Compare business electricity prices using your actual annual consumption, meter details and contract end date. A useful comparison shows the unit rate, daily standing charge and total annual cost, together with the charges that can change during the contract.
Pricing research updated: 14 October 2026. Government benchmarks below cover April to June 2026 and were released on 29 September 2026. Supplier default rates have their own effective dates. Worked examples are labelled separately.
How to get current business electricity contract prices
Business electricity quotes are tailored to your premises. Your postcode, meter, annual kWh, usage pattern, payment method, contract start date and chosen term can all affect the price. A published deemed tariff tells you what a supplier charges in a particular default arrangement; it does not establish the price of a new fixed contract.
For a current price, request written quotations for the same supply, consumption and start date. Ask for 12, 24 and 36-month options where available. Compare the full annual cost and the scope of the price guarantee before choosing a term.
| Quotation detail | Why it matters |
|---|---|
| Supplier and exact tariff | Identifies the offer and the company responsible for supplying you. |
| Quote date and expiry | Shows when the price was available and how long you have to accept it. |
| Postcode, MPAN and meter category | Confirms that the quote applies to the correct supply point and network charges. |
| Annual kWh and day/night split | Makes the annual cost calculation comparable across offers. |
| Start date and contract length | Separates an immediate switch from a future renewal. |
| Unit rate, standing charge and other fees | Reveals what the headline p/kWh leaves out. |
| VAT, CCL and broker commission | Shows the tax basis and any intermediary payment included in the price. |
Use the dated paid-price benchmarks and published supplier schedules below to understand your current costs, then request an eligible contract quotation for your business.
Average business electricity prices per kWh: Q2 2026 rates
The latest Department for Energy Security and Net Zero (DESNZ) figures put the UK average at 23.97p/kWh excluding VAT and Climate Change Levy (CCL). Very small consumers paid 37.67p/kWh; the small-consumer band paid 27.87p/kWh. These are provisional averages of prices paid in Q2 2026, rather than October quotations.
| DESNZ consumption band | Approximate annual purchases (kWh) | Average paid price (p/kWh) |
|---|---|---|
| Very small | 0–20,000 | 37.67 |
| Small | 20,000–499,000 | 27.87 |
| Small/medium | 500,000–1,999,000 | 27.09 |
| Medium | 2,000,000–19,999,000 | 24.61 |
| Large | 20,000,000–69,999,000 | 23.85 |
| Very large | 70,000,000–150,000,000 | 22.25 |
| Extra large | More than 150,000,000 | 21.78 |
| All consumers | Volume-weighted average | 23.97 |
These are fully delivered averages: standing charges and other bill elements are already reflected in the figures. Do not add a daily standing charge to them again. The bands describe approximate annual electricity purchases, rather than employee numbers or legal microbusiness status.

Which benchmark should you use?
Choose the closest consumption band and compare the same tax basis. A 10,000kWh business should start with the very small band, rather than assume that the overall 23.97p average is a readily available unit rate.
Your comparable paid price = your electricity charges before VAT and CCL ÷ kWh consumed. For example, a bill total of £3,500 before those taxes for 10,000kWh is equivalent to 35p/kWh, including its standing charge. Use a full year of bills where possible so seasonal usage does not distort the comparison.
How much does business electricity cost per month and year?
The table below is a budgeting sensitivity calculation. It shows how three assumed unit rates change the cost at different consumption levels. The 25p, 30p and 40p inputs are illustrative, not supplier quotations or a verified current market range. All scenarios use a 100p daily standing charge and 365 days; VAT, CCL and other fees are excluded.
| Annual use (kWh) | Annual cost at 25p/kWh | Annual cost at 30p/kWh | Annual cost at 40p/kWh | Monthly equivalent at 30p/kWh |
|---|---|---|---|---|
| 5,000 | £1,615.00 | £1,865.00 | £2,365.00 | £155.42 |
| 10,000 | £2,865.00 | £3,365.00 | £4,365.00 | £280.42 |
| 15,000 | £4,115.00 | £4,865.00 | £6,365.00 | £405.42 |
| 25,000 | £6,615.00 | £7,865.00 | £10,365.00 | £655.42 |
| 50,000 | £12,865.00 | £15,365.00 | £20,365.00 | £1,280.42 |
| 100,000 | £25,365.00 | £30,365.00 | £40,365.00 | £2,530.42 |
A monthly equivalent is annual cost divided by 12. Your actual monthly invoice can rise or fall with seasonal consumption, billing days and meter readings.
| Annual use | Annual cost difference before taxes |
|---|---|
| 5,000kWh | £50.00 |
| 10,000kWh | £100.00 |
| 25,000kWh | £250.00 |
| 50,000kWh | £500.00 |
| 100,000kWh | £1,000.00 |
If you are unsure how to read your usage, start with what a kWh means and use the annual consumption stated on your bill or supplied by your current provider.
Compare business electricity quotes on total cost
Estimated annual cost before VAT and CCL = annual kWh × unit rate in pounds + daily standing charge in pounds × days + other annual charges. For a multi-rate meter, calculate each time period separately and add the results.
