Business electricity prices
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Business electricity rates for December 2023. The table below shows the current business electricity rates as indicative averages on a one-year fixed contract business electricity rates for December 2023.
|Size||Annual Consumption kWh||1 Year fixed elec rate p/kWh|
|Small||10,000 to 50,000||27.3|
|Medium||50,000 to 100,000||25.3|
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Important note: The information above is based upon the latest published wholesale electricity data but does not represent live electricity prices. Business electricity rates change daily and are location dependent. Use our business electricity prices comparison for your business today.
Source: The above data has been compiled using the following:
The average business electricity rates in 2023. The table below shows the average one-year fixed business electricity rates offered in 2023 compared to those over the previous two years.
|Size||Annual Consumption kWh||2021 average rates p/kWh||2022 average rates p/kWh||2023 average rates p/kWh|
|Small||10,000 - 50,000||14.62||53.37||27.41|
|Medium||50,000 - 100,000||11.89||51.37||25.42|
Data source: The information above is based upon the latest published wholesale electricity data published on the ICE exchange and average non-commodity costs measured using AquaSwitch quoting data.
The table shows average business electricity rates since the start of 2023; however, the rates have gradually decreased this year, and cheaper rates are now available in the market.
A good rate for business electricity, let’s review typical commercial electricity rates. Government energy prices publications show that between 2009 and 2019, the UK manufacturing industry spent between 7 and 10p/kWh on electricity – about 70% cheaper than today’s prices.
Unfortunately, these low historical prices are no longer available due to the continued restriction of Russian gas supply into Europe. See the latest business electricity rates in the table above.
We cannot predict what will happen to electricity rates in the future. Still, we can tell you the best prices today with our business electricity comparison service.
Average business electricity prices have fallen significantly in 2023 but have been largely stable since June 2023.
Unfortunately, most businesses haven’t felt any benefit from these falling prices as the government’s Energy Bill Discount Scheme ended in March 2023.
The recent stability in energy prices does mean that business electricity suppliers are starting to offer significant discounts on their fixed tariff products. It’s a great time to find out what deals are available to your company; start by simply entering your business postcode below.
Here is a graph with current business electricity rates per kWh and how they’ve changed over the last eighteen months. Our experts update this graph weekly based on the latest wholesale electricity prices.
Source: Wholesale electricity rates on the National Grid published by the ICE exchange.
Getting your company the cheapest business electricity rates can feel complicated. Two steps will help you achieve cheaper business electricity prices:
Start with getting the most competitive deal on business electricity. There are many business electricity suppliers, all competing to offer the cheapest quotes.
Comparing quotes from various providers is essential to get the cheapest business electricity rates. Provide an estimated annual consumption to get accurate business electricity quotes.
Secondly, using electricity efficiently is vital, whichever deal you choose you’ll pay for each kWh of electricity your company uses. Easy steps like using timers to turn off office equipment and energy-efficient light bulbs will immediately reduce electricity bills. Check out our full guide on electricity-saving tips.
Understanding your business electricity bill can be complicated. On the final page of your bill, your supplier will give you a ‘details of charges’ section showing how each element of your business electricity rates has been calculated.
To help demonstrate how business electricity rates work, our in-house experts have built a handy business electricity rates calculator below. Start by entering a few details about your business electricity supply.
Business electricity rates paid to your commercial electricity supplier will come in five separate elements. The business electricity rates calculator will assess each based on your inputs. Here’s an explanation of each element of business electricity prices:
Commercial electricity suppliers offer a variety of business electricity tariffs that depend on your company size and also change in price daily due to fluctuations in the electricity market.
The best business electricity rates available depend on the following factors:
To see the best business electricity rates tailored for your business, we recommend that you use our business electricity comparison service.
Get the best business electricity deals today.
The key factors that affect business electricity prices as a whole and for your business are:
You can compare business electricity prices with the AquaSwitch service.
The most significant factor determining business electricity rates is how much energy your company uses—all business electricity tariffs charge for each kWh of electricity consumed as measured by your meter.
As a guide, here are the annual figures for the average business electricity usage, according to recently published government statistics.
|Business Size||Average Annual Electricity Consumption (kWh)|
|Average British Home||2,900|
Our business energy experts have identified and answered the most common questions surrounding business electricity prices.
Our latest business electricity rates table above gives a weekly update on the average one-year fixed electricity prices currently available in the market.
These rates are just an average. Find out the electricity rates available for your business today using our business electricity comparison service.
The average business electricity bill in the UK is £1,200 per year. However, this varies from business to business depending on several factors, including the size of your company, location, and usage.
For a more detailed, accurate view at AquaSwitch, we update the business electricity rates per week. You can find the latest data on business electricity prices above.
Please use your business size, consumption and electricity rates per kWh to calculate an accurate calculation.
According to the government Department of Business, Energy and Industrial Strategy, the average home consumes 3,600 kWh, whereas even small businesses typically use 20,000 kWh annually – over five times more.
As with purchasing any goods, the more you buy, the cheaper price you can negotiate. Businesses generally consume much more electricity, so they benefit from better rates for buying electricity in bulk.
For businesses that consume over 100,000 kWh of electricity, suppliers provide bespoke business energy quotes offering lower electricity rates. The latest government energy prices publication shows that the average large business paid 5p/kWh less than the average micro business.
Unfortunately, it’s not all good news for business electricity rates. There are a few reasons why business electricity can be more expensive than an equivalent domestic supply. Read on for more information.
Some businesses pay cheaper off-peak electricity rates after 6pm, benefiting from the reduced demand for electricity in the evenings.
However, businesses can only benefit from cheaper evening off-peak rates if they have one of the following energy meter types that supports measuring electricity consumption at different times of the day:
Secondly, checking the precise terms of your business electricity tariff is necessary. Your tariff will define what times of the day you will pay cheaper off-peak rates. On some tariffs, off-peak rates may start at 6pm, while others will start later in the evening.
Commercial electricity prices can be more expensive than consumer prices due to two additional charges that businesses need to pay:
Additionally, out-of-contract commercial electricity rates are not protected by a business energy price cap, whereas domestic electricity rates are. Deemed contract rates in business electricity are typically much more expensive than the equivalent household rates.
Here are the steps we suggest to take to ensure you get the latest information on business electricity rates:
The annual cost of commercial electricity for a small business can depend on a number of factors. These include:
A general rule of thumb, small businesses can expect to pay between £1,000 and £5,000 per year for commercial electricity.
At AquaSwitch, we don’t want you to generalise this, above, we have the latest business electricity rates for you to calculate your annual cost of electricity.
Simply take your annual usage and calculate the cost by multiplying the price per kWh next to your business size to get an accurate idea.
A small business that uses 15,000 kWh annually:
15,000 x 25.5p = £3,825 annually.
If you want an exact quote, you can request the latest business electricity prices above.
Yes, business electricity prices depend on where your commercial property is located in the country.
Britain has six distribution network operators (DNOs), each operating its own local network of power cables, substations and transformers.
Included within business electricity rates are the distribution costs charged by the local DNO. Some DNOs are more expensive than others, making business electricity prices dependent upon your region.
A kWh is a “Kilowatt-hour”, a measurement unit used by utility companies to monitor how much electricity (or gas) business premises has consumed. A kilowatt (kW) is a universal measure of electricity usage.
kWh is always quoted on your business electricity bills and shows you exactly how much you have used.
Here’s our full article on calculating business electricity consumption.