Compare Business Electricity Prices
Whether you’re with one of the big 6 energy suppliers, or one of the more than 50 other business electricity providers in the UK, you’re probably overpaying.
Sourcing business electricity is a never-ending battle of comparing quotes, research, and endless telemarketing. You’ll have to look at contract terms, rates, energy sources, customer service, and dozens of other details. It’s not easy to do alone. You shouldn’t have to do it alone.
That’s why Energy Seek offers a free business energy comparison service. Just tell us what you’re looking for and we’ll help you sort through over 50 providers to choose the best quotes for your business. Our clients can save up to 40% on their business electric, over either their current contract or picking the first option available.
We’ll help you choose a reliable, affordable business electricity provider – meeting the green and energy goals for your business – in just a few minutes. No long phone calls, no waiting for call-backs, just a quick, personalized price and service comparison.
We offer a free personalized quote comparison service to help you save as much as possible on your business electric. And, when you’re ready to make the switch, we’ll assign you a dedicated account manager to ensure the process goes as smoothly as possible.
Keep reading to learn more about average business electricity costs and what you can expect to pay.
What You'll Find Here
Average Business Electricity Prices
|Commercial Electric Prices - Top 9 Energy Suppliers 2020*|
|Supplier||Price per kWh (Pence)||Standing Charge (Pence)||Yearly Cost (Average)|
*Prices accurate for a small business using 17229 kWh per year in April 2020. Compare quotes with us to discover all business electricity prices available to you.
Average Commercial Electricity Prices Including Climate Change Levy
(Source: GOV.UK – Statistical Data Sets)
What Affects Business Electricity Rates?
Common factors influencing non-domestic energy tariffs
Larger Businesses Pay Lower Prices
The larger your electricity bill, the lower you’ll pay per kWh. You can lower your prices as a small business by committing to a contract or adding on more services. However, most UK energy suppliers do not offer dual fuel contracts for business.
In fact, in Q3 2019, the average microbusiness paid 16.09 p/kWh, small businesses paid 12.44 p/kWh, and enterprise businesses paid 10.1 p/kWh. This works out to an average of 11.66 p/kWh for the entire nation.
Urban Areas offer Cheaper Electricity
Electricity suppliers in urban areas offer consistently lower rates than in rural ones. Businesses in metropolitan regions will pay less for energy.
For example, British Gas charges 22.4 p/kWh and a 201.33 p/day standing rate for a high voltage deemed contract in London. The same contract in South Wales is quoted at 22.49 p/kWh with a 220.01 p/day standing rate.
Fixed Rate Contracts Start Out Pricey
Fixed contracts offer security with long-term fixed pricing. These contracts offer stable pricing, with guaranteed rates for 2-3 years. This might pay off if rates fluctuate up more than predicted. However, many commercial electricity suppliers calculate predicted increases into the rate.
Chances are, you’ll pay the same amount for a fixed contract. Some businesses find it’s more effective to choose a yearly term and to switch frequently to keep rates as low as possible.
Payment Method and Credit Rating can Reduce Electricity Costs
Many providers offer discounts for buyers with a good credit rating. Some, like British Gas, even offer discounts of up to 7% for paying with direct debit. Those savings could be considerable over the duration of your contract.
Energy Seek will take these offerings into consideration when building a personalized quote for your business. That way, you know you’re getting the best possible rate.
How Does Energy Seek Work?
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Business Electricity Tariffs
Understanding business electricity terms
Fixed rate tariffs lock rates in for periods of 2-3 years. These contracts offer predictable billing over a longer term. This is ideal for budgeting and calculating total costs over time. Some suppliers offer fixed rate contracts for as long as 5 years.
Fixed rate contracts can offer great value. However, you will likely pay more for your contract upfront, as your energy supplier has calculated in expected increases in rates. Fixed rate contracts are ideal for micro and small businesses that need financial stability. They may not save you any money over another contract type.
Variable Rate Contracts or Standard Variable Rate (SVR) are the standard contract used for most businesses. Here, your energy bill changes as rates rise and fall. Variable rate tariffs offer several advantages. Most do not have fixed terms so you can easily switch to another provider without a cancellation fee.
