Business Electricity Comparison

When it comes to the unit rate, typically, it’s cheaper. This is because suppliers buy business electricity in bulk and only the amount needed to cover the duration of the contract.

However, businesses do face additional charges that domestic energy customers don’t. These include VAT. Yes, domestic energy customers pay VAT on their energy – just not as much as business customers. The rate is currently set at 20%. Businesses that use an average of 33 kWh per day (or 1,000 kWh per month) pay just 5%.

Climate Change Levy (CCL) is an environmental tax that’s paid on both the non-renewable gas and electricity used by businesses. If your business uses 100% green electricity, you won’t have to pay the CCL.

It’s also the same for businesses considered ‘low usage’. So, if your business uses 33 kWh of electricity or less per day during the billing period, you’ll be exempt from paying the CCL.

No, absolutely not. Your premises will continue to be supplied with electricity as normal. So, there’s no disruption to your business’ day-to-day activity. All that will change is the supplier billing you.­­­

LOAs are designed to reassure customers that the person they’ve appointed will keep their account information, billing details, and personal information safe and secure. It also ensures that they act in their best interests and outlines parameters for them to stick within.

Check out our letter of authority guide which explains what it is, why they are needed as well as examples of an LOA.

P272 is a piece of Ofgem legislation relating to BSC 272 – itself a piece of legislation passed in 2014. It was designed to ensure all non-half hourly profile class 05 -08 meters were switched to half hourly meters. The migration began on 5 November 2015, with a deadline for meters to be switched at affected sites on 1 April 2017.

The reason for the switch is to help suppliers get a more accurate reading and a better understanding of business energy customers electricity consumption. It also allows businesses to be billed accurately, potentially avoid peak usage points (and the higher prices) and identify areas of inefficiency that could be improved.

It’s a charge that features on most electricity bills. It’s calculated as a daily rate that covers the costs of delivering the electricity supply to your premises. There are some suppliers with zero standing charge tariffs out there, but they’re not particularly common.

Your Meter Point Administration Number (MPAN) is the unique 21-digit number given to your electricity meter. It features a capitalised ‘S’ with the digits displayed in a grid format.

You can usually find your MPAN on your most recent bill. However, if you don’t have a recent bill to hand, you can always contact your supplier – they’ll be able to provide you with the information.

Yes, it can be cheaper – for both domestic and business energy customers. But only if you’re on the right tariff – an off-peak tariff that offers electricity at a cheaper rate.

Check out our “Is electricity cheaper at night?” guide to find out more.

Wholesale prices have skyrocketed since autumn 2021 due to multiple factors such as geopolitical factors, supply issues, COVID restrictions and the Russian invasion of Ukraine to name a few.

Within this guide, we will detail why energy prices are rising and whether you should fix your energy prices until 2024.

There are several types of business electricity contracts available, and the right one for your business will depend on your energy usage and needs. Here are some of the most common types of business electricity contracts:

• Fixed Rate Contracts: You’ll pay a fixed unit rate for the duration of your contract. Remember, this won’t fix your entire bill – that’ll go up or down depending on your usage.
• Variable Rate Contracts: You’ll pay a unit rate that’s directly linked to wholesale energy market activity. So, the amount you pay could go up or down throughout your contract.
• Deemed Rate Contracts: If you move into a new property and don’t sign a contract, you may be placed on a deemed rate contract, which can be more expensive than other options. It’s important to check whether you’re on a deemed rate contract and switch to a more favourable option if possible.
• Half-Hourly Contracts: Half-hourly contracts are usually available to larger businesses that consume more than 100,000 kWh per year. With this type of contract, your electricity usage is measured and billed every half hour, providing more accurate billing.
• Extended: You might be given an extended tariff (also known as a blend tariff) once your existing contract with your supplier has expired, and you haven’t decided to renew or switch.
• Flex Approach: You’ll buy all of the electricity your business needs in advance. By doing this, you’ll get access to wholesale market rates.
• Pass-Through: Your bill will be split up into electricity costs, which will remain fixed at a unit level for the duration of your contract, and other charges. These other charges can vary and will include Transmission Network Use of System (TNUoS).

It’s important to shop around and compare business energy prices and terms from different suppliers to find the right contract for your business. Start your business electricity comparison today.

There are several factors that can contribute to the rising business electricity prices, including:

• Increase in demand: As the economy grows and businesses expand, the demand for electricity also increases. This can lead to a shortage of supply and push up the prices.
• Infrastructure costs: The cost of maintaining and upgrading the electricity grid can be quite high, and these costs are passed on to the customers through their electricity bills.
• Fuel costs: The cost of fuel, such as natural gas, coal, and oil, can have a significant impact on electricity prices. If the cost of these fuels increases, it can lead to higher electricity prices.
• Government policies: Governments may implement policies, such as carbon taxes or renewable energy targets, which can increase the cost of producing electricity and therefore the price of electricity for businesses.
• Distribution costs: The cost of distributing electricity to businesses can also increase, especially if there are significant changes to the infrastructure or if there is an increase in demand.

Overall, the price of electricity for businesses is influenced by a range of factors, and it can be challenging to identify a single cause for rising prices.

A business electricity bill typically includes the following charges and information:

• Energy usage: This is the amount of electricity your business has consumed during the billing period, measured in kilowatt-hours (kWh).
• Tariff rates: The tariff rates you are charged per kWh of electricity usage. These rates can vary depending on the type of business and the energy supplier you use.
• Standing charge: This is a daily or monthly fixed charge that covers the cost of maintaining the electricity network and delivering energy to your business premises.
• VAT: Value-added tax (VAT) is charged on your electricity bill at the prevailing rate. This is currently 20% in the UK but may vary in other countries.
• Other charges: Additional charges may be included on your bill, such as the Climate Change Levy (CCL), which is a tax on energy usage introduced to encourage businesses to be more energy
• Payment information: Your bill will include details of how much you need to pay when it is due, and the payment methods available.
• Meter readings: Your bill will also include meter readings, which show how much electricity your business has used during the billing period. These readings are used to calculate your energy usage and charges.

It’s important to review your business electricity bill carefully to ensure you understand all the charges and to identify any potential savings. Start your business electricity comparison now!

There are several ways to save on your business electricity bills. Here are some tips:

• Conduct an energy audit: Conducting an energy audit of your business can help you identify areas where you are using more electricity than necessary. This can include identifying energy-wasting equipment, appliances, or lighting.
• Switch to LED lighting: Switching to LED lighting can significantly reduce your business’s energy consumption. LED lights use less energy and last longer than traditional incandescent bulbs, which can save you money in the long run.
• Use power strips: Using power strips can help you reduce your energy usage by allowing you to easily turn off multiple devices at once when they’re not in use.
• Adjust your thermostat: Adjusting your thermostat can help you save on your business’s heating and cooling costs. For example, during the winter, lowering the temperature by just a few degrees can help you save on heating costs.
• Upgrade to energy-efficient equipment: Upgrading to energy-efficient equipment can also help you save on your business’s electricity bills. Look for appliances and equipment with an Energy Star label, which indicates that they are energy efficient.
• Negotiate with your energy provider: Negotiating with your energy provider can also help you save money on your business’s electricity bills. Ask your provider about any discounts or promotions that they offer or consider switching to a provider that offers lower rates.

By implementing these strategies, you can reduce your business’s electricity bills and save money over the long term. Our experts are on hand to provide advice on how you can lower your business electricity bills.