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How to Reduce Your Business Electricity Rates
Electricity is one of the biggest expenditures for businesses in the UK. Overpaying on your electricity rates can be costly.
At Business Energy, we can help your business navigate the world of business electricity to find the right deal for you.
We negotiate directly with suppliers to get some of the best business electricity rates. Our partnerships means we can get exclusive deals on a variety of business electricity tariffs.
Our goal is to ensure you have access to the best commercial electricity rates in the UK.
If you're looking for a new deal for your business electricity, we can help. We regularly help high-usage sectors secure the right business electricity tariff, including hospitality, manufacturing and catering.
What are the Average Business Electricity Prices per kWh?
Commercial Electricity Rates by Business Type
For many businesses, it can be difficult to know how much they should be paying for their business electricity.
We’ve researched the average business electricity rates per unit. Our goal is to offer a guide for any business seeking to compare electricity suppliers. You will be able to make an informed decision based on this information.
This table shows the average usage and total energy bill for the common types of business in the UK. Prices may vary according to your meter type and geographic location.
Source: BEIS (Updated October 2022)
| Business Type | Electric (price per kWh) |
|---|---|
| Micro | 21.78p |
| Small Business | 20.31p |
| Medium Business | 17.74p |
| Large Business | 16.61p |
| Industrial | 17.52p |
Business Electricity Rates UK Graph
No matter what the size of your company, the team at Business Energy can help you reduce your business electricity bills.
Here are the average energy prices per year by business type. Remember that these prices are not the cheapest available. Comparing business electricity prices is the quickest way to find the best deal for your business.
These results are for standard meters with a profile class of 03 or 04. Max demand meters with a class of 05 to 08 see standing charges rise to as much as 70p per day.
Source: BusinessEnergy.com 2021.
Average Electricity Prices by Supplier
Compare Electricity Suppliers with Business Energy
Comparing prices with Business Energy means you will have access to a range of great business electricity tariffs. We have deals in place with each business electricity supplier on our panel, so that we can offer our customers exclusive deals that are not available directly.
We search our large panel of trusted business electricity suppliers for the best deals. If you decide to switch, we switch business electricity for you. This means you can continue to do what you do best without worrying about your business electricity.
Usage and other government initiatives have increased average bills by 100% or more over the past seven years. Current averages across all sectors are as follows:
- The average business electricity bill in the UK is £3,061 per year.
- The average unit price per kilowatt hour (kWh) is 14.36p per kWh.
- The average daily standing charge is 28p per day.
- Most businesses use between 15,000 and 25,000 kWh per year.
Business electricity rates vary and are dependent on the length of the contract and usage. For example, a business using larger amounts of electricity and fix rates for 2 years plus will be offered a cheaper cost per kWh of electricity. Here are the latest business electricity rates from some of the most popular UK suppliers based on a fixed priced 1-year business electricity contract:
| Supplier | Price Per Kwh | Daily Charge | Annual Cost |
|---|---|---|---|
| BGLite | 28.66p | 25p | £7256 |
| British Gas | 29.39p | 38p | £7484 |
| Dual Energy | 23.03p | 23p | £5842 |
| EDF | 31.7p | 25p | £8016 |
| EON | 24.26p | 31p | £6178 |
| Scottish Power | 24.15p | 27p | £6136 |
| TotalGP | 23.52p | 35p | £6008 |
| Valda | 28.02p | 20p | £7078 |
| Yu Energy | 28.32p | 22p | £7162 |
Current business electricity rates show that Dual Energy is currently the cheapest electricity tariff based on a 1-year fixed contract. Remember that cheaper rates are often available for higher usage businesses. To ensure you’re getting a great deal on your business energy, you should compare business energy rates.
These business gas rates are based on an annual usage of 25,000 annual usage. Prices accurate as of 26 September 2021
Finding the Lowest Business Electricity Prices
With average bills continuing to rise, now is the ideal time to compare business electricity prices.
