Compare Business Electricity

Compare business electricity – September 2024

Following the unprecedented energy crisis of 2022, many UK SMEs pay for electricity with a variable-rate tariff. In 2024, the electricity market stabilised, and switching to a fixed business electricity tariff now offers significant savings.

Find out how much your business can save by entering your postcode into our smart business electricity tool.

What should you look for when comparing business electricity?

Here are the top five most important factors to consider when comparing business electricity quotes:

• Fixed or variable unit charges – You’ll pay for each unit kWh of electricity used in all business electricity contracts. In a fixed tariff, the cost for each kWh will stay the same throughout the contract, whereas in a variable tariff, this cost will rise or fall with the market. Consider carefully whether your business would benefit from the protection of a fixed-rate contract.
• Contract length – Business electricity quotes are offered between 1 and 3 years. Early termination fees for commercial electricity can be expensive, so consider carefully the ideal contract term for your business.
• Estimated annual cost – When you start to compare business electricity, you’ll be asked how much electricity your business consumes annually. This is an important factor as it allows you to compare the estimated annual cost of each quote. Ensure that you provide an accurate consumption estimate to get the best quotes for your business.
• Supplier reputation – Reputation is essential when choosing an electricity supplier for your business. With a business electricity tariff, you’ll be locked in with a supplier, so look for a reliable supplier with a proven reputation for delivering quality customer service.
• Payment terms – Business electricity suppliers offer a variety of payment terms; some may require upfront payment, while others may offer monthly billing. Choose payment terms that suit your business’s operations and cash flow requirements.

Multi-site comparison for business electricity

If your business has more than one property, managing your electricity contracts in a single multi-site comparison can save time and money.

A multi-site solution makes managing business electricity contracts easier and allows you to access cheaper business electricity rates:

The benefits of multi-site business electricity comparison are:

• Accurate billing using a multisite meter.
• Compare business electricity usage site to site and make efficiency improvements.
• Less admin. One business energy bill rather than sporadic bills from multiple suppliers.
• Singular renewal date – no need to constantly compare business electricity prices as different MPANs reach the end of their contracts.

Our business electricity experts will help you compare consolidated business electricity quotes from multiple suppliers. Start by entering the postcode of your head office into our smart comparison tool.

Compare green business electricity

Businesses concerned about their environmental impact are adopting green business electricity tariffs. The terminology of the different green electricity can be confusing so let’s compare green business electricity deals:

Mixed business electricity – Green electricity generation now accounts for over a quarter of all electricity generated in Britain. In a standard business electricity contract, most electricity will come from non-renewable sources. Review the fuel-mix disclosure on the website of your business electricity supplier to find out exactly how much.

Direct generation green electricity – In a direct generation quote, your supplier commits to never separating renewable energy guarantees of origin (REGOs) from underlying electricity purchases. More simply, direct generation means your electricity comes from renewable sources only.

Indirect generation green electricity – A green contract where your supplier may purchase REGOs separately from electricity. Separate REGO purchases may occur on windy days with excess green electricity, making them cheap. It allows your supplier to buy electricity from non-renewable sources if it holds excess REGOs.

Carbon offset green electricity – In this green contract, your supplier may use electricity generated from fossil fuels to offset greenhouse gas emissions by purchasing carbon credits from investments such as forest regeneration.

Smart export guarantee electricity – A special contract designed for businesses with their own renewable electricity generation, such as solar panels. The scheme lets you purchase and sell electricity to and from the national grid. Find out more in our guide to the smart export guarantee.

Business Electricity Comparison FAQs

Here is a breakdown of frequently asked questions by people looking to compare business electricity.

Can I compare business electricity on a variable tariff?

Yes, variable business electricity tariffs typically have no fixed end date, and you can switch suppliers anytime.

To compare business electricity prices on a variable tariff, simply select “I’m out-of-contract” on our smart comparison form. Our business electricity experts will then provide a comparison report of quotes offering an ‘as soon as possible’ switch.

Where can I find my meter number (MPAN)?

Your MPAN, which stands for Meter Point Administration number, is also called the “S Number” or a “supply number,” and can be found on your latest electricity bill.

The MPAN is a 21-digit number that begins with an S – making it easy to identify. Even though the MPAN is used to identify your property, you won’t find it on the meter and will have to review a past business electricity bill to locate the number.

What is business electricity?

Business electricity is a specific type of electricity quote where a licensed business energy supplier will provide electricity to a non-domestic property.

The key differences between business electricity and domestic electricity are:

• Prices are more complicated and change daily, so it’s necessary to obtain tailored quotes to compare the market.
• Contracts are generally fixed for a longer term.
• Business electricity costs are subject to VAT at the full 20% and contribute to the climate change levy.

What do I need to do at the end of a business electricity contract?

Business electricity contracts have a section that says what happens if you reach the end of your contract without arranging a new one.

Typically, you’ll continue to be supplied by your current business electricity supplier with either:

• A rollover contract where you’ll be locked in for a further year at a fixed rate or
• An out of contract deemed rate with a variable unit rate.

Either way, these automatic business electricity contracts are unnecessarily expensive. To avoid wasting money, we recommend using our business electricity comparison service to arrange a renewal or a hassle-free switch to a new supplier.

Can I compare business electricity prices without a standing charge?

Yes, it’s possible. Most business electricity rates include a daily standing charge, but you can request specific rates without one.

However, generally, in a quote without a standing charge, the unit rate of electricity you pay for consumption will be higher. This isn’t always ideal, especially if you have high consumption.

How to compare small business electricity

Comparing small businesses, electricity follows the same process that all companies use. Simply enter the postcode of your business and select your address to begin.

Enter a few additional details, and our experts will present you with a comparison report with the available business electricity prices.

How do I compare business electricity prices for a business with high energy consumption?

Comparing the market for large commercial electricity users can be complex. Business electricity suppliers generally only provide bespoke business energy quotes to large businesses, which take a little while to prepare.

Additionally, businesses with half-hourly meters must provide historical consumption data to obtain accurate quotes.

Our business energy experts can help simplify the process. We’ll manage the process of collecting and comparing high-consumption electricity quotes. Start the process today by entering the details of your head office in our business electricity comparison form above.

How can I compare business electricity prices for my exact business location?

The location of your business is a key factor when comparing business electricity quotes. Electricity prices depend on which electricity distribution network operator serves your commercial property.

To get accurate quotes for your business location, simply enter your postcode into our business electricity comparison form above. Our smart address finder will automatically locate the details of your business name and address.

What should I do when my electricity contract is about to expire?

Reaching the end of a fixed-term contract allows you to explore new options. Our Business Energy Contract Termination Template can help ensure you do not automatically roll over onto a new contract.