Compare Business Electricity Prices
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How To Compare Business Electricity Prices
Simple business electricity rate comparison in just 30 seconds.
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What Business Electricity Tariffs Types Are Available?
Understanding the best tariff type for your business can save you even more money than a straightforward switch. You may be tempted to opt for a tariff that you have had for many years and you may be unknowingly missing out on some savings.
The first step to this assessment is understanding how your business uses electricity. For example, you may prefer a little more flexibility in contracts with a variable tariff but this means you could be missing out on cheaper unit rates and stability with a fixed tariff.
Ultimately it how you use your electricity that will determine if the tariff type saves you money in the long run.
Here’s a breakdown of some of the tariff types available:
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Fixed Rate Electricity Tariff
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Variable Rate Electricity Tariff
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Rollover Tariff
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Economy 7 Electricity Tariff (Multi-Rate)
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No Standing Charge Tariff
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Green Business Electricity Tariff
A fixed-rate electricity tariff offers a set unit price for each kWh of electricity you use.
Many businesses prefer fixed-rate tariffs as they offer certainty and avoid any sudden increases in costs.
It’s worth bearing in mind that your monthly bill will still vary depending on the amount of electricity you use.
A variable rate tariff gives your business more flexibility than a fixed rate deal. Your unit rate will change throughout your contract depending on the cost of wholesale prices.
Businesses comfortable with changing unit rates may switch to a variable rate deal to take advantage of any reductions in the price of electricity during their contract.
However, when prices increase, you will not be protected against this on a fixed rate tariff.
Businesses that have not agreed to a new deal with any supplier may be placed on this type of tariff.
This is often a one-year contract that is legally binding and is often more expensive than the wholesale market rates.
This is often a tariff that businesses avoid due to their contract and expensive unit rates.
An Economy 7 tariff offers multiple electricity prices for different times of the day.
This will usually be a peak rate during the day and a lower off-peak rate in the evening and at night.
If your business uses most of its energy in the evening or at night, you could save money by switching to a multi-rate tariff.
Most business electricity tariffs will feature a daily charge. This cost is applied by the supplier to cover billing, maintenance and other admin costs.
This is a fixed daily charge applied to your electricity bill. A no-standing charge tariff removes this charge from your contract.
These tariffs can benefit businesses that operate seasonally or only open a few days a week. It’s worth bearing in mind that your unit price may be more expensive on a no-standing charge tariff.
Sustainability is becoming increasingly important for many businesses. A green business electricity tariff is a great way to meet your environmentally friendly aims.
Most renewable energy suppliers will match the electricity you use by purchasing from renewable sources.
Many suppliers now deliver renewable electricity tariffs as standard.
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Business Electricity Prices Per kWh
Business electricity rates vary from business to business, so there is no one price to pay per kWh of electricity. The best electricity deal for your business will depend on where your business is located, and how and when you use your business energy - and the prices change daily.
| Business Size | Annual Usage | Price per kWh | Daily Standing Charge | Annual Cost | Compare live tariffs |
|---|---|---|---|---|---|
| Micro Business | 0 to 5,000 kWh | 24p | 87.6p | £919.39 | Micro Business Tariffs |
| Small Business | 5,000 to 15,000 kWh | 25p | 74.4p | £2,766.83 | Small Business Tariffs |
| Medium Business | 15,000 to 25,000 kWh | 25.1p | 76.2p | £5,300.15 | Medium Business Tariffs |
| Large Business | 25,000 to 50,000 kWh | 25.8p | 80.3p | £9,967.10 | Large Business Tariffs |
| Very Large Business | 50,000 to 100,00 kWh | 25.3p | 95.5p | £19,332.40 | Very Large Business Tariffs |
Data correct as of August 2024. Business electricity prices per kWh are from Love Energy Savings' panel of suppliers and are based on a two-year business contract with the mid-point of the annual usage band being used to calculate the annual costs. These prices reflect a live market and are subject to fluctuation.
Business Electricity Prices by Supplier
As prices vary from business to business, there is very rarely one cheapest supplier. The best energy suppliers for your business will depend on how and when you use your energy.
Below you can find insight into the average business electricity prices per kWh for a small business.
| Supplier | Average Price per kWh | Average Standing Charge | Annual Cost |
|---|---|---|---|
| British Gas Lite | 27.1p | 42p | £6,929.37 |
| SmartestEnergy | 25p | 62.3p | £6,467.40 |
| Valda Energy | 26.3p | 83.2p | £6,884.09 |
| British Gas | 26.9p | 62p | £6,956.21 |
| ScottishPower | 24.2 | 125p | £6,504.12 |
Data correct as of August 2024. Business electricity supplier prices per kWh are based on a two-year business contract with 25,000 kWh annual usage. These prices reflect a live market and are subject to fluctuation.
Business Electricity Rates for SMEs
Small businesses can now save time and money. Compare business electricity prices and switch online in just 30 seconds.
We built the self-service platform with small businesses in mind, knowing time is precious and they often do not get to deal with electricity tariffs during office hours.
Compare and switch anywhere, anytime in just a few clicks.
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Business Electricity Rates for Large Consumption
We have a team of business electricity experts who deal with large consumption organisations.
We have helped hundreds of organisations build bespoke tariffs that meet the requirements of complex businesses.
Securing great rates is what we do - are you ready to get your business electricity quote?
