Compare business electricity

Why switch business electricity suppliers?

If you've never sorted a fixed electricity deal, then you'll be overpaying for power. This is because your supplier will have placed you on out-of-contract rates. These are usually among the most expensive and are vulnerable to price volatility.

Switching to a fixed-rate deal will often see you land more competitive rates and offer bill stability for the length of your contract. This is because the unit rate and standing charge are fixed. When you're out of contract, these rates can vary depending on market prices.

Business electricity rates can be volatile, with prices changing daily. The last 12 months or so have been particularly volatile as we've seen wholesale prices - the amount suppliers pay for the energy they sell to homes and businesses - hit record highs. This has caused energy prices to go up and down quite significantly, which is why it's always worth comparing quotes to see if you can lock in a competitive fixed rate.

But why switch suppliers when you can just sort a fixed contract with your current supplier? 

Unfortunately, loyalty often doesn't pay when it comes to energy contracts. Suppliers will often keep the best rates to entice new customers. This means that switching suppliers could help you bag better rates than sticking with your current one. At Bionic, we compare quotes from a panel of trusted UK energy suppliers to help ensure you get competitive rates alongside great service and a reliable supply.

If you'd sooner stick with your current supplier, we might be able to negotiate a better renewal rate. So it's still worth getting in touch with our tech-enabled experts.

Will the Energy Bills Discount Scheme cut your business electricity bills?

The Energy Bills Discount Scheme will run for 12 months from April 1, 2023. It will replace the Energy Bill Relief Scheme. This is not a cap on business electricity rates and will instead discount rates on eligible contracts.

To qualify for the scheme, you must have a non-domestic electricity contract that was signed on or after December 1, 2021. If you're on a variable deal, deemed rates, or out-of-contract rates, then you'll also be eligible. But you won't get the discount if your rates fall below a certain threshold.

Here's an example of how the discount could affect the bills of a pub that uses 4 MWh (4,000 kWh) of electricity a month. If it signed a fixed contract in January 2023, its monthly electricity bill will work out at around £1,796 (to keep it simple we'll leave out the standing charges as these aren't affected by the scheme). 

Under the scheme, it would save about £80 a month, which works out to around £960 a year.  Here's how:

_{Note: The figures shown are based on the average gas and electricity unit rates quoted by Bionic for a microbusiness from January 3 to January 6, 2023. For more information on the latest energy rates, check out the Bionic blog on energy prices.}

What are the latest business electricity rates?

If you work from dedicated business premises, then it’s likely you’ll benefit from a business electricity deal. When it comes to business electricity, the size of your business can be determined by the amount of energy it uses.

To give you an idea of how much your business should be paying for energy, here are the latest business electricity rates per kWh and standing charges.

^{Note: 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 quoted by Bionic per business size from November 1 to November 14. Rates do not include any Energy Bills Discount Scheme discount.}

Check out our guide to average business energy usage and rates to learn more about the latest business energy rates.    

If you run a large business, Bionic offers the following:

• Bespoke procurement service
• Bill validation service
• Metering and data collector service
• Services for businesses with multiple sites

For more information, check out our guide to large business and industrial energy prices.

How much should my business electricity bills be?

The rates you pay, the type of contract you're on, the supplier you're with, and the amount of energy you use all contribute to the cost of your business energy bills. But we've looked at the latest rates and crunched the numbers to give you an idea of how much a business of your size should be paying each year:

^{Note: 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 quoted by Bionic per business size from November 1 to November 14, 2023. Rates do not include any Energy Bill Relief Scheme discount.} 

What costs make up a business electricity bill?

When working out the cost of your business electricity bills, there are two main things to look out for:

• Unit rate – Measured in kilowatt hours (kWh), this is the amount you pay for each unit of gas your business uses. If you're on a fixed tariff, this is the bit that stays the same for the length of your contract.  
• Standing charge – This is a daily amount that is charged regardless of whether or not you use any gas. It covers the cost of managing your service and delivering gas to your premises. 

But it's not just wholesale prices that affect the rates you'll be quoted. Business electricity suppliers base their pricing on the size of your business size and its electricity consumption. And you should always find out whether the rates you're quoted include VAT. Although a reduced 5% VAT rate is available to certain businesses, most will pay 20% VAT on energy bills, which can really bump up your bills. If you're VAT registered, you should be able to claim this back though. You can find out more in our guide to VAT on business energy.

Your business credit score can also affect the type of energy deal and rates you're offered.

You may also need to pay other fees, such as the Climate Change Levy, Renewable Obligation, and the Feed-In Tariff. For more details, check out our guide to guide to understanding business energy bills.

If you're wondering how wholesale pricing is calculated and why a drop in wholesale prices isn't immediately reflected in the rates you pay or are quoted, then our guide to how energy is bought and sold explains how the UK energy market works. 

How does business electricity differ from domestic electricity?

One of the first differences you’ll notice between business and home electricity deals is that there’s no default option to double up with your supplier and take out a dual fuel deal. But if your supplier offers business gas alongside business electricity, there’s nothing stopping you from using the same supplier for both.

Business energy contracts also usually last longer than domestic deals. While most households will be offered a one-year fixed contract, business owners can lock rates in for up to four years. Although business electricity deals offer less flexibility when switching (there’s rarely an early-termination option), locking your rates in for longer is a great way to protect against energy price hikes.

You can find out all you need to know in our guide to business energy v domestic energy.

What business electricity tariffs are available?

When you compare business electricity deals, you’ll notice a few different tariff types available. Bionic’s tech-enabled experts will talk you through your options to ensure you get the right deal.

Here are the main types of business energy tariffs on offer to SMEs:

• Fixed - A fixed-term tariff usually lasts between one and four years, during which time the unit cost and standing charges stay the same. Although your bills will still vary depending on how much energy you use, the actual rates you pay are fixed for the deal's term.
• Variable - The unit rate you pay on variable tariffs goes up or down in line with the current market prices. If prices drop, you’ll pay less, but energy prices are more likely to increase and leave you paying more.
• Green energy – Green energy deals offer more environmentally-friendly energy by offering electricity from renewable sources, or by offsetting power produced from non-renewable sources by funding other green initiatives.
• Deemed - If you’ve recently moved into new business premises but didn’t sign up with an energy supplier, the supplier that provided energy to the previous occupant will most likely continue to supply the premises. As a result, you’ll usually be placed on “deemed” rates, which are considerably more expensive than the rates offered to new customers.
• Out-of-contract - If you don’t arrange a new energy deal before your current one ends, then your supplier can automatically roll you onto another deal. Rates are usually more expensive than fixed-rate deals. If you run a micro business, this contract can’t last more than 12 months.

Who supplies my business electricity?

If you're on a long-term fixed electricity deal, you'll probably not need to think about your energy supplier until your contract is up for renewal. But what if something goes wrong and you can't remember who supplies your business electricity?

Checking your emails or most recent bill is the simplest way to find out who your supplier is. If you're still drawing a blank, you'll need to call your regional electricity distributor. Check the table below for the phone number of your region's distributor:

If you've switched with Bionic, you can give us a call and we'll let you know who your current supplier is and compare quotes for your next contract if the time is right.

At Bionic, we only compare business electricity prices from a panel of trusted UK suppliers. This means we can have confidence that you’ll be getting quality customer service and supply alongside great rates.

To find out more about a particular supplier, click on relevant the name above.