Small business energy comparison

Fast-growing, energy-hungry businesses consume a lot of fuel – and if you don’t keep track, those gas and electricity costs can really stack up.

Business energy prices can vary wildly from supplier to supplier, and no two firms’ energy usage is going to be the same. Factors like size, location, business type, sector, and even credit rating will influence which supplier you choose, and how much you’ll pay for your energy.

Savvy business owners will constantly shop around for a better deal. Don’t fall into the trap of paying more than you need to because of inaction – compare energy quotes, find yourself a better deal, and change suppliers today.

Below, we’ll compare five business energy suppliers, looking at:

• What’s covered by your gas and electricity providers
• What you should be looking for with your business energy tariffs
• What you need as a small business
• What you should expect from a business energy quote

Small business energy comparison: At a glance

Before we get into the nitty-gritty details of each supplier, here’s an overview: 

To compare quotes for business energy, simply complete the form at the top of the page.

Key considerations for choosing a business energy supplier

There are a number of factors that affect which business energy supplier you should choose:

• Compare options – while the Big Six are the biggest and most established suppliers in the country, there are many other options out there, so research and compare to find the best match for your business
• Review prices – as well as checking the unit rate and standing charge, look to see if any discounts are available and if any additional fees apply, such as those you might be charged if you wish to leave a supplier
• Check contracts – unless you’re a completely new business, it’s likely that you have a current energy contract. Be sure to understand the process for changing to a new tariff, deal, or supplier entirely, depending on your circumstances
• Energy requirements – assess how your business uses energy, such as the times of day, type of fuel consumed (do you mainly use electricity, gas, or a combination of the two?), and the type of business you run
• Sustainable choices – depending on the above, your business may want to use an eco-friendly provider, so make sure to check where a supplier gets its energy from

Compare business electricity

From providing light to powering the hardware or equipment your company needs to operate on a daily basis, businesses tend to use a lot of electricity.

This means businesses can afford to negotiate a better deal on their electricity contract, but risk being hit with higher wholesale prices.

The table below provides an idea of how much you can expect to pay for electricity, depending on the size of your business.

For a more comprehensive account of what you can expect from your electricity provider, take a look at our page on business electricity supplier prices.

Compare business gas

Whether it’s for hot water, heating your premises, or fuelling kitchen equipment, gas is an essential fuel for the daily running of your business. 

Unlike domestic customers, businesses are able to access gas at a lower per kWh price because they generally use more of it; however, they will usually pay a higher rate of VAT.

The table below provides an idea of how much you’ll expect to pay for gas, depending on the size of your business.

Has your gas bill got you in a grumble? Looking for the best deal for your business? Then have a read of our business gas comparison page.

Business energy quotes: All you need to know

Make sure you’re informed about the most important elements included in a business energy contract, so you can understand whether the deal you’re getting is a good one. Here’s what you should be looking out for:

• Unit rates – this is the set amount your business will pay per unit (kWh) of energy that it uses
• Standing charge – this is a fixed daily cost that covers the expense of accessing an energy supply
• Agreed supply capacity – the maximum demand that a business needs from its supplier, ensuring that amount (and no more) is continuously available
• Maximum demand (MD) – measured in kWh, this is the highest value of energy a business could use in a half-hour period, taken from the highest demand recorded during a calendar month or billing period and multiplied by two to give an hourly MD. Penalties can be incurred for exceeding this
• Cooling off period – a period of time after signing a contract in which customers can cancel without financial penalty (rarely offered to business customers)
• The billing period – the period of time that a bill will cover, which can be negotiated for favourable terms with your supplier
• The renewal window – this comes at the end of your contract and is a 60 or 120-day window, giving you time to find a better deal or stick with your current supplier

In order to get the best energy quote for your company, you should have the following information to hand:

• Do your research – you need to understand energy contracts if you want to get the best deal
• Read reviews – see how other consumers have rated potential suppliers. There are plenty of credible online sources where you can compare
• Know your current numbers and consumption pattern – work out when your peak energy consumption times are, and find out your Meter Point Reference Number (MPR) for gas and your Metering Point Administration Number (MPAN) for electricity
• Shop around for quotes – don’t just go with the first attractive offer – keep shopping around for a better one, and make sure you get the best deal for your business

Once you’ve agreed to a business energy contract, you’ll be locked in for the stated time, so make sure it’s definitely the right one for you before committing.

Next steps: Compare business energy suppliers and prices

We’ve covered the information you need to know to compare business energy prices, including profiles of some of the top energy companies. Plus, we’ve provided the factors to take into consideration when making your decision, and revealed which sectors spend the most on energy. 

Now you’re fully clued up on what you can expect from your small business supplier, as well as the rough financial implications of your energy bill, it’s time to compare energy quotes from suppliers. To do this, simply fill in the form at the top of the page.

Business energy comparison: The FAQs

Here, we answer some of the most common queries you may have about business energy for small businesses.

Is my business a high energy consumer, or a low energy consumer?

A business is regarded as having low energy consumption if its average electricity consumption is:

• Less than 33 kWh per day

or

• 1,000 kWh per month

Generally, businesses will be subjected to a 20% rate of VAT on their energy bill, though this can be reduced if they meet the supplier’s requirements for low energy consumption.

You could pay by unit pricing, which is based on the size and consumption of your company, or a fixed business gas price plan, which sees you pay a set price for a fixed period of between one and three years.

Unlike domestic energy costs, business energy prices are driven by the market, meaning they can vary wildly even from day to day. Using an expert comparison service is the best way to ensure you get a good deal on your business energy.

What is reasonable to expect from a small business energy provider?

If you’re wondering about the normal expectations you can have for your small business energy provider, then you’re not alone. The energy industry is quite a complex place, and knowing what you can reasonably demand from your supplier can seem a little daunting.

Here are four key things you should expect your small business energy company to offer:

1. Affordability – your energy needs to be affordable – otherwise you’ll be running your business in the dark, for fear of racking up a massive bill! 
2. Environmental sustainability – There’s no denying it: cleaner and greener energy sources are the future. Your energy company should be showing at least some signs that they’re living up to their responsibility and doing their bit for the planet
3. Scalability – Small businesses don’t stay small forever, and it’s important that your energy company can keep up with your rate of growth. Check that your energy company also caters for bigger businesses with higher energy requirements, whilst keeping costs reasonable.
4. Flexibility – When it comes to business energy, the market is highly variable, and there is scope to make some serious savings if you’re savvy enough. This is why you don’t want to be locked into a contract, and ideally will have an arrangement that doesn’t feature any end-of-contract fees.