Small Business Energy Suppliers - Best Tariffs For SMEs


70% of SME business owners believe that the cost of their energy bill impacts the growth of their business.

One of the quickest ways to reduce overheads is by exploring specialist small business energy suppliers. SMEs present many challenges often leaving little time to manage energy tariffs. 

The good news is that it has never been easier to find competitive business energy prices, even for smaller businesses. Many small business owners are becoming savvier with their business energy habits, especially with the rising costs of gas and electricity. 

In fact, it has never been more important to closely manage your energy bills. 70% of SME business owners believe that the cost of their energy bill impacts the growth of their business according to a study commissioned by TYL Natwest

How Much Should Energy Cost A Small Business? 

It becomes difficult to predict what a typical small business should be paying for its energy, often impacted more by industry rather than the number of employees. However, we can make some general calculations based on average government figures announced quarterly. 

Here are the latest figures for Q1 2022. These are the latest average costs available. 

Business Size

Average Electricity Price/ kWh 

Average Gas Price/ kWh 

Micro Business

20.06p

5.4p

Small Business 

20.57p

3.64p

Medium Business 

18.06p

4.22p 

Updated July 2022. 

What Is A Micro Business? 

You’re defined as a micro business if one of the following applies: 

  • You employ fewer than 10 employees with an annual turnover less than £2 million, or
  • Your business uses less than 100,000 kWh of electricity per year, or
  • Your business uses less than 293,000 kWh of gas per year. 

You may think it’s not that appealing to be a micro business with higher energy prices but they do receive similar protections that a domestic customer would receive. For example, greater clarity on contract end dates, back billing and limits of rollover contracts. 

Best Small Business Energy Tariffs 

It is important to note that energy suppliers change their pricing daily. What may be the cheapest tariff today may be different tomorrow. You may also be able to negotiate better rates for higher energy consumption. 

With that being said, we have pulled together some of the best energy suppliers for small businesses (based on price in mid-July 2022). These energy prices can offer rough guidance on what you should be paying depending on when you are comparing prices. 

Electricity Prices By Supplier 

Electricity Supplier 

Unit Rate/ Cost Per kWh 

Standing Charge 

EDF

41.1p

25p

Opus Energy

41.66p

46p

BG Lite

48.92p

45p

Gas Prices By Supplier 

Gas Supplier 

Unit Rate/ Cost Per kWh 

Standing Charge 

Opus Energy

12.41p

42p

EDF

13.4p

25p

Valda

12.18p

35p

British Gas

15.06p

30p

BG Lite

17.77p

45p

Prices accurate and updated on 14th July 2022. 

Choosing The Right Tariff For Your Small Business 

Choosing the right business energy tariff can be a head-scratcher. There are two main types of energy tariffs that most small businesses choose, a fixed or a variable tariff.

However, there are some other options that may be worth considering. Getting the best deal on your business energy can come down to identifying how your business uses energy and matching this to the right tariff. 

Here’s a breakdown of the tariff available: 

  • Fixed-Rate Energy Tariffs: the price of each kWh of energy used will remain the same for the duration of the contract. 
  • Variable-Rate Tariffs: the price you pay for energy can change at any time. This usually moves in line with wholesale market prices. You may end up saving money for some months or paying more if prices are increasing. 
  • Multi-Rate Tariffs: A multi-rate tariff offers your business different unit rates at different times of the day. The most common multi-rate deal is an Economy 7 tariff. This offers two different rates – off-peak at night and peak during the day.

Before Committing To A Business Energy Contract 

It is easy to get drawn in by cheap business energy prices but there are some other factors to consider. You may want to check Trustpilot reviews from other small business owners to make sure you’re comfortable with the service levels being provided by the energy supplier you’re considering. 

Here are the Trustpilot scores from some of the most popular UK business energy suppliers: 

Business Energy Supplier 

Trustpilot Score

British Gas

3.2 /5 (Average)

BG Lite

3.6 /5 (Average) 

EDF

4.1 /5 (Great) 

Opus Energy

4.1 /5 (Great)

Valda

3.9 /5 (Great)

Octopus Business Energy

4.8 /5 (Excellent)

Scottish Power 

1.1 /5 (Bad) 

What Happens When My Business Energy Contract Ends? 

Small business owners are exceptionally busy and business energy renewal dates often get overlooked. It is very easy to miss the renewal date after being in a fixed energy contract for several years. 

Many businesses are unaware that renewal windows open before the contract end date. This window can be as much as 120 days before the end of the contract. This means the next business energy contract can be locked in and ready to go straight away. 

If you fail to agree to a new business energy deal before the contract end date, your energy supplier will place you on an out-of-contract rate (deemed rate contract). These are the energy supplier’s most expensive business energy prices. 

Energy suppliers will send you a renewal letter before your contract ends but these are almost always more expensive and better deals can be found when you compare business energy prices online.

Why Compare Business Energy With Energy Helpline?  

We’re dedicated to simple energy switching and strive to find your business a great deal. Our switching service is simple by design and can be done completely online to ensure a fast and smooth process. However, should you have any questions or need any help, we’re just a phone call away. 

Here are some reasons why small business owners work with us to find great energy deals: 

  • Our average customer saving is £1,401* annually 
  • We’re rated Excellent on Trustpilot 
  • Easy switching with our advanced comparison engine 
  • Track your switch online, stress-free 

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