Business Energy Comparison

Compare December 2023 Energy Rates and Save up to 45% Today

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  • Receive competitive quotes in minutes
  • Compare trusted UK based suppliers
  • Best fixed energy rates from our experts

Compare business energy from our trusted suppliers

We compare the business energy deals offered by various trusted business energy suppliers. We compare the business energy prices of these big brands:

Business energy comparison
Business energy comparison
Business energy comparison
Business energy comparison
Business energy comparison
Business energy comparison
Business energy comparison
Business energy comparison

Compare business energy prices – December 2023

The table below shows indicative averages on a one-year fixed contract on business energy rates for December 2023.

SizeAnnual Consumption kWh1 Year fixed gas rate p/kWh1 Year fixed elec rate p/kWh
Small10,000 to 50,0009.127.3
Medium50,000 to 100,0008.625.3
Large100,000 +8.425.1

Important note: The information above is based upon the latest published wholesale energy data and does not represent live energy prices. Business energy rates change daily and are location-dependent. To get energy rates available to your business today, enter your postcode above using our business energy comparison tool.

Source: The above data has been compiled using the following:

  • Wholesale energy rates on the National Grid published by the ICE exchange.
  • Three-month rolling average non-commodity rates offered in the commercial energy market using AquaSwitch quoting data.

Business energy rates are falling

Business energy rates have fallen significantly since their peak in Autumn 2022. The chart below shows how business energy rates per kWh have changed over the past year.

Following the energy crisis, many businesses are paying standard variable default rates. Business energy suppliers are now offering significant discounts on one-year fixed tariffs. Get quotes tailored to your business today with AquaSwitch; simply enter your business postcode into our address finder below.

Graph of current business energy rates - 29 November 2023 update

Source: Wholesale energy rates on the National Grid published on the ICE exchange.

Government support and business energy comparison

To help businesses in the energy crisis, the government introduced the Energy Bill Relief Scheme to protect companies during the crisis, which automatically discounted business energy bills. The Energy Bill Relief Scheme came to an end on 31 March 2023 and was replaced by the far less generous Energy Bill Discount Scheme; here’s a summary of how it works:

Period of support: 1 April 2023 to 31 March 2024.
Types of properties: All non-households.

Applicable tariffs: Fixed energy contracts entered into after 1 December 2021, all deemed contracts and out-of-contract tariffs.

The scheme offers an automatic discount of 2.0 p/kWh for electricity and 0.7p/kWh for gas but only applies to expensive contracts agreed upon at the height of the energy crisis.

Most businesses will no longer benefit from government support, so securing competitive energy rates is more important than ever. Compare business energy rates with AquaSwitch today.

Any business is eligible for the energy bill discount scheme as long as its current business energy contract was agreed upon after 1 December 2021 and the wholesale cost of energy in the tariff exceeds the:

  • 30.2 p/kWh for electricity; or
  • 10.7p/kWh for gas

Why are business energy prices so high?

Business energy prices fell sharply at the start of 2023 but have recently plateaued to approximately double the historical average. These prices continue to be impacted by the ongoing conflict in Ukraine for the following reasons:

  • Reliance on Russian gas – Europe has become highly reliant on Russia’s cheap natural gas supply in the last twenty years. Russia is the world’s largest gas producer, most of which was exported through pipelines into Europe.
  • Economic sanctions – The conflict in Ukraine has resulted in economic sanctions between the West and Russia. These sanctions have caused considerable restrictions on the supply of gas into Europe. To replace this supply, Europe now relies on expensive imports of Liquid Natural Gas from the Middle East and America, pushing up the wholesale price of gas.
  • Using gas to produce electricity – The British National Grid relies on gas-fired power stations to generate a base-load of electricity. The increased cost of gas has, therefore, directly pushed up the price of electricity.

For a comprehensive answer, check out our guide to why business electricity is so expensive.

What is the average business energy bill?

Business energy bills vary wildly in their size. Small hairdressers will pay a few hundred pounds monthly, whereas an aluminium smelting plant will pay millions. The key point here is that businesses pay for each kWh of energy used, and these consumption charges make up the biggest part of business energy bills.

