Business electricity
Business electricity, priced against how you actually use it
Commercial electricity is bought against a meter, a usage shape and a moment in the wholesale market — not a postcode. We match the contract to the supply.
On this page
- · Meter types explained
- · What's on a commercial electricity bill
- · Contract lengths
- · Common questions
Meter types
Not every electricity meter is priced the same way
The first step in any comparison is establishing what type of meter you have. It determines which suppliers can quote and how.
Non-half-hourly (NHH)
Most small and medium premises. Consumption is settled using a profile rather than 30-minute readings, and rates are usually simpler to compare.
Half-hourly (HH)
Typically required above 100kW or by mandate for larger sites. Usage is recorded every 30 minutes, which lets suppliers price your actual demand shape rather than an estimate.
Day/night & Economy 7
Split-rate meters common in premises with off-peak equipment use. Both rates need reviewing together, not just the headline unit rate.
Reading your bill
What a business electricity bill is actually charging for
A quoted unit rate is only part of the story. These are the components worth checking on any quote or renewal letter.
- Unit rate (p/kWh)
- What you pay for each unit of electricity consumed, agreed for the length of the contract.
- Standing charge
- A daily fixed charge that applies regardless of consumption, covering supply and connection costs.
- Climate Change Levy
- A government environmental tax added to most commercial electricity bills unless a valid exemption applies.
- VAT
- Usually charged at 20%, though some businesses qualify for the reduced 5% rate — for example under de minimis usage thresholds.
Contract length
Choosing how long to fix for
1 YEAR
Short fix
More frequent renewal admin, but exposure to only one pricing cycle if the market moves.
2–3 YEARS
Mid-term fix
The most common choice for SMEs wanting budget certainty without renewing every year.
4–5 YEARS
Long fix
Locks in a rate for longer, which suits businesses that want the renewal question off the table.
- Rates are usually fixed once a contract is signed, for the full term
- Suppliers hedge the energy in advance, which is why exit outside the switching window is restricted
- Renewal quotes are typically available from 6–12 months before expiry
- A missed renewal window usually means moving to deemed or out-of-contract rates
Common questions
Business electricity, explained
What affects business electricity prices?+
Wholesale market conditions at the time you contract, your annual consumption, your meter profile, how predictable your usage pattern is, contract length, payment terms, your location's distribution charges and non-commodity costs such as network and levy charges. Two businesses on the same street can be offered different rates.
What is an MPAN?+
A Meter Point Administration Number is the unique 13-digit reference for an electricity supply point in Great Britain. It appears on your electricity bill, often laid out in a grid, and identifies the meter rather than the supplier.
What is a deemed contract?+
A deemed contract applies when a business is taking supply without an agreed contract — for example after moving into new premises or after a fixed term ends. Deemed rates are set by the supplier and are typically higher than contracted rates, so they are worth moving off promptly.
Buying gas as well as electricity? See business gas.
See where your electricity contract could improve
Tell us your meter details and current rate. We'll come back with a straight comparison.