Compare Business Electricity Rates
It takes just 30 seconds to view the latest business electricity rates. Unlike many other business electricity retailers, you can switch entirely online.
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Business Electricity Rates Per kWh 2024
|
Business Size |
Annual Usage |
Unit Price/kWh |
Standing Charge |
|---|---|---|---|
|
Micro Business |
Up to 5,000 kWh |
25.2p |
73.1p |
|
Small Business |
5,000-15,000 |
25.2p |
78p |
|
Medium Business |
15,000-25,000 |
25.2p |
85.1p |
|
Large Business |
25,000-50,000 |
26p |
112.5p |
|
Very Large Business |
50,000 + |
25.1p |
126.2p |
Data correct as of April 2024.
The table to the right shows current business electricity prices for 2-year contracts. Prices vary by UK region and these are the national average.
They reflect the average business electricity prices per kWh paid by companies of various sizes (based on consumption levels). It includes the prices with and without a Climate Change Levy (CCL) of 0.583 p/kWh but excludes VAT.
Businesses were grouped based on their annual electricity consumption as follows:
- Very Small: less than 5,000 kWh a year
- Small: 5,000 to 15,000 kWh a year
- Medium: 15,000 to 25,000 kWh a year
- Large: 25,000 to 50,000 kWh a year
- Very Large: 50,000 to 100,000 kWh a year
Are Business Electricity Rates Still Rising?
No – the numbers we’ve got to hand show that prices have been falling consistently each month for quite some time. We are now in a period of stability.
There’s a clear downward line with the average cheapest price falling, from almost 80p per kWh to 28.03p.
|
Month |
Business Electricity Price per kWh |
|---|---|
|
September 2022 |
91.25p |
|
January 2023 |
59.38p |
|
May 2023 |
30.53p |
|
January 2024 |
27.69p |
|
February 2024 |
25.73p |
|
March 2024 |
25.18p |
|
April 2024 |
22.21p |
Many businesses in the UK will welcome the downward trend in commercial electricity prices. Diving into 2024, prices have stabilised at just under 30p per kWh and many predictions, including from Cornwall Insight expect this to remain the case for a while. However, this is a prediction and things could change tomorrow!
How to Compare Business Electricity Prices
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Simply provide us with contact details and we'll look up your electricity meter.
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Choose a great deal from our live panel of electricity suppliers. We work with a panel of trusted UK suppliers with exclusive rates.
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Once you have chosen your new business electricity tariff, we will have you switched over to your new supplier within 5 working days.
Compare Live Business Electricity Rates In 30 Seconds
Choosing Your Business Electricity Tariff
The starting point for securing cheaper business electricity rates.
- Fixed-rate - the electricity rate you agree to with your supplier is fixed for the duration of your contract. This tariff is great for budgeting and predictability.
- Variable rate - the unit price for electricity will differ each month as wholesale prices go up or down. This is great for flexibility but expensive in times of higher wholesale prices.
- Green/ renewable - renewable electricity tariffs are a great first step to reducing your carbon footprint.
- Deemed rate - Deemed rates are what businesses taking over new premises will pay until they enter into an electricity supply contract.
- Out-of-contract rates - The amount charged is usually very similar to deemed rates but usually arises when a contract ends and a new contract has not been put in place.
Are No Standing Charge Tariffs Cheaper?
'No standing charge' tariffs may seem appealing but can often mean that the supplier will set the business electricity rates higher to offset any losses from a cheaper or no standing charge tariff. Here are some example tariffs to illustrate the differences:
- No standing charge - a business using 25,000 kWh of electricity annually with a fixed rate unit price of 31p will pay a monthly bill of £645.83.
- With a standing charge - a business using the same 25,000 kWh of electricity but at a cheaper fixed rate unit price of 28p and a daily standing charge of 45p will pay a monthly bill of £597.01.
As business electricity suppliers typically charge slightly more when there is a zero standing charge they often charge a slightly higher unit rate. In the example above, it shows a significant difference in the monthly price.
Even if this isn’t always the case, it is important to understand the unit prices and stranding charges you’re agreeing to.
Business Electricity Rates per kWh By Supplier - April 2024
|
Suppliers |
Electricity Unit Rates (p) |
Standing Charge (p) |
|---|---|---|
|
26.1p |
63.1p |
|
|
25.3p |
50p |
|
|
29.2p |
42p |
|
|
22.9p |
125p |
|
|
22.8p |
204.2p |
|
|
29.7p |
62.3p |
Business electricity rates displayed in the table are calculated averages of all contract terms (1, 2 and 3-year fixed-rate) and are based on an assumed annual consumption of 25,000 kWh per fuel. The cheapest unit rates for each fuel have been highlighted.
How to Get Cheaper Business Electricity Rates
Getting the lowest tariff on business electricity is not the easiest thing in the world but the following 10 tips can hopefully help:
- Using a comparison service to view the latest business electricity rates is the quickest and easiest way to find great deals.
- Know how much electricity you use each year as this makes comparisons easier and may make it easier to negotiate a discount.
- Have your MPAN (Meter Point Administration Number) ready as this can also help you make a better comparison.
- Consider how you pay your bill. Some electricity suppliers will offer up to a discount if you pay by monthly direct debit.
- Check your company credit rating. Bad credit can mean you’ll pay more for your business electricity.
- Look into when you use your electricity. For example, if you run a late-night business you may be able to benefit from off-peak rates for your electricity.
- Look into installing renewable options such as solar panels or wind turbines. While not an option for many businesses, you may be able to benefit from various government schemes. Moreover, you may be able to offset future price increases.
