- 1 Compare Electricity Provider Prices
- 2 How Much Does The Average Business Spend On Electricity?
- 3 How To Switch Business Electricity Supplier
- 4 What Is The VAT On Business Electricity?
- 5 Who Is The Cheapest Business Electricity Supplier?
- 6 How Much is business electricity per kWh
- 7 FAQ
- 8 When can I switch electricity supplier without penalty?
- 9 What are common problems switching electricity supplier?
- 10 Can I change electricity supplier if I am in debt?
- 11 How long does it take to switch electricity supplier?
- 12 Variation in electricity rates across the UK
Business, and life, is so incredibly busy these days that so often it feels as if we’re spinning plates just to get through the day, and the comparison of the best business electricity rates and electricity providers just isn’t made a priority.
Yet perhaps it should be, as there are great savings to be made, which can make a substantial difference for a business just by looking at the best electricity deals that are out there.
Given the costs that can be so easily made by a glance at gas and electric comparison sites, wouldn’t it be an absolute waste not to take a few minutes to look at them?
This page provides the most up-to-date information on the details of the best electricity deals around, by comparing electricity providers and electricity rates.
Our detailed guide aims to help you keep your energy bills as low as possible, and, given how cold the winters can get, this means that when you’re at work, whether your business is retail or office-based, you won’t need to worry when there is no choice but to crank up that thermostat.
The unfortunate truth for so many businesses is that given the enormous demands on the time of managers and employees, the comparison of electricity prices and the search for cheap electricity prices simply isn’t as much of a priority as it should be, given the discounts that are available.
These savings do need to be searched out, however, and that’s where this page aims to help, by comparing electricity rates and electricity providers and providing the details.
We provide information on how you can switch your electricity supplier, by comparing business electricity prices per kWh, and helping you to do this.
Compare Electricity Provider Prices
Table 1: This chart details several of the main electricity providers in 2018, and clearly shows how you can take action to compare the quite substantial differences between them and make savings.
How Much Does The Average Business Spend On Electricity?
The average electricity monthly bill for a UK business is around £3000 per year with the average unit price per kWh of ~14p. While this may not sound like a lot, we must take into account the skew towards the long-tail of smaller business that would bring this average down. The typical small business will spend somewhere in the region of ~£1900 to £2900.
How To Switch Business Electricity Supplier
Switching electricity supplier is easy! A good idea is to try not to think of it as yet another task to do for your business, but rather as something that will result in you saving a great deal of money because the electricity providers will no longer be forcing you to pay over the odds for their service.
For many years, several key players dominated the gas and electricity market, and there wasn’t a great deal of opportunity to make savings.
The total lack of market competition worked in favour of the major suppliers.
Now, however, the tide has turned, and it is easy to switch business electricity provider. In fact, the simplicity of switching cannot be stressed enough.
Here is how to switch electricity supplier, broken down into the following steps:
- Check your electricity bill to find the note informing you if you have the cheapest energy deal that you provider offers, and how much you would be saving if you were. If not, why not? Electricity suppliers are legally obliged to provide this information, so make sure you have all the right information at your fingertips.
- As long as it is you who pays the bill, rather than, for example, a management company, and you have ensured that payments are up to date, then switching business electricity provider should be simple. You should make sure that you have made full payment on any arrears before attempting to switch electricity provider.
- When you have looked in detail at all the energy switch comparisons and are satisfied that you will be going for the best deal in the market, go to the relevant site, making sure that you have to hand a recent bill so that you have an accurate idea of your business electricity usage.
- Before you switch electricity supplier, make sure that you have searched using your postcode, to ensure that the deal you’re switching to is definitely the best one that exists on the market.
- Finally, all you need to do to switch commercial electricity provider is to supply your business address and bank details for the direct debit to be confirmed.
Bear in mind that it can take up to 21 days for a new energy plan to be finalised, so it is always advisable to wait until written confirmation of the new energy plan has been received before cancelling the previous direct debit, or another payment method first.
What Is The VAT On Business Electricity?
If your company is VAT registered, typically you would pay 20% on top of the cost. Businesses that utilise less than 33 kWh of electricity benefit from paying a rate of just 5% VAT.
Who Is The Cheapest Business Electricity Supplier?
Cheap gas and electricity deals abound, but it is very difficult to claim here that one supplier provides the cheapest electricity tariff, because it all depends on the specific area in which your business is located.
That’s why the best – and easiest- option is to search here, using your postcode.
