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.

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

energy news 21/01/2017

Energy News – 21/01/2017

The week of Donald Trump’s inauguration has seen shaky energy markets, a landmark Brexit speech by Theresa M...

Read More
how business leaders avoid burnout

How business leaders avoid burnout

When you’re a small business owner the buck stops with you, which can make it incredibly difficult to sw...

Read More
how to make 2017 your best year ever

How to make 2017 your best year yet

Whether you heaved a sigh of relief when 2016 ended, or said goodbye to the year with sadness, we have some ti...

Read More
Excellent, 9.7 / 10

Excellent, efficient service

"Mark at Switch My Business has always been extremely helpful and efficient in finding us the best until the deals and handing the transition between old and new companies. Would recommend 100%."

This review was posted by Karl Hopkins on the 24th of January 2017

Very Happy

"Aaron Gallagher provided me with a very good service. Simple switch made easy. Thank You"

This review was posted by Giani on the 24th of January 2017

Mark Weeks

"It was an absolute pleasure dealing with Mark. He was courteous, very customer focused. Mark was able to answer all my questions and was very informed. I would have no hesitation recommending your company. Having been a manager in global blue chip organisation I would not hesitate in employing Mark. A definite asset to any team. Cheerful, polite and a lovely disposition."

This review was posted by Caroline Dyke on the 24th of January 2017

Very helpful and friendly

"Very helpful and friendly - explained it clearly and made the process quick and easy"

This review was posted by Anne O'Hara on the 24th of January 2017

MARK WEEKS

"Mark was a pleasure to deal with and worked hard to provide the best rates and explain what options were available to us without making us feel under pressure."

This review was posted by LORRAINE LAWRENCE on the 24th of January 2017