Compare business electricity rates & see how much you can save against your current supplier
How To Compare Business Electricity Rates & Switch
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Should You Switch Business Electricity?
Business electricity rates are much more competitive. In fact, prices have dropped by a massive 62% since October 2022.
With a market that has now stabilised, predictions from Cornwall Insight suggest that wholesale prices will remain around the same rate as they are now with some slight fluctuations for the foreseeable future. But of course, these are predictions and things could change overnight as many things impact the prices of electricity.
With that in mind, many businesses are choosing to lock in their business electricity rates for certainty and stability in the future. When you compare business electricity prices with us, you will see live market rates from a trusted panel of UK suppliers that change daily. Secure your new tariff today.
Why Choose Us?
There are many reasons to use our comparison service over any other, not least the unique ability to complete your business electricity 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 electricity expert to complete your switch you can do that instead, the option is entirely yours!
Further information on business electricity rates:
What business electricity tariffs are available?
Business electricity rates for large or small businesses
Latest UK business electricity prices 2023
How to compare business electricity rates that are competitive
Who are the big six suppliers?
Cheapest business electricity by supplier
A fixed-rate tariff is one of the most popular business electricity tariff options. With a fixed rate tariff, you agree to pay a fixed unit price and a standing charge. This price can be locked in for a number of years, in some cases up to 5 years depending on your provider. A fixed-rate electricity tariff is great for businesses who want to maintain control of their bills and budgeting, as they will be protected from electricity price increases.
Variable rate tariff
Variable rate tariffs can be a good option for businesses that want to benefit from any reductions in the price of business electricity.
When a new business electricity contract has not been agreed, you may be placed on a rollover contract with your current energy supplier. This will be for a fixed period (usually one year) and is legally binding. Sometimes unit rates are more expensive and hold you back from getting cheaper rates elsewhere.
Large consumption organisations may prefer to purchase all their electricity supply in advance. Doing this will give businesses access to wholesale market rates, bypassing some of the retailer costs.
Green electricity tariff
More and more businesses are moving towards sustainable sources, so green electricity tariffs are becoming a popular choice for environmentally conscious companies. With an increasing number of business electricity suppliers offering green tariffs, there is now a much greater choice for small and large businesses seeking renewable electricity.
To determine which business electricity tariff is the best value, you will need to consider how your business uses it, how much it will cost, how large your business is and whether you have multiple locations.
Pass through tariff
A little more complicated than other tariffs, a pass-through tariff separates your bill between fixed wholesale rates and other rates associated with National Grid levies and other network costs can vary several times per year. These tariffs are often best suited to active electricity buyers that regularly control the tariff.
Deemed rate tariff
Businesses that have never taken out a business electricity contract and have not agreed to one will be placed on a deemed rate tariff. These are the most expensive rates on the market.
Each tariff type offers its own benefits, from fixed costs over a certain period to renewably sourced. For those reasons, it is important to thoroughly compare business electricity tariffs, which will help you identify the correct tariffs to maximise savings.
We offer bespoke quotes for large single-site companies, or servicing multi-site businesses with one-simple bill. From our panel of trusted suppliers, we will find a corporate electricity solution tailored for your organisation.
Our team of specialists will save your business time, effort and resources by building a bespoke commercial electricity quote that meets your exact requirements.
Business Electricity Rates for SME Businesses
We find quotes on business electricity rates for SME businesses all over the UK. Taking the pressure off business owners, and making it simple and efficient to compare business electricity prices is what we do.
Our self-service platform allows you to compare business electricity rates online, anytime, when it suits you. Start today and find the best deal for your business.
What businesses pay for their electricity can be influenced by all sorts of factors, such as location, usage, and how many people they employ.
But we’ve pulled together tariffs from across the UK to outline the national average based on a 2-year fixed rate.
| Business Size
|Unit Price/kWh||Daily Standing Charge||Full Year Price (£)|
(up to 5,000kWh)
Data correct as of December 2023. Annual cost based on a 2-year contract and the maximum kWh usage within each business size banding. These prices reflect a live market and are subject to fluctuation.
Tariffs are regularly updated and the best way to find the latest deals is to compare commercial electricity prices.
