What are the different business energy tariff options in the UK?

When it comes to comparing business energy tariffs, the process can be a bit more complex than evaluating domestic energy options. This is mainly because there are many different plans tailored specifically to commercial needs. In this article, we aim to simplify the process, covering the key business electricity tariffs and major business energy suppliers in the UK, alongside information on how to identify the right option for your business.

Before diving into the types of business energy contracts available, it’s essential to consider factors like the size, location, and nature of your business. These aspects heavily influence the best contract for you and the overall cost of energy. A thorough way to find the best fit is by shopping around and getting quotes from several providers. To help streamline this, here’s a rundown of current business energy tariffs and their rates in the UK, including guidance to help you understand which plan may be most suitable.

Business Energy Prices

Every provider has a unique unit rate per kWh and a standing charge per day. The unit rate reflects the price per kWh for the electricity consumed, which usually represents the largest portion of your energy bill. The standing charge, however, is a fixed cost for accessing electricity. Although many people focus on the kWh rate, it’s vital to consider the standing charge as well, as it can significantly impact your overall costs.

For example, some business energy suppliers like Bulb offer rates of 12.05p per kWh with a 27.40p daily standing charge, while others like OPUS Energy have rates of 25.50p per kWh and a 95.00p daily charge. Each provider’s pricing varies, and thus comparing these rates is essential for securing the best deal.

Average Business Electricity Costs

According to UK government data, the average price for business electricity tariffs in 2019 was 11.66p/kWh. However, costs vary by business size. Small to medium-sized enterprises, for instance, generally pay between 16.09p and 11.51p/kWh, with small businesses typically paying higher rates than larger businesses due to fewer discounts and limited shopping around.

Importance of Comparing Business Energy Rates

Shopping around for business energy can lead to significant savings. While this can be time-intensive, it’s a crucial step, especially for smaller businesses that tend to face higher rates. Services like Amvia offer impartial energy comparison to assist UK businesses in comparing business energy options effectively, saving time and ensuring that you get the best rate.