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Business Energy Prices Per kWh

In this Business Energy Comparison expert guide, we’ll provide you with everything you need to understand how to work out your business gas, business electricity prices per kWh and how to get a better deal on your energy bills.

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Electricity prices per kwh

Business Energy Prices Per kWh – How The Latest Energy Prices Affect Your Business

The price of energy bills is on every business owner’s mind right now. With significant increases that don’t show any sign of slowing, it can be an anxious time for business.

If you’re looking to save money on your business energy bills, then switching to a tariff with a lower unit rate is a good place to start. But understanding the tariff can be difficult. From kilowatts per hour (kWh) to standing charges, there’s so much information on an energy bill that it can be difficult to find ways of making savings.

What is a Kilowatt per Hour (kWh)?

A kilowatt per hour (kWh) is a unit of measurement for energy usage. So, it measures the amount of power your business is using in watts over one hour.

An appliance that uses 1,000 watts of energy would take an hour to reach one kWh, and an appliance that uses 10 watts of power would take 100 hours to use the same amount of energy as the previous appliance.

Kilowatt per hour is how suppliers work out their rates, and will charge you a specific price per unit of kWh. Using the examples above, if your unit rate was 40p per kWh and you had five appliances that used 1,000 watts of energy, every hour you would pay £2 for those appliances being on.

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The price paid per kWh will differ between businesses and suppliers. To give you an accurate quote on what you’ll be paying, suppliers will assess your business’ circumstances and how much energy you consume. Below are a list of the things a supplier will consider.

Business size

A small business will use significantly less energy than a large corporation, therefore the price you pay per kWh will be based on how much energy you require to function.


The price you pay for your energy will depend on where you’re located in the country. For examples, the Midlands has some of the lowest energy prices in the UK.


Not all businesses work 9am to 5pm, and depending on your industry, you may use more energy during the evenings and weekends, such as restaurants or night clubs. Businesses that use energy in off-peak times will be charged different rates to those who use it during peak time.

Average annual energy consumption

If you have a large business that uses a significant amount of energy, then you may receive a lower rate. However, if unit rates go down, then daily standing charges might go up. Therefore, it’s worth considering prices in terms of the cost for a full year, rather than unit prices.

Current business energy supplier

You won’t know if you’re with the most or least expensive supplier on the market until you start comparing quotes and tariffs.

Length of energy contract

The length and type of energy contract you sign will have an impact on both daily charges and unit rates. In general, every year you extend your contract, 2-6% will be taken off the standing charge, and an extra 6% will be added to the unit rates.

What are the other costs involved in business energy prices?

Unfortunately, it’s not just the energy costs that go into your monthly energy bill. When browsing quotes and tariffs, there are other costs that you should pay particular attention to:

Unit cost: this is the price you pay for each unit of electricity and gas your businesses uses (measured in kWh).
Standing charge: this is a daily charge that covers the cost of transporting energy directly to your premises and the maintenance of the national grid.
Business energy taxes: taxation makes up the remainder of your business energy bill. This includes VAT charged at a rate of 20% and the Climate Change Levy (CCL). The CCL is a mandatory government tax that most businesses pay on gas, electricity, and solid fuels in an effort to become more energy efficient.

To get the best deal on your business energy, then find quotes that have lower unit costs and standing charges. This will help you make significant savings on your gas and electricity bills.

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How much does business electricity cost?

It’s not a question that can be answered definitively – and that’s because every business is different. The cost of your bill is dependent on how much electricity your business uses. We’ve put together a useful table detailing how much the average business could expect to pay based on current market prices.

Business Size

Electricity Unit Price Per kWh

Electricity Daily Standing Charge

Annual Cost

Micro Business
£4,836 (based on annual usage of 10,000 kWh)
Small Business
£8,565 (based on annual usage of 20,000 kWh)
Medium Business
£14,214 (based on annual usage of 40,000 kWh)
Large Business
£20,359 (based on annual usage of 55,000 kWh)

Disclaimer: Due to volatility within the energy market, prices can change on an hourly basis meaning that the prices you’re quoted are different from the averages shown. Prices may also vary according to your meter type and business location.

What are the latest business gas rates?

How much should your business be spending on its annual gas supply – do you know? Don’t worry if you don’t. We’ve created the handy table below to help you get a rough idea of how much you might expect to spend on your commercial gas supply, based on the average annual consumption of similar-sized businesses.

Our table includes average business gas prices per kWh. However, it’s important to bear in mind that these rates may fluctuate. So, the prices you see in your quote may vary. We, as a business gas comparison website, are also unable to update live pricing here based on the needs of every individual business.

Business size

Gas Unit Price Per kWh

Gas Daily Standing Charge

Annual Cost

Micro Business
£2,130 (based on annual usage of 10,000kWh)
Small Business
£3,436 (based on annual usage of 22,500kWh)
Medium Business
£8,350 (based on annual usage of 47,500kWh)
Large Business
£7,645 (based on annual usage of 65,000kWh)

Disclaimer: Due to volatility within the energy market, prices can change on an hourly basis meaning that the prices you’re quoted are different from the averages shown. Prices may also vary according to your meter type and business location.

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How to Compare Business Electricity and Gas Costs per kWh

When you’re running a business, you don’t have time to sit and compare endless deals from a variety of suppliers. Business energy is different to domestic, as you will need to make sure you’re on the best rates for both standing charges and business electricity per kWh from each individual supplier. This is significantly different to the predefined tariffs of domestic energy.

Using a bespoke service, like Business Energy Comparison, means that you can find a great deal without all the stress. Simply pop your business details into our tool and our experts will do the hard work whilst you get on with the really important stuff.

If you’d like to get an idea if you’re paying too much for your business energy before you get in touch, then discover our tables below which illustrate the industry average gas and electricity cost per kWh and standing charges.

Start your journey and compare business energy suppliers with us today. Use our price comparison tool and in less time than it takes to make a brew, we’ll compile your best prices from the UK’s best suppliers