Compare Business Electricity Rates

Business Electricity Rates FAQs

• Can I Switch To A No Standing Charge Tariff?

  No standing charge tariffs have not been available for a few years. However, they may come back in the future. 

  Many providers will not offer an electricity tariff with a zero standing charge with a competitive kWh cost putting many businesses off. 

  No standing charge tariffs can benefit businesses which operate seasonally and those that open just a few days a week.

• Is Business Electricity Cheaper Than Domestic?

  Business electricity prices are cheaper than domestic. This is because providers usually only buy your supply of electricity once the new contract has been agreed upon.

  This means that if the company agrees to a 4-year contract, the supplier will purchase the electricity to cover the full contracted period.

• How Can Energy Management Systems Help My Business?

  Companies can lower expenses by reducing consumption and introducing energy-efficient products. Innovations together with software help manage usage and maintain visibility reporting.

  The Carbon Trust estimates that investing in efficiency annual savings of between 10% and 20% are achievable throughout the company.

• What Does ‘kWh’ Mean?

  A kilowatt hour (kWh) is the name given to a unit of energy and is the standard unit. This is a metric used to calculate usage and cost. 

  This is calculated on a price per kWh basis. 1 kWh would approximately equate to using a desktop computer for 3 hours or boiling a kettle 10 times.

• What Is The VAT Rate On Business Electricity?

  The standard VAT charge on business electricity is 20%. Some companies may be eligible for a discount to 5% (non-profits). 

  Our VAT on Business Electricity guide explains this in more detail.

   

• Are Business Electricity Rates Cheaper At Night?

  You can get cheaper business electricity rates at night if you have a multi-rate meter. 

• How Long Does It Take To Switch Business Electricity?

  We’ll aim to switch you to your new supplier within 5 working days. 

  
  
  

• What Is Classed As A Large Business? 

  You're considered a large business if you consume more than 55,000 kWh of electricity per year. 

   

• What Is A Meter Point Administration Number (MPAN) Used For?

  MPAN is short for Meter Point Administration Number. This is a unique identifier that is assigned to each electric meter. These numbers are 21 digits long and can be found on your business electricity bill or on your meter. 

  You can read more about MPAN numbers here. 

• What Is The Difference Between a Small Business And A Micro Business?

  A micro-business is defined by the EU as having less than ten employees or a turnover of less than £1.8 million. This definition would cover most of the 4.4 million businesses operating in the UK.

• How To Reduce Small Business Electricity Bills?

  Reducing consumption, switching suppliers and direct debit discounts are the easiest ways to save money on business electricity. 

  A great way to reduce the cost of business electricity is to conduct a business electricity audit.

• How To Set Up Business Electricity for The First Time?

  There are four main steps to setting up your business’ electricity. These are:

  1. Locate your meters and take a reading – This is the first task you should complete when you move into your new business premises. Take an electricity meter reading will measure the energy you’ve used since entering the property and help ensure that your future bills are accurate.

  2. Find out your current supplier – Once you’ve recorded the meter readings, you’ll need to provide them to the building’s current energy supplier. You can find out who this is by enquiring with the property seller or the previous tenants. Alternatively, you can use the Meter Point Administration’s online tool to find out your gas supplier and use the Energy Networks Association tool to find out who supplies your electricity. These services will also be able to inform you of your MPAN and MPRN.

  3. Choose a tariff – Your business electricity needs may be different to your building’s previous owners, so you should consider the different types of tariffs available. For example, you can choose between fixed-rate contracts, variable-rate contracts, multi-site contracts, and Economy 7 and Economy 10-meter tariffs. 

  4. Compare deals – Finally, once you have an idea of the type of contracts your business requires, you can compare business electricity tariffs to find the best deal. 

• What Costs Make Up Business Electricity Prices?

  Your business electricity bill includes the following:

  • Unit rate (charged in pence per kWh)
  • Daily standing charge (charge at a rate of pence per day)
  • VAT at 20%
  • Climate Change Levy (CCL)

  The unit rate is used to calculate how much electricity has been used. A daily standing charge will be added to the annual total. For example, a standing charge of 50p would be multiplied by 365 days, making an annual cost of £182.50.

  Businesses will pay the standing charge regardless of how much energy they have used that day.

  VAT will be applied to the business electricity bill at a standard rate of 20%. Non-profit businesses may be eligible for a discounted VAT rate.

  Businesses will also be charged a Climate Change Levy (CCL). This is a 'green tax' charged at 0.775p for electricity for the period April 2023 to March 31st 2024.

• How To Get The Best Electricity Quotes For My Business?

  To get the best electricity quotes for your business, start by understanding your energy needs. Look at different energy suppliers, and compare rates, contract terms, and customer reviews. Choose a reliable supplier with favourable contract terms that align with your business goals.

  Check unit rates and additional charges to find the most cost-effective option. Consider renewable energy choices if sustainability matters to your business. You can also get government support if your sustainability goals align with grant guidelines.

  You need to prioritise good customer service for quick issue resolution. Negotiate terms with suppliers and seek advice from our Business Electricity Prices expert team to navigate the process efficiently. 

  Following these steps will help you secure the best electricity quotes to suit your business needs.

• What Should I Include In My Contract Termination Letter?

  Below is an example of a termination letter template:

  To Whom It May Concern,

  To: Your electricity supplier’s address
  From: Your name, company name and registered business address

  Please accept this letter as formal notice of the termination of the electricity contract [contract number]. This notice is for meter numbers MPAN/ MPRN, registered at the address quoted at the top of this document. This termination notice is set out per the terms and conditions of the contract and is to take effect as of the contract end date.

  Please confirm in writing you have received this notice of termination.

  Yours faithfully,
  Your name.
  Your role.
  Your Company Name.

  Your Signature.

• How Much VAT Is Paid On Commercial Electricity Rates?

  A standard VAT rate of 20% is applied to business energy. Some businesses may be eligible for a VAT reduction. You can read more about VAT on electricity bills here.

• What Is Voltage Optimisation?

  Voltage optimisation helps save money on their business electricity bills by improving the efficiency of electrical devices.

  To alleviate electricity wastage, all electricity-related equipment is rigorously assessed to determine how its power use can be streamlined for a more cost-efficient business. 

  Smaller domestic voltage optimisers cost much less. For business and commercial grade voltage optimisers, you can expect to pay around £1,500. 

   

• How Much Does It Cost For A Business EV Charging Point?

  Costs start at around £1,000 (including VAT) to install an electric vehicle charging point. 

  This includes the assumption that you acquire a grant from the Government’s Office for Low Emission Vehicles.

  Read more here.