Small business electricity suppliers and prices

Want to know which electricity supplier is best for your small business, and which may be able to offer the cheapest prices? Read on to compare our list of the best small business electricity providers

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There’s so much to consider when choosing a business electricity supplier. First and foremost, you need to find the right contract type, and a provider that’s suitable for your requirements.

Plus, with dual fuel tariffs not available for commercial customers, you need to carefully consider each contract for both electricity and gas – even if you do end up getting all of your energy supplied from the same provider.

In this article, we’ll guide you through a selection of top commercial electricity suppliers for small businesses, including how much they cost and what makes them stand out. Plus, we’ve assembled some expert insights from senior professionals in the energy industry.

There are a wider range of business electricity plans on the market than what’s available for domestic customers, meaning there are even more options to review in order to find the best fit for your business. And there’s lots to learn about business energy, too – for instance, did you know that price caps aren’t available for business energy? – so you'll need to do plenty of research to help you with the decision-making process.

This does require a fair bit of time on your part, and it can be a stressful process. However, there is a quicker and easier option. All you have to do is let us know about your business and its electricity requirements to get matched with business energy brokers, who can help you to find the best deal for your commercial electricity supply.

UK business electricity rates by supplier

Supplier Best forUnit price per kWhStanding charge per day
BulbTransparent pricing12.05p - 13.80p27.40p
Good EnergyGreen electricity 11.47p - 19.20p*31.80p - 40.85p*
Octopus EnergyCustomer serviceContact providerContact provider
SSEBig Six supply20.76p**54.00p**
UtilitaExtras and add-ons21.166p - 24.420p***20.455p - 30.089p***

Except for Bulb (which publishes its regular rates online), the above prices are based on each provider’s deemed/out of contract rates.

* These price ranges include Good Energy’s lowest and highest prices in terms of both the unit price and standing charges across a variety of rates and regions. They do not include VAT or the Climate Change Levy (CCL).

** These prices are from SSE’s off-peak (quarterly and monthly billed) rates, excluding VAT and the CCL.

*** These are the price ranges for Utilita’s non-half-hourly unrestricted electricity rates.

More information on what deemed rates are can be found in the types of contract section further down the page.


Compare business electricity suppliers and pricing for small UK businesses

In this section, we profile five of the best electricity suppliers for small businesses, including details of which types of businesses are best suited to each supplier, and a good look at their prices.

Or, to find out more about the cheapest business electricity suppliers, simply head straight to our dedicated section on this topic.

We compiled this list by selecting providers based on the quantity and quality of their Trustpilot reviews and ratings, and have only considered providers with at least 1,000 reviews and a ‘great’ or ‘excellent’ rating.

Along with this, we checked each provider’s website to ensure that they were able to provide electricity for small businesses specifically. As well as user reviews, we also paid particular attention to pricing, customer service, and eco-friendliness – all so we could provide you with the information you need to find a supplier and tariff that’s the best fit for your business.

bulb

Bulb – Best for transparent pricing

Pricing

Bulb really stands out from the competition in terms of its pricing. Bulb even publishes its commercial electricity rates on its website, which is practically unheard of in the industry. This is a great touch, as you can find out straight away how much you can expect to be charged.

Its prices range from 12.05p per kWh to 13.80p per kWh, depending on the location of your business. The standing charge is 27.40p per day, and there aren’t any exit fees, which is a major bonus.

Our regional business electricity price variation section further down the page has more information about Bulb’s pricing options across the UK.

With clear cost information like this, we think Bulb is the best business electricity supplier for transparent pricing. It’s ideal for budget-conscious small business owners who want to know from the outset how much they can expect to pay for their commercial electricity.

However, it can’t supply to all types of businesses, and there isn’t a range of tariffs to choose from.

Customer service

Bulb can be contacted by email, online chat, or phone, and its support team are available on weekdays from 9am to 5pm.

A number of recent reviews have commended Bulb for its well-informed staff and quick response times.

User reviews

Bulb has the most Trustpilot reviews out of the providers featured in this guide, with 70,000+ at the time of writing. It also boasts an ‘excellent’ rating, and a score of 4.6 out of 5.

Eco-friendliness

Bulb offers 100% renewable electricity. The company's website is full of information about its green energy supply, which comes from a combination of sources – including hydro, solar and wind – and is powered by generators throughout the UK.

