BUSINESS ELECTRICITY COMPARISON

Sorting out business electricity costs can feel like a chore, especially when it’s not as straightforward as switching your household energy. But don’t worry—getting the best deal on business energy prices doesn’t have to be a hassle. With a bit of know-how and the right approach, you can cut costs, find the best business electricity supplier, and keep your energy expenses under control. 

Here’s everything you need to know about business electricity rates and tariffs, as well as how to get the best deal for your business. 

Business electricity prices work differently from domestic rates because commercial energy use is more complex. Even if two businesses look the same on paper - operating from a high street premises with five employees - if one is a salon and one is a takeaway, how and when they use energy will be very different.

That's why you can’t just hop onto an off-the-shelf tariff like you would at home. Instead, your business electricity rate is tailored to suit: 

• The type and size of your business 
• The size of your premises 
• Your estimated electricity use 

For example, if you’re running a small shop, your electricity demands will look very different from a factory or office building. And if you’re a large business with high electricity needs, you might even need a half-hourly meter to track your energy use in real-time. 

If you've got more than one site, you’ll likely need multiple meters. A quick call to an energy expert can help you sort out the best business electricity tariffs for multi-site businesses. 

So, what’s the typical cost of business electricity rates per kWh? It depends on how much energy your business uses. Here’s a quick guide to the latest business electricity prices by business size: 

May 2025 business electricity usage, rates, and bills

^{Note: Prices are correct as of May 2025. 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 on contracts sold by Bionic from May 1 to May 6, 2025.}

These are averages, so your actual business electricity costs might be higher or lower depending on factors like your location or energy efficiency. 

When comparing business electricity deals, you’ll notice suppliers typically offer two types of tariffs: fixed-rate and variable-rate. Most peoople opt for a fixed tariff as rates are usually cheaper and they help protect against price volatility. 

Here are the main differences between the main two types of business energy contracts:

Fixed-rate tariffs 

• Lock in your business electricity rates for the length of your contract (usually 1–5 years) 
• Great for budgeting since your per-unit price stays the same 
• Shields you from market price hikes 

Variable-rate tariffs 

• Rates go up or down depending on wholesale market changes 
• You might save if prices drop—but your bills could rise if prices climb 

Most businesses prefer fixed rates because they’re predictable. But if you like flexibility and don’t mind a bit of risk, variable rates could work for you.

But before you commit to any energy contract, you need to make sure it's right for your business. And you need to consider things like when you use energy. If you use most power out of 'normal' business hours, then a time-of-use tariff could be a good option as it will offer lower rates during times when there is less demand.

Shopping around and comparing quotes from a range of suppliers is the key to finding the best business electricity rates. But calling multiple suppliers, explaining your needs, and jotting down quotes can be time-consuming, especially if you need quotes for both business gas and electricity.

But using a comparison service to do the heavy lifting can save you time and hassle. A quick call or online search lets you compare rates from top business electricity suppliers in minutes. 

We use smart data to cut the amount of form-filling you need to do, but it might help if you have the following to hand when you get started: 

• Your current supplier and tariff details 
• How much electricity your business uses annually (check your bill) 
• The type of meter you have 

Once we've compared rates, we'll talk you through the quotes to make sure you're completely happy. You then choose the supplier you like best and we'll support you with the switch.

What factors affect business electricity prices? 

Your business electricity rate is influenced by a mix of factors: 

• Business type: Energy-intensive industries pay more 
• Location: Distribution charges vary across region 
• Tariff type: Fixed, variable, or bespoke tariffs impact pricing 

Unlike domestic energy, business electricity prices don’t have a price cap, so they’re more affected by market changes. That's why it's important to compare quotes and fix your rates before your current deal ends and your supplier rolls you on to its more expensive out-of-contract rates.

Switching suppliers isn’t quite as fast for businesses as it is for households. You’ll need to wait for your current contract’s renewal window—typically the last 6 months of your deal. 

If you’re a microbusiness, it’s easier. Ofgem rules let you give notice to switch at any point in your contract.

If you're out of contract, switching business electricity suppliers can take as little as five days if you run a microbusiness, or up to four weeks for any other sized business. The timeline depends on your current contract’s end date and the size of your business. 

While you can line up a new contract as soon as your switching window opens, your new supplier won’t start supplying your business until your current contract ends. 

And remember, when you switch, there won’t be any interruptions in your supply. 

The savings can vary depending on your business type and energy use, but if you’ve been with the same supplier for years, you’re probably overpaying. Many businesses can save just by switching from their supplier’s out-of-contract rates to a more competitive business electricity tariff. 

Electricity prices have been volatile in recent years but the market seems to have calmed over the last 12 months. Even so, prices are still much higher than pre-Covid levels and are now rising steadily.

Businesses often feel the pinch more than households because there’s no price cap. To protect your business, focus on locking in a good deal with a fixed-rate tariff or improving energy efficiency to cut your usage.

Running a business electricity comparison with MoneySuperMarket is a quick and easy way to find a cheaper energy deal. Once that's sorted, you should look at ways to make your business more energy-efficient and cut your usage. Here are a few simple ideas to get you started:

• Invest in energy-efficient tech: Switch to LED lighting, install energy-rated appliances, and consider smart thermostats to optimize your energy use.  
• Upgrade your premises: Insulate your building, upgrade windows to double glazing, and seal any draughts.  
• Optimise heating and cooling: Turning the thermostat down by just 1°C can save a surprising amount of energy.  
• Get an energy audit: Identify inefficiencies in your energy use and make the necessary changes.