Business Electricity

Business electricity price comparison

It all comes from the same source, and is supplied through the same network of cables, but business electricity isn’t the same as domestic electricity.

No matter how big your premises, or how much electricity it uses, your commercial energy contract will be set up differently to your domestic one, meaning you’ll pay a different rate for your business electricity and gas.

If you run a larger company, you might even be charged a half-hourly rate for electricity, or have multiple meters installed for more accurate energy readings. And, unlike domestic supply, business tariffs don’t come with dual fuel options.

But there is at least one thing both domestic and business energy have in common – if you’ve not switched supplier recently, your bills will be higher than they should be.

In which case, it’s time to bag your business a better deal.

How to switch business electricity supplier

MoneySuperMarket has partnered with Bionic to make switching business electricity simple. Their tech-enabled experts use smart data to find out about your business and its energy use. With his information to hand, they can then compare the tariffs on offer and talk you through the options. They'll handle the whole switch, so you don’t have to.

Call the business energy experts for free now on 0800 088 6986, or leave us a few details here, and they'll give you a call back.

It might also help to take a look at your latest bill and make a note of the following:

• The name of your current electricity supplier
• The name of your tariff, and its end date
• Your supply type
• How much electricity your business uses

Bionic will then search from a panel of trusted suppliers to find the best deals currently on offer, enabling you to make an informed decision on your next tariff. Once you let them know your preferred supplier, they’ll set up your new contract so you can start saving as soon as possible.

It’s worth noting that you won’t be able to agree on a new deal until your current one enters its ‘renewal window’ – for more information, check out How to switch business gas and electricity. And your new contract won't start until your current one ends.

Why switch business electricity suppliers with MoneySuperMarket?

Every business has different energy demands, and all commercial contracts are designed to meet the specific needs of each individual venture. But no matter the size of your company, if you’ve been placed on a higher rate tariff - perhaps because you’ve let an old deal lapse - you could find your electricity bills add a considerable amount to your overheads.

Switching to the cheapest business electricity tariff is a quick and easy way to cut costs, and one that won’t have any effect the day-to-day running of your business, or compromise the quality of your service.

Switching to a new deal also means you can choose whether you pay a fixed or flexible rate for your energy. Most business choose a fixed rate, as this protects against price hikes and makes it easier to budget from month to month.

Opt for a flexible tariff and you might benefit if wholesale electricity prices drop and your supplier passes on these savings – neither of which can be guaranteed. The major plus point with flexible tariffs is that some allow you to switch supplier with just 30 days’ notice, whereas if you’re on a fixed tariff, you may have to give up to six months’ notice.

How can MoneySuperMarket get you cheaper business electricity rates?

We've partnered with Bionic to make it easy for you to compare energy quotes and choose the best one for your business.

Business energy can be complex, with a lot to get your head around. Businesses use more energy than homes, and costs can vary drastically between suppliers, tariffs, and types of business. To reflect that, quotes are bespoke to each business, and can take a while to gather.

Because those costs, tariffs, and quotes can vary so much, it’s vital to shop around to get the best deal you can.

Bionic makes that whole process quick and easy for you. Just enter your business postcode, and they’ll do all the hard work of gathering quotes from the suppliers we work with.

What contributes towards the cost of business electricity?

Suppliers calculate the cost of your business electricity based on a few factors. They include:

• The type of business
• The sector you operate in
• The size of your business
• Your location

Costs – and when you pay them – also depend on the type of tariff you choose. The main kinds of business energy tariff are:

• Fixed term – Charges are set at a fixed cost for a certain length of time, usually one to four years
• Variable rate – Rates can go up or down depending on the state of the market
• Extended – When your contract runs out with your supplier, they may offer you an extended or blend tariff
• Flex approach – You bulk-buy energy in advance, giving you access to wholesale rates
• Pass through – Your bill is split between fixed wholesale rates, and other charges like National Grid and Transmission Network Use of System
• Deemed rate – This is the (often expensive) tariff you’re automatically put on if you don’t take out an energy contract

Business energy prices are also much more at the whim of the wholesale market, as they aren’t regulated with a price cap like domestic energy is.

Should I be worried about the rise in energy prices?

It’s difficult to say, as the energy market is very volatile.

The government has implemented a support package for anyone on a non-domestic energy contract. But the Energy Bill Relief Scheme is not a price cap. Instead, it will discount the unit rate you pay for business energy.

This means that although energy costs are higher than they were, businesses are protected from them spiralling further right now.

The kind of tariff you choose also plays a part in how energy price rises affect you, as some let you fix prices or buy your energy upfront for the contract period.

The scheme will run for six months from October 1, 2022. You can find out more at our Business Energy Relief Scheme guide.

What if you run your business from home?

If you work from home, you won’t be able to take on a business electricity tariff unless more than 50% of your energy use is for your business. This threshold can vary, between suppliers though, so it’s worth checking to see if your business is eligible, and could save with a commercial tariff.

If a business tariff doesn’t suit, then make sure you’re on the best domestic energy deal.

What happens when you switch business electricity?

Once you’ve agreed to make the switch, Bionic will pass on your details to your new supplier, who will then arrange the changeover with your current supplier. The power will be supplied through the existing cables, so there’ll be no need for any more installation work at your workplace.

The only thing you’ll have to do is take a meter reading on the day the switch takes place, and make sure any outstanding bills have been paid – if you owe your current supplier money, they might block the switch until these debts are settled.

It’s also worth noting that a credit check will be carried out on your business, the results of which can affect the rates you’re offered and even the suppliers who will offer you a contract.

How much should you pay for business electricity?

If you’re unsure how much electricity a business the size of yours should be using, or how much its business electricity rates should be, the table below will give you an idea.

Latest business electricity prices per kWh

Note: Prices correct as of February 2024. Rates and bill size may vary according to your meter type and business location. The prices you’re quoted may be different from the averages shown. The figures shown are the average unit rates and standing charges quoted by Bionic per business size from February 1 to February 7, 2024. Rates do not include any Energy Bills Discount Scheme discount.

How much money could switching save your business?

The amount you can save all depends upon the size of your company, the size of its premises, the number of employees, and its overall energy efficiency.

Call our energy experts now on 0800 088 6986 to run a commercial electricity comparison and find out exactly how much your business could save.

How can I reduce the cost of my business energy?

• Compare and switch.
  
• There’s probably a better deal out there – especially if you’ve been with the same supplier for a long time.
  
• Install efficient tech.
  
• Try LED light bulbs, devices with high efficiency ratings, upgraded boilers, and other earth-friendly technology.
  
• Invest in your premises.
  
• Make your premises as green as possible. You can insulate the walls, ceilings, and floors, or install double glazing.
  
• Turn the thermostat down.
  
• Even by just one degree. Many energy savings measures you take at home can be done in your business too.