ProsCons
- No exit fees
- No long-term contracts
- 100% renewable electricity
- 70,000+ Trustpilot reviews
- One tariff, for greater transparency
- Bulb can’t supply to sole traders
- Only a variable tariff is available, so prices can go up or down

good energy

Good Energy – Best for green electricity

Pricing

Good Energy’s deemed and out of contract rates are available online. These rates are split according to profile class – if you have a standard meter, you’ll be in profile three, whereas if you have an economy 7 meter (which offers lower prices for seven hours in the night), you’ll be in profile four. This information can usually be found on a previous bill, and if it’s not either three or four, then you should call the company.

The prices also vary depending on location, with Good Energy splitting its regions into numbers 10-23. More information about the regions can be found in Good Energy’s deemed tariff information label.

Profile class three pricing – standard meter (anytime)

Cheapest unit rate (per kWh)RegionMost expensive unit rate (per kWh)Region
15.96p1218.10p17

Cheapest standing charge (per day)RegionMost expensive standing charge (per day)Region
31.80p1239.39p17

Profile class four pricing – economy 7 meter

Cheapest unit rate (per kWh)TimeRegionMost expensive unit rate (per kWh)TimeRegion
16.85pDay1219.20pDay17
11.47pNight1112.45pNight17

Cheapest standing charge (per day)RegionMost expensive standing charge (per day)Region
33.23p1240.85p17

All prices are excluding the climate change levy and VAT.

Customer service

It’s possible to contact the company via phone or email. Once you've signed up as a customer, you'll be allocated your own account manager.

On Trustpilot, customers have highlighted the company’s quick replies and friendly team members.

User reviews

Good Energy not only has more than 4,000 reviews on Trustpilot, but it’s got a ‘great’ rating, and score of 4.2 out of 5 – so it's clearly doing something right.

Eco-friendliness

Good Energy really shines in terms of its eco-friendly ethos. By using Good Energy for your business electricity supply, you can proudly report zero scope 2 carbon emissions.

Good Energy offers 100% renewable electricity, which is produced in Britain and sourced from more than 1,600 independent eco-friendly generators. Not only this, but it also offers Energy Health Check, which is a free service that can help you to launch your own sustainability strategy. This could be really valuable for eco entrepreneurs that are still learning about how commercial electricity supply works.

Adding to this, Good Energy can also provide power for electric vehicles. Indeed, its service can cover everything from initial recommendations for charging services through to installing the charge points, as well as offering maintenance and long-term support.

With all this in mind, it’s no wonder that we've rated Good Energy as the best for green electricity. Good Energy is a great choice for small businesses that are keen to do their bit for the environment.

ProsCons
- 4,000+ Trustpilot reviews, with a ‘great’ rating and 4.2/5 score
- By using Good Energy, you can report zero scope 2 carbon emissions
- 100% renewable electricity
- UK-based supply
- A network of 1,600+ independent green generators
- Free Energy Health Check service
- Limited pricing information
- Doesn't provide much information about customer service

octopus energy

Octopus Energy – Best for customer service

Pricing

Octopus Energy offers fixed tariffs, which is ideal if you want to know just how much you’ll be paying for electricity over the course of a year.

It also offers specialist products, which are plans designed specifically for charging businesses and vertical farms, as well as solar developers and installers.

However, no further pricing information is readily available online.

Customer service

Octopus Energy's customer support options include email and phone, along with online customer accounts. The company states that the best way to contact them is online, and there's even a handy guide with recent median email response times – meaning you’re not left waiting around wondering when you’ll get a reply.

It also offers a smooth switching process, with no need for engineer or installation visits, and no disruption to your power supply.

We think Octopus Energy goes above and beyond for its customers, making it the best business electricity supplier for customer service in our list. This could be particularly useful if you’re new to the world of small business energy comparison, and want the reassurance of choosing a provider that’s especially customer-focused.

User reviews

Octopus Energy has collected an impressive 49,754 reviews on Trustpilot, garnering an ‘excellent’ rating and a 4.8/5 score.

Eco-friendliness

Providing 100% renewable electricity across all its tariffs, along with dedicated products for charging and solar businesses, as well as vertical farms, Octopus Energy has a strong green electricity offering.

