Compare large and industrial business energy prices

Large and industrial businesses typically consume significantly more energy than small and micro businesses. 

This increased demand often comes from operating across multiple premises, employing larger teams, or the use of heavy, power-hungry machinery. If this sounds like your business, then energy costs could make up a big portion of your monthly outgoings. 

Managing energy efficiently is crucial for keeping overheads under control and ensuring sustainability. Making sure you're on the cheapest possible rates is also a quick and easy way to keep down the cost of your energy bills.

Here’s everything you need to know about finding the best large business energy rates and cutting costs if your business uses high volumes of gas and electricity.

What is a large or industrial business? 

For energy purposes, the classification of a business as "large" or "industrial" depends on its annual usage.  You are likely to be considered a large or industrial operation if your business uses more than: 

• 55,000 kWh of electricity per year 
• 200,000 kWh of gas per year 

If you use energy on this scale, your business energy bills can make up a large part of your operating expenses.  In which case, choosing the right large business electricity plan is essential for reducing costs.  

While the process may not be as simple as comparing residential energy rates, our commercial energy supply comparison services can help simplify the process. 

What large and industrial business energy contracts are available? 

The right contract for your business depends on factors such as size, location, and energy consumption. Here are the main options available: 

• Fixed-rate contract: Lock in the unit price of energy for a specific period (1-4 years). This is best for businesses seeking stability and protection from market fluctuations. 
• Flexible rate contract: Rates vary based on wholesale energy prices. This is best for businesses willing to adapt to potential market volatility for savings. 
• Interruptible contract: Agree to temporary supply interruptions during peak demand in exchange for lower rates. This is suitable for large industrial businesses with backup energy sources. 
• Pass-through contract: Pay fixed wholesale energy costs while other charges (e.g., distribution) vary.  Suitable for businesses aiming for transparency and partial rate control. 
• Large site peak day demand contract: Limits daily energy consumption to a predefined threshold, with penalties for overages. Often best for businesses committed to reducing energy consumption. 

For more information, check out our guide to business energy tariffs. 

Do you need a half-hourly electricity meter? 

A half-hourly electricity meter automatically sends energy usage data to your supplier every 30 minutes. This system provides more accurate readings and often leads to cost savings. 

Benefits of half-hourly metering: 

• Accurate bills: Eliminates estimated readings and ensures you only pay for what you use
• Energy insights: Track usage trends to tailor your large business energy plan to peak and off-peak needs
• Regulatory compliance: Businesses consuming over 100kW/hour are legally required to have these meters. 

Even if your usage exceeds 70kW/hour during peak periods, installing a half-hourly meter is recommended. It enhances accountability and simplifies the process when you compare large business energy suppliers. 

Understanding P272 regulations 

P272 is a regulation by Ofgem, the energy regulator, that mandates half-hourly settlements for businesses with certain energy meter profiles (05-08). The goal is to create a balanced electricity grid and improve billing accuracy. 

Key points about P272: 

• Affects businesses with older non-half-hourly meters 
• Promotes better energy price estimation for suppliers, which may lower costs for businesses
• Ensures all bills are based on actual meter readings, eliminating inaccuracies. 

Check the S number on your Meter Point Administration Number (MPAN). If it falls within the 05-08 range, your meter should give half-hourly readings. 

Does your large business need a multi-site energy contract? 

If your business operates across multiple properties, consolidating energy contracts can simplify billing and reduce costs. 

Benefits of a multi-site energy contract: 

• Streamlined management: A single bill covers all locations. 
• Cost efficiency: Suppliers often offer discounts for bundled contracts. 
• Time saving: Reduces administrative complexity. 

By opting for a multi-site deal, you can better manage your large business energy management strategy while focusing on growth. 

Other considerations for high-energy consumption businesses 

The energy market introduces several factors that can influence the cost of energy for businesses with a high demand. 

• Peak demand charges: Peak demand refers to times when energy usage across the grid is highest. Suppliers pay more to distribute energy during these periods, often passing these costs on to businesses. It can help to shift non-essential operations to off-peak hours to minimise peak demand charges. 
• Maximum daily quantity (MDQ): Large businesses may face restrictions on how much energy they can draw daily from the National Grid. Exceeding this limit incurs penalties. 

If your business uses over 732,000 kWh annually, you might qualify for a “large supply point,” which could provide additional allowances. 

What if your business energy supplier goes bust?

If your business energy supplier goes bust, you'll automatically be placed with another supplier that is chosen by Ofgem, the energy regulator. If this happens, you won't tied in and can arrange a fixed deal with that supplier or switch to a new supplier. 

The role of large business energy management 

Effective energy management is more than just selecting the right plan. It involves: 

• Monitoring usage: Track energy consumption in real time to identify inefficiencies. 
• Implementing sustainability practices: Reduce reliance on fossil fuels and explore renewable energy options. 
• Optimising contracts: Regularly review and renegotiate contracts to adapt to changing needs. 

But when energy demand is on an industrial scale, finding the right contract can be complex. Especially if you have multiple meters.  

Managing energy costs effectively is critical for large and industrial business energy consumers. By understanding your usage patterns, leveraging modern metering technology, and choosing the right contract, you can secure the best large business energy plan for your needs. 

How to compare large business energy prices 

Choosing the right energy plan is critical for reducing overheads. When you compare large business energy suppliers, consider: 

• Current energy consumption: Understand your usage patterns with accurate data from half-hourly meters
• Energy contract type: Select a contract that aligns with your operational needs and risk tolerance 
• Supplier reputation: Look for providers known for excellent customer service and competitive rates. 

When you compare quotes and switch with MoneySuperMarket, our partners at Bionic also offer the following services for high-consumption businesses:

Tailored energy solutions for high-usage businesses

If your business uses a lot of energy, a standard tariff probably won’t cut it. That’s where our bespoke procurement service comes in. As a high-energy consumption business, suppliers compete to give you their best rates, tailored to how and when your business uses energy.

You’ll get a dedicated energy expert who’ll:

• Contact your supplier to confirm your meter setup and exact usage
• Use your half-hourly data to request accurate quotes from large business energy suppliers
• Talk you through your options and help you pick the right deal
• Handle the switch and keep you updated from start to finish

Bill checks that catch errors before they cost you

Even with half-hourly meters, billing mistakes can happen. That’s why we offer a bill validation service. It automatically reviews your invoices using real usage data and contract details to make sure everything adds up. If something isn't right, we’ll flag it and help get it fixed.

Smarter metering options

Your supplier may appoint a meter operator and data collector, but they might not be the most cost-effective. We’ll help you explore better-value options to reduce costs and get clearer insights into your energy use.

Multi-site made simple

Running a business across several locations? We can help you line up one contract, one end date, and one simple bill – or tailor a plan to keep things separate if that works better.

To make switching simple, we've teamed up with Bionic. Their energy experts will find energy contracts tailored to your unique requirements. 

The Bionic team can access insights tailored to large and industrial business energy needs. They also offer a bespoke procurement service, which means you’ll be given a specialist business energy manager who can help you with the procurement process 

To find out more, contact the business energy experts on 0800 140 4667 or request a callback.