0800 158 5296
Monday - Friday, 9am - 5.30pm

Energy prices are constantly changing, and the reasons for those sudden price hikes can range from an increase in energy transportation costs to a simple surge in demand. This means that even if you run an energy-efficient business, you could still see an increase in your overheads, regardless of whether or not you’re using any more gas and electricity than usual.

A little confused? Check out our complete guide to energy prices.

Unlike household energy deals, which offer a range of ‘off-the-shelf’ tariffs to suit the needs of different households, business energy contracts are calculated to meet the exact needs of each individual business.

Although this tailored approach means you can be sure your tariff meets the needs of your business, it also makes it difficult to put an exact figure on how much your business should be paying for gas and electricity.

Even if you compare your company to a similar sized one in the same industry, location is one of the many factors that can also affect the cost of business electricity and gas, so unless you share the same postcode, you may still pay a different rate.

These regional variations can account for as much as a 20% price difference, with businesses in rural areas typically paying more for energy than their city-based peers.

But to give you an idea how much energy your business should be using, and a ball park figure of how much it should be paying, here are the average business electricity and business gas consumption rates and prices:

Average business electricity prices and usage

Business size Average annual usage (kWh) Average price (per kWh) Standing charge (daily) Average annual price
Microbusiness 5,000 – 15,000 13p – 13.5p 26p – 30p £650 - £1,800
Small business 15,000 – 30,000 11.8p – 13p 24p – 26p £1,900 - £2,900
Medium business 30,000 – 50,000 11.3p – 11.8p 21p – 23p £3,300 - £5000

Please note: The figures given above are based on industry averages and are only intended as a guide. It’s worth remembering that many contributing factors can impact the amount that you pay for your business electricity, including consumption habits and the location of your business premises.

Average business gas prices and usage

Business size Average annual usage (kWh) Average price (per kWh) Standing charge (daily) Average annual price
Microbusiness 5,000 – 15,000 4.1p – 4.5p 23p – 26p £300 - £700
Small business 15,000 – 30,000 3.8p – 4p 21p – 22p £800 - £1,400
Medium business 30,000 – 50,000 3.5p – 3.7p 18p – 20p £1,500 - £2,000

Please note: The figures given above are based on industry averages and are only intended as a guide. It’s worth remembering that many contributing factors can impact the amount that you pay for your business electricity, including consumption habits and the location of your business premises.

What is an SME?

An SME is an independent business that employs less than a certain number of staff, and has a turnover under a certain threshold.

The UK government currently uses the European Union (EU) definition of an SME:

  • Micro Business – employs fewer than 10 staff and has a turnover under £2 million
  • Small Business - employs fewer than 50 staff and has a turnover under £10 million
  • Medium Business - employs fewer than 250 staff and has a turnover under £50 million

If you run a larger business with a maximum energy demand of 100 kVA or more per half hour, you’ll be placed on a half-hourly meter tariff, which will affect the overall price you pay for energy.

Although there are a number of charges that go into making up your commercial energy bill, there are two main charges you need to consider when carrying out a business energy price comparison:

  • Unit cost - this is the amount you pay for each unit of gas or electricity you use, and usually accounts for the biggest price difference between tariffs – the lower your unit price, the less you pay for your energy (depending upon your consumption rate), so it’s a good idea to go for a fixed rate deal to avoid any price increases for the duration of your contract.
  • Standing charge – this is a fixed cost, charged by the day, to cover the cost of infrastructure repair and maintenance.

Once you have an idea of how much energy your business will use, and know how much the standing charge and unit costs are, you can work out how much your annual energy prices should be.

Alternatively, you can save yourself the time and hassle of calculating costs and get in touch with the Confused.com business energy team on 0800 158 5296 – a 10-minute call is all it takes to answer a few questions about your business and its energy use, so we can compare business energy tariffs and find a deal that’s right for you.

Although it might be tempting to go with the cheapest energy provider, the best-prices deal might not be the best fit for your business. And because business energy contracts don’t offer a cooling-off period, it’s vital you only sign up to a deal that ticks all the boxes – you don’t want to be tied into a long-term deal that offers poor energy supply or shoddy customer service, no matter how much money you save.

So, you compare business energy prices, make sure you properly assess each quote and choose the one that completely meets the needs and budget of your business, and doesn’t just offer the cheapest price.

If you need further advice on finding the best energy deal for your business, speak to one of our commercial energy experts today on 0800 158 5296. Or leave your details with us, and we’ll give you a call back.

Get a quote for a new and possibly lower electricity price with just a few clicks. Our electricity price comparison tool does the hard work for you, searching the market to see what the best prices are. Choose the rate that’s right for you today. However much electricity you use in your business, we could help you save money.

With our business energy comparison, you could get a quote for:

  • Business electricity
  • Business gas
  • Renewable energy

Enter your details once and we’ll search our electricity providers, including British Gas, E.ON, npower and more. You’ll see all your available tariffs in one place, ranked as they should be – starting with the cheapest. When it’s this easy to compare electricity prices, there’s no reason not to give it a try today.

What would you spend your savings on?


or call 0800 158 5296

or call 08001585296

Cookies help us deliver our services. By using our services, you agree to our use of cookies. Learn more