ProsCons
- 49,754 Trustpilot reviews, with an ‘excellent’ rating and 4.8/5 score
- 100% renewable electricity
- Offers specialist products for charging, solar, and vertical farm businesses
- Seamless switching process
- Provides median email response times
- No pricing information available online

sse

SSE – Best for Big Six supply

Pricing

SSE provides its out of contract rates online, including its variable and deemed rates. We’ve included an example of SSE’s deemed rates here – this is for consistency with the other providers.

From 1 April 2021, SSE’s off-peak business non-half-hourly deemed electricity rate is:

  • 20.76p per kWh (off-peak rate)
  • 54.00p per day (standing charge)

This pricing applies for both quarterly and monthly billings.

SSE does also offer a range of regular commercial electricity contracts, which are suitable for businesses of all shapes and sizes. To help you find the one that works best for you, we’ve provided a breakdown of SSE’s fixed, tracking, and green contracts:

Type of contractDetails
Fixed - SSE ProtectOffers completely fixed pricing throughout the contract duration
Fixed - SSE ChoiceProvides fixed energy costs, with variable, market-led non-commodity costs (e.g. governmental taxes and network charges)
Tracking - SSE VariableEnergy prices are variable (at the time of writing, this contract type is only available to customers who have already finished a first contract term)
Green - SSE Green100% clean, certified and renewable electricity supply
Green - SSE EVSpecifically for electric vehicle (EV) fleets; offered on a fixed or flexible basis; grants access to Clarity, SSE’s free online platform for managing energy

Pricing for the above contracts is available on a quote by quote basis.

Customer service

It’s possible to contact customer services by phone on weekdays between 9am-5pm, or via an online form.

Reviewers have taken the time to mention SSE's high quality customer service.

User reviews

SSE has over 11,000 Trustpilot reviews, with an ‘excellent’ rating and a 4.4 out of 5 score.

Eco-friendliness

SSE offers 100% certified renewable electricity across its SSE Green and SSE EV green energy products. The company also provides certificates, logos, and more, so that you can show the world your commitment to eco-friendly energy.

SSE Green Electricity offers:

  • Wind and hydro generation
  • Renewable Energy Guarantees of Origin (REGO) certification
  • Independent verification by EcoAct, which is an accredited Carbon Disclosure Project (CDP) provider
  • The ability to report zero carbon emissions

Thanks to the range of contracts on offer, including a strong eco offering, we’ve chosen SSE as the best Big Six provider for commercial electricity.

The Big Six are some of the biggest and most well-known energy suppliers in the UK, and SSE sits proudly among them. So if you’re just starting out in business and want to use an established supplier for your commercial electricity, choosing a Big Six provider like SSE could be reassuring while you get to grips with how it all works.

ProsCons
- Established, well-known Big Six provider
- Extensive range of contract types available to suit a variety of business electricity requirements
- 11,000+ Trustpilot reviews; company is rated excellent with a score of 4.4 out of 5
- 100% certified renewable electricity
- Independently verified green electricity
- Dedicated EV green energy plan available
- Sheer range of contract options could be confusing, especially if you’re new to commercial energy

utilita

Utilita – Best for extras and add-ons

Pricing

Utilita claims to offer one type of price, irrespective of your business type or payment method, along with a commitment to fair pricing. It also places emphasis on supporting small and local businesses, which we naturally can empathise with.

Utilita provides its deemed and out of contract rates online. Its business variable rates for non-half-hourly electricity are available as follows:

  • Unrestricted
  • Two rate (day and night)
  • Two rate (day and evening/weekend)
  • Three rate (day, night, and evening/weekend)

To keep it simple, we’ve only included the unrestricted rates in the table below.

RegionStanding charge (pence per day)Unit rate (pence per kWh)
East Midlands26.30122.147
Eastern21.49422.182
London20.45521.166
Manweb21.82824.420
Midlands28.72822.749
Northern25.11822.415
Norweb21.68322.434
Scottish Hydro30.08923.548
Scottish Power24.25022.397
Seeboard21.53522.620
Southern24.22722.351
Swalec29.14822.550
Sweb29.85623.191
Yorkshire25.706
22.126

Customer service

Utilita's customer service team is available by phone, from Monday-Friday between 8am and 6pm. An online form is also available.

