FAQ – Compare Business Electricity
Here is a breakdown of frequently asked questions by people looking to compare business electricity prices.
Where can I find my meter number (MPAN)?
You can find your MPAN on your latest energy bill. MPAN stands for Meter Point Administration number. The MPAN is also referred to as the “S Number” or a “supply number”.
The MPAN is a 21-digit number that begins with an S – making it easy to identify. Even though the MPAN is used to identify your property, you won’t find it on the meter and will have to review a past electricity bill to locate the number.
Can I cancel my business electricity contract?
Yes, you can.
To do this, you will need to terminate your current contract. To terminate your agreement, you will need to find out the official end date of the contract you’re currently in.
Then you will need to write a termination letter to your supplier noting your end date and the notice period for terminating this agreement in your original contract from your electricity supplier.
This will ensure you don’t get any charges for terminating early and not get hit by a renewal either in the future from this supplier.
One thing to note is that if you do terminate your contract, ensure you have found another supplier to move to immediately on the date of termination.
If you don’t do this, you’ll be hit by “Out of contract rates”, which will see you potentially pay double on your current contract.
Is business electricity cheaper than domestic?
Your electricity consumption, location and business size determine business electricity prices. The prices for business electricity may be lower than domestic as the electricity will be purchased upfront to cover the entire period at the best possible rate.
The wholesale energy market determines these business electricity prices.
Something worth remembering is that businesses pay a higher VAT rate on their electricity at 20% compared to the 5% domestic customers pay.
What is a deemed electricity contract?
A deemed contract is a default electricity contract that is put in place when you haven’t agreed on electricity rates for your business with an electricity supplier.
A deemed contract usually occurs when your business moves into new premises and starts using electricity and gas without agreeing on a contract with an energy supplier.
The biggest issue with these is that the rates are costly and can be as much as 80% more than the cheapest business electricity rates in the market.
Here’s an interesting article on deemed contracts by the Evening Standard that shows 10% of microbusinesses are on a deemed contract.
It’s worth checking today to ensure you’re not being charged on deemed contract rates.
Who are the big six business electricity suppliers?
Traditionally the big six electricity suppliers were:
However, OVO acquired SSE’s customer portfolio in December 2019 and has technically dropped out of the “Big Six”.
What is a kWh?
A kWh is a “Kilowatt-hour”, a measurement unit used by utility companies to monitor how much electricity (or gas) a business premises has consumed. A kilowatt (kW) is a universal measure for electricity usage.
kWh is always quoted on your business electricity bills and shows you exactly how much you have used.
What is business electricity?
Business electricity is an electricity tariff that is strictly for business use only. Contracts tend to last longer for business electricity rates, and you can compare business electricity quotes with a number of suppliers.
There are a few differences between business electricity prices and domestic electricity:
- Business electricity prices change daily.
- Contracts are much longer for business electricity than household electricity rates.
- Quotes for business electricity are tailored, giving you room to negotiate better rates over a longer period than domestic contracts.
- Businesses are not eligible for “Dual Fuel” deals.
- You pay more VAT on business electricity rates. You pay 20% compared to the 5% you pay on domestic bills.
How much money could switching save your business?
The amount you can save is subjective. It depends on several factors, including the following:
- Current business electricity rates
- Size of your business property
- Your businesses overall energy efficiency
It’s worth looking at these electricity-saving tips above to help lower the overall cost of your business electricity rates.
Use our business electricity comparison above to see how much you can save by switching your business electricity supplier.
What if you run your business from home?
If you’re working from home you will only be able to switch your current energy contract to a business tariff if the majority of your electricity usage arises from the operation of your business.
The threshold can vary from supplier to supplier, so it’s worth doing your research and seeing if your business is eligible for a commercial electricity contract.
Does your business need a half-hourly meter?
If your business uses a large amount of electricity, you will need a half-hourly meter.
Legally, if your business has a maximum demand of 100kW or greater in any half-hour period during the day, you must use half-hour metering.
However, if your business has a maximum demand of 70kW or more in half an hour, you have the option to install a half-hourly meter; it’s not a legal requirement. Anything less than 70kW per half an hour there is only limited benefit in having a half-hourly meter installed.