Business rates for electricity
As a business, you can compare and switch your business electricity supplier and save your business money.
Business rates for electricity are one of the most significant expenses for businesses, so it’s essential to make sure you’re paying the best possible price.
Switching business electricity is simple to do, and our guide answers any outstanding questions to help you with your next switch.
How to compare business electricity rates
Comparing business electricity rates is simple. Here are the three simple steps to allow you to compare the latest business electricity rates.
Enter your details.
Simply enter in your property details for us to begin the comparison.
Our experts talk you through the best deals.
Our electricity experts will collate the best business electricity deals and talk you through these on screen, answering any questions you may have on the process. Once you’re happy with one of the electricity quotes, we’ll proceed with the switching process.
We take care of the switch for you.
Our expert will take care of the switch for you, ensuring the process is easy and seamless.
What information do I need to compare business electricity rates?
To compare business electricity rates, we will need the following details from you:
- Business Name
- Current Supplier
- Electricity usage
- Contact Details
That’s it, that is all the information we need to provide you with competitive business rates for electricity.
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.
What are the costs involved for business electricity?
There are two main charges to consider when comparing business electricity rates. These are the unit rate and the standing charge.
The unit rate is the rate you pay for the electricity that your business consumes. The unit rate is shown in pence per kilowatt-hours kWh.
For example, the unit rate could be 15p per kWh.
The standing charge is what your electricity supplier charges you for their service. It covers things like maintenance of the national grid, the cost of delivering electricity directly to your business and managing your account. This is priced in pence per day.
The standing charge will be priced in pence per day.
What are the different tariff options for business electricity?
There are different business electricity tariffs available to suit the diverse needs of businesses. Here is a breakdown of your available options:
A fixed-rate tariff is a tariff where you pay a fixed amount per kilowatt-hour of electricity – this stays the same throughout the duration of your contract. You know precisely the cost of your electricity usage, and it protects you from any fluctuations in pricing.
A fixed-rate tariff is usually the cheapest way to pay for business electricity rates; make sure you compare before signing up to ensure you get the best electricity rates for your business.
The only negative is that if there is a reduction in wholesale costs in the electricity market, you won’t receive the discounted rates.
But the other side is if the wholesale prices go up, you will not incur any rise in electricity prices. Fixed-rate allows you to plan the cost of electricity into any future projections.
A variable-rate tariff is a tariff that varies based on the current market price for electricity. The lower the price, the less you pay; however, if the price rises, you’ll be spending a lot more than a fixed-rate deal – on the other hand, if the price drops, you’ll be paying a lot less for your electricity.
If you don’t like uncertainty, we recommend the fixed-rate option.
Deemed rate tariff
A deemed rate tariff is a tariff given to you based on the old occupant’s supplier. For example, if you’ve moved into new premises and haven’t yet signed up to a new business electricity supplier, you’ll be given a deemed rate by the previous occupant’s supplier.
These are generally more expensive than new customer rates, so you should look to compare your deal and switch to a lower cost tariff as soon as possible.
A rollover electricity tariff is where you do not arrange a new electricity contract before your current deal ends. Your current electricity supplier can then roll you over onto a new deal. The business electricity rates for a “Rollover” contract tend to be far more expensive than a fixed-rate deal; make sure you compare before your electricity contract comes to an end.
Note: If you run a microbusiness, your electricity contract cannot last more than 12 months.
Green energy deals are environmentally friendly electricity offering electricity from renewable sources. They also offer green energy tariffs based on offsetting power produced from non-renewable energy by funding ecologically friendly initiatives.
Each “Green Tariff” will enable you to query the validity of their environmentally-friendly credentials, so don’t be afraid to question them.
What is the average price per kWh for business electricity?
The average price per kWh for business electricity varies on the size of your business and the annual usage of electricity. See below our table broken into business size, annual use, the average unit price per kWh, the average standing charge and the annual bill estimate.
Just to note, this is only a guideline and will depend based on your business electricity tariff, your energy supplier, the length of the contract and the current state of the market.
What is the VAT on my business electricity bill?
As a business, you will pay 20% on VAT for electricity costs. This is automatically added to your bill by your electricity supplier. However, you may be eligible for a 5% discounted rate based on your business. These exceptions are:
A charitable or non-profit organisation.
Low energy usage. Low energy usage is defined as less than 1,000kWh of electricity usage every month (33kWh a day).
Use at least 60% of your energy for domestic purposes—for example, a care home.
How can I reduce my business electricity costs?
Business rates for electricity can be high; it tends to be one of the most expensive outgoings paired with gas that your business will occur.
So how can you reduce your business electricity costs?
Turn off office equipment that is not in use.
By leaving printers, laptops, computers and photocopiers on standby, you can use a lot of energy throughout the day. Make sure you turn off any of your office devices at the end of the day to help save you a lot of money on electricity.
An example is commercial printers used in offices. One commercial printer will use between 30 to 50 watts per hour on standby. Switching this off when not in use will save your business money over the week, month and year.
Energy-efficient bulbs, and switching off your lights.
One of the top contributors to your business energy bill is lighting. Lighting consumes a vast amount of electricity and usually commands around 40% of your electricity usage.
Turning off lights is essential when leaving a room or when your staff are heading home to help combat the high usage. Another way to reduce this is to install devices that switch the lights off when no movement is detected.
As well as installing energy-efficient light bulbs, like LED light bulbs. Make sure you utilise the natural light in the office, as this will reduce your electricity bill and improve your employees’ well-being.
Comparing business rates for electricity
By comparing your current electricity tariff, you will be able to see if you could save money by switching to a new tariff or a new electricity supplier.
Educate your staff
Educating your staff to switch off devices, reduce the heating and switching off lights will help save you a lot of money. You can’t always rely on smart devices, especially to switch off a computer whilst plugged in.
But educating your staff around switching off equipment whilst not in use or before they leave the office will save your business an incredible amount of money.
Who is the cheapest business electricity supplier?
There isn’t a set answer for the cheapest electricity supplier. It’s completely dependent on numerous factors relating to your business, including:
- Location (Region)
- Electricity usage
- Tariff type
This is why it’s good to regularly compare your current electricity tariff to see if you can make any savings. Use our electricity comparison service today.
Who are the main business electricity suppliers in the UK
Here’s a list of our trusted business electricity suppliers in the UK.
- British Gas
- Hudson Energy
- Octopus Energy
- Opus Energy
- Scottish Power
Current business electricity rates by supplier
The prices that are shown are using 25,000 kWh of electricity per year. These rates are correct on 5th July 2021 for a one-year fixed contract.
*Tariffs vary by region and could change at any time.