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Business electricity rates – April 2025
We present the average one-year fixed business electricity prices currently offered by our panel of trusted energy suppliers.
| Size | Annual Consumption kWh | 1 Year fixed elec rate p/kWh |
|---|---|---|
| Small | 10,000 to 50,000 | 23.0 |
| Medium | 50,000 to 100,000 | 21.0 |
| Big | 100,000 + | 20.8 |
These prices reflect the average for British businesses. Business electricity rates depend on annual consumption, region, and connection capacity. Get bespoke rates for your business today.
Source info: Our business electricity prices data has been compiled using:
- Wholesale electricity rates on the National Grid published by the ICE exchange.
- Three-month rolling average non-commodity rates offered in the commercial electricity market.
Average business electricity rates in 2025
The average business electricity prices in 2025. The table below shows the average one-year fixed business electricity rates offered in 2025 compared to those over the previous three years.
| Size | Annual Consumption kWh | 2022 average rates p/kWh | 2023 average rates p/kWh | 2024 average rates p/kWh | 2025 average rates p/kWh |
|---|---|---|---|---|---|
| Small | 10,000 - 50,000 | 53.37 | 27.29 | 23.51 | 24.98 |
| Medium | 50,000 - 100,000 | 51.37 | 25.30 | 21.49 | 22.98 |
| Big | 100,000 + | 51.17 | 25.09 | 21.30 | 22.78 |
Data source: The information above is based upon the latest published wholesale electricity rates published on the ICE exchange and average non-commodity costs measured using AquaSwitch quoting data.
Current business electricity rates
Here is a graph with current commercial electricity rates per kWh and how they’ve changed during 2025. 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.
Get the latest small business electricity prices
Small business electricity prices typically include a fixed unit rate per kWh of electricity consumed and a daily standing charge.
At AquaSwitch, we offer a free, no-obligation comparison service to help you find the best small business electricity rates on the market. Here’s how it works:
Enter your business postcode
Enter your postcode, along with a few details about your commercial property, and we’ll search the market for the latest prices.
Compare fixed electricity prices
Compare your renewal quote against the best business electricity prices offered by our panel of suppliers to see how much your business could save.
Complete a simple switch
Our experts will manage a seamless transition of your electricity tariff to your new supplier, ensuring you benefit from lower business electricity rates.
What is a good rate for business electricity per kWh?
Before COVID-19 and the conflict in Ukraine, government publications reported that most businesses paid less than 10 pence per kWh for electricity. Unfortunately, these historically low prices are no longer available due to the continued restriction of Russian gas supplies into Europe.
In 2025, a good rate for business electricity is between 20 and 23 pence per kWh.
The electricity market is volatile, with prices changing daily. Use our business energy comparison service to request quotes from our trusted suppliers and secure the best business electricity rates available today.
Current trends in business electricity prices
Over the past year, business electricity prices have remained persistently high at around 20 pence per kWh.
Electricity prices remain high due to the national grid’s reliance on expensive natural gas imports. Approximately a third of Britain’s electricity is generated using natural gas imported from:
- European gas – Since the outbreak of the conflict in Ukraine, Russia has starved Europe of its usual plentiful and cheap supply of natural gas, pushing up prices.
- Liquid natural gas – To compensate for the reduced availability of Russian Gas, the UK has started to import expensive LNG by ship from the USA and Qatar.
Market analysts anticipate that business electricity prices will remain largely unchanged for the remainder of 2025 and into the first half of 2025.
Although business electricity prices are expected to remain stable in 2025, global events, such as escalations in the conflicts in Ukraine and Gaza, could rapidly increase energy prices again.
Business electricity prices per kWh
All business electricity rates include a charge for each kWh of electricity consumed at a commercial property.
Our latest business electricity prices table displays the current market rate for 1 kWh of electricity.
The following factors influence the unit rate per kWh in business electricity tariffs:
- Wholesale Energy Prices – The wholesale cost of business electricity, determined by supply and demand economics, plays a significant role in unit costs. Changes in power generation availability, weather conditions, and the European energy market all impact wholesale energy prices in Britain.
- Distribution and Transmission Costs – These costs cover the maintenance, operation, and development of the national grid and regional distribution networks. Distribution costs vary depending on the location of your commercial property.
