Green Business Energy Guides - Are Green Tariffs Worth It?
Green energy can be more expensive than non-renewable sources but that isn’t always the case. The price difference is often marginal.
June 2022
Business Energy Comparison
Within just 30 seconds you can compare business energy prices and find the cheapest quote from our panel of trusted suppliers.
We compare business energy prices from top UK energy suppliers as well as leading independents. See how much you can save today!
Business Energy Comparison In Just 30 Seconds!
We pride ourselves on saving UK companies money on their business energy bills. Through years of experience, we've helped our customers save over £100m.
Comparing business energy prices couldn't be easier. It takes just 30 seconds to find a range of great business energy quotes from our panel of trusted suppliers.
Our panel of business energy suppliers meet our highest standards, so you can switch with confidence. You can choose your preffered tariff from your range of quotes & start the switching process today.
On average, customers using our business energy price comparison engine save £1,401* on average annually.
Why Choose Us?
There are many reasons to use our comparison service over any other, not least the unique ability to complete your business energy switch fully online meaning it can be done at your leisure and without the need for a 40 minute phone call.
However, should you wish to speak with a business energy expert to complete your switch you can do that instead, the option is yours!
A fixed-rate tariff is one of the most popular business energy deals. On this tariff, you will agree on a fixed unit price for both gas and electricity with your supplier. You can lock an agreed price from 1 year up to 5 years. Wholesale market prices may cause business energy suppliers to only offer shorter-term deals.
Variable rate tariffs can be a good option for businesses that want some flexibility. The price you pay per unit rate will change depending on current wholesale prices.
For those businesses who want to reduce their carbon footprint, a green tariff is an attractive tariff. Over recent years, there’s been an increase of renewable energy companies entering the market. Many commercial energy suppliers already offer green tariffs as standard, so it's worth shopping around for an energy contract that suits your business.
If you don't agree a new business energy deal before your contract end date, you may find yourself on an out of contract tariff. These are usually the most expensive business energy rates suppliers offer. It's probably best you avoid this one!
What Are The Latest UK Business Energy Prices In 2023?
A changing market makes it difficult to understand what you should be paying for your energy supply. These example rates are for business electricity tariffs on a 2-year fixed rate from a snapshot of prices on one particular day in March 2023. Prices vary by UK region.
Compare providers today for an accurate price.
Latest Business Energy Unit Price By Size
| Annual Usage Business Size | Electricity Unit Price (p/kWh) | Gas Unit Price (p/kWh) |
|---|---|---|
| Micro Business (Up to 5,000 kWh) | 29.2p | 12.3p |
| Small Business (Up to 15,000 kWh) | 29.2p | 10.2p |
| Medium Business (Up to 25,000 kWh) | 29.9p | 9.9p |
| Large Business (Up to 50,000 kWh) | 29.3p | 9.8p |
| Extra Large Business (Up to 100,000 kWh) | 28.8p | 8.6p |
Updated September 2023.
Latest Annual Business Energy Cost By Size
| Annual Usage Business Size | Electricity Annual Cost | Gas Annual Cost |
|---|---|---|
| Micro Business (Up to 5,000 kWh) | £1,682.11 | £780.59 |
| Small Business (Up to 15,000 kWh) | £4,639.15 | £1,722.25 |
| Medium Business (Up to 25,000 kWh) | £7,730.71 | £2,693.76 |
| Large Business (Up to 50,000 kWh) | £15,067.60 | £5,171.41 |
| Extra Large Business (Up to 100,000 kWh) | £29,280.03 | £9,102.42 |
Updated September 2023.
Large Business Energy Quotes
If you're a large consumption organisation struggling to find a price online, our expert team can build a custom energy quote for your exact needs.
Our experts will take the time to understand your operations, challenges and requirements to help us determine the right services for our large commercial customers.
Large business energy customers will often need specialist meters known as maximum demand meters and half hourly meters.
If you're considered a large business customer by your supplier, you can head to our meter installations page.
Small Business Energy Quotes
Small business owners can switch their energy tariffs completely online, or for those that would like some extra guidance, we’re just a phone call away.
When it comes to business energy, suppliers may see you slightly differently and your business could fall into two different classifications. The smallest category of business is referred to as a micro business. These are companies with a maximum of 9 employees - business energy contracts for micro businesses offer much more flexibility. Any other larger businesses would be classed as small and medium-sized enterprises (SMEs).
When you compare business energy suppliers with us, we source the latest prices from a panel of trusted suppliers with tariffs specifically catered to the needs of UK small businesses.
Am I Eligible For Any Discounts?
Charities and nonprofits are eligible for a 5% discount on their energy bills, reduced from the full rate of 20%. You may get a discount for paying via direct debit.
What Is The Energy Price Cap?
The energy price cap is set by the regulator Ofgem. This does not apply to business customers, and it limits the maximum amount charged on domestic unit rates.
Making It Easy To Be Green
We have many green energy tariffs available for businesses that would like to start their journey towards reducing their carbon footprint.
The majority of renewable energy sources produce very little or no global warming emissions. Coming from a variety of sources, energy suppliers typically offer 100% renewable energy tariffs from solar, wind, geothermal and hydro-energy. As we only have a limited amount of traditional energy sources, it is important for everyone to start thinking green.
