Finding a business electricity supplier requires a bit of research. You’ll want the right combination of price, customer service, reliability and fair contract terms. If sustainability is of one of your business goals, you may also want to factor in how renewable the energy is, so you can reduce your carbon footprint.
Whether it’s the cheapest possible power, the most flexibile contract terms, or a 100% green option, our goal is to make choosing business energy as simple as possible for you.
We research every UK provider, so you don’t have to, and offer a simple comparison service which puts you in touch with the very best electricity provider for your business.
Business Electricity Rates, Prices and Tariffs
Typically, business energy suppliers assess what type of business you are, what type of meter you have, and your likely energy consumption before offering a quote.
Along with these much more detailed assesments, there are no price caps in the business energy sector meaning your due diligence is crucial if you’re to secure the right service.
As of January 2021, an approximate average price would be 23 per kWh, plus a daily standing charge of between 54p and £1.60. These prices are based on a variable rate deemed contract, however, so you will get much better terms by choosing a formal fixed term of variable contract.
But remember, choosing the lowest price for your business energy might not be the most important consideration. Let us help you select the energy supplier that offers the right balance of cost and customer service, without tying you into excessive contracts. We have many a conversation with people who signed on the dotted line too hastily, then came to regret it. Energy supply is a crucial part of making your company succeed, so take a little time to really think it through. We’re here to help.
What Types of Business Energy Tariffs are Available?
Fixed rate tariff – This is where you agree the energy rate per unit with the supplier for the entire duration of thr contract.
Deemed Rate Tariff – These 28 day rolling contracts at more expensive than fixed rate, but allow you to refresh the agreement each period. These work for customers changing to different suppliers regularly.
Rollover Contract – Rolling contracts are annual contracts which simply rollover if you forget to cancel them. Typically rollover contracts are seen as less value for money, as you’re likely to be tied into a renewed contract at a less than optimal rate. In fact, they’re now prohibited in the UK.
Why Should I Switch Business Electricity Suppliers?
Businesses typically spend more on electricity than any other utility, so it’s worth choosing a supplier who is going to give you value for money.
It’s even more crucial than this, however. You want to deal with a company that will answer your enquiries promptly, whose contract terms are fair and transparent, with no hidden clauses. And with Britain now tied into achieving net zero by 2050, corporate emissions are going to come under increasing scrutiny, with every business required to do their bit.
Yes its important to seek cheap electricity prices but the cheapest may not be the best fit for your business or the planet.
How Does Electricity Switching Work for Business Customers?
Suppliers now go to tremendous lengths to faciliate businesses switching to their service, so the process is generally straightforward.
Assuming you’re not in debt to the supplier, or tied into a contract, you can switch at any time assuming you’re in the switching window.
The switching window will be specified in your contract: it’s usually between one and six months before the end date of your contract. If you’re in the switching window, you’re a perfect candidate for our business electricity comparison service, which will help you find the right provider for you.
What is the Average Business Energy Consumption?
Most businesses that we deal with typically use between 15,000 and 30,000 kWh per year. If you want to check your own consumption, simply check your most recent energy bill.
What are the Average Business Energy Bills?
Most companies find themselves paying around £3000-3500 per year, based on the figures outlined above. This is based on rough figure of 15 pence per unit of electricty, and 4 pence per kWH for gas.
Medium sizes businesses should expect business energy bills of approximately £6500 per year.
What Information do you Need when Switching Your Business Energy?
Switching your business energy supplier is easy. Simple follow these steps:
- Locate a copy of your most recent energy bill
- Ensure you’ve paid your account in full, so that you’re ready to switch
- Make sure you’re not obligated by a energy contract
- Use the free broker service on Business Expert to compare and secure the best deal
- Select and apply for the best tarrif for your business
- Let your current supplier know you’ll be leaving them
- Wait for the changes to take affect and your savings to begin!
How Much can you Save by Switching Business Electricity?
In as a competitve a marketplace as the UK energy sector, prices vary widely. We have seen businesses saving 45% from a judicious energy switch to a more competitive tarrif.
How Long does it take to switch Business Electricity Suppliers?
Assuming you’re out of contract and ready to go, it takes between 3 and 6 weeks, on average, for a business to switch energy providers. Some companies have signed up to a mutual agreement known as the ‘energy switch guarantee’, under which they need to have the switch completed within 21 days.
Who is the Best Business Electricity Supplier?
We are asked this question almost daily and of course there’s no ‘one size fits all’ in such a diverse and complex market. For smaller businesses there are certainly some companies that offer a tempting balance of tariff, customer service and transparency but as a broker who needs to work with all of them, you’ll have to do your own due diligence on that!
How is a Business’s Energy Rate Calculated?
They key factors are:
- business location
- premises size
- what type of meter you have
- average monthly spend
- contract length
- distance from the power station to your business (network costs)
- does it incur the Climate Change Levvy (green tarrifs are getting more competitive as a result)
What Factors Affect the National Price of Business Energy?
It’s important to understand the factors which can affect your company energy costs, especially if you’re useage represents a significant part of your cashflow.
The factors are as follows:
- How Much Do You Use – Larger businesses can generate a better rate due to bulk usage.
- Supply and Demand – The more people who adopt renewable electricity – as one example – the cheaper it will become.
- Capacity – While Britain retains supplies of North Sea gas, prices are likely to remain lower than were it to be 100% imported
- Currency Fluctuations
- Climate – Prices of gas and electricity generally fall in good weather because demand is less
- Carbon Pricing – as the climate crisis unfolds, the cost of carbon, as regulated by governments, is going to have a major impact on energy pricing.
What are some Ways I can Reduce the Cost of Energy for My Business?
- Firstly, choose a cheaper deal. Ensuring you’re on a competitive tariff is the starting point, and one which surprisingly few businesses adhere to.
- Educate your staff around energy efficient habits. Turn computers off rather than putting them to sleep, turn off lights and heaters.
- Most businesses could benefit from some of the latest technology. Sensor activated lights, thermostats, energy-efficient lightbulbs are common places to start
- Consider obtaining an energy audit to get a comprehensive picture of what you’re using and where. These are offered by utlity companies rather than national energy suppliers.
What About Large Business Electricity Plans?
For larger businesses, or those who consume more than 55,000 kWh in electricity or 200,000 kWh in gas per year, you will qualify for a unique range of plans. Energy companies will also insist on half-hourly metres, or a multi site meter if you have many premises.
Here at Business Expert we offer a free and bespoke service to help larger businesses find the best energy supplier for your needs. Talk to one of our experts and we’ll walk you through the pros and cons of the various choices, get to know your consumption habits and outline the tariffs that may be appropriate. For larger companies the onus is usually on the suppliers to bid for your business and offer your specifically tailored quotes based on your business scenario.
Should You Get a Half-Hourly Electricity Metre?
The latest meters use Automatic Metering Technology (AMR) on a fixed line to provide accurate electricity readeings, up to the half hour.
For businesses with significant energy consumption, these can sometimes be a prudent measure. More specifically they’re useful for companies working out their energy consumption through the day in order to achieve greater operational efficiency.
If you use more than 100kWh, you won’t have a choice about having these as the suppliers insist. It’s a voluntary decision if you use 70kWh or above it’s something you can opt for.
To find out whether a new premises has a HH meter installed, looking at a previous bill will give you a clue. Commercial electricity bills contain an S number. If the the number in the top left is ‘00’, there is a HH meter installed at the property.