Single-rate electricity pricing
Most small and micro businesses are billed on a single unit rate applied to every kWh consumed, alongside a daily standing charge. This is the simplest structure to compare, since the total cost is close to unit rate multiplied by consumption, plus the standing charge over the billing period.
Day, night and evening/weekend rates
Some meters, often inherited from older Economy 7-style setups or specific tariff choices, split pricing into different rates depending on when electricity is used. A business that runs heavy machinery overnight, for example, could benefit from a lower night rate, while a typical daytime office would see most of its usage falling into the higher day rate band.
Half-hourly metering and capacity charges
Businesses with high electricity demand, generally sites consuming above roughly 100,000 kWh a year or on certain meter types, are billed on half-hourly settlement, meaning actual consumption is recorded every 30 minutes. These contracts typically include a capacity charge, which covers the network cost of reserving enough capacity for the site's maximum expected demand, charged separately from the energy unit rate.
Exceeding the agreed capacity level can trigger additional excess capacity charges, so half-hourly sites should review their agreed capacity periodically as usage patterns change.
Compare business energy prices
Enter your postcode and business details to compare available commercial energy prices.
How electricity rate structures compare
| Structure | Typical business | Billed on |
|---|---|---|
| Single rate | Micro and small businesses | Total kWh at one rate |
| Day/night/weekend | Businesses with off-peak usage patterns | kWh by time band |
| Half-hourly | Larger sites and high-demand consumers | Actual half-hourly consumption plus capacity |
Regional variation in electricity rates
Electricity network charges differ across the UK's 14 distribution network operator regions, meaning the same consumption profile can be quoted differently in, for example, the North West compared with Southern England. This is a normal part of how electricity is priced and is not something a supplier can override, since it reflects the underlying network cost.
Checking whether your electricity rate is competitive
- Confirm which rate structure applies to your meter before comparing
- Check the standing charge and, if applicable, capacity charge separately
- Compare against your region's typical range rather than a national average
- Review your usage pattern to see if a time-banded rate would help or hinder
- Reassess agreed capacity periodically if your business usage has changed