How business electricity pricing works
A supplier's quote is built from the wholesale cost of electricity, network and distribution charges, environmental and social obligation costs, and the supplier's own margin. These are combined into a single pence-per-kWh unit rate plus a standing charge for your specific consumption profile.
Because each of these elements can shift over time, the same business could receive noticeably different quotes from the same supplier just weeks apart, which is why timing a renewal or comparison matters.
Unit rates by meter type
| Meter type | Typical unit rate (p/kWh) | Typical standing charge (p/day) |
|---|---|---|
| Standard (non-half-hourly) | 24 - 38 | 25 - 55 |
| Half-hourly | 18 - 30 | 35 - 90 |
| Multi-rate (Economy 7-style) | 20 - 36 (varies by rate band) | 30 - 60 |
What drives your quoted price
- Annual consumption in kWh and your usage pattern across the day
- Region and local network operator charges
- Contract length and start date
- Business credit standing and payment method
- Whether the meter is half-hourly, non-half-hourly or multi-rate
Compare business energy prices
Enter your postcode and business details to compare available commercial energy prices.
Fixed vs variable electricity pricing
A fixed-rate electricity contract locks in your unit rate for the agreed term, giving predictable monthly costs regardless of what happens to wholesale prices. Most small and medium businesses choose a fixed deal for this reason.
A variable or flexible contract moves with the wholesale market, which can reduce costs when prices fall but exposes the business to higher bills if the market rises, so it suits businesses able to monitor and manage that risk.
Comparing electricity quotes
When comparing quotes, look beyond the headline unit rate and check the standing charge, contract length, any exit fees, and whether the price includes or excludes VAT and the Climate Change Levy. A lower unit rate with a high standing charge can cost more overall for a low-usage site.
Reducing your electricity costs
Beyond switching supplier, businesses can reduce electricity spend through better load management, upgrading to more efficient equipment and lighting, and reviewing consumption data to spot waste. These measures work alongside, not instead of, securing a competitive unit rate.