Utilita’s download centre is a stand-out feature. Here you can find plenty of help and information, including how to send a Letter of Authority (to authorise a third-party to act on your behalf), how to terminate your contract, and how to let Utilita know that you’ve moved into/out of a premises.

However, what really sets Utilita apart is its partnership with Enterprise Nation, with free business support available for 12 months when you switch to Utilita. This makes Utilita the best provider for extras and add-ons. This partnership is great for new small business owners or those wanting more support, as you'll be able to access a range of resources.

User reviews 

Utilita has amassed more than 33,300 reviews on Trustpilot, along with an ‘excellent’ rating and a score of 4.3 out of 5.

Eco-friendliness

Utilita offers its own guide to energy efficiency. However, it doesn’t seem to provide more information about the type of electricity it supplies, and how eco-friendly it is – which is quite surprising in today’s market.

ProsCons
- Download centre allows customers to be proactive, offering easy access to useful resources
- 33,300+ reviews on Trustpilot, with an ‘excellent’ rating and 4.3 out of 5 score
- Receive 12 months of free business support from Enterprise Nation when you switch to Utilita
- Minimal pricing information available
- Less of a focus on green electricity

How has COVID-19 affected electricity demand and pricing?

The coronavirus pandemic has impacted the demand and pricing for electricity in a number of ways, and will continue to do so throughout 2021. This includes:

  • As network costs are set each year in advance, you can expect to see the financial impact of COVID-19 on this aspect of energy pricing from April 2021 onwards
  • A decrease in nationwide consumption means that the price per kWh goes up
  • Generally, when comparing prices now to before the pandemic, commodity (fuel) costs are cheaper, and third party costs (e.g. taxes) are higher

With all of this disruption, it makes even more sense now to regularly monitor the market so that your business doesn’t miss out on having the best rates for its electricity consumption.

However, there are energy switching services available that can make this process much easier – check out our page on the best business energy brokers and switching services for more information.


The cheapest business electricity suppliers

As Bulb publishes its regular rates online, this makes it the cheapest supplier for commercial electricity in our list because it’s the only one whose prices we can confirm. Unit prices start from just 12.05p per kWh, and the standing charge is 27.40p per day.

To see how Bulb compares with other suppliers, you can scroll up to the UK business electricity rates by supplier section. However, it should be noted that the other providers’ pricing is based on deemed rates, which are more expensive than regular tariff pricing.

How to save money on your commercial electricity

Although there isn't a one-size-fits-all approach when it comes to determining how much your startup can expect to pay for electricity, here are some cost-cutting tips:

  • Pay by direct debit – many providers offer discounts when customers pay this way. Additionally, this payment method is a good way to budget, especially in the early days when your cashflow may be limited
  • Look for plans specifically made for new businesses – these are designed with the needs of startups in mind, and so may offer more flexibility, shorter contract lengths, or minimal/no exit fees (e.g. Octopus Energy’s Electric Juice tariffs)
  • Think about your business’s electricity consumption – work out when your company uses the most and least amount of electricity, and find the suppliers and tariffs that match these needs
  • Assess all options – while it may be tempting to just accept a renewal offer, it’s wise to find out all of the options that are available to your business before making a decision

You’re clearly interested in finding the best deal possible for your commercial electricity usage. By simply providing a few details about your commercial electricity needs, you can compare quotes from a range of business energy brokers. They can help you to find the right electricity plan for your business, meaning you don’t have to settle for a second-rate tariff.

I run my business from home – what should I do about business electricity?

Running your business from home will probably mean that you don’t use enough energy to qualify for a business electricity tariff. In general, you’d need to use at least 50% of your electricity for your business to qualify for business electricity rates, although this can vary depending on the supplier.

Therefore, if you’re not reaching that level of consumption, it’s fine to stay on your domestic rate with your domestic provider. However, we'd still advise you to shop around, to the extent that it’s a good idea to compare providers to make sure that you’re on the best plan possible.


What’s the annual cost of commercial electricity for a small business?

Here, we give an indication of what small businesses can expect to budget for electricity costs on a yearly basis. These are average figures based upon two online sources from Love Energy Savings and MoneySuperMarket.

