Business electricity for charity and not-for-profit

Charities and not-for-profits run on tight margins. Every pound spent on electricity is a pound that can’t fund the cause, so getting the contract right matters more here than in most sectors. We compare suppliers across the whole UK market for community centres, charity shops, faith buildings, hospices, food banks, and head offices, then handle the switch end-to-end so trustees aren’t dealing with paperwork.

The mechanics are the same as for any organisation. We explain them in our guide to switching business electricity. But the buying questions are different. You need to know how the contract treats donated equipment, whether the supplier requires personal guarantees from trustees, and how billing handles split-use buildings where part of the space is public-facing and part isn’t.

Our wider business electricity service covers the open UK market for organisations of every size. For charities specifically, we’ll also look at any sector-specific tariffs, charity discounts, and green options that align with your mission.

VAT relief and the 5% rate

Charities often qualify for the reduced 5% VAT rate on electricity (instead of 20%) for the portion of supply used for non-business charitable activity. Suppliers won’t apply this automatically. You have to submit a VAT declaration form. We make sure that form goes in alongside the contract, and we’ll re-check the proportion at each renewal if your usage mix has changed.

Some charities also qualify for Climate Change Levy (CCL) relief on the same basis. CCL adds roughly 0.775p per kWh to standard rates, so a 60,000 kWh community centre saves around £465 a year by claiming it correctly.

Multi-site charities and consolidated billing

If you run several sites. Charity shops on different high streets, a network of hospices, multiple community hubs. Consolidating onto a single supplier usually unlocks better unit rates and simpler reporting for the trustees. We model the consolidated quote against keeping sites on separate contracts so you can see the volume discount before committing.

Trustee approval and signatory rules

Most charity electricity contracts need approval at trustee level rather than a single staff signature. We schedule the switch so the contract lands when it can be reviewed at a board or finance committee meeting, and we provide a one-page summary trustees can sign off without wading through 30 pages of T&Cs.

How a charity electricity switch works with us