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How to compare business energy prices the easy way
The easiest way to save money on your business energy bills is to compare quotes and switch to a better offer. Read on to discover how to start cutting business energy costs today!
It pays to compare
We understand that comparing business energy prices can be rather time-consuming. Electricity and gas tariffs for businesses work differently to those for domestic energy. Different types of meters, higher consumption and more complex pricing mean that it can sometimes be confusing just to know where to start when looking for a personalised business energy quote.
Does this sound like too much of a hassle? Don’t turn away just yet. The amount of money that your business can save by switching to a better deal far outweighs the time and effort involved in a comparison.
Small businesses can easily save hundreds and sometimes even thousands of pounds a year on business energy bills just by switching to cheaper gas and electricity plans.
Between utilities, rent and taxes, you’ve already got enough expenses. Why not cut your business energy costs so that you can have more money to go towards the things that really matter?
Read on to learn about comparing business energy prices in your area. You can also give us a call here at Selectra to or request a free callback now to get a personalised comparison. That way, you’ll only need to make one phone call instead of having to contact numerous business energy suppliers to compare.
Before you compare business energy prices
Before you start, it’s important you understand that business energy plans are much more complex than with domestic properties. Business energy suppliers don’t offer dual fuel tariffs, so business gas and electricity must be compared separately. Pricing can also significantly vary depending on the following factors:
- The type of business you operate. Not all businesses run Monday to Friday from 9am to 5pm. Businesses that consume more energy at night or at the weekend will usually pay lower rates during these off-peak hours since there is less overall demand.
- The location of your business. Business energy prices vary depending on the region in which your business is located. If your business is based in a rural area, you can generally expect to pay more than if it were located in the city.
- The size of your business. The larger your business, the more buying power you have. If your business has multiple premises, you’ll be able to negotiate a better offer than if you were to operate from just one location.
- The amount of energy your business consumes. The more energy your business uses, the more likely you are to get a better price per unit of energy that you use.
- The type of tariff. Tariffs can have fixed or variable rates. Fixed-rate tariffs protect businesses from fluctuating prices for the duration of the agreement, while variable tariffs reflect the market.
- The length of your contract. Business energy contracts can usually last anywhere from one to five years. While longer fixed-rate contracts generally have higher rates than short-term contracts, you could actually save more in the long run because these prices will be protected from any market increases.
- Your credit rating. If you’ve got a low credit score, you could end up paying more for business energy because you are seen as a higher risk.
What do I need for a business energy comparison?
We can start a business energy quote with just your business' name and address. However, to get the most acurate business energy comparison you should try and gather the following information, which can all be easily found on your bill:
Your annual consumption
To compare business energy prices, you should use your own consumption levels in order to get an accurate quote. You can find this information on any bill or renewal letter from your current supplier.
To give you an idea of how much electricity and gas your business consumes, refer to the table below.
|Type of business||Number of employees||Turnover||Average annual electricity usage||Average annual gas usage|
|Microbusiness||Less than 10||Less than £1,400,000||5,000 - 15,000 kWh||5,000 - 15,000 kWh|
|Small business||11 to 50||Between £1,400,000 and £7,000,000||15,000 - 25,000 kWh||15,000 - 30,000 kWh|
|Medium business||51 to 250||Between £7,000,000 and £31,000,000||25,000 - 50,000 kWh||30,000 - 65,000 kWh|
Your current contract details
If you are currently in a contract, you will not be able to switch to a new deal until your current one comes to an end. However, it is possible to sign contracts in advance in order to take advantage of the current offers - you just won’t be able to switch quite yet.
Contracts usually have a renewal period during the last one to six months. During this time, you are able to compare business energy tariffs and switch to a better deal, even if the contract has not expired completely.
If you have never compared business energy deals before, you may not even have a contract and could be on what’s called a deemed tariff by default. According to Ofgem, deemed tariff rates could cost you up to 80% more than those on a contract.
The only way to avoid these expensive rates is to sign up for a new deal. The easiest way to get a new contract at the best price is to contact us here at Selectra on 020 3318 3633 or request a callback. We can help you find the best offer to meet the unique demands of your business.
Your current business gas and electricity rates
You’ll want to compare quotes against your current business energy rates to see just how much you’ll save by switching.