Business sizeAverage yearly usage (kWh)Average unit price (per kWh)Average standing charge (per day)Average yearly cost
Micro6,500+15.57p+25.2p+£1,169.50+
Small17,500+14.6p+25p+£2,715.50+
Medium32,500+13.99p+24.7p+£4,671+

Further definitions of business sizes aren’t provided in the sources used to calculate these average figures. However, see below for the definitions from Parliament’s Business Statistics briefing paper from January 2021, which are:

  • Micro business: 0-9 employees
  • Small business: 10-49 employees
  • Medium business: 50-249 employees

Types of business electricity tariff

The term ‘tariff’ gets bandied around a lot when it comes to the energy sector, and basically refers to the type of electricity usage scheme you’re on.

Business electricity prices can vary depending on the market price, as well as what type of plan you’re on. Here, we explain some of the most common tariffs.

Fixed 

With a fixed tariff, the unit price remains the same for a set period of time. This is usually between one and three years, although it can be as long as five years. This means you’ll know how much per kWh you’ll be paying for your electricity.

However, as this price is fixed at the market rate when you enter into the contract, if this rate should decrease while you’re still in contract, then you won’t benefit from any price drops. Then again, if the market rate should increase, then you’ll be better off at the lower rate that you locked into at the start.

Note that it can be difficult – as well as expensive – to leave these types of contracts before the agreed end date. This type of tariff is ideal for businesses that are likely to have similar levels of electricity usage (and budget) over the next few years, so that they can weather any increases or decreases in price based on the market rate.

Flexible

Also known as a variable tariff, this type offers valuable flexibility, both in terms of prices and conditions.

The unit price can fluctuate depending on the market price, so if wholesale electricity costs go up, so will your energy bill. Conversely, if market prices should drop, then the amount you’re billed should drop as well.

Plus, the flexibility of variable tariffs means that they’re not usually offered with a long contract, so you have greater freedom to switch suppliers if needed. However, they ultimately provide less control over your electricity expenditure, as prices could change at any time.

A flexible tariff is most suitable for businesses that need to prioritise flexibility above all else, making it a good match for seasonal businesses or those that are just starting out.

Deemed/out of contract

These are the rates that your business will be put on if you don’t have a contract. They are often the most expensive rates, meaning it’s usually cheaper to have a contract of some kind in place.

Due to the high costs involved, no business would choose to be on this type of contract – however, if you’ve just moved into a new premises and need an electricity supply straight away, then you’re likely to find your business put on this type of tariff, which could be useful to begin with.

Rich Price, managing director at Tickd, advises: “Ensure you don't fall out of contract. Out of contract rates for businesses can be extortionate and, unlike domestic energy, there isn't a cap on how much can be charged to out of contract businesses. Ensure that you know when your contract is due to expire, and set a reminder in your diary to review prices three months before it's due to end.”

Eco-friendly

These types of tariffs specifically offer electricity from green energy sources. Although just about all businesses could benefit from doing their bit to help the planet, an eco-friendly tariff is especially suitable for businesses with an eco-friendly or ethical stance – not only for its environmental benefits, but to maintain a cohesive brand and company image.

Knowing which tariff you’re on – or want to be on – can save you a lot of money. You’ll be able to see which types each provider can offer, and compare your business electricity options accordingly.

At Startups.co.uk, we have been championing small businesses since 2000, so we understand just how important time and money are to small business owners. If you’re short on time and don’t want to spend ages going through plan after plan in the hopes of finding the right one for your business, then we can help you.

It only takes 60 seconds of your time to complete our quote comparison form, and then you can compare quotes for business energy brokers. Your chosen broker can then find you a commercial electricity deal that’s right for your business, giving you back more time to invest in other areas of your business.

Understanding a commercial electricity bill

Business electricity prices are influenced by several factors, including the size of the premises, the number of people in the building, the amount of electricity consumed, and the location(s) of the business. Other factors include your company’s credit score, and any installation charges.

Your electricity bill will be split into two parts:

  • Unit cost – measured in kWh (kilowatt hours), this is the amount paid per unit of electricity used by your business
  • Standing charge – this is a daily fee that goes towards network maintenance

Note: domestic users pay VAT at 5%, whereas businesses are charged at 20%. However, the unit price is usually lower on a business electricity plan.

COVID-19 and your business electricity bill

Even if your business is closed due to coronavirus restrictions, you'll still be required to pay your standing charge. However, it might be possible to come to an agreement with your supplier that takes this into account.