You will likely be paying more than you should if you haven't switched in while. It's easy to get a business electricity quote today.
Although renewal letters are sent to micro businesses, this doesn’t apply for larger organisations. Business electricity suppliers are not obliged to provide enough notice to larger organisation when their business electricity contract is coming to an end. This means that many are transferred on to and expensive rollover contract.
Around 10% of micro-businesses are on deemed contracts. The prices of these contracts are 80% more than rates charged in negotiated contracts on average. It has never been easier to switch business electricity suppliers.
We help businesses of all sizes save on their business electricity and gas. We'll advise on half hourly meters for large businesses who are looking for the best deal.
We find you a range one-, two- and three-year fixed rate contracts. This depends on the needs of your business.
We will even be in touch with you when your contract is coming to end. This ensures you stay on a cheap business energy contracts.
All businesses have the option to generate their own power. They can sell the excess back to the National Grid via Feed-in Tariffs (FIT). The FIT can be used to offset charges from overall usage.
There are over 100,000 traditional half hourly meters that take readings every half hour. This is in addition to those customers using max-demand meters under the P272 legislation.
How To Get Cheaper Business Electricity Rates
A business electricity supply lies at the heart of all operations. However, that doesn't mean you should settle for high prices.
There are some simple ways you can save money on your electricity supply in addition to the savings made when you switch business electricity supplier. Here are some things to consider:
- Business electricity audit - a business energy audit will expose any wasted energy. Taking the time to consider where energy is being spent provides a base plan to become more efficient.
- Smart meters - installing a smart meter doesn't necessarily save you money, but it does ensure you're paying the right amount for your business electricity. Suppliers will used estimates if you do not have time to submit regular meter readings and this may mean you're being overcharged.
Should I Choose a Higher Unit Rate or Standing Charge?
Whilst a no standing charge tariff may seem attractive, the losses made on this are usually made up by increasing the unit rate charge. This means you may actually be paying more for your business electricity supply without realising.
This allows the business electricity supplier to be seen as a much cheaper option for energy. You should compare overall prices based on your usage habits before you even compare business electricity prices.
How to Switch Electricity Supplier with Business Energy
Make a note of how much you are currently spending and how much your business can save by switching.
All we need to provide you with a quote is the name of your current business electricity supplier, your business name and your postcode. We will then search through our panel of energy suppliers and find the best business electricity prices available based on your usage.
Once you’ve chosen a great business electricity tariff, our energy experts will get you set up with your new supplier.
The only thing left for you to do is to cancel your contract with your old business electricity supplier and send them your meter readings to receive your final invoice.
How to Reduce Your Business Electricity Usage
Saving energy is important for all businesses. When it comes to electricity, there are simple steps you can take to reduce your usage.
Your business can benefit from cheaper business electricity prices and reduce your impact on the environment. Many businesses can save money on their electricity bills by becoming more energy efficient.
- Adding an energy monitor onto the meter to visualise live usage.
- Changing legacy meters with the new smart meters.
- Using management software to analyse trends and peak demand.
- Installing A+ grade efficient appliances to reduce energy consumption
- Upgrading to efficient LED lightbulbs.
- Ensuring that during the night and weekends all lighting and computers are switched off.
- Carrying out a professional or DIY energy audit.
Research shows that 10%-20% reductions in consumption can be achieved just by introducing these simple measures. Many businesses save money every on their business energy bills year simply by becoming more energy efficient and then compare business electricity rates.
What are the different business electricity tariff types?
There is no shortage of tariffs when you compare business electricity prices. However, not all options are suitable for your business and each tariff has its own benefits. Here are some key differences you should understand and it may help you reduce your business electricity bills:
Fixed-rate tariffs
Most businesses choose a fixed-rate electricity tariff. They are great to locking in a price and means you know how much you will be paying each month for your business electricity.
Locking in cheaper business electricity prices for several years can offer companies valuable savings and is great for maintaining control of bills and budgeting.
