Best small business electricity rates and suppliers for 2024 As contracts come up for renewal, we list the best prices and packages from the top business electricity suppliers in 2024. Written by Helena Young Updated on 22 November 2024 About us Startups was founded over 20 years ago by a multi-time entrepreneur. Today, our expert team of writers, researchers, and editors work to provide our 4 million readers with useful tips and information, as well as running award-winning campaigns. Our site is governed by the Startups editorial manifesto. Written and reviewed by: Helena Young Lead Writer Startups.co.uk is reader supported – we may earn a commission from our recommendations, at no extra cost to you and without impacting our editorial impartiality. Record early winter temperatures have hit the UK already, and the cost of fuelling your business is likely to be especially high this winter. But while prices have stabilised since the business energy crisis peaked in 2021, those hoping for the end won’t find it in 2025. According to Cornwall Insight’s Business Energy Cost Forecast, SME energy bills will remain 70% above pre-crisis rates until at least April 2025. Yet the Autumn Budget unveiled zero energy support measures for the next six months — despite pleas from business owners. Best small business electricity suppliers for 2024 at-a-glance: 1. Octopus Energy – Best for seasonal businesses2. Utilita – Best for small retailers and hair salons3. EDF Energy – Best for businesses in the service sectorClick the links above to compare costs on business energy tariffs for your business Locking in a fixed rate deal now could shield you against rises in 2025. If you’re in the renewal window (any time in the six months before your contract ends) now is the ideal time to start shopping for quotes from our top providers or an energy switching service.Things aren’t looking up, but with the right research, it could still be possible to find a cheaper business electricity provider. This article will guide you through the top suppliers for SMEs including estimated costs, hidden fees, and suitability for specific industries. Energy bill support ends — what now? In March’s Spring Statement, Jeremy Hunt announced that the government’s Energy Bill Discount Scheme (EBDS), which gave business customers a discount on their business gas and electricity supply, would come to an end on 31 March 2024.SMEs were hoping that the new government, which came into power in June, would replace the EBDS with another support scheme in their first Autumn Statement at the end of October. But no announcement came.Serial entrepreneur, James Dooley, told Startups that SMEs needed more support with energy bill payments. “The prices for heating and electricity have shot up, and this isn’t something most small businesses can avoid”, he said. “Think of a café that has to run its equipment all day or a small warehouse keeping up with deliveries. These expenses don’t disappear, and right now, they’re affecting whether some firms can stay open.”Without targeted relief schemes, businesses are now having to make-do with sticking plasters, such as smart meters, to make bills manageable. We explain what SMEs can do to take down the costs, and to get help if you cannot pay. Save By Comparing Business Energy Quotes Do you already have a business energy provider? Yes No Compare energy prices in just minutes In this article, we’ll cover: Best electricity suppliers for UK small businesses What to look for in a business electricity supplier Should I stick with my current provider? What to look for in a business electricity bill Best electricity suppliers for UK small businessesWe compare and contrast the key features and set charges of each provider, so you can find the one with the most competitive rates, reliable supply, and flexible payment structure. Swipe right to see more 0 out of 0 backward forward Octopus Energy Utilita EDF Energy Best for Seasonal businesses Best for Small retailers and hair salons Best for Businesses in the service sector Unit rate (pence per kWh)* 29.73 Unit rate (pence per kWh)* 24.01 Unit rate (pence per kWh)* 27.1 Standing charge (pence per day)* No charge (Octopus No Standing Charge plan) Standing charge (pence per day)* 42.55 Standing charge (pence per day)* 75 Compare Quotes Compare Quotes Compare Quotes *Costs were collected by Startups.co.uk in November 2024, and are based on a one-year fixed rate tariff for a business based in North London and using 48,000 kWh of energy per year. All pricing is estimated and subject to your business location and energy usage.1. Octopus Energy: best for no standing chargesThe Octopus business electricity bill will tell companies how much they pay for electricity during off-peak (night) and peak (day) hours.Octopus is known for its innovative contracts and focus on renewable energy (helping it to win big clients like Caffè Nero). We recommend it to firms with low and varying energy consumption due to its market-leading No Standing Charge (NSC) tariff. Customers using more than 3,571 kWH of electricity a year can sign up to an Octopus tariff and then switch to a fixed 12-month NSC contract. To make up for the lack of standing charge, your unit rate might be higher. But the payoff to this extra cost is you’ll know exactly what you’ll pay each month.Naturally, because you’ll only pay