAT rate on energy used for non-business activities.

Multi-site businesses with multiple premises can manage everything through a single portfolio. Octopus handles multi-site energy from 3 accounts upwards, with no maximum on the number of sites.

For businesses with half-hourly electricity meters using between 100 MWh and 1 GWh per year, Octopus can supply those too. Very large industrial users above 1 GWh may need to negotiate bespoke terms.

How to Switch Your Business to Octopus

The process for an Octopus Energy business referral is simple and entirely online. Here's how it works, step by step:

Step 1: Click our referral link below. On the Octopus page, scroll down past the domestic postcode field to the section labelled "Looking to switch your business?" and enter your business postcode there.

Step 2: Select your address and choose whether you need gas and electricity or electricity only.

Step 3: Enter your annual consumption (you can find this on a recent bill or ask your current supplier). Alternatively, let Octopus estimate it for you.

Step 4: Review the tariff options. Octopus will show you fixed-term and flexible tariffs with a full breakdown of unit rates, standing charges, and estimated costs.

Step 5: If you're happy, sign up. Octopus will handle the switch from your old supplier.

Before you switch: You must notify your current supplier that you're leaving. Business energy contracts typically require 30 days' notice. If you're in a fixed contract with another supplier, check for exit fees before proceeding. Switching itself typically takes around 3 days, and your energy supply will not be interrupted.

Have your business name, meter number (MPAN for electricity, MPRN for gas), current supplier details, and estimated annual consumption ready. For more on leaving your current supplier, see our post on whether you can leave Octopus anytime, which also covers switching away from other providers.

How the £75 Business Referral Credit Works

When you switch using our Octopus Energy business referral link, both you and CoolCuration receive £75 credit. Here's how it works:

Your £75 is applied to your Octopus business energy account automatically after your switch completes and your first month's Direct Debit payment has been successfully taken. The whole process typically takes around four weeks from signing up, though it can occasionally take longer if your previous supplier delays the switch.

There's no separate promo code needed. Just make sure you use our referral link and sign up through the business section of the page. Signing up through a comparison website or a broker won't qualify you for the referral credit.

For domestic customers, the referral credit is £50 per household. Business and charity accounts receive the higher £75 credit. You can check your credit has landed by logging into your Octopus account and viewing your balance history.

Why Switch to Octopus for Business?

Several things make Octopus stand out from the crowded business energy market:

100% renewable electricity: Every business tariff includes green electricity as standard, backed by REGOs. If your company has sustainability goals, net-zero targets, or environmental reporting obligations, this simplifies things considerably.

Transparent pricing: Octopus shows you exactly what you'll pay during the quote process. No hidden fees, no confusing bundled charges.

Flexible tariff options: Choose from 12-month or 24-month fixed tariffs for price certainty, or flexible/variable tariffs if you prefer to track the market. Octopus also offers Shape Shifters, a smart tariff that rewards businesses for using energy outside peak hours.

No brokers, no middlemen: You sign up directly with Octopus. This matters because business energy brokers are known for cold-calling and locking businesses into long, expensive contracts. Octopus cuts out the middleman entirely.

Award-winning customer service: UK-based support team, reachable by email at [email protected] or by phone on 0330 808 1080.

Smart meter installation: Octopus installs smart meters for business premises, giving you real-time usage data and more accurate billing.

Business Energy vs Domestic Energy: Key Differences

If you're a sole trader or small business owner used to dealing with household energy, switching to a business tariff involves a few differences worth knowing about:

No price cap protection: As mentioned, the Ofgem price cap only covers domestic customers. Business energy rates are unregulated on price, so shopping around matters more. On the upside, competitive suppliers like Octopus often offer rates that beat what you'd pay through a broker.

VAT and CCL: Business energy bills carry 20% VAT (not 5% like domestic) plus the Climate Change Levy, unless you qualify for reduced rates. If you're VAT-registered, you can reclaim the VAT as an input tax on your VAT return.

