Best Business Electricity Rates and Suppliers for SMEs

  • Author
    Lloyd Energy
  • Published
    March 8, 2024
  • Word count

A quick business electricity rates comparison could save a business up to 40% on its energy costs every year. To help businesses access the best business electricity tariff possible, a useful review of the top business electricity suppliers is important. Including the “Big Six”, there are more than 50 Business electricity suppliers here in the UK. When it comes to comparing commercial electricity and commercial gas tariffs, there is no particular tariff available. Using our business electricity comparison service will ensure that your business secures the cheapest electricity prices for these essential commodities.

Different Business Electricity Tariffs Available

When you compare Business electricity, You’ll find a variety of options to choose from. Here are some of the business electricity tariffs:

Fixed-Rate Tariff

This option allows you to lock in a set price for multiple years. Your unit prices will remain consistent each month throughout the contract, offering protection even when wholesale prices increase.

Variable-Rate Tariff

For businesses seeking flexibility, the variable tariff is an excellent choice. The price per kWh will adjust monthly based on wholesale prices. While it carries some risk, it’s favoured by many for its flexibility and the ability to cancel.

Green/Renewable Tariff

There’s a growing interest in tariffs that offer 100% renewable electricity. Contrary to popular belief, many suppliers are offering renewable electricity as standard or pricing dedicated tariffs much more competitively.

Understanding Business Electricity Prices

If you’re wondering about the cost of your business electricity, we’ve got you covered. We’ve gathered average electricity costs per kWh based on the size of your business. Here’s a rough idea of what to expect when you use a comparison engine:

Business Electricity Rates by Business Size

It’s important to note that business electricity rates change daily, so seizing a good deal when you see it is crucial. For the most accurate quote, live rates are your best resource. The data provided here is correct as of August 2023 and represents annual costs on a 2-year contract with maximum kWh usage within each business size category:

• Micro (up to 5,000 kWh): Unit Price/kWh: 29.9p, Standing Charge: 62.9p, Annual Price: £1,722.02

• Small (5,000-15,000 kWh): Unit Price/kWh: 29.8p, Standing Charge: 78.5p, Annual Price: £4,760.18

• Medium (15,000-25,000 kWh): Unit Price/kWh: 30.1p, Standing Charge: 115.7p, Annual Price: £7,947.42

• Large (25,000-50,000 kWh): Unit Price/kWh: 29.9p, Standing Charge: 160.1p, Annual Price: £15,529.17

• Very Large (50,000 kWh): Unit Price/kWh: 29.7p, Standing Charge: 175.2p, Annual Price: £30,368.74

Industry-Specific Electricity Rates

The type of industry your business operates in can significantly impact consumption and pricing. Here are some examples of prices for different types of businesses:

• Coffee Shop/Newsagent: Unit Price: 30.88p, Estimated Usage: 5,000 kWh, Annual Cost: £1,659

• Hair Salon: Unit Price: 31.16p, Estimated Usage: 15,000 kWh, Annual Cost: £4,838

• Small Farm: Unit Price: 31.41p, Estimated Usage: 50,000 kWh, Annual Cost: £15,609

• Restaurant: Unit Price: 31.16p, Estimated Usage: 25,000 kWh, Annual Cost: £8,032

• Very Large (50,000 kWh): Unit Price: 29.7p, Standing Charge: 175.2p, Annual Cost: £30,368.74

Factors Influencing Business Electricity Prices

The market price of business electricity isn’t static and can be influenced by various factors:

• Demand: An increase in demand can lead to higher wholesale electricity costs.

• Weather: Weather conditions affect electricity demand, with cold and dark weather increasing usage.

• Commodities: The cost of the commodities used for electricity generation, such as gas, coal, and oil, has a significant impact on market costs.

• Carbon Cost: Generators using fossil fuels must purchase certificates for CO2 emissions, penalizing non-renewable sources.

• Delivery Constraints: Outages, maintenance, or connection issues can affect electricity market costs.

Exploring the Latest Business Electricity Rates by Supplier

While the cheapest business electricity supplier may change frequently, here’s a snapshot of some supplier prices for businesses with 25,000 kWh of annual electricity usage in a 2-year fixed-rate deal as of October 2023:

• British Gas: Unit Rate 32.6p, Standing Charge 62.3p, Annual Cost £8,368.05

• Valda Energy: Unit Rate 29.8p, Standing Charge 54.2p, Annual Cost £7,643.13

• Opus Energy: Unit Rate 26.6p, Standing Charge 184.7p, Annual Cost £7,333.45

• Scottish Power: Unit Rate 28.3p, Standing Charge 97.9p, Annual Cost £7,427.13

• EDF: Unit Rate 29.8p, Standing Charge 25p, Annual Cost £7,534.11

• Smartest Energy: Unit Rate 28.9p, Standing Charge 31.5p, Annual Cost £7,343.46

• BG Lite: Unit Rate 32p, Standing Charge 42.3p, Annual Cost £8,152.31

Tips for Reducing Business Electricity Costs

Saving money is vital for businesses, and there are simple steps you can take to reduce your electricity usage. Here are some cost-effective remedies:

• Conduct an energy audit to identify open doors or old, energy-intensive light bulbs. Consider switching to energy-efficient LEDs.

• Install motion sensor lights to reduce unnecessary consumption.

• Opt for a smart meter to monitor your usage more closely.

• Use management software to analyze usage trends and peak demand.

• Move furniture away from radiators and other heat sources to optimize heating efficiency.

• Turn equipment off overnight when applicable to save on energy costs.

Solutions for Small and Large Businesses at Lloyd Energy

We understand that small and large businesses have unique needs. That’s why we’ve developed solutions for both:

  1. Business Electricity Rates for Small Companies

We’ve created a Self-Service platform for modern small businesses that are too busy looking after their customers during office hours. Our comparison engine allows customers to switch anytime, 24/7, 365 days a year.

  1. Commercial Electricity Rates for High Consumption Businesses

For larger businesses with higher electricity consumption, we offer a more personalized approach. Whether you need half-hourly meters installed or have multi-site requirements, our specialists will work with you to understand your needs before shaping the perfect tariff.

Determining the cheapest business energy supplier will be simpler with Lloyd Energy. Business energy prices fluctuate daily due to market changes, and each supplier targets specific customer groups.

You can easily get your quote in minutes just by letting us know your Postcode and the following details:

• Length of the contract

• Type of tariff

• Meter type

• Business size

• Location

At Lloyd Energy, we compare multiple business energy suppliers available in your business location to get you the cheapest business energy deal that fulfils your business requirements and cut costs on your current business energy bills.

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