A lower unit rate can be offset by a higher standing charge. This example compares two hypothetical tariffs with the same tax basis and no additional fees:
| Tariff | Unit rate | Standing charge | Annual cost at 10,000kWh | Annual cost at 50,000kWh |
|---|---|---|---|---|
| Tariff A | 26p/kWh | 200p/day | £3,330.00 | £13,730.00 |
| Tariff B | 28p/kWh | 50p/day | £2,982.50 | £14,182.50 |
At 10,000kWh, Tariff B costs £347.50 less per year. At 50,000kWh, Tariff A costs £452.50 less. Their break-even point is 27,375kWh a year. Above that usage, the lower unit rate wins in this example.
- Match the assumptions: use the same kWh, day/night profile, contract start and duration.
- Match the inclusions: check network, metering, capacity and policy charges alongside the unit rate.
- Check changes permitted during the term: ask which components can be passed through or adjusted.
- Read the payment conditions: confirm any deposit, Direct Debit requirement or payment-method uplift.
- Check flexibility: review relocation, early termination, volume tolerance and renewal clauses.
Business electricity standing charges and zero standing charge tariffs
The standing charge is a daily fixed cost. You normally pay it even when your premises use no electricity. It has a greater effect on the average cost per kWh for a low-use business.
| Daily charge | Annual cost over 365 days |
|---|---|
| 50p | £182.50 |
| 100p | £365.00 |
| 200p | £730.00 |
| 300p | £1,095.00 |
| 500p | £1,825.00 |
Increasing a standing charge from 100p to 200p adds £365 a year before tax. At 5,000kWh, that adds an effective 7.3p/kWh; at 50,000kWh, it adds 0.73p/kWh.
Is zero standing charge business electricity cheaper?
It can be for some low-use sites, but the unit rate and eligibility matter. In an illustrative comparison, 34p/kWh with no standing charge costs the same as 28p/kWh plus 100p/day at about 6,083kWh a year. Below that level, the zero standing charge option is cheaper; above it, the lower unit rate is cheaper, assuming no other fees.
EDF currently advertises a zero standing charge option for eligible small businesses, alongside fixed-price tariffs. Get the actual quoted unit rate before choosing it. Read our business energy standing charge guide for more examples. Source: EDF small business tariffs.
Published business electricity deemed and out-of-contract rates
Deemed rates usually apply when you use electricity without agreeing a contract, for example after moving into premises. Out-of-contract rates can apply after a fixed term ends. Default, extended-supply and variable tariffs have their own terms. Suppliers sometimes use the same prices for more than one category, but the categories are not interchangeable.
The following tables cover 26 suppliers or brands across several meter and contract categories. They are a record of published default-rate components, not a ranking of new-customer fixed offers. The sources and effective dates are shown for each example. A dash means that rate category is not reproduced here.
Before comparing rows: match the supplier’s meter classification, voltage, region and charging band. Published base charges may exclude VAT, CCL, metering, network or other pass-through costs. “Site-specific” means there is no single daily charge you can safely use for every customer. Follow the supplier source for your complete schedule.
Profile-based, non-half-hourly and whole-current examples
| Supplier | Meter, region and extra-cost notes | Deemed unit rate (p/kWh) | Other published rate (p/kWh) | Standing charge (p/day) | Effective date and source |
|---|---|---|---|---|---|
| British Gas | Deemed, whole-current supply, all profile classes Excludes VAT and CCL. Different charges apply to current-transformer supplies. | 41.95 | — | 214.94 | 1 October 2026 Supplier schedule |
| Brook Green Supply | NHH deemed and default tariff Capacity, DUoS fixed and transmission charges are passed through separately. Confirm tax treatment. | 41.84 | Default: 41.84 | 400.00 | 1 October 2026 Supplier schedule |
| Corona Energy | NHH deemed and out-of-contract DUoS and TNUoS fixed charges are additional. The out-of-contract schedule expressly excludes VAT and CCL. | 41.01 | Out of contract: 50.89 | 314.00 | Deemed: 1 September 2026; out-of-contract: 1 October 2026 Supplier schedule |
| Crown Gas & Power | NHH deemed, profile classes 01–08, London Excludes VAT and CCL. Unit rates vary by distributor region; no flat national standing charge is published. | 35.12 | — | Site-specific | 1 October 2026 Supplier schedule |
| Drax Energy Solutions | Out-of-contract variable tariff, profile classes 1–4, day rate Day and evening/weekend units use the published day rate. Check any night-time rates and tax treatment against your bill. | — | Out of contract day: 41.80 | 300.00 | 1 October 2026 Supplier schedule |
| EDF | Large-business NHH deemed, PC 01–04, London, TCR band 1 Excludes VAT, CCL and metering costs. Other TCR bands and regions have different daily charges. | 38.321 | — | 394.62 | 1 August 2026 Supplier schedule |
| Good Energy | PC 03, London; October applicable schedule Excludes VAT. The announced November 2026 London PC 03 tariff is 32.63p/kWh plus 153.87p/day. Confirm CCL and additional charges. | 29.60 | — | 176.34 | 1 November 2025 schedule; replacement announced for 1 November 2026 Supplier schedule |