If you’re thinking about asking to disconnect your supply, bear in mind that you’ll be charged to do so, and then again to reconnect it in the future. Similarly, it’s worth getting in contact with your supplier to discuss your options. This is according to Ofgem’s guide on coronavirus (COVID-19) and your energy supply.

Business electricity meters

Business electricity meters come in a variety of forms. Here, we profile some of the most common ones:

Type of meterDescription
Smart metersA time-saving device that sends your meter readings to your supplier automatically, so you don’t have to remember to take regular readings.
Multi-site metersOne business doesn’t always mean one building. A multi-site meter will ensure that all sites are operating from one tariff.
Half-hourly meterUsed for large, high energy consumption businesses. Provides readings at 30 minute intervals. Great for intricate energy analysis.

Price advises: “Select a supplier who will install a smart meter. Whilst smart meters don't directly save any money, they ensure that the bills are accurate, and that there are no nasty surprises.

“Many businesses blindly pay a standing order or direct debit – having accurate monthly bills brings energy usage into consciousness, and can prompt businesses to change their energy usage behaviour.

“Smart meters are just the first step into energy saving technology – you can also invest in LED lights and smart thermostats.”


Key considerations when comparing commercial electricity suppliers

Review potential discounts 

These incentives will often be in the form of a direct debit discount, offering electricity at a reduced rate, as long as you have a direct debit account set up with the provider.

However, this might not be offered by every provider, and paying by direct debit might not work for every business. In short, always read the small print of any contract. That way, you’ll know exactly what’s going to come out of your account, and when.

Check out the business electricity suppliers’ customer service ratings

Friendly, helpful people on the phone lines are essential, as is an efficient chatbot/email response rate. It also helps for providers to offer a plentiful amount of information online – if a company’s online resources are looking a little thin on the ground, this could be a warning sign.

We think Octopus Energy is the best provider for customer service. Octopus Energy displays its median email response times on its website, which shows its commitment to excellent support, and helps it stand out from the competition.

How green is your provider?

If keeping it green is important to your company’s image, you’re going to want to do a little digging into how electricity providers generate their power to see if this aligns with how you’re running your business.

Review how much electricity is generated from renewable sources (100% is perfectly feasible), along with what impact it will have on your sustainability reporting – will you be able to report zero scope 2 carbon emissions, for example?

These are just some of the things to look out for, and what Good Energy, our chosen best provider for eco-friendly electricity, can offer your business.

Sarah Merrick, founder and CEO of Ripple Energy, comments on the three most important considerations for small business electricity: “The main thing is to simply think about it. How do your electricity choices reflect the values of your company? Does your company care about climate change? Do your customers and employees?

“1. Impact – don’t forget you can make a real difference. Maximise your impact, for example, by owning part of a new wind farm. It can supply you with low-cost green electricity for the long term. Chances are your customers will love you for it too.

“2. CO2 – there’s no excuse for not choosing green electricity anymore. Wind and solar are both the greenest, and now the UK’s cheapest sources of electricity. Make sure you choose a supplier that directly contracts with renewable generators, like Co-op Energy or Octopus Energy.

“3. Cost – price is always going to be important for small businesses, but your electricity needn’t cost the earth. You might be surprised at how affordable green energy is.”

What about the little extras?

Some suppliers provide the power, and that’s it. Others come with an app, all sorts of advice, and a whole host of other things to accompany your business electricity plan. An app can be useful in showing you quickly and easily where your business’s weak-spots for efficiency lie. This will help you make your business leaner by cutting down excessive, and unnecessary, electricity charges.

An example from our guide is Utilita, who we think is the best provider for extras and add-ons. Its partnership with Enterprise Nation means that when you switch your electricity supply to Utilita, you’ll also receive 12 months of free business support.

With so much to think about, it can pay to have some help in the process – and not only for the prospect of potential savings. That’s where business energy brokers can step in, by taking on the hassle of reviewing numerous electricity plans, and freeing you up to focus on other areas of your business. If you’ve read this far, it’ll only take one more minute to send across information about your commercial electricity consumption in order to compare quotes for business energy brokers.


Do small businesses pay more for business electricity than big businesses?