for the electricity used, your energy bill will likely be lower. But the reverse is also true (the more electricity you pay, the higher your bill) so Octopus is unsuitable for manufacturers guzzling thousands of kWHs worth of electricity. Pros Octopus a wide array of customer help channels. Users can contact the company via email, social media, and a 24/7 helpline Customers with an Octopus smart meter are automatically signed up to Octoplus, a reward scheme with freebies like discounted Odeon cinema tickets Octopus has been made a Which? Recommended Provider for business energy in 2023 and 2024 thanks to its top customer service Cons Fixed-rate prices are dependent on location, but Octopus Energy's unit rates are not the absolute lowest in the market (even if you do avoid the daily standing charge) Which? rated Octopus low for its smart meter installation targets (a provider like Utilita is better-known for having a smooth and speedy meter installation process) Is Octopus right for my business?We recommend Octopus Energy’s NSC tariff if you’re a:Seasonal business with low electricity use off-season, such as an ice-cream shopSole trader with a home office, such as a freelance writerFirm with low electricity consumption during peak hours, such as a security providerAnother USP for Octopus is its sustainable focus. Every Octopus tariff boasts 100% renewable electricity, which means it’s a strong offering for eco-conscious companies.There’s even a special ‘Panel Power BETA’ contract designed specifically for businesses with solar panels. They’ll be given 100% renewable energy and will be paid 15p/kWh for every unit they export back into the grid.Octopus Energy PricingBased on the average fixed rate for a customer in London using 48,000 kWh annually, Octopus quoted us a 29.73p per kWh for unit rate with no standing charges.Exit fees? Octopus charges 25% of your remaining contract balance if you exit with less than 49 days noticeDeposit? Yes. Octopus takes a security deposit from new customers. For every 25% of your contract term, Octopus will return 25% of your depositLate payment fees? Yes. Octopus will charge you £15 for the first missed payment and an additional £20 for each subsequent delayOut-of-contract / deemed prices: if your contract expires, you’ll be charged an undisclosed fixed rate2. Utilita: best for small retailers and hair salonsUtilita presents a clear breakdown of your business energy bill including the date your contract ends, and the fee you’ll pay for early termination (exit fee).Utilita specialises in supplying customers through Pay As You Go (PAYG) smart energy meters. That means, rather than being billed regularly, business owners have flexibility on when to pay to top up their electricity credit online, over the phone, or via a mobile app.It also means a much bigger emphasis on data insights for managing consumption, as smart meters can track exact electricity usage down to your next tea break. The company’s Smart Energy Monitor software lets you:Monitor electricity usage in real-time and identify any spikes or areas for reductionView current and past energy billsSet daily or weekly energy consumption targetsDisplay your energy usage in pounds – helpful for budgeting Receive a ‘Smart Score’ (a measurement of how energy efficient you are) Pros Has physical energy hubs with dedicated Energy Experts in nine UK locations including Derby, Leicester, Sheffield, and the Isle of Wight Contract length is either 12 or 24 months, so you won’t be locked into a five year tariff Utilita’s wide range of add-ons includes Utilita Rewards, which lets you earn credit to spend on energy, and Utilita Extra which offers weekly giveaways and prize draws Cons No green tariff is available. Utilita encourages smart meter use for energy efficiency No discount for payment type - you’ll pay the same price whether you pay by Pay As You Go, Direct Debit, or Pay on Receipt Utilita’s customer service team is only available during working hours Is Utilita right for my business?Being able to closely monitor energy usage is an advantage for every SME, but it specifically benefits small firms with unavoidable utilities as they commonly need to keep to a strict budget. If you’re a:Retailer running commercial fridges and air conditioning unitsHair salons powering hairdryers and mirror lightsPrinter shop with photocopiers and computers to powerBusinesses wanting to reduce their carbon footprint will also appreciate Utilita’s data insights – but we should note that Utilita has a poor track record on investing in eco-friendly energy. According to Which? Utilita does not currently generate any renewable electricity.Utilita PricingBased on a one-year fixed rate tariff for a customer in London using 48,000 kWh, Utilita quoted us 24.01p per kWh unit rate and an expensive standing charge of 42.55p per day (this represents an uplift of 2p from Utilita’s average standing charge in 2023).Exit fees? No. Utilita does not charge exit fees on any business energy tariffDeposit? No. Utilita does not take an advance payment from new customersLate payment fees? Yes. Utilita charges £10 if a payment is more than two weeks late, and £30 if more than 23 days. If your payments are delayed repeatedly, a smart meter may need to be fitted for which there will be a £150 charge. On top of this, there is an £8 charge if your Direct Debit