| Maxen Power | Published NHH deemed/out-of-contract tariff Excludes VAT, CCL, RAB and OCL charges. The same published components are shown for HH meters. | 43.99 | Out of contract: 43.99 | 599.00 | Page checked 14 October 2026; no effective date stated Supplier schedule |
| npower Business Solutions | NHH deemed, London, TCR band 1 Excludes VAT and CCL. NHH rates include listed network and metering components; reactive power is excluded. | 37.222 | — | 152.784 | 1 October 2026 Supplier schedule |
| ScottishPower | Small-business deemed, standard single-rate supply, London Excludes VAT and CCL. Other regions and multi-rate meter types have different prices. | 35.670 | — | 234.27 | 1 October 2026 Supplier schedule |
| SmartestEnergy Business | NHH deemed, profile classes 1–4 Excludes VAT and CCL. Separate HH regional/band schedules apply; profile classes 5–8 have a higher daily charge. | 43.00 | — | 400.00 | June 2026 Supplier schedule |
| SSE Energy Solutions | Variable Business Rates, pre-MHHS NHH unrestricted, PC 1 or 3 Excludes VAT and levies such as CCL. Price rounded from 37.554407p/kWh; separate MHHS, multi-rate and larger-meter categories apply. | — | Variable Business Rates: 37.554 | 400.00 | June 2026 Supplier schedule |
| TotalEnergies Gas & Power | NHH single-rate deemed electricity Daily charge is calculated for each site. Day/night and HH unit rates differ; confirm taxes and additional charges. | 42.91 | — | Site-specific | 1 September 2026 Supplier schedule |
| United Gas & Power | NHH deemed and out-of-contract Excludes VAT and CCL. Separate HH LV/HV tariffs and capacity charges apply. | 40.80 | Out of contract: 40.80 | 600.00 | 1 April 2026 Supplier schedule |
| Utilita | NHH Business Variable Rates, unrestricted, London Excludes VAT. Other regions, multi-rate meters and HH supplies have different prices; confirm CCL and any extra costs. | — | Business Variable Rates: 40.195 | 255.00 | 1 October 2026 Supplier schedule |
| Valda Energy | Deemed, profile classes 3 and 4 Other profile classes and HH voltage categories have different daily charges. Confirm VAT, CCL and extra charges. | 47.00 | — | 260.00 | 5 October 2026 Supplier schedule |
| Yorkshire Gas and Power | NHH deemed and default electricity HH prices differ and include a separate capacity charge. Confirm VAT/CCL treatment and any further charges. | 45.00 | Default: 45.00 | 275.00 | 1 May 2026 Supplier schedule |
EDF’s example is from its large-business NHH schedule, not an SME fixed quote. Good Energy’s London PC 03 schedule remains relevant before its announced 1 November 2026 change to 32.63p/kWh and 153.87p/day. See the November replacement schedule. Use the October figures for an October comparison and check which schedule applies to your bill period.
Aggregated, general and advanced-meter schedules
| Supplier | Supply category and extra-cost notes | Deemed rate (p/kWh) | Other published rate (p/kWh) | Standing charge (p/day) | Effective date and source |
|---|---|---|---|---|---|
| Bryt Energy | Deemed/out-of-contract, excluding high-voltage standing-charge uplifts Excludes VAT and CCL. HH metering, reactive power and capacity charges are extra; high-voltage supplies have additional fixed charges. | 40.70 | Out of contract: 40.70 | 549.00 | Valid until 31 October 2026 Supplier schedule |
| D-ENERGi | Published monthly deemed electricity rate, NHH or HH The supplier calculates electricity daily charges for each site. Confirm tax treatment and additional charges. | 61.53 | — | Site-specific | October 2026 Supplier schedule |
| E.ON Next | Deemed, non-domestic aggregated unrestricted supply, London, all bands Excludes VAT. The latest scheme uses aggregated and site-specific supply categories; LV/HV tables have different charges. | 42.00 | — | 300.00 | 4 September 2026 rates in the 1 October 2026 scheme Supplier schedule |
| PE Solutions (Pozitive Energy) | Single-rate out-of-contract and deemed electricity Excludes VAT. Additional network, capacity, Nuclear RAB and other listed pass-through charges may apply. | 45.00 | Out of contract: 45.00 | 150.00 | 1 March 2026 Supplier schedule |
| SEFE Energy | Out-of-contract, non-domestic aggregated band 1 Excludes VAT and CCL. Daily charge includes an administration element; other supply bands have different standing and capacity charges. | — | Out of contract: 34.11 | 241.00 | 1 August 2026 Supplier schedule |
| Shell Energy UK | Advanced/smart meters, profiles 01–08, deemed or extended supply Excludes VAT and CCL. DUoS/TNUoS and applicable capacity/reactive-power costs are additional. Traditional meters have a higher standing charge. | 31.143 | Extended supply: 38.305 | 192.00 | 1 October 2026 Supplier schedule |
The current E.ON Next scheme uses aggregated and site-specific categories. Its London aggregated unrestricted row should not be relabelled as a universal NHH tariff. Shell’s advanced/smart-meter standing charge is 192p/day; traditional meters have a different charge. Bryt’s quoted October rate is valid until 31 October 2026, so check its next schedule for later supply.
