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The amount you pay for your business energy depends on a number of things, such as the size of your business, where your premises is located, and how much energy you use. If you’re not on the best deal for your business, you could be paying over the odds, and these extra costs can soon mount up. That’s why it’s so important to shop around for the best energy deal for 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 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

There are five main types of business energy tariffs available, and it’s important to make sure you choose the right type for your business so you can get the best value.

  • Fixed term: you pay a fixed price for every unit of energy (kWh) you use. This doesn’t mean that your monthly bills will be fixed, as this will depend on how many units you use each month.
  • Variable rate: the price you’re charged per unit can fluctuate depending on market activity throughout the duration of your contract.
  • Deemed rate: a rolling, out-of-contract rate you’re placed on if your contract expires and you don’t have a new deal agreed. These are usually among the supplier’s most expensive rates.
  • Rollover: a contract for when you haven’t agreed a new deal before your old contract expires. The rates on these types of contracts are usually very expensive.
Your business can apply for a feed in tariff. Under this scheme, you’ll be eligible to get money back if you generate your own energy, or sell excess energy back to the National Grid. The amount you’ll be paid depends on both the type of technology you’ve installed - such as solar panels or wind turbines, for instance - and the size of your system.

If your business operates from more than one premises, and you have different contracts with different suppliers for each location, it can be a headache to keep on top of your different contract renewal dates.

As an alternative, it might be worth considering a multi-site meter. This is a specialised solution, where you have one supplier and one contract for all your sites. It can make it easier to manage your energy across all your locations, because you’ll just have one supplier to deal with and one contract to manage. But, one possible downside is that you may not necessarily get the best deal for each and every location.

Getting the best possible business electricity rates means comparing quotes and switching when you find the best deal. To do this as a business consumer, you’ll need to contact a range of suppliers and negotiate bespoke quotes from each. Securing a great business electricity contract often involves spending time on the phone and haggling to get the best possible price.

To save yourself time as well as money, let our comparison team do the hard work for you. After a quick phone call to discuss your electricity usage, we’ll negotiate and compare quotes from a panel of trusted suppliers. It’ll be helpful to have a recent electricity bill to hand when you call as we’ll need to gather the following information from you:

  • The name of your current electricity supplier
  • The name of your tariff and its end date
  • Your MPAN and MPRN numbers (these can be found on your meters)
  • How much electricity your business uses

Once we find you a deal you love, we’ll make all the necessary arrangements so you can start enjoying cheaper electricity as soon as possible.

It’s important to be aware that your business will be subject to a credit check, and a poor credit score may mean your application to switch is not successful. The switch might also be rejected if you’re in debt with your current supplier.

Still a little confused about energy for small businesses? Or ready to make the switch now? Give our team a call on 0800 158 5296 to see how much you could save.

What would you spend your savings on?


or call 0800 158 5296

or call 08001585296

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