Massive savings are available for business customers who are searching for the cheapest deals on gas and electric, but it is necessary to complete a quick and easy search.
One of the problems that people cause for themselves is thinking that it is as difficult to switch as it was in the past, but this is most definitely no longer the case.
The cheapest electricity tariffs can be searched online, simply and by using only your postcode.
Consumers are also no longer required to attempt to understand long, complicated bills detailing electricity usage; rather, all that business consumers now need to do is enter their details in the search engine and witch online to the cheapest electricity supplier.
Although it isn’t possible to state here which is definitively the cheapest gas and electric supplier for businesses, the fact that in the course of the past year, millions of customers across the UK have moved their electricity to plans to small and medium providers indicates that these are the best – and cheapest- business energy suppliers.
There are likely to be a couple of reasons for this, but it is probable that it boils down primarily to the competition. In addition, businesses may receive improved customer care from small and medium electricity suppliers who will be less likely to take their customers for granted, especially in the light of the increasingly competitive energy market.
The delay in switching to a cheap electricity supplier is costing your business money, so start searching for cheap gas and electricity deals, and make the switch.
How Much is business electricity per kWh
Even before making the switch to another provider, it is worthwhile to look at practical ways in which your business can cut electricity usage, such as ensuring that there are no oversights and empty retail units or offices are not being heated.
Often, however, this simply isn’t possible, and that means that the best option is to compare business electricity prices per kWh.
The chart we have provided below provides information on the typical quotes on kWh rates that small business would expect to receive upon inquiry, based on business size.
|BUSINESS SIZE||USAGE/ YEAR||UNIT PRICE/ KWH||STANDING CHARGE||COST PER YEAR|
|Micro Business||8,000 kWh||14.42p||27.40p||£1,254|
|Small Business||20,000 kWh||13.98p||26.83p||£2,894|
|Medium Business||40,000 kWh||13.79p||26.41p||£5,612|
|Large Business||80,000 kWh||13.24p||26.20p||£10,688|
When looking for the cheapest electricity rates per kWh, businesses should bear in mind two main costs.
The first is the unit cost, which is the price that a business will pay for each unit of electricity it used, which is measured in kWh, whilst the second cost is the standing charge.
This is the daily charge which is paid to cover the maintenance of the national grid, as well as the cost involved in transporting the electricity directly to your place of business.
One of the problems for businesses in searching for electricity prices per kWh is that a separate quote needs to be gained from each individual supplier.
This is different from domestic users, who generally have the option of choosing from pre-determined tariffs.
As business electricity prices per kWh can be so complicated, our bespoke service can remove the hassle in searching for you.
Before looking at business electricity prices per kWh, it’s always beneficial have a rough idea of how much energy your business uses, as this will help in the choice of the cheapest electricity tariff kWh.
When can I switch electricity supplier without penalty?
Yes, usually all you need to do is to choose a cheaper electricity plan and make the switch. It all depends though on your current plan, and if you are tied in for a certain period of time, then you may have to pay a penalty to leave.
If the penalty you would have to pay is larger than the saving you’d make, you may need to wait.
What are common problems switching electricity supplier?
Switching electricity supplier should be easy. When problems do arise, they tend to be administrative in nature, or to do with customer service.
Good advice is to consider looking at not only the cheapest electricity supplier, but also their reputation for customer service.
Can I change electricity supplier if I am in debt?
It is definitely possible! You don’t need to be in the black to switch energy provider or tariff, if the debt is less than 28 days old.
If the debt is over this date, then you will need to repay the debt first before you can switch.
How long does it take to switch electricity supplier?
The whole process should take no longer than 17 days; this includes the 14 day “cooling off” period which is required by law.
Variation in electricity rates across the UK
In addition to looking for the best commercial electricity rates in the UK, businesses must also bear in mind that here are regional differences in the electricity rates. This is partly due to electricity transmission charges across the country.
Although the wholesale cost of energy is the primary reason for the variation in commercial electricity rates, where the cost of energy differs with the same supplier, the distribution of the energy means that the further there is for the electricity to travel from its source, the more expensive it will be.
That means that searching for the cheapest energy providers by region is crucial. Another cost results from the time at which energy is used.
It is possible to obtain the cheapest electricity rates, however- just a quick search is required.
Map from BusinessJuice
We look out for the cheapest electricity tariffs for business customers; we provide a service that takes the hassle out of the comparison process for you.
There’s a good chance that you could save money on a cheaper electricity tariff, so enter your details at the top of the page, get quotes and see how you can start saving money today.