Business energy plans are slightly different from domestic ones as they’re designed specifically for the needs and scope of your business. As such, whether you’re getting cheap business energy or not isn’t necessarily always clear.
Looking at your energy price per kWh is a good place to start.
A kWh – or kilowatt hour – is a unit of energy. Energy suppliers charge a fee per unit of energy (kWh) used, which is what allows us to keep a track of our energy bills.
For businesses, suppliers offer a unit rate per kWh once they’ve gathered some essential information about your business’ energy habits. But to give you a benchmark beforehand, run a business energy comparison with us to get a sense of what rates you can expect.
We’ve established you’ll pay a unit rate for each kWh of energy you use, but there’s a bit more that makes up your bill. You’ll also have to pay a standing charge, which is the daily rate you pay to have access to energy. This will vary across energy suppliers.
In addition, you have to pay tax on your energy bills which, for most businesses, is 20%. However, some businesses are eligible for a discounted rate of 5% VAT so check if you qualify to start saving money on your business energy bills.
Most businesses will also have to pay the Climate Change Levy too, although some organisations such as charities are exempt from this.
What price you pay for your business electricity and gas depends on a hotchpotch of variables. This is why it’s a little trickier to sense if you’re getting a good deal when you compare business energy quotes, but so you’re in the loop we’ll outline some average prices later on.
We mentioned the size of your business determines what rate you’ll pay for your electricity and gas. While all the variables listed above go into determining the unit price of energy, we think it’s helpful to have a comparative to see if you’re getting a good deal.
So, let’s take a look at the average business electricity prices for different-sized enterprises. For energy, businesses are split into various categories depending on their consumption in kWh: these are Micro, Small, Medium and Large.
|Business Size||Average Annual Usage in kWh||Average Price per kWh|
|Micro Business||8,000 kWh||16.74p|
|Small Business||20,000 kWh||14.83p|
|Medium Business||40,000 kWh||13.68p|
|Large Business||80,000 kWh||12.93p|
Large businesses will have an even more personalised energy plan; this is because of the huge consumption of energy they’re guaranteed to use. As such, large businesses often enjoy the lowest unit rates however will typically pay more in standing charges and taxes.
When your contract is due to end, don’t simply renew by accepting the rate you’re offered by your supplier. You’ll almost certainly find a better deal elsewhere, so compare business energy quotes with us to ensure you don’t pay over the odds.
Although dual-tariffs are available on the market, businesses tend to take out separate tariffs for their electricity and gas consumption. As such, it can be a bit harder to work out how much you should be paying and spy a good deal. That’s why you’re best off running a business energy comparison with us to forgo the hassle! We’ll show you the most competitive deals on the market.