Half-hourly and site-specific examples
| Supplier | Applicable supply category | Unit rate (p/kWh) | Standing charge (p/day) | Capacity (p/kVA/day) | Effective date and source |
|---|---|---|---|---|---|
| Conrad Energy | HH only; non-domestic aggregated band 1, deemed/out of contract | 38.41 day; 28.87 night | 150.72 | 0.00 | 1 October 2026 Supplier schedule |
| United Gas & Power | HH low voltage, deemed/out of contract | 39.50 | 6,200.00 | Pass-through | 1 April 2026 Supplier schedule |
| Valda Energy | HH low voltage, deemed | 52.00 | 1,000.00 | 9.50 | 5 October 2026 Supplier schedule |
| Valda Energy | HH high voltage, deemed | 52.00 | 5,500.00 | 9.50 | 5 October 2026 Supplier schedule |
| Yorkshire Gas and Power | HH deemed/default | 47.00 | 1,765.00 | 13.00 | 1 May 2026 Supplier schedule |
Conrad currently supplies Profile Class 0 half-hourly customers. Its day period is 07:00 to midnight and its night period is midnight to 07:00. VAT, CCL, reactive power and other applicable costs are additional. UGP expressly excludes VAT and CCL; check the tax and extra-charge treatment in every supplier’s full terms.
Schedules with older effective dates
| Supplier or brand | Published NHH deemed rate (p/kWh) | Standing charge (p/day) | Effective date | What we verified |
|---|---|---|---|---|
| Clear Business | 39.60 | 300.00 | 1 January 2025 | Clear Business still links this as its latest deemed electricity schedule on its current rates page. Confirm the supplying entity and your meter terms. Published PDF |
| Yü Energy | 45.30 | 300.00 | 25 August 2025 | The published PDF remains accessible. Its current applicability was not established from the supplier’s metering-charge page, so this is a reference example, not a confirmed October 2026 rate. |
An old effective date does not automatically make a rate obsolete: a supplier may retain the same tariff until it replaces it. We separate a still-linked schedule from one whose present applicability is unconfirmed.
If your bill says deemed, default, extended supply or out of contract, ask the supplier what would change under an agreed contract. Our deemed business energy guide explains the different arrangements.
Which business electricity suppliers should you compare?
Start with the services and contract conditions your business needs. The following is an editorial shortlist based on suppliers’ published product information checked in October 2026. It is not confirmation that every supplier is available through our enquiry service. The receiving partner should explain its actual panel and any exclusions.
| Supplier | Consider if you need | Published offer or service | Check before agreeing | Product source |
|---|---|---|---|---|
| EDF | Low-use premises and SMEs comparing fixed terms | Fixed tariffs from 1 to 4 years, an eligible zero standing charge option and renewable-backed tariffs. | Zero-charge eligibility, quoted unit rate and charges excluded from the fix. | EDF products |
| E.ON Next | SMEs seeking online management and several fixed terms | Selected renewable-backed fixed tariffs for 1, 2 or 3 years. | Its best-price-direct promise is limited to eligible customers below 10,000kWh/year and selected direct tariffs. | E.ON Next products |
| Octopus Energy | Businesses comparing direct quotes and time-of-use options | Standard fixed contracts up to 2 years and smart tariffs. | Octopus states it does not use brokers or comparison websites; obtain a separate direct quote. | Octopus products |
| British Gas | Businesses needing online account tools or larger-volume purchasing | Online account management and flexible contracts advertised for use above 500MWh/year. | Which costs are fixed; whether your electricity product is renewable or broader zero-carbon backed. | British Gas products |
| Good Energy | Businesses that want renewable sourcing, matching and solar/export options | Renewable supply, commercial solar and generator/export services. | The matching method, reporting evidence, import tariff and export eligibility. | Good Energy products |
| Bryt Energy | Businesses investigating renewable electricity and flexibility | Business electricity backed by renewable certificates and energy-transition services. | Eligibility, contract structure, certificate evidence and any separate flexibility agreement. | Bryt products |
| SSE Energy Solutions | SMEs and larger organisations with procurement or energy-project needs | SME fixed plans; larger-business fixed/flexible purchasing and energy solutions. | Meter-level costs, pass-through charges, account support and the scope of any renewable claim. | SSE products |
| United Gas & Power | Businesses seeking SME or multi-site account support | Published small, medium, large and multi-site services, plus fixed procurement support. | Terms for each meter, portfolio billing and capacity/network costs. | UGP services and terms |
For further options, compare the tariff and account features in our business energy supplier directory, including TotalEnergies, Drax, SmartestEnergy, SEFE and Yü Energy. A useful shortlist combines your current supplier’s renewal, a panel comparison and any relevant direct-only offer.
