The experts at Fidelity Energy have curated a list of the best business electricity deals for your business. Simply click our “Compare Prices” button below, fill out our form and one of our experts will be in touch to help you get the best deal for your business.
Business electricity is essential in ensuring your business is powered efficiently, which is why our experts ensure we help our readers understand the best prices and deals within the industry, as well as the top suppliers. Read our detailed article below to learn more about the best business electricity prices, tariff options and suppliers, and if you want the best quotes on your business gas tariffs too, check out our dedicated page here.
How to Compare Business Electricity Prices
The experts at Fidelity are here to assist in finding the best business electricity rates on the market. With so many leading business electricity suppliers nationwide, it can be daunting to commit to a contract without being fully educated on all aspects. Our readers can rest assured that finding your next business electricity supplier can be a straightforward and stress-free process.
Firstly, there are some necessary points to be aware of before comparing different supplier business electricity rates. Customers should assess how much they spend on their electricity each calendar year, the average energy usage of the business annually, and whether they are already in a contract with a supplier. A cost-effective and reliable business electricity supplier is crucial regardless of your business size. With business electricity bills being the largest outgoing costs for businesses, our experts at Fidelity partner with leading suppliers to ensure our readers can save money in all ways possible. To begin changing to an improved business electricity contract, keep reading.
Business Electricity Bills Explained
Each business electricity quote is relative to each business, be it a hair salon or a bakery, so our readers should know what constituents make up their total electricity bill over the working year.
The two leading features businesses should look for in their electricity bills are the unit rate and standing charge. The unit rate in your business bill is the amount paid for each unit of gas. This rate is measured in kilowatt-hours (kWh), and this figure will vary unless a customer is on a fixed tariff, which means the unit rate will stay constant during their contract period.
The average unit rate price for businesses will differ depending on the daily size and equipment run. For example, a microbusiness, such as a landscaping company, will use an average of 5,000-15000 kWh per year at a cost of 18.6p per kWh. In contrast, large businesses can total an annual usage of up to 65,000 kWh annually.
The standing charge on a business electricity bill is the amount invoiced monthly despite how much gas is used. This cost will cover the supply to the business premises and keep the business connected to the supplier network. Similarly to the unit rate, the standing charge figure will differ depending on the business size, with microbusinesses being charged an average of 46.2p daily, whereas large businesses are billed an average of 96.9p.
In addition to these non-negotiable features, our customers should also consider other factors, including government grants like the Climate Change Levy. The Climate Change Levy is a source of environmental tax by the government that ensures businesses prioritise sustainability in their practices. This is charged through energy usage, including gas and electricity.
Business Electricity Tariff Options
The leading business electricity suppliers, as recommended by our experts at Fidelity, will offer a range of tariff types so that customers can find the right deal suited to their business and budget. Our experts are here to help our valued readers choose the right tariff. Below are the different tariff options and what each contract offers.
A fixed-rate tariff is one of the most popular tariff types for businesses as it offers fixed unit rates for 1-4 years, depending on your contract period. Customers will complete a pre-agreement with the supplier where the amount they pay throughout the contract is determined. This is a great option for businesses as they will be shielded from fluctuations in price. Customers should be aware of the fact that their bills may still vary based on how much energy they use, however, the standing charges and rates will remain the same.
A fixed-rate tariff is often the most suited to an existing business with predictable energy usage levels. As always, our experts encourage readers to complete a business electricity comparison with us before committing to one supplier to ensure they get the best deal.
There are several types of flexible rate business electricity tariffs available on the market, so ensuring our readers are knowledgeable on each is important. The energy market determines a flexible rate tariff, meaning the price can vary based on the price of electricity at wholesale. This means that businesses could save money on their business electricity rates when the market prices are low, however, they could be paying more than they expect if the wholesale price rises.
Therefore, flexible rate tariffs are beneficial as they allow customers to save money when wholesale prices are low, however, a fixed rate tariff is perhaps a safer option. Regarding the different types of flexible rate tariffs these are detailed further below.
A rolling contract is a type of flexible rate business electricity tariff that will automatically renew each year until a business chooses to cancel it. When a rolling contract renews, it often renews at higher rates however, the business can negotiate this with their supplier. A rolling contract is not extremely common regarding business electricity compared to fixed rate tariffs due to the increasing rates. Businesses may not favour rolling contracts due to the automatic renewal as they lack control.
