How much could your business save?Find out now!
Or, you can call us on:0800 411 8830

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.


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.


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 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

the week's top energy news

The Week’s Top Energy News

Top News In Energy This Week This week we’ve seen a flurry of green energy stories – including gr...

Read More

Very Clever Commuting Hacks

It’s easy to focus on the downsides of a long commute. The average UK commuter spends 58 minutes every ...

Read More
will innovative jam boost the economy

Will ‘innovative jam’ boost the UK economy?

It’s the economic equivalent of Union Jack bunting. Today, in a move surely masterminded by the Great Briti...

Read More
Excellent, 9.4 / 10

Competent and courteous service.

"Marie was knowledgeable and helpful. I feel able to recommend the service given without reservation. David Slesenger"

This review was posted by David Slesenger on the 16th of August 2016

Good service

"Nadia was very helpful"

This review was posted by Robin on the 16th of August 2016

Excellent Customer Service *****

"Jonathan Burgess is an asset to Switch My Business. He made me feel at ease and was more than helpful at all times. He made regular contact and guided me through the whole process which made switching a breeze. I just wish there were more customer service advisers like Jonathon whose friendly and happy demeanour make your day a much nicer one. Well done Switch my business and more importantly thank you Jonathon for all your hard work! Maria Owen Lodgecrest"

This review was posted by Maria Owen on the 17th of August 2016


"I totally agree with a customer maria owen,Jonathan Burgess was such a pleasure dealing with and is truly a asset to the company, he made it very easy to switch my electricity companies, Jonathan Burgess was very helpful, easy to talk to it was like talking to a friend not just a customer adviser. I would definitely recommend switchmybusiness and try get hold off Jonathan Burgess if possible and have the same excellent service as I did. Rajan Shanan"

This review was posted by Rajan Shanan on the 19th of August 2016

Excellent and very helpful

"Arron who dealt with my switch of energy and gas has been a huge help and extremely efficienct and easy to deal with. Despite British Gas throwing obstacles in the way at every turn he has doggedly stuck to his task and saved the day. Thanks Arron."

This review was posted by Rod Pryce-Jones on the 19th of August 2016