Compare Business Electricity Rates
It takes just 30 seconds to view the latest business electricity rates per kWh. Unlike many other business electricity retailers, you can switch entirely online.
It's 3 easy steps.
Input a few of your business details
Compare a range of live tariffs
Switch online today!
Compare Business Electricity Rates With UK Suppliers
What Is Business Electricity Price Comparison?
The UK has a deregulated business energy market, and businesses are allowed to sign contracts with suppliers other than their default electricity supplier in order to benefit from better rates. Towards the end of your contract, known as the renewal window, businesses can agree to a new contract with a new commercial electricity supplier and secure savings on their electricity bill.
If you’re a new business in new premises, and have never taken out a commercial electricity contract you’ll be on a deemed tariff with a default supplier, and as these rates can be quite expensive, comparing prices for commercial electricity can be a lifesaver in keeping business costs down.
How Do I Compare Business Electricity Rates?
Comparing business electricity prices is easy with Power Compare, you can see prices in just 30 seconds. Here's what you need to do:
- Input a few of your business details
- Compare a range of live tariffs
- Switch online today!
What Information Do I Need To Compare Business Electricity Prices?
To get started and see a price online in 30 seconds we need your business address and permission to look up your usage. Whilst not essential, having a few other things to hand can help you secure more accurate business electricity rates.
Having a recent business electricity bill, knowing your current meter type and who your current supplier is are useful things to know when getting a price.
What Should I Consider When Comparing Business Electricity Prices?
There are a few things to keep in mind when looking for a new business electricity deal. You should ask yourself the following:
- Will I Be Saving Money?
Performing energy audits before you start your search can show you peak consumption hours, any new requirements, and an overall view of how much money you are currently spending and if there is any wastage. - Am I Choosing The Right Tariff For My Business?
Another benefit of performing a business energy audit is that you can use this information to determine what your requirements are and the hours you need gas or electricity the most. - Am I Choosing the Right Supplier?
Depending on your requirements, there could be a supplier that serves your needs better than another. Each supplier is different and can offer you energy and services based on what you need.
What Are The Current Business Electricity Rates?
Business electricity prices vary by business size, by supplier and by location. With this in mind, we’ve put together some tables to show how the price of business electricity changes based on your business's characteristics.
Business Electricity Prices By Business Size
|
Business Size |
Annual Usage |
Unit Price/kWh |
Standing Charge |
|
|---|---|---|---|---|
|
Micro Business |
Up to 5,000 kWh |
24.9p |
63p |
|
|
Small Business |
5,000-15,000 |
24.8p |
76.2p |
|
|
Medium Business |
15,000-25,000 |
24.7p |
78.6p |
|
|
Large Business |
25,000-50,000 |
25.2p |
86.9p |
|
|
Very Large Business |
50,000 + |
24.8p |
104.1p |
Data correct as of November 2024. The table to the right shows current business electricity prices for 2-year contracts using the median amount in each band. Prices vary by UK region and these are the national average.
Business Electricity Prices By Supplier
|
Suppliers |
Electricity Unit Rates (p) |
Standing Charge (p) |
|---|---|---|
|
25.1p |
62.3p |
|
|
25.8p |
42p |
|
|
23.6p |
125p |
|
|
26p |
62p |
|
|
24.6p |
88.3p |
Business electricity rates displayed in the table are calculated on a 2-year fixed averaged across all UK regions. Assumed annual consumption of 25,000 kWh per fuel. Prices updated 1 November 2024.
Business Electricity Prices By Region
|
Region |
Unit Rate (p) |
Average Standing Charge (p) |
Average Annual Cost (£) |
|---|---|---|---|
|
London |
24p |
51.7p |
£6,200 |
|
North East England |
24.5p |
89.3p |
£6,454 |
|
North West England |
25.6p |
63.2p |
£6,624 |
|
East Midlands |
24.4p |
74.8p |
£6,370 |
|
West Midlands |
24.5p |
83.1p |
£6,417 |
|
Yorkshire |
24.6p |
84.5p |
£6,447 |
|
East England |
24.3p |
63.8p |
£6,304 |
|
South East England |
24.5p |
71.9p |
£6,376 |
|
South West England |
25.2p |
88p |
£6,623 |
|
Southern England |
24.4p |
81.4p |
£6,388 |
|
North Scotland |
26.5p |
77.7p |
£6,901 |
|
Central and Southern Scotland |
25.3p |
89.8p |
£6,649 |
|
North Wales, Merseyside and Cheshire |
27.3p |
95p |
£7,167 |
|
South Wales |
25p |
86.1p |
£6,573 |
Based on average prices on a 2-year fixed rate tariff with 25,000 kWh annual usage. Prices are for contracts starting on November 1, 2024.