Our panel of suppliers have a variety of options available at competitive prices, with some even offering 100% renewable as standard. If you would like a deeper dive into green business energy, you will find this guide useful.
What Is The Climate Change Levy (CCL)?
The Climate Change Levy is an environmental tax on all businesses that use energy. This levy encourages better energy efficiency. Any UK business can join the Climate Change Agreement Scheme to pay reduced rates.
Climate Change Levy (CCL) Rates:
| Taxable commodity | Electricity (£ per kilowatt hour (kWh) | Gas (£ per kWh) |
|---|---|---|
| Rate from 1 April 2022 | 0.00775 | 0.00568 |
| Rate from 1 April 2023 | 0.00775 | 0.00672 |
| Rate from 1 April 2024 | 0.00775 | 0.00775 |
Source: GOV.UK
Business Energy FAQs
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What Do I Need To Know Before I Switch?
Decided it's time to switch? Here are some tips:
Having the right information to hand when you come to switch business energy providers is essential to receiving an accurate quote. There are some other things you should be considering too. For a seamless switching process, even if you're just reviewing the latest energy rates, consider these steps:
1. Terminate your contract
Business energy price comparison online has never been easier. Once you’ve found the right tariff, you’ll need to terminate your contract. Remember that gas and electricity must be switched separately - a top tip is to deal with your commercial energy comparison all at once. Locking your contracts in for the same amount of time will save you time in the future.
If you do not terminate your contract, many commercial energy providers will place you on expensive out-of-contract rates. Providers are not always the best at sending renewal notices through (unless you're classed as a micro-business).
2. Locate meter registration numbers
When you compare business energy quotes, having your Meter Point Reference Number and Meter Point Administration Number (MPRN & MPAN) to hand will ensure you're getting accurate rates based on actual usage.
These numbers should be displayed on a recent energy bill. If you don't have these to hand, our intelligent comparison engine can often find this out for you.
3. Your company information
You'll need some basic company information so our business energy experts can find you a great deal. Switching can be completed completely online at a time that suits you, or our team are just a phone call away should you need any assistance.
We'll typically need the following information:
- Business address and postcode
- When you would like your new energy deal to start
- Energy meter numbers
- How much energy do you consume annually
Most of the information you need will be on your recent bill.
4. Switch with confidence
There's no obligation to switch business energy providers with us. We want you to find the right deal for you. If you decide to switch with us, you can sit back and relax whilst we handle the process for you.
5. Rates change every day
The energy market can be highly volatile and multiple factors can impact the price you pay for your energy usage. Here are some reasons you could be paying more or less for your commercial energy contract:
- The size of your business - larger consumption businesses pay more annually for their energy usage but will get discounted unit rates. Businesses with lower consumption will pay higher unit rates.
- Your energy tariff - there's a wide range of tariffs that have different price models - for example, Economy 7/ 10 (cheaper rates at night), no standing charge tariffs and green energy tariffs will all pay different rates. Each one has its benefits depending on how your company uses gas and electricity.
- Energy suppliers - whilst generally guided by wholesale market prices, different suppliers will have different pricing models making some more expensive than others.
- Wholesale market prices - the wholesale market is always changing, and suppliers will use this as a guideline for their pricing models. Significant world events, weather and other factors can impact the wholesale market, and the prices will be adjusted accordingly.
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Will I Lose Supply If I Switch?
Switching business gas or electricity suppliers is a simple process, and you will not lose access to gas and electricity. When you switch energy suppliers, you're only changing who manages your supply. All the cables and pipes will remain the same.
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Can I Switch Business Energy With Multiple Buildings?
You can combine your business energy onto one bill using a multi-site meter. This means you can control the gas and electricity bills on one energy contract across multiple buildings.
Multi-site meters are great for helping business owners save time and money without the hassle of switching multiple energy contracts.
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Is Business Energy Different To Domestic?
There are a few differences between a domestic and business energy contract. First of all, business energy contracts are much stricter, and the exit fees are much higher.
A business energy supplier will purchase the exact amount of gas and electricity they're expected to need for each business energy contract. As the energy consumption is much higher with businesses, the energy supplier would lose money if businesses cancelled early without paying.
It is much easier to switch domestic energy as the consumption is much lower, and contracts tend to be rolling after a fixed-rate deal has ended.
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Do Business Energy Tariffs Offer A Dual Fuel Option?
Dual fuel tariffs are for domestic customers only. Businesses must switch their gas and electricity separately.
Businesses can have the same supplier for both fuels, but they must be switched separately. You may be able to negotiate a better energy deal with the supplier if you decide to have a contract for both gas & electricity.
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What Is The Energy Bill Discount Scheme (EBDS)?
The Energy Bill Discount Scheme (EBDS) replaces the relief scheme that was in place for six months. The new EBDS is in place for 12 months from 1 April 2023 to 31 March 2024.
The scheme is available for all businesses regardless of sector, including charities, and public sector organisations. Eligibility criteria applies to fixed-price contracts that have been agreed on or after 1 December 2021, on all new fixed-price contracts and out-of-contract rates.
The discount will be automatically applied to your business energy bill.
The maximum discount available for most businesses are:
- Electricity: £19.61 per megawatt-hour (MWh) with a price threshold of £302 per MWh
- Gas: £6.97 per MWh with a price threshold of £107 per MWh
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