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Business electricity

Compare business electricity prices

Enter your postcode to see live business electricity quotes for your meter. The average UK business paid 24.51p per kWh in Q2 2026, and the smallest businesses paid 38.36p. Find out where you stand.

  • Single-rate, day and night, and half-hourly meters
  • Fixed, flexible and renewable contracts
  • Free, with no obligation to switch

Compare business electricity prices

Enter your business postcode to see live prices

No obligation to switch. Your details stay secure.

  1. 1We find your meter
  2. 2You see live prices
  3. 3You pick a deal

Live quotes are provided through our comparison partner. With your permission it looks up your meter and current supplier from industry databases so prices are accurate.

  • Free to useNo charge to compare, no obligation to switch
  • Commission disclosedShown in your contract before you agree
  • Live pricesQuotes for your actual meter and region
  • Market data updated dailyFrom Elexon, National Gas and DESNZ
Suppliers on our panel include
  • British Gas Business
  • British Gas Lite
  • EDF
  • E.ON Next (Business)
  • ScottishPower Business
  • SmartestEnergy
  • Valda Energy
  • Yü Energy
Business electricity prices, Q2 2026

What businesses are paying for electricity now

A quick benchmark before you compare: the average all-in price UK businesses paid last quarter, by size. For every band and the full history, see business electricity prices.

Business electricity: average price paid

Q2 2026, provisional
  • Very small businessesUp to 20,000 kWh a year 38.36p/kWh ▲ 3.5%
  • Small businesses20,000 to 499,999 kWh 28.59p/kWh ▼ 0.1%
  • Medium businesses2 to 19.9 GWh 25.17p/kWh ▼ 2.5%
Every size band and full history Get my electricity price

All-in prices including standing charges and Climate Change Levy, excluding VAT. Source: DESNZ Quarterly Energy Prices. Year-on-year change compared with Q2 2025.

Your bill shows a unit rate plus a daily standing charge, so it won't match these all-in figures directly. The cost calculator turns your rates into an all-in price you can compare.

What that could mean for your bill

Illustrative annual cost at the average Q2 2026 price for each size band, before VAT.

  • A small shop or office using 10,000 kWh a year £3,836
  • A busy cafe or restaurant using 30,000 kWh a year £8,577
  • A small factory or warehouse using 100,000 kWh a year £28,590

Real quotes depend on your meter, region, usage pattern and contract length. Small-business prices are 0.1% lower than in Q2 2025.

Get my real prices
Business vs domestic

Is business electricity more expensive than domestic?

Per unit, usually yes for a small business, and there are three reasons for it. Business contracts are not covered by the Ofgem price cap, so there is no ceiling on what a supplier can charge. Most business supplies pay 20% VAT rather than the 5% households pay, unless usage is low enough to qualify for the reduced rate. And business users pay the Climate Change Levy, currently 0.801p per kWh, which households do not.

Businesses do get something back for that. You can fix a price for up to five years, where household tariffs rarely go beyond two, and larger users can negotiate on volume. A business that fixed at the right moment can pay less per unit than its neighbours at home.

The comparison that matters is not household against business, it is your current rate against what suppliers would quote you today. See what businesses your size pay, or check whether you qualify for 5% VAT.

Switching

How to switch business electricity supplier

  1. Find your contract end date. It's on your bill or contract. Many suppliers will quote months ahead for a contract starting when yours ends.
  2. Give notice if your contract needs it. Some contracts roll over unless you send written notice by a set date. Check your terms so you don't end up on renewal or out-of-contract rates.
  3. Have a recent bill to hand. Your MPAN, annual usage in kWh and meter type make quotes accurate. With your permission the comparison can look these up for you.
  4. Compare the full cost. Look at the unit rate, standing charge, contract length and broker fee, and work out a total for a year of use.
  5. Agree and switch. Your new supplier handles the switch. Your supply stays on throughout, and you'll get a final bill from your old supplier.

Microbusiness? If you use no more than 100,000 kWh of electricity a year, or have fewer than 10 employees and turnover or balance sheet of no more than £2 million, you're a microbusiness. Ofgem rules give you extra protections, including clear renewal information from your supplier. What microbusiness protections mean for you.

Compare business electricity prices
Leaving early

Can you get out of a business electricity contract?

Not freely, in most cases. Business energy contracts have no cooling-off period, even when you agreed over the phone, and a fixed contract normally runs to its end date. If you leave early the supplier can charge an exit fee or recover the cost of the energy it bought for you.

