From small business energy to large commercial energy, saving money on gas and electricity bills is one of the main priorities for many and can have a big impact on cash flow.
We have partnerships with a variety of UK energy suppliers with exclusive energy deals in place. Comparing business energy suppliers is easy and you will have a list of tariffs within seconds. If you’re a large usage business with a half-hourly meter, our team will be more than happy to help build a custom energy tariff for you.
How Much Should I Be Paying For My Business Energy?
There’s no ‘magic number’ of how much businesses should be paying for energy. Business energy prices largely depend on multiple factors including, overall usage and location. For example, smaller businesses like a restaurant will be using a much higher amount of energy than a business of similar size that operates in an office.
However, as rough guidance, here are the average UK business energy prices for gas and electricity:
|Business Type||Electric (kWh)||Gas (kWh)||Total Bill|
Prices last updated: February 2021.
Source: Gov UK
Business energy tariffs change every day. For the most accurate figures, you should compare business energy prices.
Large Commercial Energy
For businesses with a peak energy usage of 100kw, they are required to install a half hourly meter. This may require more custom business energy quotes. We have a dedicated team that helps thousands of large UK businesses save on their energy bills.
Larger companies have much more buying power due to the amount of business energy they purchase. This often means they may negotiate prices closer to wholesale market prices. Our team can help you negotiate with the energy supplier and manage the switching process for you.
Green Business Energy
Many businesses are aiming to reduce their carbon footprint. A great first step to a more sustainable business is selecting green business energy. Green energy tariffs are much more competitive than previous years, with many newer business energy suppliers only offering 100% renewable energy.
We’ll include some of the most competitive green business energy tariffs on the market when comparing business energy with us.
What Types Of Business Energy Tariffs Are Available?
There are 5 types of business energy tariffs, but not all are ideal.
- Fixed term contracts – This is the most popular business energy tariff and allows companies to fix a monthly price for anywhere from 1 to 5 years. This means energy prices will not go up for the duration of the contract, but also not benefit from any dips in wholesale market prices.
- Variable-rate contracts – The price you pay for business energy will increase and decrease for the duration of the contract. Prices are set by the energy supplier but will vary in line with wholesale market demand.
- Deemed rate contracts – Also known as out of contract tariffs, it’s definitely one to avoid. These tariffs are used when a business does not agree to a new business energy contract and does not switch to a new supplier. These are usually very expensive rates set by the supplier.
- 28-Day contracts – This is a contract for businesses who haven’t switched since the energy market deregulation came into effect. These are incredibly rare and businesses can no longer switch to this type of contract.
- Rollover contracts – A rollover contract is used when no alternative has been agreed before your current contract’s end date. You will automatically be signed up for another year and rates are usually among the supplier’s most expensive.
It is important to compare business energy prices to reduce your energy bills and ensure you’re not paying more than you need to. It can be difficult to choose the right deal for you. Before you switch business energy, it’s good practice to understand how your business uses energy. For example, businesses who use more energy during the night, or at weekends may benefit more from Economy 7 or Economy 10 tariffs.
What Can Affect The Price Of My Business Energy Quote?
There are many factors that come into play when business energy suppliers calculate the price of your gas and electricity.
Here are the main things that a business energy supplier considers:
- What energy meter you have (multi-site, multi-rate, standard, smart meters). These all offer different benefits and can impact energy bills.
- Annual business energy consumption.
- The size of your business and the industry you operate in. Some industries typically have much higher energy bills.
- Wholesale market prices. As prices fluctuate, your business energy supplier will adjust energy tariffs accordingly. However, if you’re on a fixed rate energy deal, this will not impact you until it is time to renew.
To ensure you’re getting the best deal for your business, you should compare business energy deals regularly. Keeping on top of your energy bills and reviewing your energy supplier will help you save money and stay on top of your business energy contract.
I have received my renewal letter. Should I compare business energy prices?
renewal letters typically contain higher prices than the market average. You should always compare business energy prices before agreeing to your renewal contract.
How do I switch business energy?
Once you have selected your new business energy supplier, you can begin switching business energy. First, you must send a termination letter to your old energy supplier. Failure to terminate your contract in time may mean that you’re automatically placed on an expensive rollover contract.
We’ll then need some information from you including some basic company details and your Meter Point Administration Number and your Meter Point Reference Number. These are located both on your gas and electricity meter or a recent bill.
Then you can sit back and let our team handle everything else. We’ll keep you up to date along the way making switching business energy as easy as possible.
Once you switch business energy with us, we will be in touch to remind you when your contract is coming to an end. This means you will never overpay for your business energy again.
Can I switch my gas and electricity together?
This is where it gets a little more complicated to switch business energy. There are no duel fuel tariffs available for business energy customers. Businesses must switch gas and electricity separately.
Whilst this does mean more admin of getting business energy quotes for both your gas and electricity, this means you can have separate business energy suppliers for each fuel. Taking better advantage of business energy deals to reduce your energy bills.
To make switching business energy suppliers easier, many opt to switch both at the same time and lock-in a deal for the same amount of time. This means they can switch business energy supplier all in one go.
How long does it take to switch business energy suppliers?
After you compare business energy prices, select your new suppliers and agree to the terms of the contract it takes around 4-6 weeks. The process can be delayed if you have not supplied all the information needed to your new supplier.
If you switch with Power Compare, our experts will make sure that the process is as quick and as smooth as possible.