Business Electricity Tariffs
There are several types of business electricity tariff types that businesses can choose from. Each has its merits, as well as aspects to consider. Our Energy Tariff guide goes into more detail, however we'll provide a summary below:
Fixed-Rate Tariff
The most popular business electricity tariff for those who want to lock in their rates to avoid future increases. You can fix your rates from 1 year up to 5 years. This means that if wholesale prices increase or decrease you will have the security of paying the same unit rate and standing charge for the agreed amount of time.
Variable-Rate Tariff
This can change each month based on the wholesale electricity prices. This means businesses more open to risk can benefit from price drops but may pay more during times of increasing rates.
No Standing Charge Tariff
Businesses that operate part-time or seasonally can benefit from no standing charge tariffs. However, they are not for every business as they often come with higher unit prices than other tariff types.
Deemed Tariff
Businesses that have not signed a contract with an electricity supplier when moving in to their premises will be placed on a deemed tariff by default. You electricity supplier will be the default supplier for your region, and the rates may not be the most beneficial to your business. Typically, these are the most expensive on the market.
Rollover Tariff
Businesses that have failed to agree a new business electricity contract can be placed on a rollover contract for a fixed period - usually a year. These rates are binding, and may not necessarily be the best rates for your business, so it is important to compare prices before your contract ends.
Green Tariff
Green tariffs are a tariff type available to large and small businesses that want to source their power from sustainable and renewable sources, and as a result many suppliers offer green tariffs.
Smart Export Guarantee (SEG) Tariff
Smart Export Guarantee (SEG) tariffs are for customers that generate their own power using renewable sources such as solar and wind. It is a government-backed tariff that pays customers for every kWh that they produce for the grid. These used to be known as Feed-In Tariffs.
Flexible Tariff
Organisation that use a large amount of electricity have the option to buy their electricity in advance using a flexible tariff. This has the benefit of access to wholesale electricity prices and saves on some retailer costs.
Pass-Through Tariff
A pass through tariff is more complex than other tariff types. A pass-through tariff separates your bill into two segments: the fixed energy element, which stays the same for the duration of your contract, and the non-fixed, non-energy element which is made up of the additional costs the supplier would ordinarily pass on to the customer; these vary through the year. These tariffs are most suited to electricity buyers that want to be in total control of their bill.
Business Electricity Prices For Large Consumption
Large commercial electricity users are legally required to have a half-hourly electricity meter. Specifically any business with a maximum demand of 100 kilowatts (kW) or more in any 30-minute period. As a large consumption user, this is to ensure that billing remains accurate as estimated billing can cause lots of financial issues for a business with high usage.
You can still switch suppliers with a half-hourly meter.
Business Electricity Prices For SMEs
Small businesses need to stay in control of their electricity bills. Even with Ofgem extending protections to those that are considered micro businesses, it can be challenging to find the time to secure great deals on business electricity prices.
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 (£1.7 million as of August 2022), 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 benefit of being a micro business electricity user is that you can give termination notice anytime and secure better business electricity prices. Suppliers also have to send your renewal notices.
How Much Do Business Electricity Prices Change Over Time?
Business electricity rates are tied to wholesale prices, and are not subject to Ofgem's energy price cap, so prices can vary from day-to-day if you are not on a fixed tariff. Prices can also be subject to global events which can either raise prices dramatically, or reduce them. The chart below shows how much the average UK unit rate for a business using 25,000 kWh of electricity has changed over the last year.
Compare Business Electricity Prices in 3 Steps
-
Simply provide us with contact details and we'll look up your electricity meter.
-
Choose a great deal from our live panel of electricity suppliers. We work with a panel of trusted UK suppliers with exclusive rates.
-
Once you have chosen your new business electricity tariff, we will have you switched over to your new supplier within 5 working days.
Business Electricity FAQs
-
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.
-
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.
-
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.
-
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.
-
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:
- The business employs fewer than 10 employees (or their full-time equivalent) and has an annual turnover or balance sheet no greater than €2 million, or
- The company uses no more than 100,000 kWh of electricity per year; or
- The business 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.
-
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.
-
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 contractVariable 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 contractEach 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.
-
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.
-
How To Identify Your Business Electricity Meter
When it comes to knowing what kind of business electricity meter is installed on your 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.