According to the most recent government statistics the average business is paying between 27 and 30 pence per kWh on their energy bills. This average, however, disguises significant differences from one business to another. There are broadly three scenarios:

  • Businesses that agreed to fixed contracts in the second half of 2022 will be paying much higher than these rates and up to as high as 100p/kWh but will be partially supported by the energy bill discount scheme.
  • Businesses on older fixed contracts that pre-date the energy crisis could be paying as low as 11p/kWh.
  • Businesses on standard variable default rates will be paying unfavourable rates that could be as high as 50p/kWh. These can make significant savings by comparing business energy rates today using our postcode tool below.

Compare business energy in minutes to get the best deal

To compare business energy prices in the UK is simple – it only takes a few minutes with the AquaSwitch business energy comparison service, simply:

Enter your business postcode

Enter your business postcode

By providing us with some basic information about your business, we’ll quickly search the market for the best prices for your business.

Compare business energy deals

Compare business energy deals

Using the details you have provided, compare the business energy quotes available to you and make an informed decision.

Make the switch

Make the switch

Our experts will manage the switching process to ensure a smooth and seamless transition to your new business energy supplier.

The benefits of business energy comparison

The commercial energy market is highly competitive, with over 100 suppliers offering tariffs and prices. Using a business energy comparison service is the easiest way to find the best prices and rates. Here are the top three benefits of comparing business energy rates:

Save Money

Save Money

Save thousands by accessing the cheapest business energy prices and rates.

Customer Service

Customer Service

Access trusted UK-based suppliers that provide a strong level of customer service.

Avoid Deemed Rates

Avoid Deemed Rates

Avoiding expensive out-of-contract rates by switching to a fixed energy tariff.

Energy comparison for business

Use the AquaSwitch business energy comparison service to get the best business energy deals across the market. Our easy-to-use comparison service allows you to:

  • Compare business energy prices & suppliers
  • Switch easily from one supplier to the next
  • Save money on your business energy bills

Energy comparison for large businesses

In energy, a large business is defined as one that consumes more than:

  • 100,000 kWh in electricity per year; or
  • 293,000 kWh in gas per year.

Suppliers will offer bespoke large business energy quotes rather than the standard energy rates given to smaller businesses if you fit into the large business category.

Comparing business energy suppliers for large organisations can be a little more complicated with the following additional considerations:

  • Maximum demand charges – An additional charge levied by your local distribution network operator to guarantee an agreed capacity for your business energy connection.
  • Half-hour meters – Large organisations will have half-hourly electricity meters that facilitate nuanced peak and off-peak energy calculations. To accurately quote for these meters, business energy suppliers will ask for recent consumption data for your meters.
  • Multi-location quotes – Large businesses typically group individual supply points into a single manageable contract. In this case, business energy suppliers will provide business energy quotes that cover several, if not hundreds, of separate MPANs.

Although a little more painful, our business energy experts are here to help you through every stage of the large business energy comparison process.

Small business energy comparison

Business energy is a significant overhead for most small businesses, so reducing your unit rate by even the slightest margin will help you save money.

The regular Ofgem gives additional rights to smaller businesses to make it easier to compare business energy prices and avoid expensive deemed contracts. Ofgem defines a small business as one that meets its financial or energy consumption criteria:

  • Financial criteria – Has less than ten employees and both yearly turnover and total balance sheet are less than 2 million euros.
  • Electricity consumption criteria – Uses less than 100,000 kWh of electricity.
  • Gas consumption criteria – Uses less than 293,000 kWh of gas.

For these businesses, a commercial energy supplier must:

  • Show your contract end date and notice period on all bills.
  • Allow you to submit a notice of contract termination at any time during your contract.

Business energy suppliers offer simple fixed tariffs aimed at smaller businesses that can help you quickly and easily reduce your energy bills. Compare business energy quotes for your small business today. Start by simply entering your postcode into our smart address finder below.

How much can I save if I compare business energy prices?

AquaSwitch has helped businesses save thousands on their business energy rates by switching to the most competitive deals available.

If you’ve recently moved into a property and are being supplied under a deemed contract, you are most likely paying needlessly expensive energy rates.

If you are coming to the end of a fixed-term contract you negotiated years ago, your renewal quotes may be more expensive due to recent rises in the wholesale cost of energy.

Business energy prices are complicated, and the quotes you receive will depend on the current state of the energy market, your location, consumption and credit score.

Our energy experts will help you compare business energy rates and prices to find the best deals regardless of your situation.

