quote
menu

Business Electricity Tariffs Explained


Comparing business electricity tariffs can be confusing with so many options available to customers. A variety of unit prices, contract lengths and standing charges can make it difficult to know which business electricity supplier you should choose. However, SwitchMyBusiness.com is here to help! With this article, we will guide you on which factors impact your electricity plan and what may increase energy costs for your business.

Contract Length

Contract length can make a big difference in business electricity prices. Contracts can vary from 12 months to 36+ months, and the price per kWh for each may be very different. In general, the shorter your energy contract, the lower the unit price is likely to be.

However, when considering the long term, there are exceptions to this rule. For example, if you decided to choose a 36 month contract with fixed electricity prices and the cost of electricity increased within the first year of your contract, your business is likely to spend less on energy than if you had organised a 12 month contract as costs have been frozen for three years.

Electricity unit prices may initially be higher on longer contracts as suppliers need to predict future business electricity prices, and as energy rates typically increase, this needs to be planned for.

Location

Your business location can impact electricity rates, as suppliers may incur higher costs when providing particular businesses with energy. Businesses in more rural locations are likely to be charged more for the energy they consume as it is more difficult for suppliers to reach rural areas than if your business was based in a city.

Consumption

Although it may be difficult for electricity suppliers to predict how much energy business customers are likely to use compared with domestic customers, as a business’s electricity consumption increases, the average price per kWh typically decreases. For example, a business with an annual electricity usage between 5,000-15,000kWh will on average pay 12.5p per kWh, whereas a business with an annual usage between 30,000-50,000kWh will pay 10.5p per kWh on average.

Business electricity suppliers buy their energy in advance, so it is important to let your supplier know how much your business is likely to use within a year. Suppliers also need to predict how much your business will use over the next two or three years depending on your contract length, so being clear about your business’s electricity consumption is very important.

Electricity Rates change daily

Electricity rates change on a daily basis and this can impact the business energy quotes you receive as they may change day-to-day. We understand it can be confusing when comparing electricity prices as the volatility of the market can very quickly alter the prices businesses are originally offered. This is why we encourage customers wanting to compare electricity prices to act quickly when they find a tariff they like to avoid disappointment if energy prices increase.

It is clear to see there is a wide range of factors that influence business electricity rates, and this makes it easier to understand why there are so many different electricity tariffs. We know how confusing it can be to compare business electricity rates when there are so many factors to consider, and that’s why we encourage business customers to use our quick and easy comparison service! Our energy-switching experts will help you compare the best energy tariffs for your business, and once you’ve chosen your favorite, we’ll complete your switch for you!

Related Articles

DCP228 and Business Electricity

What is DCP228? DCP228 is a regulation to be introduced by Ofgem in April 2018 which will change the way busin...

Read More
energy news

DCP 161 – Excess Capacity Charges

If your business uses a Half Hourly (HH) meter for its energy supply, make sure you’re ready for DCP 161...

Read More
Scottish Power logo

Total Gas & Power

Total Gas & Power is a business energy supplier, wholly owned by Total SA. It has been a leading business ...

Read More
Excellent, 9.8 / 10

Great Service

"Great Service! Cheryl found us a fantastic rate and led us through the process quickly. Would definately recommend. Thank You Cheryl"

This review was posted by Worldcare Skip Hire Ltd on the 14th of December 2018

very helpful

"Cheryl was very helpful on the telephone and rang back when promised with the information promised. Think we have secured reasonable electricity deals for our business needs. I would not hesitate to use this company again if needed."

This review was posted by D Mac on the 13th of December 2018

Great Customer Service!

"Switched both our Gas and Electricity tariffs using Switch My Business today- had a fantastic experience. Cheryl was very polite and understood that i needed to go back to the Charity Committee before agreeing to anything. Some companies can be quite forceful but Switch my Business and Cheryl in particular have been nothing but helpful. We will be using them again! Thank you."

This review was posted by Trentham Preschool on the 12th of December 2018

Great Service

"Bhavni is a pleasure to deal with. She is very helpful and knowledgeable and having a direct contact is so refreshing instead of dealing with usually frustrating energy companies. I highly recommend."

This review was posted by Esme on the 12th of December 2018

Fantastic Switch Experience Cheryl Sreenan

"Fantastic Switch Experience, Cheryl Sreenan was extremely helpful the phone call for switching took less than 10 minutes. I couldn't have asked for a better service in going through this process. Thank You"

This review was posted by Sam Barlow on the 11th of December 2018