In some cases, variable rate tariffs can save you money. However, you should expect to see spikes in your electric bill during winter and summer months, when electric usage goes up.
Deemed rate or “out of contract” rates are used when businesses move into new premises and do not yet have a contract. Deemed rates are extremely expensive. Some suppliers charge as much as 15 p/kWh more for deemed rates than for fixed contracts.
Consider planning a new contract before a move to avoid this costly fee. If your business is small or not a heavy electricity user, this may not be a huge concern. Because deemed rates are not a contract, you can switch to another provider at any time, with no fee.
Rolling contracts are available on a yearly or monthly-basis, with no long-term commitment. These contracts are often available as part of “flex” plans offered by top 6 energy providers. Most businesses that fail to renew their energy plan will be moved to a rolling contract.
Energy tariffs under a rolling contract can be considerably higher than those under a fixed rate or other negotiated contract. It’s always a good idea to avoid an automatic contract renewal by cancelling or renegotiating your contract before the end date.
Businesses looking to reduce their C02 and environmental footprint can choose a Green Energy Tariff. Here, your supplier matches or provides a percentage of renewable energy. Volumes range from about 20% to 100% depending on the supplier.
The supplier does not have to offer any portion of your energy from green sources. Instead, they can purchase certificates equal to the green energy it was contracted to supply. Here, it’s important to shop around for rates, percentage of green energy, and fuel sources.
Cheaper Commercial Electricity
Business Energy Services
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Business Electricity FAQ
Frequent Questions About Business Electricity
In most cases, yes! Some of our clients save up to 40% on energy costs. On average, you can expect to save 20% on your electric bill.
However, this is heavily dependent on your current contract. For example, if your current contract is still running, it might not be a good time to switch. Cancellation fees can be hefty and will eat into your savings. You also want to consider any outstanding arrears, such as an energy meter, which you might have to pay off when switching providers.
If your energy contract is coming to an end, now is a good time to switch or to renegotiate your current contract. Chances are, you will save money.
The most pressing reason to switch energy providers is to reduce your tariff. Most suppliers offer hefty sign-up discounts, meaning your first year is the cheapest. Switching once per year can save you considerably.
Business owners also need reliable service, reliable electric, and consistent rates. You might want to switch for a more reliable supplier, better customer service, or better services.
In some cases, you might also switch to find a green energy provider.
What information do I need to compare business electric quotes? – We need a few details to request quotes on your behalf. These include:
- Energy usage per year in kWh
- Current supplier
- Current tariff
- Contract end date
We’ll use this data to negotiate business energy quotes for your business, so you don’t have to.
If you are not currently locked into a contract, you can always make a switch. Most energy contracts extend for at least 12 months.
If your business is in a very rural area, options might be limited. Energy Seek will contact all available energy suppliers in your area to get the best deal for your micro business.
Comparing business electric rates means understanding what you’re paying, why, and how.
P/kWh – the rate you pay per kWh. You can multiply this by the energy you expect to use. E.g., 19,245 x 11.03 = £2122.72 per year
Standing Charge – calculated daily, for the number of days in a contract. 201.3 per day = £734.73 per year
You can use this to calculate the best deal for your needs. For example, if your energy company charges an extra 6p/kWh for electricity without a standing charge, that would be worthwhile up to about 33.3 kWh per day.
Energy Seek will use your total energy usage, location, and details to find the best quotes for your needs.
Most energy switches happen in under 21 days. More than a dozen British business electric suppliers are compliant with the Energy Switch Guarantee. This means those companies are committed to helping you switch to a new energy provider as quickly and as seamlessly as possible.
This may not remain true if you work with a company that has not signed the ESG agreement. However, Energy Seek will assign you a dedicated account manager to negotiate your switch so everything moves as smoothly as possible, with no disruptions.
Green business energy consists of energy that is 20-100% renewable, or renewable offset. Currently, some 28.1-32.2% of the UKs energy comes from green or renewable sources including biomass, wind, solar, and hydro.
In some cases, much of the energy you use will not be from a green fuel source. Instead, your supplier will buy green certificates to offset energy.
Sometimes. Some suppliers will be willing to negotiate a single, larger contract across multiple meters. Others will not.
Consider reviewing total meters and sites before contacting us for an energy quote.
