Comparing business energy prices is the easy part. It becomes difficult when you are selecting a business electricity tariff for your business. Then you have to complete the process again for business gas.
This guide will help business owners and office managers make decisions on the best business energy suppliers. It isn’t straight forward but understanding your businesses usage will help.
Who is the cheapest business electricity supplier?
We can compare supplier charges based on price per kWh. This is a strong indicator, but suppliers offer deals. Larger businesses buying more energy have more negotiation power. Other variants can impact price too, such as, number of employees and usage.
With that in mind, here are the current business electricity prices:
|
SUPPLIER |
PRICE PER KWH |
DAILY STANDING CHARGE |
|
British Gas |
23.95p |
78.4p |
|
EON |
23.92p |
104.00p |
|
nPower |
23.24p |
87.43p |
|
Scottish Power |
22.50p |
56.00p |
|
EDF Energy |
24.31p |
80.00p |
|
SSE |
23.34p |
54.00p |
We have only compared the traditional Big Six energy companies. Independent energy companies may be cheaper and offer excellent service. Bulb and Octopus Energy have dedicated business energy tariffs for businesses of all sizes. Others offer no standing charges and 100% renewable energy.
Who is the cheapest business gas supplier?
Business energy suppliers do not offer dual tariffs. This means that companies must switch their gas separately. This is a benefit to businesses as this allows them to source the cheapest supplier for each fuel.
Like electricity, larger companies can negotiate better deals. Here are the latest business gas prices:
|
SUPPLIER |
PRICE PER KWH |
DAILY STANDING CHARGE |
|
British Gas |
5.76p |
139.55p |
|
EON |
7.17p |
117.00p |
|
nPower |
6.362p |
123.30p |
|
Scottish Power |
6.50p |
30.00p |
|
EDF Energy |
5.30p |
100.00p |
|
SSE |
5.95p |
80.00p |
Why are standing charges so high?
Standing charges can seem quite high on the surface. Many business energy suppliers offer a range of tariffs that exclude standing charges. This often means the kWh price will be higher. Choosing a business energy tariff with a standing charge comes down to how you use energy.
If your business only operates part-time, a standing charge will likely work out cheaper. This is because the electricity price will remain low and there’s low energy usage.
You can read more about standing charges here.
What are the average business energy bills in the UK?
|
Business Size |
Annual Bill |
|
Micro Business |
£1,518 |
|
Small Business |
£3,664 |
|
Medium Business |
£6,563 |
|
Large Business |
£15,609 |
|
Industrial |
£52,931 |
You can find a further cost breakdown on the homepage.
This is based on the UK average. Many businesses will find cheaper business energy prices using a comparison engine. Prices may be different by industry. For example, engineering and hospitality typically use much larger amounts of electricity.
British Gas Business Energy
British Gas has a range of tariffs and has been around for many years. With many awards, it has become a household name. It has a large business energy customer base.
British Gas business electricity offers fixed-rate contracts over 1-3 years. They accept direct debit payment for invoices.
If you have a half-hourly meter, British Gas will give you a tailored price based. This is based on when and how you use your electricity.
What is good about British Gas business electricity?
British Gas is great for SME businesses. They have launched British Gas Lite, allowing smaller businesses to fully manage their account online. For larger businesses, they have a traditional team you can contact.
Larger businesses will have to arrange a bespoke solution. This is great for price negotiation, especially if a half-hourly or multi-site meter is required. If you compare commercial energy prices on our comparison, we will handle all communication for you. Compare prices here.
What to look out for
Business energy contracts have a 90-day notice period. This means businesses need to notify British Gas of a cancellation three months before the contract is due to end. Make sure you set a reminder in your calendar to avoid an expensive rollover contract.
Other Business Energy Suppliers
British Gas one of the largest UK energy suppliers. We dove deeper into their business energy services to review their business services. But what about the rest? Businesses may be more attracted to one of the Big Six suppliers. But the smaller independent energy suppliers have lots to offer.
Many suppliers offer custom commercial energy tariffs to fit around your businesses needs. You should not assume that one of the Big Six energy suppliers are the best choice. They may offer the best deal but consider the needs of your business.
A great way to understand what you need is auditing your commercial energy use. Ask yourself the following:
- Is my business energy efficient?
- When do I use the most energy?
- How much energy do I use?
These simple questions determine what type of tariff your business needs. They help uncover any ways the business can reduce energy usage. Turning equipment off at the end of the day can save hundreds per year.
Click here for tips on how to improve business energy efficiency.