How business electricity rates and prices vary by region
Your postcode affects the distribution region and network costs used in a quote. A national average cannot show your exact regional charges. Use the same supplier, tariff category, meter type and consumption when measuring the postcode effect.
This matched example uses ScottishPower’s standard small-business deemed tariff effective 1 October 2026. Every row assumes 25,000kWh and 365 days. The calculations exclude VAT and CCL. They show variation within one published tariff, rather than city-wide market averages or current fixed offers.
| Distribution region | Area code | Unit rate (p/kWh) | Standing charge (p/day) | Annual cost at 25,000kWh |
|---|---|---|---|---|
| East Midlands | 11 | 34.920 | 250.11 | £9,642.90 |
| London | 12 | 35.670 | 234.27 | £9,772.59 |
| Midlands | 14 | 34.960 | 260.69 | £9,691.52 |
| Northern | 15 | 35.180 | 255.11 | £9,726.15 |
| Norweb | 16 | 35.110 | 234.27 | £9,632.59 |
| ScottishPower | 18 | 35.380 | 273.95 | £9,844.92 |
| Swalec | 21 | 35.850 | 258.03 | £9,904.31 |
| SWEB | 22 | 35.820 | 254.23 | £9,882.94 |
The difference between the highest and lowest annual totals among these eight selected regions is £271.72. This is specific to the tariff, period and use shown. Your actual network area comes from your supply details, rather than a city label alone. Source: ScottishPower regional deemed schedule.
Explore our local guides for London, Manchester, Birmingham, Glasgow, Edinburgh, Cardiff, Bristol, Leeds, Liverpool, Newcastle, or browse business energy prices by location. Confirm each guide’s dates and assumptions before using its estimates.
The GB supplier schedules on this page do not establish Northern Ireland prices. Northern Ireland has a separate electricity market, so check suppliers and terms for the actual premises.
Business electricity for cafés, shops, offices and other sectors
Your business type influences how much electricity you use and when you use it. Two premises with the same annual kWh can have different daytime, evening and overnight demand. Use meter data for your quote; sector estimates are a starting point for budgeting.
| Business type | Consumption and tariff questions | Related guide |
|---|---|---|
| Cafés and bakeries | Separate opening-hours equipment from refrigeration and overnight loads. Check the actual run time of ovens and hot-water equipment. | Coffee shop electricity; Bakery energy costs |
| Shops and salons | Compare the annual standing charge as well as the rate. Review lighting, cooling, water heating and weekend opening. | Retail energy costs; Salon energy costs |
| Offices | Allow for weekday occupancy, server loads, air conditioning and any EV charging. | Office energy use |
| Restaurants and pubs | Measure kitchen, extraction, cellar cooling and late-evening demand before choosing a time-of-use tariff. | Restaurant energy costs; Pub energy costs |
| Hotels and care homes | Check around-the-clock loads, hot water, laundry and seasonal occupancy. | Hotel energy costs; Care home energy costs |
| Warehouses and manufacturing | Request load data, maximum import capacity and metering/network charges for every supply point. | Warehouse energy use; Manufacturing energy costs |
For a simple equipment calculation, a 2kW appliance running at full power for 6 hours uses 12kWh. At an assumed 30p/kWh that costs £3.60 per day, or £936 over 260 operating days, before standing charges and tax. Thermostats and duty cycles can reduce real consumption, so check measured usage rather than treating the nameplate rating as a constant load.
Browse all business sector energy guides for equipment and consumption considerations relevant to your premises.
Business electricity price trends: annual history and latest changes
Annual business electricity prices, 2016 to 2025
The annual series shows how prices paid have changed across complete calendar years. It uses the same DESNZ dataset and excludes VAT and CCL. Different consumption bands can move in different directions.
| Year | Very small consumers (p/kWh) | Small consumers (p/kWh) | All-consumer weighted average (p/kWh) |
|---|---|---|---|
| 2016 | 12.39 | 11.58 | 10.13 |
| 2017 | 13.75 | 12.08 | 10.55 |
| 2018 | 15.23 | 13.24 | 11.36 |
| 2019 | 16.11 | 14.19 | 12.26 |
| 2020 | 16.58 | 14.74 | 13.09 |
| 2021 | 17.39 | 15.53 | 14.38 |
| 2022 | 23.21 | 19.36 | 20.16 |
| 2023 | 31.68 | 32.10 | 26.68 |
| 2024 | 31.70 | 29.16 | 25.73 |
| 2025 | 34.27 | 28.39 | 23.81 |

Between 2024 and 2025, the all-consumer annual average fell 7.4%, while the very small band rose 8.1%. An overall market average can therefore conceal the experience of smaller premises.
