Compare Business Electricity Prices
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Why Compare Business Electricity Prices?
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 business 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.
It takes just 30 seconds to compare business electricity prices and you can switch to a better deal online.
Business Electricity Comparison From Trusted Suppliers
Ready to start saving on your business electricity? Click the supplier logo of one of our 12 trusted business electricity suppliers below to read more.
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How To Compare Business Electricity Prices
Simple business electricity rate comparison in just 30 seconds.
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Should You Switch Business Electricity?
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 business electricity rates is good practice for securing a great deal.
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 businesses secure a great deal.
Business Electricity Prices Per kWh 2024
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 | Compare live tariffs |
|---|---|---|---|---|
| Micro Business | 0 to 5,000 kWh | 25.5p | 60.7p | Live Tariffs |
| Small Business | 5,000 to 15,000 kWh | 25.1p | 75.9p | Live Tariffs |
| Medium Business | 15,000 to 25,000 kWh | 24.9p | 84.1p | Live Tariffs |
| Large Business | 25,000 to 50,000 kWh | 25.3p | 102.5p | Live Tariffs |
| Very Large Business | 50,000 to 100,00 kWh | 24.8p | 119.9p | Live Tariffs |
Updated December 2024. Prices are based on an average annual two-year business electricity contract. These prices reflect a live market and are subject to fluctuation.
How Business Electricity Prices Are Calculated
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
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Small Business Electricity Prices
Finding great electricity deals for small, medium and micro businesses is what we do. We have built a comparison service that values your time, and you can compare prices online and switch whenever you have a spare 30 seconds.
Unsure what category your business falls into?
Micro Business Electricity
You're a micro business if any of the two following applies:
- 10 employees or less
- annual turnover of £632,000 or less
- the balance sheet has £316,000 or less
SME Business Electricity
You're a small business if any of the two following applies:
- 50 employees or less
- annual turnover of £10.2 million or less
- the balance sheet has £5.1 million or less
If you're above these thresholds you may be able to access cheaper business electricity unit rates as your overall consumption will be higher.
Large Business Electricity Prices
Typically larger consumption businesses have access to cheaper unit rates as they are purchasing much more than smaller businesses. We offer tailored quotes with a variety of additional services available including multi-rate, multi-site, half-hourly meters and energy management systems.
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Cheapest Business Electricity Prices By Supplier
As prices vary from business to business, there is rarely one cheapest supplier. The best energy suppliers for your business will depend on how and when you use your energy. Here is some insight into our panel of electricity suppliers - prices vary depending on your usage and location.
Below you can find insight into the average business electricity prices per kWh for a small business.
Cheapest 1-Year Fixed Business Electricity Prices
| Supplier | Average Price per kWh | Average Standing Charge | Annual Cost |
|---|---|---|---|
| British Gas Lite | 26.1p | 40p | £6,678.50 |
| SmartestEnergy | 25.2p | 62.3p | £6,534.57 |
| Valda Energy | 24.4p | 134.6p | £6,602.26 |
| British Gas | 26.3p | 60p | £6,796.41 |
| ScottishPower | 24.2p | 125p | £6,511.44 |
Data correct as of December 2024. Business electricity supplier prices per kWh are based on a one-year business contract with 25,000 kWh annual usage. These prices reflect a live market and are subject to fluctuation.
Cheapest 2-Year Fixed Business Electricity Prices
| Supplier | Average Price per kWh | Average Standing Charge | Annual Cost |
|---|---|---|---|
| British Gas Lite | 26.4p | 42p | £6,750.09 |
| SmartestEnergy | 25.2p | 62.3p | £6,518.14 |
| Valda Energy | 24.4p | 132.4p | £6,585.86 |
| British Gas | 26.6p | 62p | £6,867.91 |
| ScottishPower | 23.7p | 125p | £6,374.93 |
Data correct as of December 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.
Cheapest 3-Year Fixed Business Electricity Prices
| Supplier | Average Price per kWh | Average Standing Charge | Annual Cost |
|---|---|---|---|
| British Gas Lite | 26.9p | 45p | £6,879.61 |
| SmartestEnergy | 25.9p | 62.3p | £6,706.53 |
| Valda Energy | 24.2p | 134.4p | £6,537.90 |
| British Gas | 27p | 65p | £6,997.43 |
| ScottishPower | 23.6p | 125p | £6,360.10 |
Data correct as of December 2024. Business electricity supplier prices per kWh are based on a three-year business contract with 25,000 kWh annual usage. These prices reflect a live market and are subject to fluctuation.
Business Electricity Tariffs
Understanding the best tariff option for your business can lead to significant savings when searching for better deals. It might be tempting to stick with a tariff you’ve had for many years, but you could be overlooking potential savings. It's also wise to consider the type of electricity meter you have before selecting a tariff.
The first step is to understand how your business uses electricity. For instance, you might prefer the flexibility of a variable tariff, but this could mean missing out on lower unit rates and the stability offered by a fixed tariff.
Here’s a breakdown of some of the tariff types available:
Fixed-rate electricity
Fixed-rate tariffs offer 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.
Your monthly bill will still vary depending on the amount of electricity you use.
Variable-rate electricity
Variable rates give your business more flexibility than a fixed-rate deal. Your unit rate will change throughout your contract depending on the cost of wholesale prices.
Rollover electricity
A rollover tariff is used when a business has not agreed to a new deal with any supplier. This is often a one-year contract that is legally binding and is often more expensive than the wholesale market rates.
Economy 7 (multi-rate)
Economy 7 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.
No standing charge tariffs
A no-standing charge tariff is great for 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.
Green electricity 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.
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Are Business Electricity Prices Getting Cheaper?
Business electricity prices are now at a stable level after trending downward for some time.
Businesses that are locked in a contract when prices are higher will benefit from switching to cheaper business electricity prices by comparing and switching.
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.
Business Electricity 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 must 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.
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What Are Unit Rates?
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.
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What Is A Daily Standing Charge?
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.
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How Much VAT Is Paid On Business Electricity?
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%.
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What is the Climate Change Levy?
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.
- - Businesses where a domestic contract supplies energy