Compare Business Electricity Rates

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.

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.

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.

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.

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.

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.

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.

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.

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.