- If you have multiple business locations you may be able to negotiate a lower unit price by buying in bulk.
- Look at ways to lower your overall electricity usage such as using LED light bulbs or more efficient appliances. This can significantly reduce your total bills going forward.
Electricity suppliers don’t offer dual fuel contracts or discounts as they do for domestic customers. This means you may find it cheaper to buy your electricity and gas from separate suppliers.
To get your switch started, you can compare business electricity rates with Power Compare.
How To Identify Your Business Electricity Meter
When it comes to knowing what kind of meter is installed on your business' premises, it's worth knowing that, broadly speaking, there are two main types of business electricity meter.
Many businesses are using standard meters and larger businesses are using half-hourly meters. You can tell what type of meter you’re on based on your MPAN (Meter Point Administration Number). This number can be found on a recent business electricity bill or on your actual meter box.
- If your supply number starts with a 00 you have a Half Hourly meter.
- If your supply number starts with 03 you have Standard Meter.
- If your supply number starts with 04 you have an Economy 7-meter
- If your supply number starts with 05-08 you are Maximum Demand (MD) customer
A regulation called P272 was implemented on 1 April 2017 which means all 05-08 customers are now billed on a Half Hourly basis.
Knowing what your meter type is made comparing electricity prices much easier as not all suppliers are set up to handle Half Hourly customers. Some niche suppliers only deal with Half Hourly customers and won’t deal with SMEs on 03-04 profile classes. You will need to be aware of this when you switch business electricity supplier.
Despite a push by suppliers to get all customers on smart meters, many smaller suppliers are still not set up to deal with smart meters. If you would like to remain on a smart meter, you should check that your new supplier supports them before you switch business electricity.
It could be that you need a new meter installed, we offer free business electricity meter installation in some cases.
Business Electricity FAQs
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When is the best time to switch business electricity?
The best time to switch will often depend on your current business electricity contract. When you enter your renewal window, you can switch without paying an exit fee. If you’re unsure when you can switch, you can find your renewal window in your business electricity contract.
If you’re currently on out-of-contract rates, you can switch at any time. You should compare business electricity prices as soon possible as out-of-contract rates are often some of the most expensive around.
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Can I cancel my business electricity contract early?
Although it is possible to cancel your business electricity contract early, it could prove costly.
All business electricity contracts will incur an exit fee if you cancel your contract outside of your renewal window. The exact exit fee will vary from supplier to supplier. However, it is often the remaining cost of your contract.
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How long does it take to switch business electricity suppliers?
Under Ofgem’s Faster Switching Guarantee, your switch should take no longer than five working days once you’ve selected your chosen tariff. If you’re new to premises or you require a new meter, the switch may take longer.
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What is a half hourly meter?
Half hourly meters provide the most accurate meter readings available to large electricity consumption businesses.
Any business with a maximum demand of more than 100 kWh or greater in any 30-minute period is required to install a half hourly meter by law. If you have a maximum demand of more than 70 kWh in a half-hour period, you can also install a half hourly meter.
As the name suggests, a half hourly meter provides automatic meter readings every 30 minutes. This offers businesses the most accurate billing available as you will not be relying on estimated bills.
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Small Business vs Micro Business Electricity Rates
According to Ofgem, a non-domestic consumer is defined as a micro business if it meets one of the following criteria:
- employs fewer than 10 employees (or their full-time equivalent) and has an annual turnover or balance sheet no greater than €2 million, or
- uses no more than 100,000 kWh of electricity per year; or
- uses no more than 293,000 kWh of gas per year.
The main benefit of being defined as a micro business rather than a small business is that you can give a termination notice at any time during your contract which means you can always shop for the best deal.
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What is the Energy Bill Discount Scheme?
The Energy Bill Discount Scheme (EBDS) offers companies varying levels of discount on their business electricity between April 2023 and March 2024. You don’t need to apply for the discount and you can still secure a fixed-rate deal.
- Normal consumption businesses - if unit rates go beyond 30.2p/kWh the EBDS kicks into a maximum discount of 1.961p/kWh.
- Electricity-intensive businesses - if unit rates go beyond 18.5p/kWh the EBDS kicks into a maximum discount of 8.9p/kWh.
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Are Business Electricity Prices Cheaper With Fixed Or Variable Tariffs?
There are two main types of business electricity tariff available. Some suppliers offer more complex blended contracts, but all of them will consist of either fixed or variable elements.
Here are the key things you need to know about both types:
Fixed Tariff Business Electricity Contracts:
- Up to 5 years available, although 1-3 years is the most popular
- Fixed unit price even if wholesale prices increase
- Typically cheaper electricity rates than variable tariffs
- Tied into a contract
Variable Tariff Business Electricity Contracts:
- Unit price could change month to month
- Cheaper than deemed or out-of-contract rates
- Usually more expensive than fixed-rate tariffs
- Not usually locked into a long-term contract
Each contract has its benefits and is down to the individual circumstances of the business. Most businesses will choose a fixed contract when they switch business electricity as it tends to be much easier to manage in terms of expected cash flow.
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Understanding Your Renewal Quote
Business electricity prices on your renewal can be more expensive than current market rates. Long gone are the days when it’s easier to pay more and let your contract rollover. We have made it easy to find great prices. The ability to switch business electricity suppliers entirely online allows you to get a great deal whenever you like.
We may even be able to negotiate better business electricity rates with your current supplier so you only need to be transferred onto a new tariff.