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As a business owner, you’ll know all about the importance of keeping costs down. If you compare energy prices per kWh and switch your business’s energy supplier when you find a better deal, you could drastically cut your bills.

While there are several different elements that make up your energy bills, the two most important are the unit cost and the standing charge.

  • The unit cost is the price you pay for each unit of gas or electricity (measured in kWh) that your business uses. Your business gas and business electricity unit cost can either be fixed for the duration of your contract or variable.
  • The standing charge is a fixed daily amount that covers the maintenance of the national grid and the cost of transporting gas or electricity directly to your premises.

Businesses all use energy in vastly differing ways and to reflect this, each business energy contract is made bespoke to fit each commercial customer.

In order to work out your commercial gas and business electricity unit cost and standing charge, an energy supplier will look at:

  • Business type - this will dictate your consumption pattern. Businesses that use most of their energy during the evenings and weekends will be able to secure the best electricity and the best gas price per kWh. Businesses that operate between 9am and 5pm Monday to Friday will be charged a higher commercial gas and business electricity unit cost as there is more demand during these hours.

  • Annual energy use - if you use a lot of energy annually, you should be able to negotiate a lower business gas and business electricity unit cost although this may mean that your standing charge goes up. For this reason it’s a good idea to both compare gas and electric prices per kWh and to look at how much you’ll be charged over a full year.

  • Business size - larger businesses are able to negotiate the best electricity and the best gas price per kWh because of the quantity they buy. There are a few group buying organisations that help small and medium businesses to come together to bulk buy energy.

  • Using the same company for both gas and electricity - businesses can’t avail of dual contracts but they may get a discount if they choose to use the same company for both.

  • Location - where your business is located can affect the price you’re charged for your energy by up to 20%. Businesses in rural areas typically pay more for energy than their city-based peers who get the best electricity and the best gas price per kWh.

  • Contract length - generally speaking, an extra 6% will be added to your unit rates for every year you extend your contract, and 2% - 6% will be taken off the standing charge.

The amount you pay per unit can also be affected by global events such as natural disasters and conflicts which can drive up the wholesale cost of energy.

It can be difficult to say just how much your business energy rates should be before you compare energy prices per kWh. Nevertheless, taking a look at average figures can help you start your business electricity and gas price per kWh comparison:

Average business electricity prices

Business size Average annual usage (kWh) Average price per kWh Daily standing charge 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

Average business gas prices

Business size Average annual usage (kWh) Average price per kWh Daily standing charge Average annual price
Microbusiness 5,000 – 15,000 4.1p – 4.5p 23p – 26p £300 - £700
Small business 15,000 – 30,000 3.8p – 4.0p 21p – 22p £800 - £1,400
Medium business 30,000 – 65,000 3.5p – 3.7p 18p – 20p £1,500 - £2,0000

Conducting an electricity and gas price per kWh comparison is trickier for business customers than it is for domestic consumers. For starters, while household customers can simply compare gas and electric prices per kWh from a range of ready-made tariffs, business customers must contact energy suppliers and ask them to draw up bespoke quotes.

It’s a good idea to compare gas and electric prices per kWh from as many different suppliers as you can to get a proper feel for what’s available. Secondly, dual gas and electricity contracts aren’t available for business customers so they must compare energy prices per kWh for each supply. Lastly, negotiation can play an important factor in securing the best electricity and the best gas price per kWh for commercial customers.

Gathering and comparing business energy quotes is an essential part of managing a successful business but it can be a time-intensive process. Save time - and money - by letting Confused.com Business energy conduct an electricity and gas price per kWh comparison on your behalf.

The bespoke nature of business energy contracts means it’s hard to put an exact figure on how much your business could save before you compare gas and electric prices per kWh.

How much you’ll save if you compare energy prices per kWh and switch your business energy deal all depends on your current circumstances. To find out how much you could save, call 0800 158 5296 today and speak one of our energy experts about an electricity and gas price per kWh comparison.

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