payment fails.Out-of-contract/deemed prices: if your contract expires you’ll pay a daily £14.40 standing charge and a day rate of at least 27p per kWh3. EDF Energy: best for businesses in the service sectorEDF’s emphasis on easy customer service is obvious, with numerous support channels listed at the top of every small business bill.The Big Six are the UK’s six biggest energy suppliers, all of which have a reputation as a trusted supplier that provides top-quality customer support and a reliable service provision – including EDF energy.While many suppliers shut down their help desks, EDF has doubled down on customer service. It recently invested in Kraken, a customer tool that uses AI to provide basic support 24/7 and ensure power outages are quickly resolved for minimal business disruption. Pros EDF is a leader in nuclear energy in the UK, which produces low-carbon electricity EDF offers a 7% discount on unit rate if you pay by direct debit SMEs can enter into a longer fixed-term contract for a small added fee Cons EDF makes you purchase a more expensive tariff to access call centre support EDF ranks poorly for sustainability according to Which? annual energy consumer survey 2023, due to its smaller range of green tariffs compared to Octopus Energy Is EDF right for my business?EDF’s reputation and fast, round the clock support make it a good choice for businesses that need a completely reliable electricity supply, including:Offices looking after sensitive customer data eg. accountants or mortgage brokersTime-poor firms who can’t carry out in-depth research into electricity suppliersHealth or medical clinics with concerns about reliability and meeting regulationsEDF Energy pricingBased on a one-year fixed tariff for a customer in London using 48,000 kWh annually, EDF Energy quoted us a low-cost 27.1p per kWh and a huge standing charge of 75p per day (making it a poor choice for companies with low electricity usage).Exit fees? EDF Energy charges a bespoke exit fee on some tariffs if you leave your contract with less than 49 days noticeDeposit? Maybe. According to EDF, it may ask for a security deposit at any time (this will be returned in one year, with interest)Late payment fees? Yes. If you miss a monthly payment, EDF Energy will charge you a £30+VAT, regardless of delay timeOut-of-contract/deemed prices: if your contract expires you’ll pay a daily £2 standing charge and a day rate of at least 37.72p per kWh What to look for in a business electricity supplierInformation overload is a real concern for SMEs exploring the electricity market. With numerous suppliers offering various tariffs and complex pricing, entrepreneurs can struggle to compare plans effectively and understand the true cost of each option.Various factors influence a supplier’s overall rating, so there isn’t a one-size-fits-all approach to getting the best rate. The below is a good list of what to look for in a chosen electricity supplier:1. Price:Direct debit discount: in exchange for guaranteed and on-time payments, many suppliers often incentivise this method with a discount on your final billPay as you go (PAYG) payment: as of April 2024, the price cap for prepayment meters is now lower than direct debit for the first time2. Customer serviceChoose a supplier known for efficient, responsive support channels (such as phone, email, or live web chat) who can help you resolve a problem promptly if it arises. Big Six providers can typically be relied upon to fulfil this requirement.3. Business needs:Size – some suppliers offer more flexibility, shorter contract lengths, or zero exit fees for new businesses or microbusinesses. Contacting sales representatives directly to ask about startup discounts can sometimes also lead to money off your bill.Consumption – time-of-use or TOU tariffs offer discounts for using electricity during off-peak hours. For example, a bakery whose main operations (ovens, mixers) are concentrated in the early mornings with minimal electricity use during the day 4. Green tariffsWind and solar are the UK’s greenest, and now cheapest, sources of electricity thanks to the increasing wholesale costs of crude oil. These might even exempt you from the Climate Change Levy (CCL)5. Add-ons and extrasEven if their upfront costs are high, suppliers with add-ons that save you time and money – such as a mobile app (for easy access to managing and paying your energy bill) – can provide value for money in the long run than a ‘budget’ provider6. Business energy metersHalf-hourly (HH) or multi-site smart meters can accurately track power usage. This will ensure your bill accurately reflects your energy load and may even lead to cost savings Can I just stick with my current provider?Researching electricity suppliers is a daunting task, leading some entrepreneurs to stick with their current supplier without exploring potentially better alternatives.But renewal offers from suppliers are often not the cheapest option. Most providers save their best offers for new customers, which is why switching energy providers can help business to save money – especially as wholesale oil prices threaten to rise.If you’re looking to save time and get quotes quickly and easily, our specially-designed cost comparison tool weighs up quotes from a range of business energy brokers to help you find the right plan for your organisation when