A deemed rate is not a permanent type of business electricity tariff and should only be used temporarily if needed. Deemed rate tariffs are often used when a business recently changed its premises and has not signed up for a new electricity contract. Since the business will be using electricity between the period of moving in and finding a new contract, this will be charged via a deemed contract by the property energy supplier. Deemed contracts can also be used when businesses continue to use electricity after their contract agreement has ended.
Deemed rates are usually costly and should only be used short term. Overall, flexible rate tariffs work out more expensive than a fixed rate tariff however, it is always important to compare different rates to find the right contract for your business.
Businesses that enjoy the flexibility of being able to cancel their business electricity contract when they please should check out variable tariffs. A variable rate tariff is similar to a flexible rate tariff, as the price a business charges depends on wholesale energy prices. This means that when the wholesale prices are low, businesses could save money, however, when the wholesale prices increase, businesses may end up paying more than they wish. While this may be a risk, businesses can cancel the variable tariff anytime.
Many businesses across the country recognise the evergrowing importance of sustainability in their practices, specifically regarding business electricity and energy usage. Due to this, tariffs including green energy and renewable tariffs are becoming extremely popular, offering 100% renewable energy. This energy is generated from renewable sources, including hydroelectric power stations or solar farms.
Another way in which green energy tariffs are more environmentally friendly is by counteracting any power that is a product of non-renewable energy sources by funding greener methods. Green energy business electricity quotes are often similarly priced compared to other tariffs.
Out of Contract
An out-of-contract business electricity tariff, as the name suggests, is where a business’s contract with a supplier ends, and no new rate is implemented. In an out-of-contract tariff, the energy supplier can automatically enrol the business into another deal where rates are often more expensive than a fixed rate tariff. Similarly to a deemed rate tariff, out-of-contract tariffs should not be used long-term.
Average Business Electricity Prices
While our experts at Fidelity can estimate the business electricity rates, there is no way to provide an exact figure for your business as this can be dependent on several factors, including business size, circumstances like the green levy, and the electricity suppliers themselves. Additionally, depending on the location of your business across the country, the business electricity per kWh can vary, especially as a result of the recent energy crisis. However, according to the UK Government, below are the average figures for electricity prices are below.
|Size of Business
|Electricity Price (pence per kWh) Excluding the Climate Change Levy
|Electricity Price (pence per kWh) Including the Climate Change Levy
Our Suppliers – Business Electricity Comparison
The team at Fidelity are proud to work with these brands to bring you and your business the best deals on business electricity.
- British Gas
- Pozitive Energy
- Smartest Energy
- Scottish Gas
- Scottish Power
- Opus Energy
- EDF Energy
- Crown Gas and Power
- Yü Energy
Tips for Switching Business Electricity Suppliers
Switching the electricity supplier for your business may feel like a daunting process, however, our experts at Fidelity are here to provide our readers with many tips and tricks to find the best business electricity quote for them. There are several reasons for switching your business electricity suppliers, with the main motivation being to find a cost-effective deal for your business. It is common to try various tariffs before finding the right supplier. Additionally, with external factors, including the recent energy crisis and prioritising sustainability, there are several reasons to change to an improved supplier today!
The price and cost-effectiveness of an electricity supplier are extremely important to a business; however, other factors may cause a customer to switch their business electricity supplier, for example:
- Better Customer Service: customers may want improved customer support to help with any queries or problems they may face during their contract period. Having poor customer service is unattractive to customers.
- Finding a Tariff to Better Suit Your Business: Another factor for switching your supplier is finding a tariff that suits your business needs better than your previous quote. Whether you are a landscaper or a hairdresser, all businesses will look for different components in a tariff, such as flexibility, fixed rates or renewable energy. It is, therefore, important to inform yourself of what each tariff offers. Our experts have explained each tariff in further detail above.
- Energy Efficiency Technology: Another quality customers may be looking for in their next business electricity supplier is technological measures to help keep costs at a minimum. The leading business electricity suppliers, as recommended above by our experts, offer technology where customers can monitor their energy usage and adapt it to reduce the cost of their bills. This will give customers the feeling of being in control of their spending and keeping an eye on where the largest energy outgoings are coming from.
- Switching to Greener Energy: Many businesses understand the importance of green energy and using electricity from renewable sources to preserve sustainability in their practices. Businesses can choose renewable energy tariffs to achieve this.
