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Get the latest small business electricity rates with AquaSwitch. Our free, no-obligation comparison service will give you the best electricity rates tailored to your company. Find cheaper rates and benefit from:
Enter your businesses postcode
The table below shows the average one-year fixed business electricity rates for small businesses. These business electricity rates have been put together by our experts using the latest wholesale electricity prices on the national grid.
It’s important to note that small business electricity prices can vary from region to region.
| 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 |
| Big | 100,000 + | 25.1 |
Source: The above data has been compiled using the following:
Small businesses are not protected by measures like the energy price cap in the home energy market, and unfortunately, small business electricity rates can be tricky to navigate.
But don’t worry; we are here to help you understand everything there is to know about small business electricity in our ultimate guide. We’ve helped thousands of small businesses avoid the trap of expensive out-of-contract business electricity rates.
The small business electricity prices currently available on the market are affected by the following factors:
For more information, check out our complete guide to business electricity prices.
It’s important to know that the market for small business electricity is highly competitive, with approximately 80 business energy suppliers competing to offer the cheapest tariff.
Shopping around and comparing multiple suppliers is important for the best prices. Enter your postcode in our easy-to-use comparison tool to request quotes for your small business.
Until March 2024, small businesses on the most expensive business energy tariffs will receive an automatic discount from the Energy Bill Discount Scheme.
The automatic discount applies where the wholesale element of your current business energy tariff exceeds:
The scheme provides a maximum discount of 2p/kWh on electricity and 0.7p/kWh on gas bills.
For more eligibility information, here’s our complete guide to the Energy Bill Discount Scheme.
Here’s everything you need to know when choosing a small business energy supplier for your small business electricity rates.
When choosing a supplier for your small business electricity, you will want to choose a supplier you can trust. Take a look at our business energy suppliers to find out more about the suppliers that may be available in your area.
We recommend checking Google reviews, Trustpilot scores and recommendations from friends to help you make a final decision.
When choosing a small business electricity supplier, you should consider whether or not you want to take out a fixed contract or a variable contract.
A fixed contract will give you certainty of how much you will be paying for business electricity per kWh for the entirety of your contract. It protects you from future price rises at the expense of missing out on potentially low prices.
A variable rate contract will expose your small business to the volatility of electricity prices, which may be beneficial if your business can participate in some form of electricity arbitrage.
See our detailed business energy tariff guide to learn more, and ask providers to give you quotes for both variable and fixed tariffs.
How long do you want your small business electricity contract to last? A small business electricity contract may last anywhere between 1-3 years, so ask small business energy suppliers to provide you with quotes for a range of contract terms.
What type of electricity do you want? Standard, renewable or a fuel mix. When considering a small business electricity supplier, check what types of electricity they offer and whether it suits your business goals and needs.
For instance, some businesses undertake detailed carbon inventories to monitor their footprint or to ensure they are carbon neutral by purchasing carbon credits. A renewable electricity tariff ensures their carbon footprint is lower.
Small business owners have two options for business electricity plans. A fixed-rate plan with certainty over the cost of each kWh of electricity or a variable plan that will change based upon the latest market conditions.
Read on to explore the pros and cons of each of these types of business electricity plans.
You can request exact kWh pricing directly on our business electricity rates page.
Here are the two biggest reasons to consider a fixed-rate small business electricity plan:
These are the two biggest reasons to consider a variable rate business electricity plan:
It’s worth noting that fixed rate electricity tariffs for small businesses are usually cheaper, as suppliers want to attract switches from new customers.
There are over 5.5 million small businesses in the country, which have an important role in the UK’s transition to net-zero.
There are two renewable energy options for small businesses:
Check out our complete guide to renewable energy options for businesses.
Our business electricity experts are here to answer all the frequently asked questions on small business electricity prices.
The small business electricity prices available on the market typically vary every few days. Business energy suppliers update the rates they offer daily to reflect changes in the wholesale energy market.
When you receive business energy quotes, you should act upon them quickly to avoid disappointment when your rates are no longer available.
The electricity usage of small businesses depends on what your company does, and precisely:
A typical small business will consume 20,000 kWh of electricity annually. As a useful comparison, a typical home will consume 2,900 kWh annually.
Check out our full article on calculating business energy usage for more information.
There is no simple answer to this, as the supplier with the cheapest small business electricity for you will depend on the following:
Here at AquaSwitch, we can help you find the cheapest electricity prices for small businesses. Simply use our business electricity comparison service, and we will search the market for you.
Using less electricity is the best way to protect your small business against electricity price changes. Here are a few easy tips for using electricity more efficiently:
Using our business electricity comparison service today, you can lock in a fixed electricity rate for 1 to 3 years.
Generally, businesses pay VAT at the standard rate of 20% for commercial electricity bills.
However, if your small business meets one of the following criteria, you’ll be eligible for reduced VAT rates on your business electricity. The reduced VAT is 5% if you have ‘low’ electricity usage.
Low electricity usage is classified as less than 1,000kWh monthly electricity (33kWh a day). As a guide, the average home uses 10kWh per day.
Check out our complete guide to VAT on business energy.