Compare business electricity prices and fix your rates

Sorting out business electricity costs can feel like a chore, especially when it’s not as straightforward as switching your household energy. But don’t worry—getting the best deal on business energy prices doesn’t have to be a hassle. With a bit of know-how and the right approach, you can cut costs, find the best business electricity supplier, and keep your energy expenses under control. 

Here’s everything you need to know about business electricity rates and tariffs, as well as how to get the best deal for your business. 

Why do businesses need a separate electricity contract? 

Business electricity prices work differently from domestic rates because commercial energy use is more complex. You can’t just hop onto an off-the-shelf tariff like you would at home. Instead, your business electricity rate is tailored to suit: 

• The type and size of your business 
• The size of your premises 
• Your estimated electricity use 

For example, if you’re running a small shop, your electricity demands will look very different from a factory or office building. And if you’re a large business with high electricity needs, you might even need a half-hourly meter to track your energy use in real-time. 

If you've got more than one site, you’ll likely need multiple meters. A quick call to an energy expert can help you sort out the best business electricity tariffs for multi-site businesses. 

What are the latest business electricity costs in 2025? 

So, what’s the typical cost of business electricity rates per kWh? It depends on how much energy your business uses. Here’s a quick guide to the latest business electricity prices by business size: 

March 2025 business electricity usage, rates, and bills

Business size	Average annual usage (kWh)	Unit rate (per kWh)	Standing charge (per day)	Annual bill
Micro business	5,000 to 15,000	25.6p	52.5p	£2,752
Small business	15,001 to 25,000	25.7p	59.4p	£5,999
Medium business	25,0001 to 50,000	25.4p	147.3p	£12,603
Large business	More than 50,000	23.9p	42.0p	£13,298

_{Note: Prices are correct as of March 2025. Rates and bill size may vary according to your meter type and business location. The prices you’re quoted may be different from the averages shown. The figures shown are the average unit rates and standing charges on contracts sold by Bionic from March 2 to March 6, 2025.}

These are averages, so your actual business electricity costs might be higher or lower depending on factors like your location or energy efficiency. 

What’s the difference between fixed and variable business electricity tariffs? 

When comparing business electricity deals, you’ll notice suppliers typically offer two types of tariffs: fixed-rate and variable-rate. 

Fixed-rate tariffs 

• Lock in your business electricity rates for the length of your contract (usually 1–5 years) 
• Great for budgeting since your per-unit price stays the same 
• Shields you from market price hikes 

Variable-rate tariffs 

• Rates go up or down depending on wholesale market changes 
• You might save if prices drop—but your bills could rise if prices climb 

Most businesses prefer fixed rates because they’re predictable. But if you like flexibility and don’t mind a bit of risk, variable rates could work for you. 

How to get the best business electricity prices 

The key to finding the best business electricity rates is simple: shop around. But calling multiple suppliers, explaining your needs, and jotting down quotes? That’s time-consuming. 

Instead, use a comparison service like Bionic or MoneySuperMarket to do the heavy lifting. A quick call or online search lets you compare rates from top business electricity suppliers in minutes. 

We use smart data to cut the amount of form-filling you need to do, but it might help if you have the following to hand when you get started: 

• Your current supplier and tariff details 
• How much electricity your business uses annually (check your bill!) 
• The type of meter you have 

Once you’ve got your quotes, pick your favourite, and the switching service will take care of the rest. 

When can you switch business electricity suppliers? 

Switching suppliers isn’t quite as fast for businesses as it is for households. You’ll need to wait for your current contract’s renewal window—typically the last 6 months of your deal. 

If you’re a microbusiness, it’s easier. Ofgem rules let you give notice to switch at any point in your contract. 

What factors affect business electricity prices? 

Your business electricity rate is influenced by a mix of factors: 

• Business type: Energy-intensive industries pay more 
• Location: Distribution charges vary across region 
• Tariff type: Fixed, variable, or bespoke tariffs impact pricing 

Unlike domestic energy, business energy prices don’t have a price cap, so they’re more affected by market changes. 

How much could switching save your business? 

The savings can vary depending on your business type and energy use, but if you’ve been with the same supplier for years, you’re probably overpaying. Many businesses can save just by switching from their supplier’s out-of-contract rates to a more competitive business electricity tariff. 

How to cut the cost of your business electricity bills  

Easy ways to cut your business electricity costs  

Aside from switching suppliers, there are plenty of ways to bring down your business electricity charges. Here are some simple yet effective tips:  

1. Invest in energy-efficient tech - Switch to LED lighting, install energy-rated appliances, and consider smart thermostats to optimize your energy use.  
2. Upgrade your premises - Insulate your building, upgrade windows to double glazing, and seal any draughts.  
3. Optimise heating and cooling - Turning the thermostat down by just 1°C can save a surprising amount of energy.  
4. Get an energy audit - Identify inefficiencies in your energy use and fix them. 

 How long does it take to switch suppliers? 

If you're out of contract, switching business electricity suppliers can take as little as five days if you run a microbusiness, or up to four weeks for any other sized business. The timeline depends on your current contract’s end date and the size of your business. 

While you can line up a new contract as soon as your switching window opens, your new supplier won’t start supplying your business until your current contract ends. 

And remember, when you switch, there won’t be any interruptions in your supply. 

Should you worry about rising energy costs? 

Energy prices have been volatile in recent years but the market seems to have calmed over the last 12 months. Even so, prices are still much higher than pre-Covid levels and are now rising steadily. 

Businesses often feel the pinch more than households because there’s no price cap. To protect your business, focus on locking in a good deal with a fixed-rate tariff or improving energy efficiency to cut your usage. 

The bottom line: Compare and save on business electricity 

Don’t let rising costs eat into your profits. Switching to the best business electricity supplier can help you save money and keep your energy expenses manageable. 

With tools like Bionic or MoneySuperMarket, comparing business electricity prices is easier than ever. Why wait? Start comparing today and see how much your business could save.

Business Gas FAQs 

To help you better understand how business electricity switching works, here are the answers to some frequently asked questions.

Should you pay VAT on your business electricity bills? 

It’s most likely your business will be charged the standard rate of 20% VAT for its electricity, but discounts are available for some businesses, as well as certain not-for-profit and charities. You might also be in line for a reduced rate of just 5%. Learn more at our guide to VAT and business energy. 

How to get the best gas rates for multi-site and high-consumption businesses 

If your business is located across several sites, and each location has its own meter, it could be more cost-effective, and certainly more convenient, to have one provider overseeing your energy supply – you’ll have one bill showing the energy consumption of each site, and one renewal date. 

Speak to the Bionic energy experts about gas supply for large businesses and we will help you find the most suitable and cost-effective multi-meter and multi-site energy plan. 

Are business electricity prices capped? 

Unlike domestic electricity prices, which have been capped to keep bills relatively low, business electricity prices are not capped. This is why it’s important to compare suppliers and fix your rates. 

Can home-based businesses get a business electricity tariff? 

Yes, but only if more than 50% of your energy use is for business purposes. This threshold can vary between suppliers, so check to see if a business electricity tariff could save you money. 

How much money could switching electricity save your business? 

The amount you can save depends upon the size of your company, the size of its premises, the number of employees, and its overall energy efficiency. 

Give the Bionic business energy experts a call now on 0800 140 4667 and run a commercial electricity comparison to find out exactly how much your business could save.