Variable-rate tariffs
Businesses who do not want to be locked-in to a long contract due to higher than usually business electricity rates may select this tariff.
Businesses on this tariff will pay the suppliers standard rate, which can change each month.
Businesses who are scheduled to switch business electricity supplier during a time of high marker prices may choose a variable tariff until prices come back down. Variable rate contracts can be cancelled with just 30 days' notice.
Green energy tariffs
Green tariffs are becoming a much more competitive option when companies compare business electricity suppliers. With more pressure being placed on organisations to reduce their carbon footprint, selecting a green energy tariff is a great first step.
When you compare business electricity prices from a 'green' supplier or tariff doesn't mean you'll be paying more than others and can be a great option if you’re increasing your Corporate Social Responsibility (CSR) efforts.
Ready to compare business electricity tariffs? Click here to see the latest energy prices and save money with a new contract.
Business Electricity FAQs
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What affects my business electricity price per kWh?
Business electricity prices per kWh can vary depending on a range of factors. Businesses can pay different rates depending on how they use electricity.
Your business electricity prices can depend on:
- The type of business you run.
- The size of your business.
- Your average annual electricity consumption.
- The location of your business.
- The length of your business electricity contract.
- The type of tariff you choose.
The current wholesale costs of electricity can also affect your business electricity prices. The wholesale cost is the price your supplier pays for the energy it supplies to your business. This can rise and fall depending on demand, political events, and many other factors.
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What are my business electricity tariff options?
The two main tariff options offered by suppliers are fixed rate and variable rate tariffs. With a fixed rate tariff, you will pay the same cost per kWh price throughout your contract. Variable tariffs can rise and fall depending on electricity costs at the time.
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What if my business has more than one location?
Businesses with multiple locations can switch to a multi-site tariff. Multi-site electricity tariffs allow your business to have one contract for various locations. This can help you manage your energy contracts across your business.
You can even access cheaper business electricity prices due to your greater buying power.
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Should I switch to a no standing charge electricity tariff?
A no standing charge business electricity tariff can be beneficial infrequent energy usage.
If you run a business which is only open on weekends or operates seasonally, a no standing charge could help lower our bills.
Most business electricity contracts come with a set daily fee. This covers the cost of your supplying electricity to your premises. This is charged no matter how much energy you use that day.
With a no standing charge tariff, you won’t be required to pay this fee. This means you will only pay for the electricity you use. However, your price per kWh can be higher with a no standing charge tariff. If you are regular energy user, you may end up facing higher costs with a no standing charge tariff.
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Should I choose a multi rate electricity deal?
Multi-rate electricity tariffs allow you to pay one rate during peak hours and a cheaper rate during off-peak hours.
These tariffs can be a great option for businesses which usually operate or use energy at night. Electricity prices per kWh will often be higher than a standard tariff during peak hours. However, your unit rate will be cheaper in off-peak hours.
The most common multi-rate options are Economy 7 and Economy 10 tariffs. These tariffs provide 7 and 10 hours of off-peak rates respectively.
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How long does it take to switch my business electricity supplier?
The process of switching your business electricity suppliers can take between 4-6 weeks.
Switching with Business Energy is easy. Our experts will keep you up to date with the progress of your switch and answer any questions you may have.
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Will my electricity supply be cut off when switching?
No, you won’t lose your business electricity supply during the switch. We will liaise with your new and old supplier to ensure your switch can take place seamlessly.
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Does my business need a half hourly meter?
As the name suggests, a half hourly meter sends updated readings to your supplier automatically every half hour.
This means a business can receive accurate and up-to-date energy bills without taking or submitting readings manually. Large businesses with high energy usage such as factories, warehousing our large offices are the main workplaces that could benefit from a half hourly meter.
If your business has a maximum demand of 100kW or greater in any half hour period during the day, you will be required by law to use half hourly metering. You can find out more about half hourly meters here.