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How Suppliers Calculate Business Electricity Prices
Business electricity prices include four costs that are included in your monthly bill. These are:
- - Unit rate - charged in pence per kWh
- - Daily Standing Charge - charged in pence per day
- - VAT - charged at 20% or 5% if you are eligible
- - Climate Change Levy (CCL) - charged at 0.775p per kWh
Below we explain what these charges mean.
Unit rate (p per kWh)
Your unit rate is the cost of the electricity that your business uses. It is billed in pence per kWh and varies depending on what is agreed with your supplier in your business electricity contract.
Daily Standing Charge (pence per day)
The standing charge is included to cover the cost of network maintenance. It is billed daily, again depending on what your contract says. Some business electricity contracts may even have a standing charge of zero, but those are rare and usually compensate with a higher unit rate.
Do Suppliers Offer Discounts On Business Electricity Rates?
VAT at 20% (or 5% if you are eligible)
VAT for business electricity is generally 20%, but some eligible businesses, such as charities, qualify for the same VAT rate as domestic users, i.e. 5%.
Climate Change Levy (CCL)
The Climate Change Levy (CCL) is a tax for businesses that use high energy to encourage them to be more environmentally conscious. It is set by the government every year. The charge CCL for business electricity for April 2024 is 0.775p per kWh.
Not all businesses need to pay CCL - there are exemptions, including the following:
- - Businesses where a domestic contract supplies energy
- - Charitable organisations
- - Businesses that use less than 1000 kWh of electricity in an average month
- - Businesses that have registered a Climate Change Agreement (CCA)
- - Businesses involved in specific construction, manufacturing or metal production may also be exempt.
Read more about CCL exemptions on the Gov. uk website.
How Much Money Could You Save?
We work with our business electricity comparison partner, Love Energy Savings, and customers who switch with their panel of suppliers save £1,920 per year, on average.
However how much you save will depend on your annual usage, your current tariff and the tariff you switch to, so there’s no guarantee on how much you will save.
How Have Business Electricity Prices Changed in 2024?
Business electricity prices have been trending downward for a while. Average prices are currently at 25.95p per kWh in July 2024, and this is significantly lower than 2023, when they were 31.40p per kWh - a 30% decrease in the unit rate.
Businesses that are locked in a contract when prices are higher will benefit from switching to cheaper business electricity prices by comparing and switching.
Business Electricity Comparison FAQs
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How Long Does It Take to Switch Business Electricity Suppliers?
We'll aim to complete your electricity switch within 5 working days.
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When Should I Switch Business Electricity Suppliers?
Most businesses will simply decide to switch suppliers as their contract comes to end. However, certain times of the year can potentially offer better deals.
Switching during the summer months can offer cheaper rates on both business gas and business electricity tariffs. Keeping an eye on the wholesale costs of gas and electricity can help you identify when the best rates may be available.
However, if you’re switching outside of your renewal window, you may face exit fees from your current supplier.
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Am I Required to Pay VAT on Business Electricity?
VAT rates of 20% will apply to your business electricity bills. However, not-for-profit organisations may be eligible for a reduction in VAT to 5%.
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Can I Switch my Business Electricity for Multiple Sites?
If your business has more than one location, it can become complicated managing multiple energy contracts.
A multi-site tariff can allow your business to consolidate your tariffs into one contract. With multiple locations, your business may be entitled to discounts due to a greater buying power. At Energy Helpline, we can help your business find a great deal across your locations.
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Can I Switch my Business Gas at the same time?
Yes, you can switch business gas at the same time with Energy Helpline. Although you will have two separate contracts for your business gas and business electricity, switching them at the same time makes it much easier to manage your business energy bills.
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How Do I Find Out Who Supplies My Business Electricity?
Your latest bill will have your electricity supplier information, if you can’t find the most recent bill, check your emails or documents for the contract between you and your supplier.
If you are new to the premises and don’t have access to these, and can’t ask the landlord or previous tenant, then use the Energy Networks Association too to first find your network operator using your postcode, and then contact the network operator to tell you who your supplier is. Network operators should have a postcode search tool to do this easily.
A more direct way to learn who your business electricity supplier is is to enter your postcode into our comparison engine. From there we will look up your meter number and let you know who your supplier is. The engine will also provide you with some business electricity price quotes free of charge to consider at your discretion.
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What If I Run My Business From Home?
If the majority of your business's electricity usage is for your business, then you may be eligible for a business tariff. Contact your electricity supplier to enquire if you are eligible for a business electricity tariff. If you signed a business electricity contract through a broker, then contact your broker.
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Is Business Electricity Cheaper Than Domestic Electricity?
Generally, business electricity rates are cheaper per kWh than domestic electricity rates. This comes about due to larger amounts of electricity that businesses use, resulting in suppliers offering them cheaper rates. Due to this lower rate, business electricity tariffs usually include a higher standing charge than domestic users, as well as other charges, such as CCL.
That doesn’t mean that businesses have a lower electricity bill. Since they tend to use more electricity than households, their bills will be higher.
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Will My Business Electricity Be Disrupted If I Switch?
Your switch will not be disrupted, as you will be paying your previous supplier until the switch happens. Also, switching electricity suppliers doesn’t involve any infrastructural changes, so you will have electricity throughout the switching process.
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Does Your Business Need a Half-Hourly Meter?
Businesses with a peak electricity usage of 100 KVA (Kilo Volt Amperes) or higher at least three times a year are required by law to install a half-hourly meter.
A half-hourly meter communicates electricity usage with your supplier every half hour, ensuring your usage is as accurate as possible - and by extension your business electricity bill will also be as accurate as possible.
Learn more about if a half-hourly meter is right for your business.