Automatic meter reading updates electricity usage to the energy supplier every half hour. Half hour meters or HH meters are mandatory for businesses using 100kWh + per year. You can typically opt into an HH meter if you use 70 kWh+ per year. These meters capture data on a half-hourly basis, allowing suppliers and businesses to see exactly when they’re using electric. Suppliers use this to better gauge tariff rates, so it could increase your electric bill. Businesses can use this same data to better gauge where to cut down on energy usage, offering an easier tool for electric management.
How we help you
Dedicated account manager
Energy Seek makes sure you have the tools to navigate the electric market with a dedicated account manager. We'll negotiate your switch for you, so everything stays seamless.
A simple, no obligation service
Our goal is to simplify the UK energy market. Our service is no-obligation. You won’t be tied into a contract until you actually sign one.
Energy Seek works with a network of utility brokers and energy suppliers to find and share the best possible discounts. We offer rates you won’t find anywhere else.
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Business Electricity Rates & Contracts
Frequently asked questions about rates and billing
How are electricity quotes calculated?
Most electric suppliers provide quotes based on multiple factors. These include:
- Volume of energy being used
- Duration of contract
- Cost vs Demand of Energy
- Risk profile of the buyer (contract length, credit rating, payment method)
You may also pay for unbilled energy, transmission costs, etc. All UK suppliers will charge a 20% business VAT. You also have to pay the 0.811p/kWh additional Climate Change Levy. These are not typically incorporated into quotes.
These quotes are factored to produce a kWh/per hour charge + standing rate + levies + VAT.
What are popular business electricity plans?
Most businesses choose Fixed or Flexible tariffs. Both offer pros and cons for different types of businesses.
Fixed Rate – Fixed rate tariffs lock you into a single contract for a period of 2-5 years. You commit to paying the same rate for the full duration of the contract. Upfront rates are higher but may even out and eventually save you money. Fixed rate tariffs are ideal for small businesses in need of stability and predictable billing.
Flexible Tariffs – These contracts update rates based on the current cost of electric. You will pay more in the winter and summer. You can normally leave your contract more easily as you may not have a fixed term or a termination fee.
Can you cancel an electric contract early?
Yes. But you probably don’t want to. Most contracts include heavy early termination fees, which may include paying out the rest of the contract. If you have a valid reason for termination, such as moving premises, bankruptcy, or an early exit clause in your contract, you can likely do so without a penalty.
If you want to cancel or renegotiate your current contract, send a letter to your supplier 30-90 days before the end of the contract.
Business electricity prices and terms
Business electricity is priced using the same terms as domestic electricity.
- Unit Rate – Your kWh charge is based on factors like business size, location, contract duration, etc. This can range from about 7p per kWh to upwards of 26p per kWh.
- Standing Rate – The standing charge is a daily rate to cover the cost of delivering electric to the premises. This averages between 200.1 and 240.9 pence per day but may go up or down. Some contracts do not use a standing rate. Instead you pay a higher Unit Rate.
Businesses using over 100,000 kWh per year will need a half-hourly electrical meter. This will impact costs.
How do I move electric with my premises?
It’s always a good idea to research electricity options at the new premises before moving your contract. Moving premises is a valid reason to terminate a contract early, so you may be able to greatly save on your energy bill. Consider requesting business electricity quotes for the new premises before moving. You then have to:
Contact your old energy supplier to let them know you’re moving. This should be 30-90 days in advance of the move
Contact an energy supplier to set a start date for your new contract. Energy Seek can help you to set up a new energy plan on-premises before you arrive.
Moving without setting up a new energy plan means you will pay a deemed rate. This can cost significantly more than energy provided through a contract.
What does a supplier need to set electricity prices?
Most electricity is priced based on location, demand, voltage, and meter. You should know:
- Your previous year’s energy usage in kWh
- Your address and number of meters at the address
- Meter type (Smart, half-hourly, etc.)
- Size of premises
- Electricity type (high voltage, low voltage)
- Electricity desired (green, offset, etc.)
You may also want to have other details ready, such as whether you have solar panels or use gas heating in your business. Unfortunately, most suppliers do not offer dual fuel contracts to businesses in the UK, but you may be able to save by sourcing both through the same supplier.