Business Electricity Prices per kWh
As the unit of measurement used to monitor electricity usage, kilowatt hour (kWh) is essential to how you’re charged by suppliers. Your unit cost depends on several factors unique to your business.
The cheapest business electricity supplier for one business may not be the cheapest supplier for another. Prices change daily, so businesses looking for a quote should compare prices using our engine.
Your Unit Rate and Standing Charge Explained
Your unit rate is simply the cost of each kilowatt hour of electricity your business uses. Larger business with high consumption rates will generally pay slightly cheaper unit rates than smaller businesses.
Your standing charge covers the cost of maintaining the energy supply. This includes using and maintaining the energy supply network and transporting electricity to your premises.
Is The Cost Of Business Electricity Getting Cheaper?
The price of business electricity may have been a hot topic and an area of concern for companies throughout much of 2022. However, electricity unit rates have only been heading in one direction for quite some time – and that’s down!
After pulling together the three cheapest business electricity tariffs, we found that prices have shrunk since December 2022, from 60.53p per kWh that month to 28.93p in December 2023. Predictions suggest that prices will remain around this level for the foreseeable future but things could change overnight as we have seen in the past.
It is easy to compare business electricity rates but the market is always changing and not having the right information to hand can make your business electricity quote more expensive.
Some great things to know/ have to hand are:
- A recent business electricity bill
- Your electricity usage for at least 1-year
- Know your meter type (smart, traditional, half-hourly meter)
- Business Information
- Your current business electricity supplier
Business Electricity Renewals
If you miss out on renegotiating your business electricity deal at the end of your contract, you could be left overpaying for the electricity you use.
Simply allowing your contract to rollover is easy to do as your electricity deal is rarely a businesses main focus. However, rolling onto a deemed electricity tariff can be more expensive than negotiated rates.
It’s important for businesses to act quickly when it comes to renewing your business electricity contract. Your supplier will likely send a renewal letter a few months before your commercial electricity contract is set to expire. This will be the start of your renewal window and is the ideal time to compare electricity prices.
At Love Energy Savings, we aim to make the process of comparing business electricity prices as simple as possible. You can view the latest deals in as little as 30 seconds. Once you’ve found a tariff that suits your needs, you can complete your switch online or over the phone with a member of our expert team.
Could You Go Green When Comparing Electricity Tariffs?
If you’re one of the many businesses aiming to think green you can compare the latest green electricity tariffs with Love Energy Savings.
Switching to a green energy tariff is a great step to take when reducing your carbon footprint. Many energy suppliers now offer 100% renewable electricity tariffs from sources including solar, wind, and hydro.
As more suppliers have introduced renewable electricity tariffs, prices have become much more competitive compared to standard tariffs. A number suppliers will even offer 100% renewable electricity tariffs as standard.
To find out more about reducing your carbon footprint, take a look at our guide to green electricity tariffs.
It is a good idea to compare business electricity rates from the Big Six. However, they can sometimes offer expensive rates so it would be wise to compare business electricity prices from a range of trusted suppliers.
The Big Six have been traditionally the largest suppliers in the UK. The current Big Six are:
How To Find The Cheapest Business Electricity Rates
The supplier offering the cheapest business electricity rates can change daily. Whilst costs may be largely driven by wholesale prices, suppliers set their own prices based on this and multiple other factors.
The best way to find the current cheapest rates for your business electricity is to use our comparison engine which will look for the cheapest deal from our trusted panel of suppliers based on your business's requirements. These prices are only locked in for a certain period of time as prices and tariffs change regularly.
The price of business electricity for your organisation varies on multiple factors. For example, large business electricity users may be offered cheaper unit rates than SME businesses.
Below we have provided an example of a business with 25,000 kWh of annual electricity usage for a 2-year fixed-rate deal.
Whilst this provides some guidance on average costs, business electricity rates change daily and it is advised you use our comparison engine to explore today's live rates to find an accurate quote.
Click the supplier's name to find out more about them.
Table updated December 2023.
Business Electricity FAQs
What impacts business electricity rates?