In general, small businesses do pay more for their electricity rates than their larger counterparts.

commercial electricity

The above chart shows that very small businesses paid 16p per kWh for electricity, whereas extra large businesses paid 10p per kWh for electricity in Q3 2020. This is according to the Quarterly Energy Prices 2020 Quarter 3: revision document published by the Department for Business, Energy & Industrial Strategy.

These prices are excluding the CCL (Climate Change Levy), which is one type of environmental tax that your business may be subject to.

As highlighted above, small businesses can expect to pay a lot more for their electricity than bigger businesses. So, as a small business owner, it’s even more important to ensure that you get the best fit for your business when selecting a tariff.

Fortunately, with our quick and easy quote comparison service, we can offer you access to a range of business energy brokers who can help you make the right decision for your business and budget.


Regional business electricity price variation

Electricity prices can vary considerably between regions. This is caused by a number of factors, including the demand for power in the area, and the cost of distributing it.

The figures below are for Bulb’s electricity pricing. While the unit rate varies according to location, Bulb charges a standing charge of 27.40p per day for electricity (which is also the same for its business gas rates too).

AreaElectricity rates (pence per kWh)
East England12.51
East Midlands12.88
London12.05
North Wales, Mersey & Cheshire13.80
West Midlands12.97
North East England12.91
North West England12.84
North Scotland13.79
South Scotland13.06
South East England12.53
Southern England13.02
South Wales13.34
South West England13.64
Yorkshire12.87

How to switch business electricity suppliers, and why

Switching energy suppliers can help your business to save money, as you can find the very best deal for your current energy requirements. It can also help you to avoid being put on out of contract rates, which are often considerably higher than regular tariffs. Learn more with our guide on how to switch your business energy provider.

Price adds: “Businesses tend to switch their energy a lot less often than domestic customers, but the same premise applies – renewal offers from suppliers are often not the cheapest option, so review your contract regularly, and switch if there are better offers out there.”


Summary

We’ve offered a selection of the best business electricity suppliers in the UK, including detailed pricing information. If it’s clear, easy to understand pricing that you’re looking for, Bulb is likely to be your best choice.

Securing a cost-efficient commercial electricity plan has always been important for small businesses, who tend to pay more than large businesses. But with the effects of COVID-19 continuing to be felt on electricity prices, there’s even more reason to keep a close eye on your business electricity costs.

While reviewing unit prices and standing charges can help you to get cheap business electricity deals, you should also consider the type of tariff and any available discounts –  along with how the electricity is measured and charged – when deciding on a plan.

On average, a small business consumes about 17,500+ kWh of electricity each year, costing around £2,715.50+ (based on our annual costs section above). However, if your business is smaller or larger than this, then naturally you can expect to pay more or less than this amount. Where in the country your business is located will also influence the cost.

Startups.co.uk has more than 20 years’ experience of helping small businesses. We’ve used this expertise to create a free quote comparison service that connects you with business energy brokers, who you can task with finding the most cost-effective electricity tariff for your business.


FAQs

How much does electricity cost per month for a business?

Generally, electricity costs are calculated on a yearly basis. However, you could roughly expect to pay between £97.50 and £389.25 per month for electricity, depending on the size of your business. This is based upon the figures in the dedicated annual costs for electricity section above.

How much is electricity for a small business?

A small business is likely to have an annual electricity bill in the region of £1,169.50 to £2,715.50.

Micro businesses (those with nine or fewer employees) are at the lower end of this range, while small businesses with 10-49 employees can expect to be lumped with the higher price point. See our annual electricity costs section for more detailed information, and which these figures are based upon.

Are business electricity rates cheaper than domestic?

The unit rates for business electricity tend to be cheaper than domestic ones. However, businesses usually pay more VAT (20%), while domestic customers are charged less (5%). Businesses are also subject to the Climate Change Levy (CCL), although there are certain exemptions for both VAT and the CCL.

Why is my business electricity bill so high?

There are several reasons why your electricity bill could be high. You could be on a fixed term tariff with a higher rate, or you could be on a deemed/out of contract plan if you’ve just moved into a premises and haven’t set up a new energy supply yet.

If you’re already experiencing expensive electricity bills, why not consider using a business energy broker to help you find a better deal? With only a few details about your business, we can pair you with brokers who could help you to get your business electricity bills back on track.

Scarlett writes for the energy and HR sections of the site, as well as managing the Just Started profiles. Scarlett is passionate about championing equality and sustainability in business.

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