Compare Business Electricity Prices

What Is Business Electricity?

Business electricity is the electricity supplied to commercial premises — offices, shops, factories, restaurants, warehouses and any non-domestic property. Unlike domestic electricity, business electricity contracts are typically fixed-term agreements (1, 2, or 3 years) with prices locked in for the duration, no cooling-off period, and no price cap protection.

Business electricity is measured in kilowatt-hours (kWh) and billed as: (units used × unit rate) + (days in billing period × standing charge) + VAT (20%) + Climate Change Levy (CCL). The unit rate is the price per kWh, and the standing charge is a fixed daily cost regardless of usage.

How Are Business Electricity Prices Calculated?

Your electricity price is determined by several factors: wholesale energy costs (the price your broker pays on the market), network charges (transporting electricity through the National Grid), environmental levies (government-mandated renewable energy costs), your usage volume (higher usage can unlock better rates), your contract length (longer contracts sometimes offer better rates), and your location (network charges vary by region).

When you sign a fixed-term contract, your broker locks in the wholesale price at that time. This protects you from market volatility — if wholesale prices rise, your rate stays the same. But if wholesale prices fall, you won't benefit until renewal.

What Affects Your Electricity Costs?

Several factors influence how much you pay for business electricity:

• Unit rate (price per kWh) — the biggest variable, typically 15-35p/kWh for business
• Standing charge — fixed daily cost, typically 20-60p/day regardless of usage
• Usage volume — higher usage can unlock better per-unit rates
• Contract length — 1-3 year terms; longer contracts provide price security
• Time-of-use patterns — peak-hour usage may cost more on some tariffs
• Out-of-contract rates — 30-50% more expensive if your contract expires without renewal
• VAT (20%) and Climate Change Levy — automatically added to business bills

Who Needs Business Electricity Contracts?

Any business occupying a commercial premises needs a business electricity contract — including sole traders, limited companies, partnerships, charities, and public sector organisations. Domestic tariffs cannot legally be used for business premises.

If you've just moved into new premises without setting up a contract, you'll be placed on 'deemed' rates by the incumbent broker. These are the most expensive rates available — often 50%+ more than negotiated rates. Arrange a proper contract immediately.

How to Compare Business Electricity Brokers

The most effective way to compare is to provide your latest electricity bill to a whole-of-market broker. We pull real rates from every broker simultaneously, tailored to your specific usage profile, and present a clear side-by-side comparison showing total annual costs — not just headline unit rates.

Don't rely on comparison sites that only show a subset of brokers or receive commissions for promoting certain ones. Use an independent broker who compares the entire market and is transparent about how they're paid. We're paid by the broker you choose — never by you.