Many factors impact the commercial electricity tariff you can secure for your business. The main variables that affect the price you pay for your electricity supply are:
- Wholesale prices
- Location and size of the business premises
- Credit ratings
- The sector the business operates in
- Annual consumption
Many businesses associate these obstacles as a reason not to switch business electricity suppliers. Unfortunately, this means many companies are on the wrong type of tariff.
We’re here to help you navigate the electricity market and secure the best deal available from our panel of trusted suppliers. No matter how big or small your business is, we’ll help you find a suitable business electricity deal within seconds.
Who Can Get The Energy Bill Discount Scheme (EBDS)?
Every UK business has access to the Energy Bill Discount Scheme (EBDS) replaces the relief scheme. This scheme supports businesses for 12 months from April 2023 through to March 2024.
Regardless of industry, businesses can get discounts on their electricity for fixed-rate contracts that have been agreed on or after 1 December 2021. This also applies to out-of-contract rates.
The maximum business electricity discount is £19.61 per megawatt-hour (MWh) with a price threshold of £302 per MWh. This discount will be applied automatically and will only become active in periods of higher wholesale prices.
Can I cancel my business electricity contract early?
It is possible to cancel your business electricity contract but it isn't advisable. All business electricity contracts will have to incur an early exit fee. This exit fee is usually the remaining cost of the contract.
You can secure a new electricity deal up to 12 months before the end of your current deal. This means if you're offered a favourable rate when you compare business electricity prices, it may be worth locking those rates in.
Are business electricity prices cheaper at night?
Not all tariffs offer cheaper rates at night. Most business electricity prices have the same unit rate 24/7 for the duration of your contract.
You can request an Economy 7 or an Economy 10 tariff as these business electricity tariffs do offer cheaper electricity supply rates at night. These are often the best tariffs for restaurants, nightclubs or bars if they are open late.
Is it better to get a cheaper standing charge?
This is a question we're asked regularly. The answer depends on how your business uses its electricity supply. What may seem like a great deal to have no standing charge can actually end up adding to your business's electricity bills.
A typical business electricity supplier may offer an attractive-looking tariff with no standing charges but will likely offset any potential losses with a higher unit rate.
A daily standing charge will be applied 365 days of the year. For example, a charge of 45p per day will cost £164.25. Whereas the unit rate will be applied to each kWh of electricity used, this makes up the largest cost of your bill.
For a business that typically uses a medium to a high amount of electricity each month, it will likely cost more if you opt for a no-standing charge tariff.
On the flip side, a low-usage business can save money on its electricity supply with this type of tariff.
What vat do I pay on my business electricity?
There are many costs to consider when it comes to business electricity. Most businesses will pay a flat rate of 20% VAT on their supply. This is automatically added to your bill by your electricity supplier.
Some business electricity customers are eligible for a 5% discount. You are eligible for a business VAT discount if you match one of the following:
- A charity or a non-profit business
- Very low business energy usage (less than 1,000 kWh of electricity per month)
- At least 60% of the business electricity supply is used for domestic purposes (this must be proved).
What is a half-hourly meter?
Half hourly meters are for business premises recording a large amount of electricity consumption.
By law, your business must have a half-hourly meter if you have a maximum demand of 100kWh or greater in any 30-minute period during the day. These meters are great for managing business electricity and gas ensuring that energy suppliers are not overcharging you based on estimated billing.
What is a micro business & am I classed as one?
It may be the first time you're hearing the term 'micro business'. In fact, most SMEs fall into this category in the eyes of business energy suppliers without realising. There's a few benefits to being classed as a micro business; but as with anything it does have its drawbacks.
You'll be classed as a micro business by energy suppliers if you fit into one of the following categories:
- you employ less than 10 employees and have an annual turnover no greater than €2 million; or
- use less than 100,000 kWh of electricity per year; or
- use less than 293,000 kWh of gas per year.
What if my business has had a power cut?
Are renewable electricity tariffs expensive?
In most cases, renewable electricity tariffs are comparable in price to standard non-green tariffs. Some electricity suppliers offer 100% renewables across all tariffs.
Still Not Sure About Switching Your Business Electricity Supplier?
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Want To Stay With Your Current Supplier?
It’s hassle-free, easier and quicker to recontract with your current business electricity supplier. This is a good choice for your company if you want to avoid any lump sum final bills and additional paperwork.