Compare renewable business energy prices

Renewable energy rates are getting cheaper each year as green technologies improve. The additional cost of a green energy tariff is getting ever closer to the price of a standard business energy tariff.

A few of the biggest energy suppliers now provide renewable energy as standard in their small business tariffs.

To get the latest renewable energy prices, enter your details in our business energy price comparison tool. Our business energy experts will automatically collect quotes from green energy suppliers for you to compare.

What to look for when you compare business energy

Here is everything you will want to review when comparing business energy prices:

Fixed or flexible unit rates – It’s important to understand whether you are committing to receive energy at a fixed or variable rate per kWh. In a variable tariff, your price may go either up or down as market conditions change.

The contract term – The typical fixed rate energy tariff will last between 1 and 3 years. This is the period where you’ll receive energy at the agreed rate. Remember that you can always end a contract early if you vacate the property.

Standing charge – Most business energy contracts come with a daily standing charge (measured in pence per day) that you’ll pay each day of the contract, regardless of whether your business uses any energy.

Payment method – Most suppliers require that SMEs use a direct debit for settling monthly energy bills. If your business needs more flexibility than this, it’s important to agree on this upfront.

Energy fuel mix – In renewable business energy, your supplier will commit to using only green energy sources such as wind and solar. Standard business energy tariffs will use a mix of sources, including nuclear and fossil fuels.

Exit fee – A business energy contract will define what you need to pay if you need to cancel the contract early.

Renewal – All business energy contracts will tell you what happens at the end of the fixed term; usually, it’s either a rollover fixed tariff or a standard variable tariff.

Finally, it’s worth reviewing each business energy supplier Trustpilot reviews, getting a feel for the company, and seeing if it meets your standards.

Read and review the full list of business energy suppliers.

Business energy comparison – Jargon buster

Business energy supplier – Companies that buy energy wholesale from the market and then sell it to individual business customers.

The national grid – The system operator for the network that carries Energy, in the form of electricity and gas, around the country to supply businesses and households.

Big six energy suppliers – The largest energy suppliers in the country, made up of Centrica, EDF Energy, EON, nPower, OVO and Scottish Power.

Green energy tariff – A tariff offered by a business energy supplier who will match your usage with renewable energy generation or contribute towards environmental schemes.

Ofgem – The Energy markets regulator. Ofgem’s role is to protect the interests of consumers (including businesses) by promoting competition. Ofgem has the authority to issue licences to all participants in the Energy market.

Smart energy meter – Self-reading energy meters that sends your consumption directly to your supplier.

Climate change levy – An environmental tax on energy supplied to companies in the UK. The Climate change levy is added to all business energy bills for each kWh of energy provided.

Fuel mix – A disclosure by a business energy supplier that sets out the energy generation sources used in your business energy tariff.

Business energy tariff – An energy tariff is a scheme that sets out how a business energy supplier will provide your business with energy. The tariff specifies the price of energy, the agreed settlement and the term.

Rollover contract – A rollover occurs when you’ve not agreed to a specific tariff before your current contract end date. If you are a micro business, this contract cannot last more than 12 months.

Deemed contract – The legal arrangement between a business energy supplier and a commercial property occupier when energy is being supplied, but no contract has been agreed upon.

Half-hourly meter – A mandatory metering system used for larger businesses. A smart energy meter will transmit a meter reading to your business energy supplier every half an hour.

Authors of the business energy comparison page

The compare business energy page was written and reviewed by our business energy experts Tom Melhuish and Ben Brading. Click here for more on our editorial process.

Tools to help you understand business energy

At AquaSwitch, our business energy experts have worked hard to build several tools to help business owners understand the world of business energy. Here’s some we are particularly proud of:

Business electricity rate calculator
Business energy audit checklist
Guide to business energy contracts

Business Energy Comparison – Frequently asked questions

Here are frequently asked questions about energy comparison for business. We cover deemed contracts, cancelling business energy contracts and much more.

How does the credit score of my company affect comparing business energy quotes?

Business energy suppliers carefully manage credit risk when onboarding new customers. Suppliers have different approaches when it comes to assessing the credit scores of new customers. It’s common to adjust their pricing to factor in the credit risk associated with a contract.

To accept a new customer with a lower credit score, suppliers can ask for a security deposit or bill settlement by direct debit to reduce their exposure to credit risk.

Read our in-depth guide on credit scores and business energy comparison.

