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Small Business Energy
Best Energy Deals for Small Businesses – Maximise Your Savings Today!
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- Compare trusted UK based suppliers
- Best small business energy rates
Best energy deals for small businesses
Unlock significant savings by exploring fixed energy tariffs and switching to the most cost-effective supplier. Finding the best energy deals for your business is easier than ever with these simple steps:
Enter Your Business Postcode
Enter your business postcode and current contract status. Our advanced search will bring you the latest, most competitive prices.
Compare Fixed Energy Deals
Our energy experts will provide tailored electricity and business gas prices from trusted suppliers. You’ll have all the information to make an informed decision.
Make a Simple Supplier Switch
Leave the hassle to us. Our business energy experts will ensure a seamless transfer to your new business energy supplier, so you benefit from lower rates without any interruptions.
Latest business energy prices for small businesses
Stay ahead with our updated table of the latest energy prices for small businesses. Compare rates from trusted suppliers and make informed decisions to save on your energy costs. Here’s a quick look at the current market prices:
| Size | Annual Consumption kWh | 1 Year fixed elec rate p/kWh |
|---|---|---|
| Small | 10,000 to 50,000 | 23.2 |
| Medium | 50,000 to 100,000 | 21.2 |
| Big | 100,000 + | 21.0 |
Average small business energy rates
The table below shows the latest average one-year fixed business electricity rates for small businesses. Our experts compile these rates using the latest wholesale electricity prices from the national grid.
| Size | Annual Consumption kWh | 2021 average rates p/kWh | 2022 average rates p/kWh | 2023 average rates p/kWh | 2024 average rates p/kWh |
|---|---|---|---|---|---|
| Small | 10,000 - 50,000 | 14.62 | 53.37 | 27.29 | 23.01 |
| Medium | 50,000 - 100,000 | 11.89 | 51.37 | 25.30 | 21.01 |
| Big | 100,000 + | 11.69 | 51.17 | 25.09 | 20.81 |
*Note that small business electricity prices vary by region.
How can comparing SME energy prices help your business?
Comparing energy prices for small and medium-sized enterprises (SMEs) can significantly benefit your business in several ways. Here are the top three most important:
Cost Savings
Comparing different energy tariffs and suppliers can help you find the most cost-effective options. This can lead to substantial savings on your energy bills, freeing up capital for other essential areas of your business.
Budget Predictability
Choosing the right energy plan, such as a fixed-rate tariff, can provide predictable monthly costs. This predictability simplifies budgeting and financial planning, helping you avoid unexpected spikes in energy expenses.
Improved Cash Flow
Lower energy costs directly translate to improved cash flow. By reducing your monthly outgoings, you can allocate funds to other critical aspects of your business, such as growth initiatives or operational improvements.
Is your business an SME or a Microbusiness?
Knowing your business classification can help secure the best energy deals and support available. Here’s a quick guide based on the UK government’s and Ofgem (the energy regulator) guidance:
Micro Business
You’re a micro business if you have fewer than 10 employees and an annual turnover under £2 million. This often means you can access specialised, lower-cost energy tariffs to support smaller operations.
Microbusiness Energy Contracts
To qualify for a micro business energy contract, your annual usage should be less than:
- 200,000 kWh of gas
- 55,000 kWh of electricity
Small Business
You fall into the small business category for businesses with fewer than 50 employees and a turnover under £10 million. This opens up a range of competitive energy options tailored to your needs.
Medium Business
With fewer than 250 employees and a turnover under £50 million, medium businesses have unique energy requirements and opportunities for efficiency savings.
Large Business Energy Needs
Running a larger operation? If your energy demand hits 100 kVA or more per hour, you’ll be on a half-hourly business electricity meter tariff. The tariffs include capacity and maximum demand charges from the local distribution network operator.
By understanding your business size and energy needs, you can make informed decisions to optimise your energy consumption and costs. Whether you’re a micro, small, or medium business, there are tailored solutions to help you manage your energy more effectively.
Small business energy tariffs
As a small business owner, you have two main options for energy tariffs: fixed-rate and variable tariffs. Fixed-rate contracts provide certainty over each kWh of electricity cost, while variable tariffs adjust based on market conditions.
Dive deeper to discover the pros and cons of each business electricity tariff.
Fixed-Rate Small Business Energy Tariff
Why choose a fixed-rate electricity plan for your small business? Here are two compelling reasons:
- Simplicity – Fixed-rate business electricity plans are straightforward to manage. With a fixed unit rate per kWh of electricity and a daily standing charge, you can easily predict your electricity costs based on your annual usage. This transparency makes budgeting a breeze.
- Certainty – Business electricity prices can fluctuate significantly due to geopolitical events and market changes. A fixed-rate tariff shields your business from rising energy costs, providing financial stability.
Variable-Rate Small Business Energy Tariff
Considering a variable-rate electricity plan? Here are two key benefits:
- Flexibility – Unlike fixed-rate contracts, variable-rate plans allow you to switch suppliers anytime without hefty early termination fees. This flexibility can be a major advantage if your business needs change.
- Benefit from Falling Prices – With a variable-rate plan, your business can take advantage of declining electricity prices, potentially reducing your overall energy costs.
While fixed-rate tariffs often prove more cost-effective due to competitive rates offered by suppliers to attract new customers, it’s important to weigh your options.
Support for small business energy bills
Until March 2024, the Energy Bill Discount Scheme provided crucial support for small businesses. Since its end, no new scheme has been introduced to offer similar protection.
With no cap on small business energy prices, out-of-contract rates have soared, making them prohibitively expensive.
To effectively manage your energy costs, regularly switch to fixed energy tariffs to secure the most competitive rates available.
Keep reading to learn what to do if you’re struggling to pay your business electricity bills, discover available business energy grants, and understand Ofgem’s protections for small businesses.
Small businesses struggling to pay their energy bills
In these challenging economic times, many smaller businesses struggle to keep up with business electricity and gas bills. Ofgem and
Citizens Advice offer the following guidance:
- Contacting Your Energy Supplier: If you’re facing difficulties, communicate with your supplier. They may offer manageable payment plans, payment breaks or reductions, extended payment periods, or access to hardship funds.
- Seeking Business Debt Advice: Organisations like the Business Debtline can guide managing business debt and budgeting.
- Reducing Energy Consumption: Taking proactive steps to lower energy consumption can result in cheaper bills. Simple steps like installing timers for lighting and heating can result in meaningful reductions in energy consumption.
Latest Resources for business energy support:
Ofgem: Getting help if your business cannot afford its energy bills
Citizens Advice: Get help with your small business energy bills