Same-quarter comparison: Q2 2026 versus Q2 2025
Comparing April to June with the same quarter a year earlier gives a more consistent recent comparison than mixing a quarterly figure with a full-year average.
| Consumption band | Q2 2025 (p/kWh) | Q2 2026 (p/kWh) | Year-on-year change |
|---|---|---|---|
| Very small | 36.39 | 37.67 | +3.5% |
| Small | 27.93 | 27.87 | -0.2% |
| Small/medium | 27.09 | 27.09 | 0.0% (rounded) |
| Medium | 25.26 | 24.61 | -2.6% |
| Large | 23.99 | 23.85 | -0.6% |
| Very large | 21.40 | 22.25 | +4.0% |
| Extra large | 20.53 | 21.78 | +6.1% |
| All consumers | 23.51 | 23.97 | +2.0% |
Very small consumers’ average increased 3.5%. The small band fell 0.2%, while the all-consumer average rose 2.0%. The small/medium band was essentially unchanged. Percentages use the unrounded source values.
DESNZ flags a revision to the very small electricity series from Q4 2024 onwards and says it may be revised further. The latest quarter is provisional. These historical results do not forecast the price of your next contract.
Fixed, variable and flexible business electricity commercial contracts
| Contract type | How the price works | Decision to make |
|---|---|---|
| Fixed | Specified components stay fixed for an agreed term. Some contracts permit other costs to change. | Ask exactly what is fixed and compare each term at your expected kWh. |
| Variable | The rate can change under the tariff’s terms. | Check notice, termination and price-change conditions. |
| Deemed or out of contract | Supply continues under the applicable default arrangement. Rates may be changeable. | Confirm your status and compare an agreed contract with your current costs. |
| Flexible procurement | Energy can be purchased in stages under a managed strategy. | Assess purchasing support, volume tolerance and exposure to market changes. |
For a straightforward SME energy tariff comparison, request prices for more than one contract length. A longer fix gives more time at the agreed prices but can limit your options if wholesale costs fall, you relocate or your electricity use changes. Flexible purchasing needs a strategy and active management; it is not automatically cheaper.
Our business energy contract length guide explains how to assess the term. Check the supplier’s written conditions for tax, network costs, new statutory charges, metering and any volume clauses before signing.
Half-hourly business electricity and additional charges
Half-hourly data records electricity use in 30-minute periods. It can help a supplier price your consumption pattern and help you identify avoidable demand. The supplier’s charging category may also depend on voltage, network band and whether the supply is aggregated or site-specific.
- Network charges: distribution (DUoS) and transmission (TNUoS) charges can be included or passed through.
- Available capacity: charges may be based on your agreed maximum import capacity in kVA.
- Metering and data services: check whether meter operation and data costs are included or billed separately.
- Reactive power and excess capacity: these can add costs for some sites.
- Policy and statutory costs: check the contract’s treatment of levies and newly introduced charges.
For example, Valda’s published low-voltage HH deemed schedule lists 9.5p/kVA/day. At an assumed 100kVA, that is £3,467.50 a year over 365 days, in addition to its other listed tariff components. This is a calculation from a default schedule, rather than a quote for your site. Reducing contracted capacity requires a proper assessment of peak demand and network requirements.
Read our guides to half-hourly meters, non-commodity charges, DUoS, TNUoS and maximum import capacitybefore comparing larger-site offers.
Can off-peak electricity reduce your bill?
It can if enough consumption takes place during the cheaper period. In a hypothetical comparison of 34p daytime/20p nighttime against a 30p flat rate, with identical standing charges and no other differences, more than 28.6% of your electricity must be used at night for the two-rate tariff to be cheaper.
Check the supplier’s actual time windows and use interval data to calculate the weighted rate. Moving consumption may also affect other charges. Our off-peak business electricity guide explains the checks.
Small business and microbusiness electricity protections
Ofgem’s electricity consumption routes allow a business using up to 100,000kWh a year to qualify as a microbusiness, and up to 200,000kWh to qualify as a small business. Employee and financial criteria provide alternative routes; ask your supplier which status applies. Check Ofgem’s definitions and protections.
Microbusiness suppliers must provide clear contract information and renewal prices before the contract ends. For evergreen contracts, termination notice is limited to 30 days and termination requests must be acknowledged within 5 working days. Microbusinesses and small businesses can seek Citizens Advice support and help with unresolved supplier complaints from the Energy Ombudsman.
Before using a broker, ask which approved redress scheme it belongs to and how commission is charged. Business contracts generally have no cooling-off period, so check the price, term, included costs and authority to agree before accepting, including by telephone.
A “small” consumption band in the government statistics is different from legal small-business status. A site can be in that statistical band and still qualify for particular business protections.
VAT and Climate Change Levy on business electricity
Most standard business electricity supplies attract 20% VAT. Qualifying small-quantity, domestic or eligible charitable non-business supplies can receive relief. HMRC’s current rules apply 0% VAT to qualifying electricity in Great Britain from 1 October 2026 to 31 March 2027; qualifying electricity in Northern Ireland remains at 5%. Source: HMRC VAT Notice 701/19.
The small-quantity test includes an average of no more than 33kWh a day or 1,000kWh a month at the relevant premises. It is assessed for the supply and billing period; an annual estimate alone does not establish eligibility. Ask your supplier to check your circumstances and any declaration required.
