Compare Business Electricity Prices
Finding the best business electricity prices is no easy task, and many companies over pay by up to 20%.
There are over 50 business energy suppliers in the UK alone, each providing their own rates, contracts, and conditions. That could take a long time to navigate without some help.
Here at Energy Seek you can access everything you need to secure the best deal, we'll help reduce your electricity bills by up to 20% when you compare with us. This could save a small business £100's every year.
You'll find below an accurate comparison of recently reported rates, personalised quote comparison and detailed descriptions of the top electricity suppliers, including their range of contracts and services. All 100% free.
When you're ready to make the switch we'll ensure the process goes smoothly with your own dedicated account manager.
Ready to see average prices online now? Read on....
What You'll Find Here
Average Business Electricity Prices
|Commercial Electric Prices - Top 9 Energy Suppliers 2020*|
|Supplier||Price per kWh (Pence)||Standing Charge (Pence)||Yearly Cost (Average)|
*Prices accurate for a small business using 17229 kWh per year in April 2020. Compare quotes with us to discover all business electricity prices available to you.
Average Commercial Electricity Prices Including Climate Change Levy
(Source: GOV.UK – Statistical Data Sets)
What Affects Business Electricity Rates?
Most frequent questions and answers
Larger businesses usually pay lower prices.
Business electricity suppliers are usually able to quote you lower rates if you have a larger business. If you have a dual fuel contract, prices can reduce even further.
In fact, the average unit price (as of June 2018) for industrial businesses was 13.39p/kWh, as opposed to micro businesses that faced 14.76p/kWh.
Make sure to compare electricity tariffs in your area before you switch to get the best deal.
Longer stable contracts come with higher initial rates.
The length of your contract also affects your overall electricity tariff. Since business electricity rates aren’t stable and often increase each year, longer contracts (2+ years) that offer fixed rates will have higher rates as a trade-off for not being subject to increased rates during the contract.
There are both advantages and disadvantages to long-term contracts. While you are receiving a guaranteed fixed rate over a period of time, some businesses prefer to take their chances by regularly switching providers every year to get the lowest rates on the market.
City locations offer lower electricity costs than rural areas.
When your business is located in a metropolitan region, it is easier for suppliers to provide electricity due to the presence of better infrastructure and connectivity. But as a business location is not something that can be easily or quickly changed, you may have to just accept your rates as they are.
The lowest business electricity rates are found in the East and West Midlands, as well as Scotland. While rural areas of Wales incur some of the highest rates.
Payment method & credit rating can secure better electricity deals.
In general, energy suppliers offer a discount when you choose to pay your bill with monthly direct debit.
Certain suppliers offer lower rates if your company has a good credit rating and history. Both indicate that you are likely to make a payment on time and in full.
But don’t forget comparing electricity prices is the fastest way to save the most.
How Does Energy Seek Work?
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Business Electricity Tariffs
Simple explainers for business electricity tariffs
A fixed rate business electricity tariff is a guarantee from a provider that standing charges and unit rates will remain the same until an a specific date.
As this tariff can last for up to 2 years, it is suitable if you are looking for peace of mind. The prices which suppliers charge under this tariff can be much cheaper than other types of electricity contracts.
Most fixed rate electricity tariffs can provide smaller businesses in particular with much needed flexibility. You can leave this plan at any time and usually you are not charged a penalty fee.
Additionally, under new Ofgem rules electricity suppliers have to let you know your fixed-rate contract is coming to an end 42-49 days in advance. This gives the you chance to compare prices and get a better rate elsewhere.
A variable rate tariff is the standard agreement price plan offered to businesses by energy suppliers. It is also known as a standard variable rate energy tariff (SVRs).
In most cases, you will pay the highest price for your electricity needs if you are on a variable plan. If you exit a fixed rate tariff without renewing or switching to a different supplier you will be put on this plan automatically.
Under a variable rate tariff the price paid for electricity will fluctuate depending on the market price. Every supplier must give you 30 days notice if they intend on putting their prices up.
A lack of protection to these changes means that this energy tariff is not suitable for any small business with a tight budget.
A deemed rate tariff is an out-of-contract agreement a business is automatically put on when it moves into a new business premises and starts using the electricity.
This is charged by the previous occupants electricity supplier and very high rates can be expected by the business.
In order to avoid very costly deemed rates you should arrange a favourable rate before the move.
If you want to stay with the same supplier, you should tell them what the new commercial address is before the move.
It is important to remember that a supplier cannot stop a business switching to a competitor under this tariff.
You can switch to another competitor at any time and no exit fees have to be paid.
A rolling contract comes into force if you fail to renegotiate or cancel a tariff before its end date.
This is a deal that every business – small, medium or large – would want to avoid. After a roll-over, the price a business is charged for electricity can be much higher than before.
To make matters worse, a business has no right to switch to a better priced-deal with another electricity provider after a roll-over.
One good way to avoid the rolling contract is make sure you to know the exact date your tariff is due to roll-over. You can then choose to either renegotiate the deal or switch to another supplier before the deadline.
It is also important to make sure that the terms and conditions of the plan are fully understood. Thankfully, under current regulations suppliers have to highlight these before an agreement is signed.
