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When you’re running a micro business, every penny counts, so it’s really important to keep on top of your outgoings. High energy bills can be a big part of your overheads, but the good news is that, as a micro business owner, you have more flexibility to switch to a cheaper new deal on your gas and electricity.

A micro business is defined as any business that has fewer than ten employees and turns over less than €2 million (around £1.7 million).

You can also qualify for a micro business energy contract if you use no more than 293,000kWh of gas, or 100,000 kWh of electricity each year. In terms of cost, this works out at roughly £10,000 - £12,000 per year for each fuel type (excluding VAT and the Climate Change Levy). If you’re not sure how much energy you use, your energy supplier should be able to help you.

Business energy rates are tailored to each individual business, and while this means you’ll get a deal that meets your business’s specific needs, it can make it hard to work out how much you should be paying for your gas and electricity. Prices also depend on things like your location and how much energy you use each year.

These average consumption rates and prices should give you an idea of how much you can expect to pay:

Average business electric bill costs

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 bill costs

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

If you run your business from home, and about 50% of your energy use goes on powering your micro business, then you should think about swapping your household energy plan for a business one. That’s because commercial energy prices for gas and electricity tend to be much lower than rates for domestic use.

When you’re working out how much of your household energy is used by your your business, bear in mind that you can’t include the cost of running appliances that are always switched on – such as your fridge or freezer.

As a micro business owner, you can tell your energy supplier that you want to switch at any point during your contract. SMEs, on the other hand have to wait for a set notice period before telling suppliers that they’d like to change contract.

Rules brought in by Ofgem back in 2014, mean that if you’re on a fixed-term contract, energy providers must clearly show when your contract begins and ends, along with any notice periods – making it easier to see exactly when you should switch to avoid rolling over to pricey default energy plans.

If you’re thinking about switching to a new deal, the first step is to give us a call on 0800 158 5296 a couple of months before your current contract is due to end. As a rule of thumb, it’s a good time to start shopping around when your supplier sends you a renewal offer.

We’ll ask you for some information about your micro business, and how much energy you use, and then we’ll compare prices for you. We’ll do all the hard work of getting quotes from suppliers, and come back to you with a list of deals to choose from.

If you’re not currently in a contract, or if your old one has recently expired, you should arrange a new deal as soon as possible to get cheaper rates and keep your bills down.

What would you spend your savings on?

or call 0800 158 5296

or call 08001585296

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