The main electricity CCL rate is 0.801p/kWh from 1 April 2026. At 25,000kWh, the full levy is £200.25; at 100,000kWh, it is £801, before VAT. Exemptions and Climate Change Agreement relief may apply. VAT is calculated on the amount including CCL where both apply. Source: HMRC CCL rates.
Worked annual bill including CCL and VAT
This illustrative bill uses 36,000kWh at 30p/kWh, a 100p daily standing charge, 365 days, full CCL at 0.801p/kWh and 20% VAT. It holds the assumed rates constant and excludes additional fees.
| Bill component | Calculation | Cost |
|---|---|---|
| Electricity consumption | 36,000kWh × £0.30 | £10,800.00 |
| Standing charge | 365 days × £1.00 | £365.00 |
| Climate Change Levy | 36,000kWh × £0.00801 | £288.36 |
| Subtotal before VAT | Consumption + standing charge + CCL | £11,453.36 |
| VAT | 20% of £11,453.36 | £2,290.67 |
| Annual total including CCL and VAT | Subtotal + VAT | £13,744.03 |
| Monthly equivalent | Annual total ÷ 12 | £1,145.34 |

Use the tax treatment that actually applies to your supply and billing dates. See our business energy VAT guide for more detail.
When to compare, renew and switch business electricity
Start by checking your contract end date, notice requirements and the earliest start date a new supplier can offer. Set a review reminder around six months before expiry so you have time to gather bills and compare options. This is a planning checkpoint, not a claim that prices will be cheapest then.
- Gather your current terms: unit rate, standing charge, annual use, renewal price and termination conditions.
- Compare matched offers: include the incumbent renewal, other eligible suppliers and any direct-only options relevant to you.
- Review the written contract: confirm start/end dates, full costs, commission and permitted changes.
- Agree the new arrangement: meet any existing notice requirements and keep confirmation.
- Check the transfer: record opening/final readings where required and reconcile the first bill.
You may be able to agree a future contract before your current one ends, but an early physical switch depends on the existing terms. Unpaid charges or contractual restrictions can also affect a transfer. A supplier change normally uses the existing network, so it does not require your electricity to be disconnected. Ofgem’s switching guidance.
Read our business electricity renewal guide and small-business switching guide for the process. Confirm your actual start date with the new supplier rather than relying on a general switching-time estimate.
Moving into new business premises
Take a dated meter reading, identify the existing supplier and report the change of occupier promptly. Keep the lease or other occupancy evidence. You are responsible for electricity you use before your chosen contract starts, and the existing supplier may charge deemed rates during that period.
Check your old premises’ termination conditions separately, especially if the business will continue at another address. Our new business energy supply guide covers moves and new connections.
Comparing electricity for more than one site
Collect the MPAN, consumption, meter category and end date for each supply point. A multi-site offer can simplify administration, but test the total for each meter and the portfolio. One headline unit rate may not reflect different regional and capacity charges. See our multi-site business energy guide.
What information do you need for commercial electricity quotes?
- Business and premises details: name, postcode and the person authorised to agree the contract.
- Current supplier and contract: start/end dates, renewal or termination conditions and a recent bill.
- Annual consumption: actual kWh, plus day/night or half-hourly data where available.
- Meter and supply identifiers: MPAN, meter type and relevant network/capacity information.
- Preferences: contract duration, payment method, renewable requirements and planned usage changes.
Your MPAN (Meter Point Administration Number) identifies the electricity supply point. It is different from the meter serial number. Check every MPAN if your premises have more than one meter or supply.
Green and renewable business electricity options
Check what the supplier means by renewable or zero carbon. A renewable-backed tariff can match your consumption with Renewable Energy Guarantees of Origin (REGOs). A broader zero-carbon product may also include nuclear generation. Electricity at the premises still comes through the shared grid.
For sustainability reporting, ask for the fuel-mix disclosure, certificate arrangements and whether matching is annual or by time period. A tariff’s environmental claim should be supported by the contract and evidence you receive.
If you have solar panels, compare import and export separately. Octopus currently publishes a 12p/kWh Panel Power export rate for eligible business solar customers. This is payment for exported electricity, not an import unit rate. At an illustrative 10,000kWh of exports, it would produce £1,200 before any applicable tax or other adjustments. Eligibility includes an Octopus business import supply, compatible metering and the supplier’s generation/FiT conditions. Source: Octopus Panel Power.
Our green business energy guide explains certificate-backed supply and other options. Compare the import bill, export income and any installation costs before deciding.
Reduce business electricity costs as well as comparing tariffs
A better contract changes the price of each unit. Lower consumption reduces the number of units you buy. Use your meter data to prioritise the loads that matter.
- Check overnight demand: find equipment running when the premises are closed.
- Set operating times: review lighting, ventilation, heating/cooling and hot-water controls.
- Maintain refrigeration: inspect seals, airflow and temperature settings without compromising food safety.
- Measure large loads: assess ovens, motors, compressed air and EV charging using actual run times.
- Recheck after a change: compare consumption over equivalent operating periods.
