Finding the cheapest business electricity supplier can be tricky—contracts vary by business size, consumption, and location. There’s no single “winner,” but reliable data gives us some insights.
Snapshot: ScottishPower currently offers the lowest cost estimates
According to data from September 2025, ScottishPower emerged as the most affordable option for a business with 25,000 kWh annual consumption over a 2-year fixed contract—offering:
- Unit rate: 23.9 p/kWh
- Standing charge: 90.3 p/day
- Estimated annual cost: £5,113.56
This snapshot highlights a competitive deal, but it’s specific to certain usage and contract terms.
Comparative estimates across business sizes
Average costs segmented by business size (as of September 2025):
| Business size | Unit rate | Standing charge | Estimated annual bill |
|---|---|---|---|
| Micro (5k–15k kWh) | 25.2 p/kWh | 56.3 p/day | £2,725 |
| Small (15k–25k kWh) | 25.0 p/kWh | 51.1 p/day | £5,187 |
| Medium (25k–50k kWh) | 23.5 p/kWh | 122.5 p/day | £9,847 |
| Large (>50k kWh) | 21.7 p/kWh | 187.1 p/day | £12,618 |
Again, these are average figures, not live quotes.
Why the “cheapest” supplier varies
- Your business size and consumption: Suppliers often tailor prices based on usage patterns.
- Location matters: Distribution charges vary across regions.
- Contract structure: Factors such as contract length, whether it’s fixed or variable, and standing charges all impact total cost.
- Market volatility: Rates fluctuate with wholesale energy prices, meaning today’s cheapest may not be tomorrow’s.
How to find the genuine cheapest offer for your business
- Use a comparison service
Services like EnergyCosts.co.uk help you compare quotes from multiple suppliers in minutes. - Know your energy usage
Accurate annual consumption (kWh), meter type, and business location are essential for spot-on quotes. - Consider the full cost
Don’t just look at pence per kWh—consider daily standing charges, exit fees, contract flexibility, and any renewable or service-related benefits. - Compare tailored quotes, not averages
While figures like ScottishPower’s offer a helpful benchmark, the real cheapest deal for your business will depend on your unique profile.
Final verdict
There isn’t a universally “cheapest” business electricity supplier—costs depend heavily on your usage, location, and contract preferences. That said, evidence from September 2025 suggests ScottishPower offered one of the most competitive fixed-rate deals for a typical small-to-medium business scenario.
To truly find the cheapest option for your business, use a comparison tool like EnergyCosts.co.uk—it makes comparing real-time quotes simple, transparent, and tailored to you.
FAQ
There isn’t one universal answer. For microbusinesses, suppliers like EDF, Octopus, and ScottishPower often compete strongly, but the cheapest depends on your annual usage, region, and contract length.
At least once a year, or during your renewal window (usually six months before your contract ends). This prevents being rolled onto costly out-of-contract rates.
Not always. Fixed rates provide stability and protect against market rises, while variable contracts can be cheaper if wholesale prices fall. The best choice depends on market trends and your appetite for risk.
Not necessarily. Many renewable tariffs are competitively priced, and some are cheaper than fossil-fuel options. They also improve sustainability credentials, which may attract eco-conscious customers.
Usually no, unless you pay exit fees. Most businesses wait until their renewal period to switch, as early termination charges can outweigh savings.