quote
menu

Business electricity rates and tariffs explained


There are hundreds of different business electricity tariffs because prices depend on a variety of factors including location, consumption and contract length. Here we give you the low-down.

Contract length

Business electricity contracts can vary in length from one to four years. Generally the shorter the contract term the lower the unit prices but as with everything there will always be an exception to the rule!

On the whole however, a one year deal will usually be cheaper than a four year deal. This can in part be explained by the fact that your energy supplier won’t be able to predict future business electricity prices and has to buy the electricity you will need in advance (when you take out your contract). It’s usual for prices to increase over time but no-one can really predict how much they will go up or down.

Location

As we explain in the article: What is the difference between commercial energy rates and domestic rates? where your business is located can affect the electricity rates that you are offered. If you are based in a rural area it will cost more to get energy to you than if your business is based in a city.

Consumption

Energy providers find it much more difficult to predict how much electricity a business will consume in a year compared with domestic consumers. There is what’s called “certainty of usage” for domestic users but businesses don’t benefit from this.

Electricity rates change daily

Tariffs can also change on a daily basis. This is down to the way energy suppliers buy their power and is explained more fully in the article: Why do business energy prices fluctuate?

If you miss your renewal period and end up being rolled over into a new contract you may find you’re paying higher rates than you should be as we explain in the article: Business gas rates and tariffs explained. This article also explains how being on out of contract rates, deemed rates or renewal rates can affect how much you pay for your energy.

As there are so many different elements that make up business electricity rates it’s easy to see why there are hundreds of different electricity tariffs. It’s also easy to see that it helps to have someone guide you through the process of comparing and switching. Your SwitchMyBusiness.com personal switcher will lead you through the whole process, providing you with all the options so that you can decide which one suits your business best.

For the latest business electricity news and information visit our electricity section.

Related Articles

Moving Premises and Business Energy

We know that moving into new businesses premises can be stressful and important tasks, such as organising your...

Read More

Deemed Contract Rates

What are Deemed Contracts? A Deemed Contract is an informal agreement which may be entered into should your bu...

Read More

Out-of-Contract Rates

Out-of-Contract rates Out-of-Contract rates are applied by business energy suppliers when customers have come ...

Read More
Excellent, 9.7 / 10

So helpful

"So helpful, especially as I found the contract renewal on my new half hourly meter quite baffling (KVA charges, MOP contracts and other "extras" all had me scratching my head). Arron took great care to explain everything clearly and told me everything I needed to know in order to be able to compare prices from all avenues on a level field. He didn't pester me endlessly for a decision did exactly as I asked in terms of call backs and quotations. Such a refreshing change to deal with someone who listens. Arron has helped me renew my contract next month through switchmybusiness in a very straightforward and painless way on an excellent rate. Fabulous service, thank you Arron."

This review was posted by Louise on the 18th of January 2018

A lovely lady called Bhavni phoned me …

"A lovely lady called Bhavni phoned me very quickly after I went online. She couldn't have been more helpful, explaining all the different rates for me. She managed to save me a huge amount per year - gave me her direct phone number if I needed to phone again - like gold-dust! even gave me a termination letter to send to my supplier. Couldn't have been easier and will definitely use again - and hope I get to speak to Bhavni again. Thanks again"

This review was posted by Julie Dickie on the 17th of January 2018

Excellent service and hassle free

"Excellent service and hassle free, Jessica Purnell handled everything for me and got us a great deal, even giving advice on how to cancel the previous contract. Thank You"

This review was posted by Neville Blenkinsopp on the 17th of January 2018

Brilliant service

"Brilliant service - very quick to the point and explained everything very well! Would recommend to anyone who is looking to change their electricity supplier."

This review was posted by Jess on the 17th of January 2018

Excellent service straight to the point …

"Excellent service straight to the point and the process was painless!"

This review was posted by Nick K on the 16th of January 2018