Business Energy

Compare Small Business Energy Prices

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If you’re a small business owner, every penny counts, and you can do without paying over the odds for your energy. The good news is that by simply switching energy provider, you can shave hundreds of pounds off the cost of your annual energy bills.

Our energy experts are on hand to compare the latest deals and find the best gas and electricity prices for your small business. Read on to see how comparing gas and electricity prices can help your company.

How can an SME energy comparison can help your business?

If your business has been on the same old energy tariff for some time, the chances are you won’t be getting the best deal on the market, so switching your tariff or even your provider can instantly cut costs. Businesses, even small enterprises, tend to use more electricity than the average home, so it’s often possible to negotiate with suppliers to get a better price.

If your business operates across more than one location - say you’ve a small chain of coffee shops or run a couple of hair salons, for example - you may be able to negotiate an even better deal as part of a multi-site energy contract.

The energy market can be volatile, with both gas and electricity prices fluctuating. This can make it difficult to compare and switch deals, especially if you don’t have much time. But our energy experts can access the most up-to-date rates and the best-priced tariffs - we compare the whole of market, from the Big Six to smaller independent suppliers, to make sure you’re getting the best tariff and the right deal to suit your small business’s needs.

How much are small business energy rates?

Unlike household energy deals, which offer a range of ‘off-the-shelf’ tariffs, business energy contracts are calculated to meet the exact needs of each individual business.

This bespoke approach means you can be sure your tariff meets the needs of your business, but it also makes it difficult to put an exact figure on how much your business should be paying for gas and electricity.

The cost of business gas and electricity is affected by lots of factors, but the location of your business could have big impact on the rates you pay - regional variations can account for as much as a 20% price difference, with businesses in rural areas typically paying more for energy than city-based businesses.

To give you an idea how much energy your business should be using, and a ballpark figure of how much you should expect to pay, here are the average business electricity and business gas consumption rates and prices:

Average business electricity prices and usage

Business size Average annual usage (kWh) Average price (per kWh) Standing charge (daily) Average annual price
Micro business 5,000 - 15,000 14.4p - 15.9p 23p - 29p £900 - £2,244
Small business 15,000 - 25,000 14.3p - 15.1p 23p - 28p £2,367 - £3,660
Medium business 25,000 - 50,000 14.3p - 14.7p 23p - 27p £3,774 - £7,234

Average business gas prices and usage

Business size Average annual usage (kWh) Average price (per kWh) Standing charge (daily) Average annual price
Micro business 5,000 - 15,000 5p - 5.1p 19p - 25p £400 - £820
Small business 15,000 - 30,000 4.5p - 5p 19p - 25p £820 - £1458
Medium business 30,000 - 65,000 4.3p - 4.5p 24p - 25p £1458 - £2239

Is your business an SME or a microbusiness?

The UK government currently uses the European Union (EU) definition of an SME:

  • Micro Business – employs fewer than 10 staff and has a turnover under £2 million

  • Small Business - employs fewer than 50 staff and has a turnover under £10 million

  • Medium Business - employs fewer than 250 staff and has a turnover under £50 million

If you run a larger business with a maximum energy demand of 100 kVA or more per half hour, you’ll be placed on a half-hourly meter tariff, which will affect the overall price you pay for energy.

To qualify for a microbusiness energy contract, it must use less than 200,000 kWh of gas or 55,000 kWh of electricity a year.

Do you need energy for SMEs if you work from home?

To meet the criteria for a commercial energy tariff, you’ll need to prove you are running a business from home and use a significant portion – usually 50% – of your energy to run your business. This may sound like a high proportion, but simply using lighting, heating and electricity for your business is likely to be enough to make you eligible.

When working out how much energy you use for business purposes, remember to deduct any appliances that would be on regardless of your business being there, such as fridges.

If you need more advice on finding the best deal on your business’s energy contract, speak to one of our business energy experts today on 0800 088 6986. Or leave us a few details and we’ll give you a call back.

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