There are exceptions worth knowing:

  • Deemed or out-of-contract rates. If you never agreed a contract, or your fixed term has ended, you can leave at any time without a termination fee.
  • Moving out. A change of tenancy ends your responsibility for the supply from the date you leave, provided you tell the supplier and give a closing meter reading.
  • The contract allows it. Some contracts include a termination window or a buy-out clause. The terms will say.

How to cancel a business energy contract covers each route, and change of tenancy explains what to do when you move.

Contract types

Types of business electricity contract

The right contract depends on how much certainty you want and how much risk you can carry.

ContractHow it worksBest for
Fixed priceUnit rate and standing charge are fixed for the contract term, typically one to five years.Most small businesses that want predictable bills.
Fixed energy, pass-through costsThe energy part of the price is fixed, but network and policy costs are passed on at cost and can change.Larger users who want a lower headline price and can absorb some variation.
FlexibleYou or a broker buy energy in blocks over time rather than all at once.Large and multi-site businesses with time to manage purchasing.
Variable or rollingNo fixed end date. The supplier can change prices with notice.Short-term needs, or while you arrange a fixed deal.
RenewableElectricity matched to renewable generation, backed by certificates or supply agreements.Businesses with sustainability targets or customers who ask.
Deemed or out-of-contractWhat you pay with no contract in place, after moving in or when a contract ends. Usually the most expensive way to buy.No one. Agree a contract as soon as you can.
Meters

Which business electricity meter do you have?

Your meter type decides which tariffs you can get. The first two digits on the top line of your MPAN (your profile class) tell you what you have.

Single-rate

Profile class 03. One unit rate at all times. The most common meter for small businesses.

Day and night

Profile class 04. Separate day and night rates. Worth it if a good share of your use is overnight.

Maximum demand

Profile classes 05 to 08. Larger supplies billed partly on peak demand, grouped by load factor.

Half-hourly

Profile class 00. Use settled every 30 minutes. Larger sites are priced on their actual load profile, and many smaller sites are moving to half-hourly settlement too. More on half-hourly.

Check your MPAN and meter type

Live market tracker

Is now a good time to fix your business electricity?

New fixed contracts are priced from the wholesale market. Here's what it has done over the last two years, updated every day.

Wholesale electricity, 30-day average to 31 Oct 2026

£153.92/MWh

Rising

Wholesale electricity prices have risen 17.5% over the last 30 days and are above their 12-month average (+49%).

Wholesale electricity, 7-day rolling average, last 24 months 0 50 100 150 200 NovJan 25MarMayJulSepNovJan 26MarMayJulSep 173.56 Wholesale electricity, 7-day rolling average, last 24 months 0 50 100 150 200 Jan 25Jul 25Jan 26Jul 26 173.56

£/MWh

Show daily figures
DateWholesale electricity (£/MWh)
31 Oct 2026173.56
30 Oct 2026151.63
29 Oct 2026146.39
28 Oct 2026136.35
27 Oct 2026132.72
26 Oct 2026137.73
25 Oct 2026139.83
24 Oct 2026153.23
23 Oct 2026164.32
22 Oct 2026167.43
21 Oct 2026174.43
20 Oct 2026173.44
19 Oct 2026167.35
18 Oct 2026163.17
17 Oct 2026163.07
16 Oct 2026153.86
15 Oct 2026135.80
14 Oct 2026128.13
13 Oct 2026126.84
12 Oct 2026138.63
11 Oct 2026133.09
10 Oct 2026125.50
9 Oct 2026136.32
8 Oct 2026149.24
7 Oct 2026150.28
6 Oct 2026145.20
5 Oct 2026136.43
4 Oct 2026144.65
3 Oct 2026142.27
2 Oct 2026137.84
1 Oct 2026138.38
30 Sep 2026140.88
29 Sep 2026145.29
28 Sep 2026148.07
27 Sep 2026147.55
26 Sep 2026142.52
25 Sep 2026129.24
24 Sep 2026118.04
23 Sep 2026107.12
22 Sep 2026107.40
21 Sep 2026104.36
20 Sep 2026105.92
19 Sep 2026126.34
18 Sep 2026134.10
17 Sep 2026147.59
16 Sep 2026153.97
15 Sep 2026154.99
14 Sep 2026155.39
13 Sep 2026149.15
12 Sep 2026132.93
11 Sep 2026130.07
10 Sep 2026116.85
9 Sep 2026113.89
8 Sep 2026114.21
7 Sep 2026110.14
6 Sep 2026109.63
5 Sep 2026119.71
4 Sep 2026128.15
3 Sep 2026136.26
2 Sep 2026144.00

What this means for your renewal

Wholesale electricity prices have been climbing. New fixed contracts are priced from forward wholesale costs, so quotes tend to follow the market. If your contract ends in the next six months, it's worth getting quotes now: many suppliers will quote for a contract that starts when your current one ends, so you can lock in a price early.