The green energy tariff is a commitment given by business electricity suppliers. They promise to match a percentage or all the energy you use with renewable energy. This is then fed directly back into the National Grid.
Any business that wants to sign-up will still get their electricity from the Grid, but there is one noticeable difference. You will draw your power from the roughly 25% of the electricity generated through sources such as wind, solar and sea power.
If you are considering this tariff option make sure you shop around. More green business electricity suppliers are beginning to offer this option.
More demand sends a clear message to energy companies that people are seeking stable energy sources.
Cheaper Commercial Electricity
Business Energy Services
EnergySeek can help you in many ways with your business energy.
Here are the main areas we cover.
Business Electricity FAQ
Most frequent questions and answers
In most cases you can save around 40%.
You should remember to check two things before switching electricity suppliers:
1. Current contract: Is there an exit charge for leaving early? If so, then switching business electricity suppliers needs a detailed calculation.
2. Electricity meter: Any outstanding arrears will need to be paid before switching supplier.
If there are no fees or outstanding balance, you are free to switch electricity suppliers whenever you want. Make sure to compare the different electricity tariffs available and select the most suitable one.
In most cases you would switch electricity suppliers for a more favourable tariff. But not always. A growing number of businesses will consider moving for the reasons listed below.
Customer service: Poor response times to disruptions in supply can be damaging to business.
Green Energy: Businesses enjoy a better public image with this type of electricity compared to fossil fuels.
Better Energy Efficiency Advice: Becoming a fully energy-efficient business is good for public relations and can be used to attract new business.
If you are interested in switching your electricity supplier you should compare quotes to see the best deal available.
You can easily compare the electricity tariff you are being charged and switch to a better deal using the information listed below:
- Existing supplier
- Current tariff
- Tariff end date
- Details of how much electricity (kWh) is being used
To save money on your electricity bills, and negotiate your new contract it’s a good idea to have as much information to hand about your current supplier and energy usage as possible.
You could save over 20% on your business tariffs by switching, so make sure you get it right.
Is your business ready to compare providers today? Use our comparison calculator at the top of the page.
Yes. Any micro business can switch energy suppliers for a more favourable tariff.
If your small business is not tied into its current contact or if it is currently using a default or deemed tariff, it is free to switch electricity suppliers.
Any small business that hasn’t shopped around for 12 months or more is likely paying too much.
To compare the cheapest tariffs from the top suppliers just follow these three simple steps:
Enter your details: Visit our comparison calculator and provide current contract & contact details.
Sit Back: Relax and allow us to find the cheapest prices available right now.
Compare Quotes: Select the most suitable price for your business and then we’ll help you make the switch.
The entire switching process will take a maximum of 21 days to complete under the Energy Switch Guarantee.
The old supplier will pass over all business electricity meter readings to your new supplier on the day of the switch to avoid any interruption to service.
Green energy is produced only from wind, solar and sea power. As the name suggests, it is renewable and can impact prices up and down.
It’s important to compare plans to ensure your contract is right for your business.
Green electricity currently makes up an estimated 25% of all electricity supplied to the National Grid.
In most cases, electricity suppliers will be happy to discuss multi-site metering which combines multiple tariffs into one manageable plan. This can save you precious time and money.
How we help you
Dedicated account manager
During the switching process and after you move you'll have a direct line to help solve any problems. No more waiting in line.
A simple, no obligation service
Comparing quotes doesn't tie you into a new contract. Once you decide to switch we'll help arrange everything.
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EnergySeek has access to brokers and energy companies that can provide hidden and exclusive deals for your business.
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Business Electricity Rates & Contracts
Most frequent questions and answers
How are electricity quotes calculated?
Every business electricity quote is made up of a number of individual parts. These are:
- The cost of the raw energy
- Un-billed energy
- Suppliers profit
After these costs have been factored in, you will receive a quote for your electricity tariff in the form of a unit rate + standing charge.
Popular business electricity plans
There are three plans which are particularly popular:
- Fixed tariffs are usually the cheapest option and offer you peace of mind with fixed 2 year costs.
- Flexible tariffs are not as cost effective but allow you to pay for your electricity upfront.
- Having a smart meter system means you only pay for the electricity you use.
Cancelling your electricity contract early
You cannot usually cancel your contract mid-term unless you have a valid reason, such as moving to a new premises or unless your contract allows an early exit.
However, you can send a termination notice to your electricity supplier 30-90 days before the end of your contractual period. This will ensure it does not roll-over.
Business electricity prices
The price of electricity is made up of two elements.
The first is called the unit rate (day units and night units), which is what is paid for each unit of electricity (kWh) used. The second part is the standing charge.
This is a fee that goes towards the cost of physically supplying electricity to a business premises or site.
What does a supplier look at to assess prices?
Each supplier will take into account various aspects of your business. Some examples are:
- Size of premises
- How much power is used
- What type of meter you have
- If you need electricity, gas or dual fuel
- If you have solar panels installed
If you are considering relocating you need to tell your business electricity supplier before changing premises.
Your existing electricity contract will cease on the day of the move. After the move is complete, you should contact your electricity supplier to arrange a new plan. Using electricity at the new premises before a plan is in place can be costly.