Business Electricity Prices UK
Average Business Electricity Prices in the UK
Introduction
Business electricity prices in the UK vary depending on factors such as energy usage, location, contract length and supplier. Many businesses pay significantly more than necessary because they remain on rollover tariffs or have not compared suppliers for several years.
Understanding current business electricity prices can help companies secure better rates and reduce operating costs. At Energy Saving Guru, we help businesses compare energy suppliers and find competitive electricity contracts tailored to their needs.
Average Business Electricity Prices UK
Business electricity prices in the UK depend on several key factors including electricity consumption, meter type, business location and wholesale energy market conditions.
As a general guide, many businesses currently see electricity prices ranging between 20p and 35p per kWh, although this can vary depending on market conditions and contract structures.
Businesses that compare suppliers before their contract renewal date can often secure more competitive pricing than standard rollover tariffs.
How Business Electricity Prices Are Calculated
Business electricity contracts are made up of several components which together determine the overall cost of electricity for a business.
These elements include unit rates, standing charges and network costs.
Unit Rates (p/kWh)
The unit rate is the price your business pays for each kilowatt-hour (kWh) of electricity used.
This is typically quoted in pence per kWh (p/kWh).
The unit rate will vary depending on:
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Business electricity usage
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Contract length
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Wholesale electricity prices
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Meter type
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Supplier pricing structure
Standing Charges
Most business electricity contracts also include a standing charge.
This is a fixed daily cost that contributes towards maintaining the electricity network and infrastructure.
Standing charges are normally quoted as pence per day and apply regardless of electricity usage.
Some tariffs may offer lower standing charges but higher unit rates, while others may do the opposite.
Day and Night Electricity Rates
Some business electricity contracts include multi-rate tariffs, which charge different prices depending on the time electricity is used.
These may include:
Day Rate
Electricity used during standard business hours.
Night Rate
Electricity used during off-peak hours, often overnight.
Businesses that operate late at night or run equipment such as refrigeration may benefit from multi-rate tariffs.
Meter Types and Profile Classes
Electricity prices for businesses can also depend on the type of electricity meter installed at the property and the profile class assigned to the supply.
Non-Half Hourly (NHH) Meters
Most smaller businesses operate on non-half hourly meters, which record electricity usage without half-hourly consumption data.
These meters are commonly assigned to:
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Profile Class 03 – Non Domestic Unrestricted
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Profile Class 04 – Non Domestic Economy 7
These profiles help suppliers estimate electricity usage patterns.
Half-Hourly (HH) Meters
Larger businesses with higher electricity consumption may have half-hourly meters, which record electricity usage every 30 minutes.
These meters allow suppliers to analyse electricity demand more accurately and may provide access to different contract structures.
Network Charges and DUoS Costs
Business electricity prices also include network related charges such as Distribution Use of System (DUoS) costs.
DUoS charges contribute towards maintaining the local electricity distribution network that delivers power to businesses.
These charges can vary depending on:
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Business location
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Network demand
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Time electricity is used
This means two businesses with similar electricity usage may still receive different pricing.
Compare Business Electricity Prices UK
Because electricity pricing depends on several variables including meter type, electricity usage, location and market conditions, comparing suppliers can help businesses secure suitable electricity contracts.
Energy Saving Guru works with businesses across the UK to help review electricity contracts and present suitable supplier options.
Our aim is to simplify the process and help businesses save time and money when arranging essential services.
Other Services Energy Saving Guru Can Help With
In addition to electricity comparisons, Energy Saving Guru can also help businesses review other essential services including:
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Business gas
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Water and wastewater
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Telecoms and broadband
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Merchant services
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EPOS systems
This allows businesses to manage multiple services through one trusted comparison partner.