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Business energy

Most businesses rely on energy to operate, and if their energy supply stopped it would likely have a huge impact on their ability to trade. This means that it's vital for business owners to stay on top of their energy bills.

However, this doesn't simply involve paying the bills every time they come through the door - it also means ensuring you're on a fair deal, which is the only way to avoid paying over the odds for your gas and electricity. The good news is that by running a simple business energy comparison, it is possible to switch to a better deal and get the energy that your business needs at a fair price.

Below you can find information that outlines a number of areas of business energy that you should be aware of when looking to secure a better price for your business’s gas and electricity.

Business energy tariffs

The first thing to note about business energy is that, unlike the domestic market where customers have the option to pick from a range of standard tariffs, a business energy customer must approach each supplier individually to attain a business energy quotes. This is because the energy habits of businesses vary significantly in comparison to the relative stability of households, which makes each business customer unique from a supplier's perspective.

To meet such a variety of needs, business energy suppliers will assess each business’s needs on a case-by-case basis, to offer a bespoke quote based upon their initial assessment.

Bespoke business energy contracts are able to offer a variety of different businesses the right energy solution to meet their consumption habits. However, it can make it more difficult to understand whether you’re being offered a competitive deal.

Another difference between domestic and business energy tariffs are the stricter terms by which you are bound. It’s possible for domestic customers to switch their tariff at any point during their contract - although they may have to pay an early exit fee. Business energy customers, on the other hand, are bound to their contract and are unable to switch until they are within their renewal window, which is typically six months before the end of their current contract.

Switch your business energy

The best way to reduce the amount that your business is spending on energy is to switch your supplier once you’re within your renewal window.

To do this you must run a business energy comparison by following the steps below.

  • Check your business is within the renewal window.
  • Obtain quotes for your business.
  • Assess which is the best quote for your business.
  • Apply for the new deal.
  • Inform your current supplier that you’re switching.
  • Wait for the switch to take effect (usually, once your current contract comes to an end).

The process described above can be time consuming, and naturally business owners are busy, which is why many are on the wrong energy contract for their business’s needs. However, if you use the services of an energy broker, you will receive offers from a variety of suppliers, so you can make the best decision for your business, without the leg work of individually obtaining quotes.

Business energy prices

Because each business is offered a bespoke contract for their energy supply based on its circumstances, prices will often vary from business-to-business. When paying for your energy you are charged for each unit of energy that you use (a price per kWh). In addition you will also pay a daily standing charge to cover the maintenance of the national grid, and to facilitate the supply lines to your property.

For this reason, it’s often hard to offer an indicative price for business energy rates without first assessing a business’s circumstances. However, as a rule of thumb, we can offer guide prices based on business size.


Micro businesses can expect to pay around 12.5p per unit (kWh) of energy.

Small businesses can expect to pay around 11p per unit (kWh) of energy.

Medium businesses can expect to pay around 10.5p per unit (kWh) of energy.


Micro businesses can expect to pay around 4p per unit (kWh) of energy.

Small businesses can expect to pay around 3.8p per unit (kWh) of energy.

Medium businesses can expect to pay around 3.5p per unit (kWh) of energy.

If your business is paying more than the average prices given above, then it’s safe to assume that you’re over-paying and could benefit greatly by switching.

Cheap business energy

One common mistake that many businesses energy customers make is taking the cheapest deal that is offered to them. Doing this can leave you with unsatisfactory service in the event that something goes awry. It’s important to properly assess each quote you’re offered to ensure that the one you choose properly satisfies the needs of your business, and doesn’t simply offer a cheap price.

By switching with you can ensure you never have to pay over the odds for your business electricity and gas again. All you need to do is pick up the phone, so call us today on 0800 188 4930.

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