How much does business energy cost?

The cost of business energy tariffs available in the market changes daily and are affected by several different factors.

The section above shows current indicative business energy rates and how typical business energy costs have changed over the last year.

Business energy costs are impacted by the following:

  • Wholesale cost of energy – The cost of generating energy or importing it into Britain.
  • Energy distribution costs – The cost involved in moving energy through the national grid to your property
  • Government taxes – The business energy bills include VAT and the climate change levy.

The cost of business energy also depends on the location energy consumption of your company.  Use the AquaSwitch business energy comparison tool to request quotes tailored to your business.

Why do commercial energy prices depend on the size of my business?

Typically, companies that consume more energy can access lower business energy prices.

Business energy suppliers can negotiate lower fixed wholesale rates on the energy market in high-consumption business energy contracts. It’s most easily thought of as a bulk-buy discount.

The following table shows the latest government statistics on the business energy rates paid by different sizes of companies.

For business energy supply:

Business sizeAnnual consumption (kWh)Unit electricity rate/kWh
Very small<20,00029.96
Small20,000 - 500,00027.82
Small/Medium500,000 to 2,000,00030.57
Medium2,000,000 to 20,000,00026.35

Source: BEIS: Quarterly energy prices.

Please note that the government statistics are about six months out of date. For the latest business energy rates, see above.

Should I get a smart meter for my business energy consumption?

Yes, your business should get a smart meter.

The benefits of a smart meter are:

  • Accurate usage, therefore, accurate billing. Pay for exactly what you use.
  • Your energy supplier can identify if your business premises has suffered a power cut and resolve it immediately.
  • Be alerted to any energy consumption issues that arise.

Read our guide for more information on business energy meters.

Why do I need an LOA when comparing business energy?

When you compare business energy quotes with AquaSwitch, you must sign an LOA to allow us to negotiate the best energy rates and manage the switching process on your behalf.

You can use our business energy comparison tool to compare the latest prices, but for AquaSwitch to manage the switch, an LOA must be completed.

Does my business need a half-hourly meter?

Half-hour business energy meters are compulsory for commercial properties with energy demands of over 100kWh in any 30-minute period.

Check out our comprehensive guide to half-hourly business energy meters for more information.

Is business energy cheaper than domestic energy?

It depends on your energy consumption, location and business size. Businesses generally benefit from purchasing more energy than households, allowing them to negotiate better prices.

However, businesses pay the full VAT rate on energy bills, and unlike households, companies pay a climate change levy on top of all purchases of energy.

Will my business energy quote change?

Unfortunately, prices fluctuate due to the ever-changing nature of the energy market. If you receive a business energy comparison report today and look to go ahead with a quote in two days, prices will likely have changed.

Once you use the business energy comparison tool, it’s worth reviewing each supplier’s prices and then deciding whether to proceed with those rates. The rates you get today will differ from tomorrow due to volatility in the wholesale energy market.

Can I cancel my business energy contract?

You can cancel your business energy contract when you come to the end of your fixed term. First, you need to identify the official end date of your current contract, which you can find on your energy bill.

Once you have this, you will need to write an official termination letter to your supplier that specifies the end date in the original contract and ensures you are not charged for terminating early or automatically renewing your contract.

One thing to note is that if you do terminate your contract, ensure you have found another business energy supplier to move to immediately. If you don’t, you’ll pay “out-of-contract rates”, which are typically twice as expensive compared with fixed rates available on the market.

If you are looking to end your contract early, you will most likely pay a termination fee – this can equate to the cost of your wholesale energy rates for the rest of the contract, so be sure to contact your energy supplier to get the exact figure you will be charged for ending your contract early.

Who has the lowest standing charge?

The prices offered by business energy suppliers change from day to day with the underlying energy market and depend on factors such as where your business is located.

If your business consumes a lot of energy, you can request custom rates and look to pay lower business energy standing charges.

However, if you pay lower standing charges, you’re likely to be paying higher kWh unit rates, which offset the benefit of a lower standing charge.

We recommend using our business energy comparison tool to compare the latest business energy prices and rates to give you an idea of what’s out there.

What is a deemed contract?

A deemed energy contract is a default energy contract that is put in place by a business energy supplier when you haven’t agreed on new business energy rates.

A deemed energy contract usually occurs when your business moves into new premises and starts using energy without agreeing to a contract with an energy supplier.

