Unit rates explained
The unit rate is the price charged for each kWh of electricity or gas consumed, and it is the figure most often quoted when comparing deals. It reflects wholesale energy costs plus supplier margin and, for electricity, network charges that vary by region and meter type. Rates are typically quoted in pence per kWh.
Standing charges explained
The standing charge is a fixed daily amount covering costs that do not depend on how much energy you use, such as meter maintenance, metering services and a share of network costs. It applies every day of the contract, even at sites with no consumption, so it should always be reviewed alongside the unit rate rather than in isolation.
What a good business energy rate looks like
- Competitive against current market averages for your region and consumption band
- Balanced between unit rate and standing charge, not skewed to make one look artificially low
- Matched to a contract length that suits your appetite for price risk
- Free of hidden charges such as unusually high exit fees
- Backed by a supplier with a reasonable track record on billing accuracy
Compare business energy prices
Enter your postcode and business details to compare available commercial energy prices.
How suppliers set business energy rates
Suppliers buy energy on the wholesale market, sometimes in advance to lock in future supply, and price contracts around those costs plus network charges, operating costs and margin. Consumption volume, meter type, region, contract length and the customer's credit profile all feed into the final rate. This is why rates are not published as a single national price list and instead require a quote.
Typical business energy rate ranges
| Fuel | Typical unit rate range | Typical standing charge range |
|---|---|---|
| Electricity | 20p to 35p per kWh | 20p to 60p per day |
| Gas | 5p to 10p per kWh | 15p to 40p per day |
How rates change over the contract term
On a fixed contract, the unit rate and standing charge are locked for the agreed term, so your rate does not move even if wholesale prices rise. On a variable or deemed contract, rates can change with little notice, tracking wider market movements. Reviewing which type of contract you are on is as important as reviewing the rate itself.