Energy · 1 min read
Are you a microbusiness? Ofgem’s definition and why it matters
Microbusinesses get extra protection in the energy market. Here’s the definition, how it applies to each fuel, and what it means for your contract.
By ECO Utilities · Published 1 Nov 2026
Ofgem’s rules give smaller businesses more protection than larger energy users. Whether those protections apply to you depends on whether you count as a microbusiness.
The definition
A business is a microbusiness if it meets any of these:
- fewer than 10 full-time-equivalent employees and an annual turnover or balance sheet of no more than €2 million;
- electricity use of no more than 100,000 kWh a year; or
- gas use of no more than 293,000 kWh a year.
If you meet the employee and turnover test, you qualify for both fuels. If you don’t, but your usage of one fuel is under its threshold, you qualify for that fuel only.
Why it matters
Microbusinesses benefit from extra rules around contract information, renewals and how suppliers can treat them. Since 2022, suppliers must also show broker fees in microbusiness contracts, and since October 2024 broker commission must be disclosed on request for all non-domestic contracts.
Check in 30 seconds
Use the microbusiness checker on our business energy page. It’s a guide, not legal advice — if you’re close to a threshold, ask us or your supplier.
Want us to check your contract?
Send us a recent bill. We’ll explain what you’re paying and whether it’s worth looking at a new deal — no fees, no obligation.