Business electricity FAQs

Switching electricity deals is an effective way to save your company money. But before you begin the process, it’s a good idea to know a bit more about business electricity and your company’s relationship with it.

To set you on the road to substantial savings, we’ve put together the answers to a range of commonly asked business electricity questions.

Business Electricity Rates and Tariffs

  • How much should your business electricity rates be?

    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.

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  • What types of business electricity tariff are available?

    There are several different types of business electricity tariff: - __Fixed-term contracts__ set the amount you pay for each kWh of electricity for the duration of your contract, protecting your company from market volatility. They’re considered the best deals for businesses. - __Variable-rate contracts__ link your unit rate to the market so it can increase and decrease. They aren’t offered by all suppliers. - __Deemed rate contracts__, also known as ‘out-of-contract rates’ are expensive rates arranged for customers with no formal agreement such as when a business moves into a new premises. - __Rollover contracts__ occur if you let your energy deal expire without arranging a new one. These are usually among the supplier’s most expensive. - __28-day contracts__ are high rates imposed to encourage businesses who haven’t switched since the energy market deregulation came into effect to do so.

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Switching Business Electricity Supplier

  • Why switch business electricity supplier?

    Simply put, switching our business’s electricity supplier can save your company money. Once your electricity contract approaches expiry, you’ll get a renewal offer from your supplier. It’s tempting to accept this, but renewal offers are rarely competitive and can leave your business short-changed. Not signing a deal at all can result in being moved to a high-priced rollover contract. Similarly if you move into a new business premises and don’t agree an electricity contract, you’ll find yourself on an expensive deemed-rate contract. In both situations, switching electricity supplier can cut your bills considerably.

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  • Why use a business electricity broker?

    Switching electricity tariff is a good move for your business, but it can take time and know-how. You can save your company time – and money – by using a business electricity broker. These specialists use their expertise to negotiate the best deals on your behalf and can offer valuable advice to help you make a decision.

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  • What happens when you switch business electricity?

    A short call to our business energy team is all it takes to start saving. To negotiate the best deals on your behalf, we’ll need to know a few details which can be found on a recent electricity bill: - The name of your current electricity supplier - The name and end date of your tariff - Your supply type - How much electricity your business uses We’ll then gather a selection of the best deals from a range of suppliers. You pick the one you like most and your new supplier will organise the switch which should be finalised in around six weeks. The only thing left for you to do is to take a meter reading on the day of the switch so your old supplier can issue your final bill.

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Business Electricity Efficiency

  • Are there any other ways to lower your business electricity bills?

    As a business electricity consumer, you’ll have to wait for your renewal window before making a switch. In the meantime, you can lower your electricity bills by reducing consumption. An electricity audit can help you see where your energy is being wasted. Energy power meters can help smaller businesses to do this. Energy efficient bulbs, turning off lights and equipment when not in use and keeping thermostats on modest settings will all have a positive impact. These measures will help your business to save money, but you could save far more by switching electricity deal. Call UK Power on 0800 688 8773 today to find out more.

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