When it comes to comparing business energy tariffs, the process can generally offer a few more complications than the comparison of domestic energy tariffs, which is often more straightforward. This is mainly due to the simple fact that there are far more plans out there that cater to commercial enterprises than domestic energy plans. This article aims to simplify some of the process, highlighting some of the most prominent plans and providers, how they differ and which situations they will suit best.
Before going into the range of tariff options available in the UK and whittling it down to the best options for your business, it is important to first consider the location, size and type of business you run. All of these factors will affect which plan is the right one for you and also the overall cost. Usually, the best way to find the best tariff as a business is to spend the time shopping around and getting quotes from several different providers. To save you some of the time and effort, here is a run-down of the current business energy tariffs and rates available in the UK, and some added info to help you understand each one.
Business energy prices:
Every provider has a unit price per kWh and a standing charge per day. The unit rate consists of the price consumers pay per kWh of the electricity used, which makes up the bulk of the price you pay for your electricity. While the standing charge is the price paid in order for your business to have access to electricity. Although price comparisons usually focus on the unit rate (price per kWh) and place less emphasis on the standing charge, it is important that you don’t let the standing charge go over your head as this could really affect your total bill. It is also important to remember that the rates stated below are essentially the worst possible rates you can get from each of the providers, essentially demonstrating how expensive the energy could possibly be. Bulb offers a price per kWh of 12.05p, while the standing charge is 27.40p per day. Scottish Power offer a price per kWh of 22.50p, and a standing charge of 56.00p per day. Yü Energy offers a price per kWh of 23.03p, with a standing charge of 159.00p per day. SSE offer a price per kWh of 23.34p, with a standing charge of 54.00p per day. E.on have a price per kWh of 23.92p, and a standing charge of 104.00p per day. British Gas offer a price per kWh of 23.95p, while the standing charge is 78.40p per day. EDF Energy offer a price per kWh of 24.31p, while the standing charge is 80.00p per day. OPUS Energy offer a price per kWh of 25.50p, while the standing charge is 95.00p per day. Npower offer a price per kWh of 29.24p, while the standing order charge is 87.43p per day.
What are the average prices for business electricity?
According to data collected by the UK Government in 2019, the average price per kWh to pay for business electricity is 11.66p/kWh. However, further data shows just how much you can expect to be paying depending on the size of your business. When it comes to small to medium-sized enterprises, average prices generally begin at 16.09p/kWh and end at 11.51p/kWh. If you have a very small business, the average price is 16.09p/kWh, small business on average are paying 13.95 p/kWh, small/medium-sized businesses are paying 12.44p/kWh, and medium sizes are paying 11.51p/kWh. Average prices for larger businesses begin at 11.25p/kWh and end at 9.68p/kWh. Large-sized businesses are paying 11.25p/kWh, while very large businesses are paying 10.01p/kWh and extra-large businesses are paying 9.69p/kWh. Yes, this does mean that on average small businesses pay more for electricity per kWh than larger businesses. This is mainly due to discounts on larger volumes, the fact that those with larger businesses can tend to be savvier and energy-efficient, and one key difference – big businesses shop around for their energy far more than smaller businesses.
Shopping around can make all the difference
With such a big leap in energy prices between small and large businesses, it goes to show how vital shopping around can be in order to save your business as much money as possible. It is important for small, medium and large businesses to search for the most efficient energy plan for them, however, this can be a time-consuming activity. Luckily, there are services that do all of the hard work for you, giving you and your employees more time to focus on the expansion of your business. Amvia is an example of one such service, offering a completely impartial energy comparison service for UK businesses, aiming to help you switch your electricity to a cheaper deal. When you choose a service that is dedicated to making the tariff comparison process as easy and pain-free as possible for your business.