Contract structures: Fixed business tariffs with Octopus do carry exit fees if you leave before the contract end date. This applies to all 12-month, 24-month, and no-standing-charge business tariffs agreed after 1 July 2024. Flexible business tariffs, however, have no exit fees. This is worth noting because Octopus domestic tariffs have historically had no exit fees at all (though even domestic fixed tariffs introduced exit fees in March 2026 due to wholesale market volatility).

Advance payment: Octopus takes an advance payment when you sign up for a business tariff, usually equal to 3 months' estimated energy cost (up to 6 months depending on credit score). This is held as a deposit and returned in full at the end of your contract. It does not count towards your energy bills.

Be cautious with business energy brokers: The business energy market is full of brokers who cold-call and promise savings, then lock you into multi-year contracts with steep exit fees and hidden commissions. Octopus lets you switch directly, see transparent pricing, and avoid that trap entirely. If a broker is pressuring you, you can always get a direct quote from Octopus yourself.

For more on reducing your outgoings as a home-based business, see our guide to cutting household bills in the UK.

Switch your business to Octopus (£75 credit)

Energy prices, tariffs, and referral offers can change. Always verify current rates directly with Octopus Energy. Business energy is not covered by the Ofgem price cap. CoolCuration earns a referral credit when you switch using our link, at no cost to you.

Octopus Energy Business Referral: FAQs

How much is Octopus Energy for business?

Business energy rates vary by location, usage, and tariff type. You can get a personalised quote on the Octopus website by entering your business postcode and consumption. Business energy is not covered by the Ofgem price cap, so rates are set by the market. Most businesses will also pay 20% VAT and the Climate Change Levy on top of the quoted unit rates.

Can I switch my business to Octopus Energy?

Yes. Sole traders, limited companies, partnerships, charities, and multi-site businesses can all switch. You'll need to give your current supplier notice (usually 30 days), and the switch itself typically takes about 3 days. Your energy supply won't be interrupted during the process.

Is Octopus Energy good for small businesses?

Octopus is well-suited to small businesses. They offer transparent pricing, 100% renewable electricity, flexible and fixed tariff options, and direct sign-up with no broker commissions. Their Trustpilot rating of 4.8 out of 5 reflects strong customer satisfaction across both domestic and business accounts.

What is the Octopus business referral credit?

When you switch your business energy to Octopus using a referral link, you receive £75 credit on your account. The credit is applied automatically after your switch completes and your first Direct Debit payment clears. This typically takes around four weeks.

Does the Ofgem price cap apply to business energy?

No. The Ofgem energy price cap only applies to domestic customers on default or standard variable tariffs. Business energy is not covered, which means business rates are determined by the wholesale market, your usage profile, and the tariff you choose. For a full explanation of the domestic price cap, see our post on the Ofgem price cap 2026.

Do I pay 20% VAT on business energy?

Most businesses pay 20% VAT. However, if your electricity usage is below 1,000 kWh per month or your gas usage is below 4,397 kWh per month, you may qualify for the reduced 5% rate. Charities and mixed-use premises (where over 60% of energy is domestic) may also qualify. You'll need to submit a VAT declaration form to your supplier.

Can I switch if I work from home?

Yes. If you're a sole trader or freelancer working from home, your energy supply is typically on a domestic tariff already. You can switch that supply to Octopus using the domestic referral (£50 credit) or, if your home is your registered business premises with a business meter, you may use the business referral (£75 credit). Most home-based sole traders will use the domestic route. You can still claim a proportion of your energy costs as a business expense either way.

More from CoolCuration

• Ofgem Price Cap 2026 – Understand what the current energy price cap means for your household bills and how it changes each quarter.
• TopCashback Referral Code – Earn cashback on everyday business and personal purchases through one of the UK's biggest cashback platforms.
• Hive Thermostat – Take control of your heating costs at home or in the office with smart temperature scheduling.
• Chip App – Automate your savings and build up a rainy-day fund alongside your business finances.
• Save Money on Winter Energy – Practical tips to cut your energy bills during the colder months.

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