When choosing your next business electricity supplier, our experts have recognised some common factors customers should consider before committing to a contract. In addition to ensuring a tariff meets all your requirements, such as flexibility and fixed rates, customers should also check the notice period terms of a tariff if they wish to switch or terminate their contract. Businesses that prefer flexibility should consider tariffs like a variable tariff, where they are free to cancel at any time. Fixed-term tariffs, however, are more long-term and can be anywhere from 1-4 years.
Another feature to consider before switching is whether you will have to pay any additional fees, including maintenance charges. Some tariffs may come with hidden charges on top of the electricity price, so to avoid unwanted surprises, customers should read all terms and conditions. Other factors to consider include cashback or other incentives for switching your contract, the supplier’s customer service and if there is a ‘cooling-off’ period where customers can change their mind if they wish.
Frequently Asked Questions (FAQs)
How Can I Keep My Business Electricity Costs Down?
While it is our expert’s main priority to ensure that our readers are finding the most cost-effective business electricity quote, there are also several ways in which customers can help keep their electricity prices down by making some regular small changes. Some ways to save more on your electricity bills include:
- Installing motion sensor lights to ensure all lights get automatically switched off and on
- Have a scope of your building and assess whether any energy-intensive bulbs are being used. If so, our experts recommend switching to LED bulbs as they are more cost-effective.
- Another simple way is to move any furniture away from a heat source such as a radiator. This will ensure that a room heats up faster and more effectively.
- Customers should invest in a smart meter, an excellent way to monitor their daily energy and electricity usage.
- If applicable, customers should ensure that they turn off all running equipment overnight.
By making these small changes and having a cost-effective business electricity tariff, our readers can save more money on their bills.
How Do I Switch Business Electricity Suppliers?
When it comes to making the change to an improved business electricity supplier, our readers can rest assured that it can be a simple and stress-free process with the help of our experts at Fidelity. Follow our guide below to get started:
- Customers should begin by using the excellent comparison tools at Fidelity to find the best business electricity rates for them. Depending on your business size, energy consumption and location, there will be a tariff perfect for you
- Our experts at Fidelity are also available to provide extra services, including meter installations, so customers can keep an eye on their usage\
- Once customers have found the tariff best suited for them and their business, an account manager at Fidelity will begin the switching process, meaning customers can enjoy a seamless process. The switch over to the new supplier should take a maximum of five working days. Before switching suppliers, it is essential that customers ensure that they are not under an existing contract or in debt, as the switch will not be processed.
Why Should I Trust Fidelity?
Fidelity is one of the leading business electricity comparison groups across the country that has built an excellent reputation with its customers and partners thanks to reliable information from our industry experts and brilliant customer service. Working with some of the top business energy suppliers, including British Gas and EDF, to name a few, customers can rest assured that they will be able to choose from the best deals. If you are looking to switch your business electricity supplier, look no further than Fidelity.
What is the Energy Bills Discount Scheme?
The Energy Bills Discount Scheme is a type of government support scheme that provides discounted electricity unit rates to eligible businesses. This scheme replaced the Energy Bills Relief Scheme of April 1st 2022, and the EBDS is in place til March 2024. All qualifying business unit rates will be discounted by an excellent up to 2.0p per kWh. However, if a customer’s business comes under the Energy Trade Intensive Industries category, then the unit rate discount will be up to 8.9p per kWh.
What is the Half Hourly Electricity?
The Half Hourly Electricity is a type of electricity meter that needs to be installed if your business’s peak electricity demand is 100KVA. This meter will submit energy readings automatically to your electricity supplier every 30 minutes to make your bills as accurate as possible. This will not only save the customers time but will also reduce the risk of an inaccurate reading.
What Factors Affect Business Electricity Prices?
There are several factors that can impact a business’s electricity rates that our readers should be aware of. The main impactor is market activity. This includes a rise in demand for electricity which, in turn, increases the wholesale value of electricity. Another market activity factor is the weather. For example, if the weather is colder and darker, there will be a higher demand for heating and lighting. Other factors affecting business electricity prices are commodities, including gas, oil and coal, carbon cost and delivery constraints.
How Long Does it Take to Switch Electricity Providers?
Before our readers begin to plan on switching their electricity providers, they must ensure that their current contract is close to finishing. Customers can begin comparing supplier rates using our experts at Fidelity up to six months before their contract is due to end. However, the new contract cannot begin until the current one is over. The switch between business electricity suppliers can usually take up to six weeks to finalise.