- Environmental and Renewable Obligations – Government-imposed schemes to promote renewable energy and reduce carbon emissions can influence electricity prices. Costs related to initiatives such as the Renewables Obligation (RO) and Contracts for Difference (CfD) are passed on to consumers.
- Supplier Margins – Business energy suppliers incorporate operational costs, customer service expenses, and profit margins into their unit prices per kWh.
- Contract Terms and Length – The terms and length of your electricity supply contract can impact the unit costs. Fixed-rate contracts provide price stability, while variable contracts are subject to market fluctuations.
- Consumption Profile – Your business’s electricity usage pattern, including peak demand, load profile, and consumption volume, can affect unit costs.
We recommend requesting tailored quotes based on your specific address and energy consumption to get accurate and up-to-date information on business electricity prices. Start by entering your postcode above.
Business electricity rates explained
This section summarises the four types of business electricity rates typically included within business energy contracts.
Unit electricity charge
In all business electricity tariffs, the amount you pay depends on how much electricity your company consumes, as recorded by meter readings.
The electricity unit rate is shown in pence per kilowatt-hour (kWh). For example, it could be 25p/kWh.
Your electricity unit charge will be calculated by multiplying the kWh of electricity used by the unit rate defined in your contract.
Daily standing charge
A standing charge is a fixed daily fee on your electricity bills regardless of your electricity consumption.
A fixed standing charge covers maintaining your connection to the local electricity distribution network and renting your business energy meter.
The standing charge is quoted in pence per day. For instance, 30p/day. For more information, here’s our complete guide to the business energy standing charge.
Capacity charges
Capacity charges are incurred by any business equipped with a half-hourly electricity meter.
These charges are levied by your local electricity distribution network provider to ensure a guaranteed power capacity for your electricity supply, measured in kVA (kilo-volt-amps).
The capacity charge on your business electricity bill will be listed as a fixed daily charge per kVA of maximum import capacity on your business energy connection.
Please refer to our guide on maximum demand meters for further information.
Taxes and Levies
The UK government levies two taxes on top of business electricity charges, as follows:
- VAT at the standard rate – Business electricity rates incur a value-added tax fee of 20% on all electricity charges. Note that most businesses are VAT registered and eventually recover their paid VAT as part of their quarterly VAT returns.
- Climate change levy – Businesses pay an additional tax called the climate change levy (CCL) on top of all electricity bills. The climate change levy is currently charged at 0.775p/kWh.
These additional charges will appear as separate lines on a business electricity bill and are paid directly to your business electricity supplier.
💡In small business energy companies are exempt from the CCL and pay VAT at the reduced rate of 5%.
Business electricity rates calculator
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.
Calculating business electricity charges
Business electricity charges paid to your commercial electricity supplier have five separate elements. Our business electricity rates calculator will assess each based on your inputs.
Click each link for more information:
Best business electricity prices
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How to get the best business electricity rates
Commercial electricity rates are unpredictable, changing daily due to fluctuations in the energy markets.
Despite the uncertainty of future prices, there are two key things to know about business electricity rates:
- Electricity suppliers offer their most competitive prices as fixed electricity quotes to attract new customers.
- Out-of-contract rates are not protected by a price cap and are often unnecessarily expensive.
The table below shows the difference between available fixed contracts and out-of-contract rates:
| Contract type | Unit charge per kWh | Daily standing charge |
|---|---|---|
| Available fixed contracts | 20 - 25 p/kWh | £0.40 to £1.00 |
| Published deemed rates | 35 - 40 p/kWh | £2.00 to £3.00 |
Source: Published deemed business electricity rates for non-half-hourly non-domestic customers reviewed in July 2024.
If your fixed business electricity rate has expired, we recommend comparing business electricity rates to secure significantly lower rates.
Do business electricity prices vary by region?
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.
Are business electricity rates cheaper after 6pm in the UK?
Businesses can 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:
- Smart electricity meter
- Half-hourly meter
- Two-rate meter (supporting an Economy 7/10 tariff)
- Three-rate meter (Supporting an Evening, Weekend and Night tariff)
It is also necessary to have an off-peak tariff with your business electricity supplier.