Your rates are broken down into two separate costs: unit rates and standing charges. You’ll have different rates for your business gas and electric. The unit rate is what you pay per kilowatt-hour (kWh) of energy that you consume, while the standing charge is the price you pay per day just to remain connected to the supply.
On top of this, most businesses will also have to pay the 20% VAT. However, if you run a microbusiness, a charity or a non-profit organisation, you may qualify to pay just 5% VAT. To see if you could benefit, you should ask your provider for the VAT declaration form.
Can I get a dual fuel business energy tariff? Keep in mind that business energy suppliers do not offer single plans that cover both gas and electricity. Even if you register both fuels with the same supplier, they will still come under two separate contracts.
Average business electricity costs
The table below breaks down the average electricity rates for businesses. Generally speaking, the more energy your business consumes, the lower the cost per unit.
|Type of business||Average electricity unit rate||Average electricity standing charge||Average electricity annual spend|
|Micro business||16.6p - 18p per kWh||25p - 32.5p per day||£1,834|
|Small business||16.2p - 17.7p per kWh||25p - 34.5p per day||£3,468|
|Medium business||16p - 17p per kWh||25p - 33.8p per day||£6,705|
What is a good rate for business electricity?
To give you a clearer idea of how much you could save by comparing business energy quotes, take a look at the following table to see the average electricity rates paid by other businesses in your sector.
|Business type||Unit rate (per kWh)||Standing charge (daily)||Cost per year|
Average business gas rates
In the following table, you will find the average gas prices for businesses. Gas rates tend to be around 3-4 times cheaper than business electricity rates,
|Type of business||Average gas unit rate||Average gas standing charge||Average gas annual spend|
|Micro business||3.9p - 4.5p per kWh||25p - 37p per day||£530|
|Small business||3.8p - 4.5p per kWh||25p - 45p per day||£1,150|
|Medium business||3.4p - 4.2p per kWh||25p - 61p per day||£1,860|
Who is the best business energy supplier?
To help you compare business energy suppliers, check out our business supplier guide, or have a look at the following individual pages on popular providers and learn more about what they have to offer.
- BES Utilities
- British Gas
- British Gas Lite
- Corona Energy
- Gazprom Energy
- Haven Power
- Opus Energy
- Octopus Energy
- People's Energy
- Pozitive Energy
- Smartest Energy
- Total Gas and Power
- Valda Energy
- Yu Energy
- Zog Energy
Get a business energy quote
Now that you’ve gathered the details about your contract and your business gas and electricity consumption, it’s time to get some quotes and start comparing! You can either contact suppliers directly or use a business energy comparison service, like us here at Selectra.
Even if you’d like to stay with your current business energy supplier, we can still help you switch to a more cost-effective plan with the same company. Give us a call at Selectra on 020 3318 3633 or request a callback to speak with one of our business energy experts for free today!
Try and have the following details to hand when you call:
- Your name as the account holder
- The name of the business
- The business address
- Your MPAN or MPRN
- Your current supplier and tariff name
- Your annual consumption
Don’t worry if you don’t have all of the above details about your business. We can still get a quote started with just your postcode.
Before you switch
It’s important to remember that once you agree to a business energy contract, you will not be able to switch to a different offer until the contract comes to an end. This is why it’s so critical to get it right the first time around.
Getting it right doesn’t necessarily mean agreeing to the cheapest offer either. You want to make sure that your business energy supplier is reliable and provides high-quality customer support as well.
We advise doing some research and checking out customer reviews to make sure you choose the best option for your business. If a problem arises, you’ll want to know that you’ve got a supplier you can trust to answer the phone and offer support.
With so much at stake, it may be best to seek professional assistance when looking for a new business energy contract. Why not give us a call today on 020 3318 3633 or get a free callback now. You could just end up saving hundreds - or even thousands - on your business costs!
Are there more ways to cut my energy costs? Besides just switching to a cheaper energy plan, you can also decrease your business energy costs by reducing your consumption. Learn how to save even more with our guide on the best ways to cut back on your energy use at the office.
*Of Bionic customers who made a saving on a three-year business energy contract between January 2020 and May 2020, the average amount saved was £1,305.