For example, a measured reduction of 1,000kWh saves £300 in consumption charges at an assumed 30p/kWh, before any levy and VAT effects. Standing charges normally remain payable. Saving 5,000kWh at that same assumed rate saves £1,500.
Our guide to reducing business energy costs provides practical starting points. Verify savings from measured kWh and the actual marginal rate you pay.
What happens when you request quotes through EnergyCosts.co.uk?
Our enquiry form collects details needed to arrange a comparison or introduction. Your enquiry may be passed to one or more trusted third parties, including energy brokers, suppliers or comparison partners, who can contact you to discuss suitable options. Requesting quotes is separate from agreeing a supply contract.
- Enter your business and contact details: provide accurate premises and usage information where requested.
- Review the enquiry information: check the form’s disclosures about receiving partners and contact before submitting.
- Discuss the options: confirm the partner’s identity, which suppliers it can quote and what information it needs.
- Review a written quotation: check total cost, inclusions, commission and contract terms before agreeing.
Treat this as an enquiry and contact process. It is not a guarantee that every business will receive an instant online results table. Complex, half-hourly or multi-site supplies can require additional information.
We do not charge visitors directly. Our business model can include payment for leads or introductions, whether or not a contract is completed, and commission on completed referrals. Broker commission may be included in quoted rates. Comparisons do not necessarily cover the whole market. Read how we get paid and our privacy policy.
Ask the partner to state commission in understandable terms, including its estimated total over the term. For illustration, a 0.5p/kWh commission component on 25,000kWh a year is £125 per year, or £375 over three years if usage remains constant. This is a calculation example, not a statement of our or a partner’s commission.
The supplier directory and rate tables are editorial information, rather than a confirmed quote panel. Availability depends on your circumstances and the receiving partner. Consider relevant direct supplier quotations as part of your comparison.
Business electricity comparison FAQs
There is no single cheapest supplier for every business. The answer depends on postcode, consumption, meter charges, contract dates and eligibility. Compare matched written offers on their annual total, including relevant extra costs.
A good offer is competitive for your actual supply and includes the services and contract conditions you need. Use the closest government consumption band as a historical paid-price benchmark, then compare current eligible quotations. A low p/kWh figure alone cannot show value.
The domestic energy price cap does not cap commercial electricity tariffs. Business contract and default-rate prices are set under the applicable supplier terms, so check your renewal and alternatives.
A recent bill or your supplier’s account portal may show annual consumption. Ask the current supplier for actual annual usage and interval data where relevant. Label an estimate clearly and explain any planned change in operating hours or equipment.
Business supply contracts generally have no cooling-off period. Do not assume you can cancel after accepting a quotation. Read the conditions, check who has authority to agree and obtain written confirmation of the complete offer.
Timing depends on your current contract, the agreed start date and any issues with the supply details or outstanding charges. Some suppliers advertise a few working days for eligible immediate switches; a future renewal starts on the agreed future date. Ask for confirmation for your own supply.
A fixed price does not fix how many kWh you use. Your bill also depends on usage, days billed, taxes and any components the contract allows to vary. Confirm precisely which charges are fixed.
Yes, but collect supply details for every MPAN. Compare each meter’s cost and the combined portfolio, including different end dates, regions and capacities. Ask how additions, closures and relocations are handled.
Working from home does not automatically mean you need a commercial tariff. Ask your supplier which contract is appropriate for the actual premises and use before changing it.
A standard supplier change normally uses the existing meter and network. The supplier and billing arrangement change. Separate meter work or a new connection is a different process and should be arranged expressly.
Pricing sources and methodology
EnergyCosts.co.uk researched this page on 14 October 2026. Each pricing table states its period, tariff category and tax basis. Supplier schedules can change after this date, so confirm the applicable rate before using it to make a purchasing decision.
- Government paid-price data: DESNZ non-domestic gas and electricity prices, table 3.4.1, released 29 September 2026. Q2 2026 is provisional; annual data cover 2016–2025. Figures are fully delivered and exclude VAT and CCL. Published consumption bands are approximate.
- Supplier rate tables: primary supplier pages and PDFs linked within each row. Dates describe the supplier’s stated tariff period or effective date, not necessarily the date the webpage was uploaded. Additional charges and applicability notes are preserved.
- Regional comparison: one ScottishPower standard deemed tariff, 25,000kWh and 365 days across eight selected distribution regions. It does not establish regional market averages.
- Tax and consumer rules: HMRC VAT Notice 701/19, HMRC Climate Change Levy rates and Ofgem business contract guidance. Check conditions for your supply and period.
- Calculations: annual usage multiplied by the stated unit rate, plus the daily charge multiplied by the stated days, with additional components only where specified. Pence are converted to pounds; money is rounded to two decimal places. Monthly equivalents divide the annual total by 12.
- Quotation status: illustrative tariff and bill scenarios are calculations, not live offers, customer case studies or evidence of a guaranteed saving. No fixed-contract quote is represented as available without verification.
Latest updates to this page
16 October 2026
- Added links to new Valda Energy review
14 October 2026
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1 September 2026
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