What is business energy?

Business energy is essentially gas and electricity for businesses—the same as households but with a few differences:

For businesses, the energy quotes are singular so that you won’t receive a dual fuel price. You will be quoted separately for business gas prices and business electricity rates, unlike households where you get dual-fuel tariffs.

Businesses pay 20% VAT on business energy bills compared to the 5% VAT homeowners pay. So, business energy rates may look cheaper initially, but VAT usually pushes it slightly higher than domestic.

The unit rates are generally lower for commercial compared to domestic as the business energy supplier purchases the energy in bulk to negotiate lower rates.

At AquaSwitch, we also offer a home energy comparison service.

Does the energy price cap apply to businesses?

Normally, business energy prices are not capped. Unlike domestic energy products, energy companies are not regulated with a price cap.

The lack of a business energy price cap means that business energy suppliers’ out-of-contract rates can be much higher than current market prices. This makes energy comparison for business an essential part of keeping costs down.

Check out our complete guide to the business energy price cap.

What is a standing charge?

A standing charge is added to most business energy bills. A standing charge is a fixed amount you pay daily, which covers the maintenance of the mains supply. It stays the same and does not change no matter how much energy you use.

Some business energy suppliers do not have a standing charge, but you’ll find their kWh rates are generally higher than those who include one.

Who supplies my business energy?

Energy operators can tell you who currently supplies energy to your business property. To do this, use the Energy Network Association tool to help you find your business energy supplier using your postcode.

Once you find out who supplies your business energy, reach out to them, and they can give you your MPAN (Meter Point Administration Number) and MPRN (For Gas) as well.

MPAN and MPRN numbers will allow you to compare business energy prices by receiving quotes tailored to your energy supply points.

What is a multi-site meter?

A multi-site meter is an efficient way for your business to organise the billing for numerous energy supply points. This could be the billing for meters housed in one large business site or across multiple business locations.

Multi-site meters can save business owners money, time, and hassle. Trying to gather different meter reads for different suppliers around your multiple properties can be costly. It’s a huge benefit when you go to compare business energy prices.

If I compare business energy prices, can I switch immediately?

You can only switch to a new contract the day after your contract end date. It’s important to note that it can take up to 4 weeks for a new supplier to take over your supply, so if your contract end date is less than four weeks away, you may end up on out-of-contract rates while you wait for the transfer of your supply.

There are some exceptions to this.

  • You’ve just moved into new premises: This can take up to 6 weeks for your new contract to come into effect as you will need to provide proof of the move-in date and make sure the previous supplier is aware the old tenant is no longer in the premises. The old supplier will have to process this as a change of tenancy and can delay the switch.
  • You are currently out of contract: If you are currently out of contract, we can ask the new supplier or existing supplier to start your new contract with an ASAP start date. Please note that switching to a new supplier could take up to 4 weeks for the transfer process.

We recommend using our business energy comparison tool to compare business energy prices and make an informed decision.

How do I know if my business is on a deemed contract or is paying out-of-contract rates?

Avoiding expensive out-of-contract business energy rates in a deemed contract is key to avoiding overpaying for business energy.

The most common indicators that you are paying for energy in a deemed contract are:

  • You’ve recently moved into a property but have not yet agreed to an energy contract.
  • You’ve noticed a significant increase in the unit rate on your energy bills.

Your business energy supplier must tell you exactly what kind of contract you are on and the cheaper alternatives that they offer. If you are uncertain about the current status of your business energy tariff, we recommend contacting the customer services department of your supplier.

How do I know when my business energy contract is coming to an end?

If you look at your recent business energy bill, it will usually state the end date of your current contract. If not, we recommend reviewing the original agreement that you signed or otherwise contacting the customer services of your business energy supplier.

It’s important to know when your business energy contract ends. If you haven’t arranged another business energy contract, you’ll automatically start paying needlessly expensive deemed standard variable energy rates.

It’s so important that we’ve published a complete guide on what happens at the end of a business energy contract.

Will my business energy renewal quote be cheaper?

Knowing whether your renewal quote will be cheaper than your current tariff is difficult. It depends on multiple factors. If you recently fixed for a year in the height of the business energy crisis, your current supplier may be able to fix you at a better rate for the future.

We recommend using our business energy comparison service to compare the latest prices and rates. You’ll quickly find out if your renewal quote is competitive.