Compare Business Electricity Rates

What Are The Current Business Electricity Rates? March 2025

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 In March 2025

Business Electricity Prices By Supplier In March 2025

Business Electricity Prices By Region In March 2025

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.

Cheapest Business Electricity Tariffs

The cheapest business electricity tariff will come down to a variety of factors, such as annual usage, location and current wholesale prices. We looked at our panel of business electricity suppliers for the cheapest tariff for a business based in London, using 25,000 kWh of electricity a year and signing to a one-, two- and three-year fixed contract.

Business Electricity Quotes For Small Businesses

Small businesses (SMEs) 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. 

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. 

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:

1. Input a few of your business details
2. Compare a range of live tariffs
3. 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:

1. 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.
2. 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.
3. 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.

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.

Are Business Electricity Rates Rising in 2025?

Business electricity unit rates have been rising slowly over the last five months. October 2024 was the lowest average business electricity rate since prices peaked in September 2022, and since then, the unit rate has increased by 1.52p per kWh (or 6%). February 2025 was also the first month since 2023 when the year-on-year average UK unit rate was higher, and we see this continues in March 2025. This is down to many economic and geopolitical factors, as well as being seasonal demand-driven.

While we can’t predict the future or say whether commercial electricity prices will begin climbing down as the weather warms up, businesses that are interested in protecting themselves from volatile business electricity rates, the best thing they can do is sign to a fixed business electricity rate by comparing prices.

Compare Business Electricity Prices in 3 Steps