Energy bills are one of the biggest expenses for small businesses in the UK, and choosing the right tariff can make a big difference to your bottom line. With dozens of suppliers and contracts available, it can be difficult to know where to start. Here’s how to find the cheapest energy tariff for your small business — and avoid costly mistakes.
Understand how business energy tariffs work
Business energy tariffs are different from domestic ones. Instead of standardised rates, suppliers base prices on your usage, location, and contract length. Tariffs usually include:
- Unit rate (pence per kWh) – the price you pay for each unit of electricity or gas used.
- Standing charge – a daily fee covering supply and network costs.
- Contract length – usually 1–5 years, with fixed or flexible terms.
Steps to finding the cheapest tariff
1. Know your usage
Start by gathering your latest energy bills or meter readings. Suppliers need your annual consumption in kilowatt-hours (kWh) to give accurate quotes.
2. Compare multiple suppliers
Never rely on a single offer. Unit rates and standing charges vary between providers. Using a business energy comparison service like EnergyCosts.co.uk lets you quickly see which suppliers offer the best value for your business profile.
3. Consider contract length
- Short-term deals (1 year) – more flexibility if prices fall or your circumstances change.
- Medium-term deals (2–3 years) – balance stability and price competitiveness.
- Long-term deals (4–5 years) – offer budget certainty but risk locking in higher rates if prices drop.
4. Check the whole bill, not just unit rates
Some suppliers offer low unit rates but high standing charges. Always calculate the total annual cost rather than focusing on a single figure.
5. Explore renewable tariffs
Green energy tariffs can sometimes be cheaper than traditional options, and they also enhance your business’s sustainability credentials.
6. Watch out for hidden fees
Review terms for exit fees, late payment charges, or additional costs. These can add up and offset any savings from a cheaper tariff.
Why use EnergyCosts.co.uk?
EnergyCosts.co.uk allows UK businesses to compare tariffs from leading suppliers in minutes. Instead of contacting providers individually, you can see the best options side by side, tailored to your usage and location. This helps you avoid out-of-contract rates — which can be 30–50% more expensive — and ensures you secure the most competitive deal.
Final verdict – How to find the cheapest energy tariff for my small business?
Finding the cheapest energy tariff for your small business is about more than chasing the lowest rate. By comparing multiple suppliers, reviewing contract terms carefully, and timing your switch, you can make real savings and take control of your energy costs. With EnergyCosts.co.uk, the process is quick, transparent, and designed to help small businesses save money.
FAQ
Not necessarily. A low unit rate may look appealing, but high standing charges or restrictive contract terms can make it more expensive overall. Always calculate the total annual cost.
The ideal time is during your renewal window (usually 6 months before your contract ends). Switching early can avoid being rolled onto out-of-contract rates, which are often much higher.
Large businesses often benefit from bulk-buying power, but small businesses can still secure competitive rates by using comparison services like EnergyCosts.co.uk to find the best supplier offers.
Many SMEs save between 20–30% on annual bills by comparing tariffs and switching before contracts expire. The exact saving depends on usage, contract type, and market conditions.
Not always. Some renewable tariffs are competitively priced and may even be cheaper than fossil-fuel-based deals. They also improve sustainability credentials, which can attract eco-conscious customers.