Business Electricity Prices

Business Electricity Prices Per kWh in May 2025 

The tables below shows the average business electricity prices for each size of business broken down by contract term length. 

How Business Electricity Rates Are Calculated

Understanding how the energy market operates can help you secure better business energy rates. A key indicator that it might be a good time to switch providers is when wholesale energy prices decrease. However, this isn't the only instance when it’s advantageous to review and secure your energy costs.  

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

Several factors influence how business energy prices are calculated, and it’s not solely dependent on the wholesale market. You may find cheaper business energy tariffs based on your annual consumption, your geographical location, and the type of meter you use.

Business Electricity Rates for Off-Peak Businesses

A business operating mostly in the evenings and weekends may benefit from Economy 7 & 10 meters - whilst larger companies may require a half-hourly meter if they have a peak load electricity usage of 100kW and above.

Before committing to a long-term business energy contract, it's wise to evaluate how and when you consume energy.

When Is The Best Time To Compare Business Electricity Rates? 

Business electricity rates have dropped significantly since the crisis and have entered a period of stability, according to GOV.UK. Whilst we cannot predict future wholesale prices, regularly comparing electricity rates is good practice for securing a great deal. 

Predicting Commercial Electricity Rates in 2025

Any prediction made is subject to change and uncertainty as things can change. Predictions by Cornwall Insight suggest that prices may increase. Although it is a heavy guessing game and prices could go up or down. The truth is that nobody knows for sure. The best time to switch suppliers is when your contract is within the last 12 months before expiring.  

Many businesses like the certainty of a fixed-rate electricity deal so they can project bills effectively. We offer a large panel of UK suppliers dedicated to helping secure a great deal. 

Current Business Electricity Rates 

Business electricity prices have significantly dropped to a stable level since the peak of the crisis. This means now is a great time to compare electricity prices and consider switching. There could be some significant savings to be made as there has been an average increase of out-of-contract electricity rates by 130% according to the BSE.   

Best Business Electricity Tariffs 

Each business is different, reflected in the energy tariff best suited to particular circumstances. Here are some of the most common tariffs according to regulator Ofgem that you may want to consider: selecting a tariff.

It's also wise to consider the type of electricity meter you have before choosing your tariff. 

Fixed-rate tariffs

With a fixed-rate tariff, you agree on a unit rate that is charged per kWh of energy used. This rate is locked in for the duration of your contract. However, your monthly bills may vary since the total cost depends on your energy usage—the more energy you consume, the higher your bill.

Variable-rate tariffs

Variable-rate tariffs provide your business with more flexibility compared to fixed-rate tariffs. Your unit rate can change throughout your contract based on fluctuations in wholesale prices.

Rollover tariffs 

A rollover tariff kicks in when a business has not secured a new deal with any supplier. Typically, this is a one-year contract that is legally binding and often comes with higher costs than wholesale market rates.

Economy 7 (multi-rate) tariffs 

Economy 7 tariffs offer different electricity prices at various times of the day. Generally, there is a higher rate during peak hours and a lower rate during off-peak hours, typically in the evening and overnight. If your business primarily uses energy during the evening or at night, you could save by switching to a multi-rate tariff.

No standing charge tariffs 

At first glance, no standing charge tariffs appear very appealing. These contracts may benefit businesses that operate seasonally or infrequently. However, suppliers often compensate for the absence of a standing charge with higher unit rates.

Renewable/ green tariffs

Green tariffs are a great way to start your journey towards becoming more renewable. Most renewable energy suppliers will match the electricity you use by purchasing from renewable sources.

Smart Export Guarantee tariffs 

The Smart Export Guarantee allows customers to sell any renewable energy they have produced back to the National Grid. This has replaced the Feed-in Tariffs and has some subtle differences. 

Business Electricity Rates for Small Businesses 

We specialise in finding electricity deals for small, medium, and micro businesses. Our self-service online platform is designed for small businesses, allowing you to compare energy prices and switch providers easily, anytime and anywhere. Start your journey today with our simple online energy comparison.

Unsure what category your business falls into? 

If you're above these thresholds you may be able to access cheaper business electricity rates as your overall consumption will be higher. 

Business Electricity Prices for Large Businesses 

Typically larger consumption companies have access to cheaper unit rates as they are purchasing much more than SMEs. We offer tailored quotes with a variety of additional services available including multi-rate, multi-site, half-hourly meters and energy management systems.

Large businesses typically consume 50,000 kWh of electricity annually according to Statista. Anything over this amount would be considered extra large in terms of electricity consumption.