This describes what has already happened in the market. It is not a forecast. Charts show a 7-day average of daily prices, updated every morning.

Understanding your bill

What makes up a business electricity bill?

Every business electricity bill is built from the same parts. Knowing them helps you compare quotes properly and spot errors.

Unit rate

The price per kWh of electricity you use. On a two-rate meter you have separate day and night rates. It covers wholesale energy, most network and policy costs, the supplier's margin and any broker commission.

Standing charge

A fixed amount per day for keeping your supply connected, whether you use electricity or not. Low-usage sites such as lock-ups and small units feel it most. Some suppliers offer higher unit rates in exchange for a lower standing charge.

Network charges

The cost of the transmission and distribution networks that carry power to you. Distribution charges differ between the 14 regions of Great Britain, which is one reason two identical businesses in different areas get different quotes.

Climate Change Levy

0.801p per kWh from 1 April 2026, shown as a separate line on most bills. Domestic-level users, charities using power for non-business purposes and some others are exempt.

VAT

20% standard rate. A reduced rate applies if you use no more than 33 kWh a day on average, or 1,000 kWh a month. Qualifying electricity in Great Britain is zero-rated from 1 October 2026 to 31 March 2027.

Capacity charges

Larger half-hourly sites often pay an agreed supply capacity charge (per kVA) and may pay for reactive power. Check your agreed capacity matches what you actually need.

Suppliers

Business electricity suppliers

We compare prices from a panel of UK business energy suppliers. We do not cover every supplier in the market. Our supplier guides cover contact numbers, online accounts, out-of-contract rates and who owns each company.

All business energy suppliers

FAQs

Business electricity FAQs

What is the average business electricity price per kWh?

UK businesses paid an average of 24.51p per kWh for electricity in Q2 2026, including the Climate Change Levy but not VAT (DESNZ). The smallest businesses, using up to 20,000 kWh a year, paid 38.36p, and small businesses using 20,000 to 499,999 kWh paid 28.59p. These averages include standing charges spread across the units used.

What is a good business electricity rate?

A good rate is one at or below the average for your business size once standing charges are included. If you use around 10,000 to 20,000 kWh a year, an all-in price well above 38p per kWh suggests you're overpaying. Compare the total annual cost of each quote rather than the unit rate alone.

Why is business electricity more expensive than domestic?

Business electricity is not covered by the Ofgem price cap, businesses using more than a small amount pay 20% VAT rather than 5%, and business users pay the Climate Change Levy (0.801p per kWh from 1 April 2026). Smaller business sites also carry fixed costs, such as metering and standing charges, over fewer units.

How long are business electricity contracts?

Most fixed business electricity contracts run for one to five years. Many suppliers will quote for a contract that starts when your current one ends, so you can lock in a price before your deal runs out.

Can I switch business electricity supplier if I'm in a contract?

You can arrange a new contract to start when your current one ends. Leaving a fixed contract early usually means paying an exit fee. If you are out of contract, on a deemed contract or on a rolling contract, you can usually switch without a fee.

What is a deemed business electricity contract?

If you move into a premises and use electricity without agreeing a contract, the existing supplier puts you on a deemed contract. Deemed rates are usually much higher than fixed contract rates, so agree a proper contract as soon as you move in.

Do I pay VAT on business electricity?

Business electricity is charged at the standard 20% VAT rate unless it qualifies for relief. You can pay a reduced rate if you use no more than 33 kWh a day on average, or 1,000 kWh a month, or if the electricity is for charitable non-business use or domestic use. From 1 October 2026 to 31 March 2027 qualifying electricity in Great Britain is zero-rated instead of 5%. More on VAT on business energy.

What is the Climate Change Levy?

The Climate Change Levy is a tax on energy used by businesses. From 1 April 2026 it is 0.801p per kWh on electricity, rising to 0.827p from 1 April 2027. Businesses with a Climate Change Agreement get a 92% discount on electricity, and some users are exempt.

Is renewable business electricity more expensive?

Not always. Many suppliers now offer renewable-backed tariffs at similar prices to standard contracts. The difference usually comes from how the renewable claim is backed, for example by certificates (REGOs) or by contracts with specific generators.

Will my electricity supply be interrupted if I switch?

No. Your local network operator owns the cables and keeps your power flowing whoever your supplier is. Switching only changes who bills you.

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