Compare 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.

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. 

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.

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.

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.

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).

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.

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. 

Ofgem, the energy regulator has set out guaranteed standards that must be met. This means that if your business has had a power cut lasting more than 12 hours, you're entitled to a £150 payment and an extra £35 for each additional 12 hours from UK Power Networks. 

In most cases, renewable electricity tariffs are comparable in price to standard non-green tariffs. Some electricity suppliers offer 100% renewables across all tariffs.

Here's our full guide to green business energy.