Need help? Call us on

0800 970 0077Monday to friday from 9am to 5:30pm

Business energy prices & rates

Business energy prices & rates

1---business-energy-prices-and-rates

Whether your company is a small, medium, large or industrial enterprise, energy is a big expense. And to add fuel to the fire, countless companies fall into the trap of paying more than they should, simply by not moving to the best electricity deals on the market. These overpayments all add up and drain your business of money that would be better spent elsewhere. But the good news is that while energy might be an overhead that’s unavoidable, paying a sky-high price for it isn’t.

As a business manager, keeping costs low is one of your most important responsibilities. If you want to take advantage of cheap electricity deals and gas tariffs, you’ll need to regularly review your energy contracts, compare business electricity plans and gas quotes and be prepared to switch.

How much should your business pay for gas and electricity?

Your energy bill is composed of several elements, but there are two main charges that have the most impact. Unit price is what your business pays for each kWh of electricity or gas it uses. The standing charge is a fixed amount that your business pays daily for national grid maintenance and energy transportation.

Each business is unique in how it uses energy and to reflect this, commercial quotes are drawn up on a bespoke basis. These tailor-made plans are beneficial for businesses, but they mean it’s difficult to know just how much you should be paying for your energy. When searching for cheap electricity deals and gas tariffs, it’s helpful to be aware of average prices.

Average business gas prices

Business size Average annual usage Average price (per kWh) Standing charge (daily) Average annual price
Micro business 5,000 – 15,000 kWh 4.0p 32.0p £516
Small business 15,000 – 30,000 kWh 3.8p 30.0p £965
Medium business 30,000 – 50,000 kWh 3.5p 28p £1,502

Average business electricity price

Business size Average annual usage Average price (per kWh) Standing charge (daily) Average annual price
Micro business 5,000 – 15,000 kWh 13.2p - 14.5p 23p - 27p £650 - £1,800
Small business 15,000 – 30,000 kWh 12.4p - 14.1p 23p - 27p £1,900 - £2,900
Medium business 30,000 – 50,000 kWh 12.2p - 13.3p 23p - 27p £3,300 - £5,000

Please note: These figures are based on industry averages and are only intended as a guide. Many factors impact the amount you pay for your business electricity and gas, including consumption habits and location.

What types of business energy tariffs are available?

The best business electricity rates and gas tariffs are either fixed or variable-rate contracts.

Fixed-rate tariffs set the amount you pay for your electricity or gas at a certain cost per unit for an agreed period. They protect against price hikes, but they don’t allow you to take advantage of downturns. Variable-rate tariffs link your unit rates to market activity. They carry an element of risk as they can increase and decrease.

If you neglect to review your energy contracts, you can find yourself on an expensive tariff. Rollover tariffs are overpriced rates used when your contract expires and you fail to secure an alternative. A deemed-rate tariff is a highly-priced rolling contract that’s arranged by suppliers when a business has no formally agreed contract. 28-day tariffs are costly contracts that businesses find themselves on if they haven’t switched deals since the energy market deregulation.

What affects the price you pay for business energy?

If you compare electricity tariffs for business and commercial gas plans, you’ll see they don’t come in one-size-fits-all packages. Business energy quotes take the following into consideration:

  • Location – Compare electricity tariffs for business and you’ll see that companies in rural locations can pay as much as 20% more than those in cities.
  • Nature of business – Businesses that run their operations when there is less demand from the network, such as during the night, will be able to get the best business electricity rates.
  • Business size and annual energy consumption – Bigger businesses can negotiate the best electricity deals.
  • Credit rating – A poor credit rating means you won’t be able to avail of the best business electricity rates.
  • Contract length – If you compare electricity tariffs for business, you’ll find that the longer the contract, the higher your unit cost and the lower your standing charge.

How to compare business electricity and gas prices

To get the best electricity deals and gas prices, compare business electricity plans and gas tariffs and switch when you find a great deal.

You’ll need to contact suppliers and negotiate bespoke quotes from each to find the best electricity deals and gas prices. To get a full picture of what’s available, compare business electricity plans and gas tariffs from at least 10 different suppliers. Business consumers aren’t offered dual electricity and gas plans so you’ll have to get separate quotes for each (although using one supplier for both may get you a discount).

To make it easier to compare business electricity plans and gas contracts, get a breakdown of unit rates and standing charges rather than estimated annual costs and haggle for cheap electricity deals. When you compare electricity tariffs for business and commercial gas plans don’t forget to consider quality of service.

At Make It Cheaper, we know that you’ve got enough on your plate without another time-consuming task. We can take care of the whole process of gathering, negotiating and comparing business energy quotes. We have both Big Six and independent suppliers on our books to provide you with a whole range of cheap electricity deals from across the market. And when we find you a deal you love, we’ll handle the switch for you. We’ll even help you to remain on the best business electricity rates in the market by getting in contact again when your new deal is due to expire.

Give Make It Cheaper a call on 0800 140 4659 to hear how we can help you pay less for your business energy. Alternatively, leave your details at the top of the page and we’ll call you back.

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