The unit cost and standing charge are the two components that have the biggest impact on your business electricity rates. The unit cost is the price paid for each kWh of electricity used. The standing charge is a daily amount that covers the cost of transporting electricity to your premises and national grid maintenance.
Every company is unique and to reflect this, business electricity quotes are bespoke. To work out your company’s unit cost and standing charge, energy suppliers take your location, size, number of employees and energy usage pattern all into consideration. This makes it difficult to say how much your business electricity rates should be at first glance, but average prices can give you a ballpark figure:
Average business electricity rates
|Business Size||Average price (per kWh)||Standing charge (daily)||Average annual price|
|Micro business||13.2p - 14.5p||23p - 27p||£650 - £1,800|
|Small business||12.4p - 14.1p||23p - 27p||£1,900 - £2,900|
|Medium-sized business||12.2p - 13.3p||23p - 27p||£3,300 - £5000|
These figures are based on industry averages and are only a guide. Many factors impact the amount you pay for your business electricity, including consumption habits and location.