switching contracts. What to look for in a business electricity billSmall businesses pay between £200 and £600 per month for their electricity bill, on average. However, the rate will differ depending on key factors such as your team size, industry specialisation, and location. Plus, of course, your energy contract.Electricity bills can be lengthy and full of legalese. Below, we break down the charges and terms that typically appear on a business electricity bill, so you can determine if you’re getting a competitive deal with a provider:1. Business tariffAn energy tariff is essentially the type of contract you’ll be on for your business electricity use. There are two main types: fixed rate and variable.Knowing which tariff you’re on – or want to be on – can save you a lot of money. Here are the key differences between the two:What is a fixed tariff? With a fixed tariff, the unit price remains the same for a set period (usually less than five years), regardless of how the market rate changes.Is it right for my business? Fixed tariffs are suitable for several types of businesses, but they offer the most benefit to those with consistent operating hours and minimal fluctuations in energy use like offices, corner shops, and hair salons.What is a flexible / variable tariff? With this tariff, your unit price fluctuates alongside the energy market. Variable tariffs are usually short-term, so you have greater freedom to switch suppliers when needed.Is it right for my business? Variable tariffs are most suitable for companies with seasonal peaks and troughs in energy consumption, like factories that operate more machinery during specific times or leisure facilities with busier weekends. Can I choose not to have a business tariff? No business should choose to be out-of-contract. If this happens, businesses are automatically put onto expensive deemed/out-of-contract tariffs’. Estimates suggest they can double or even quadruple the average market rate.If you’ve just moved into a new premises or your existing contract has ended, move from out-of-contract to a fixed or variable tariff as soon as you can. 2. Energy usage chargesEvery business electricity bills will contain the following charges relating to energy usage and tax requirements:Unit cost – measured in kWh (kilowatt hours), this is the amount paid per unit of electricity used by your business. This is often the most prominent figure on your billStanding charge – a daily fee charged regardless of energy use on that day. Since April 2024, Ofgem has been exploring how to reduce domestic standing charges. However, so far, business charges have been left out of the conversation.Climate Change Levy (CCL): a tax on electricity bills designed to encourage businesses to reduce their carbon emissionsVAT (Value Added Tax): a tax applied to most goods and services in the UK, including business energy bills. The current rate is 20%3. Hidden feesThe below fees tend not to appear on business electricity bills. This lack of transparency makes it difficult for SMEs to accurately budget and avoid unexpected charges.It’s a smart move to shop around for a supplier that shares upfront information about the below fees. You might even find a leccy firm that doesn’t charge any:Installation costs: charges associated with the installation, maintenance, and reading of your electricity meterLate payment fees: a charge for those who don’t settle their business electricity bill on timeSmart meter charges: a fixed daily charge if you have a smart meter installed at your premisesWhat next?SMEs continue to face significant challenges posed by rising energy costs, a problem that has persisted since autumn 2021. While some businesses have managed to adapt, many are still burdened by substantial additional expenses.Coupled with Autumn Budget tax rises, SMEs approaching contract-end must remain vigilant in their search for cost-saving deals. But even without government support, as outlined in our guide, businesses can still take proactive steps to reduce energy costs. Key Takeaways for SMEs: Energy bills are expected to remain high until at least next AprilOur recommended tariff is the Octopus No Standing Charge tariffLocking into a fixed-rate deal now could lead to significant mitigated savingsConsider business size, industry, and energy consumption when switchingBe aware of hidden fees like installation costs and late payment fees Save On Increasing Energy Prices By Comparing Quotes Do you already have a business energy provider? Yes No Compare quotes and save in just minutes Startups.co.uk is reader-supported. If you make a purchase through the links on our site, we may earn a commission from the retailers of the products we have reviewed. This helps Startups.co.uk to provide free reviews for our readers. It has no additional cost to you, and never affects the editorial independence of our reviews. Share this post facebook twitter linkedin Written by: Helena Young Lead Writer Helena is Lead Writer at Startups. As resident people and premises expert, she's an authority on topics such as business energy, office and coworking spaces, and project management software. With a background in PR and marketing, Helena also manages the Startups 100 Index and is passionate about giving early-stage startups a platform to boost their brands. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK.