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Everything you need to know about business energy costs.
With costs always on the rise, it's more important than ever to be hands-on with your business's energy expenditure. But with so many factors to consider, it can be daunting to dive into the world of business energy.
Read on for our comprehensive guide to business energy costs, and find out everything you need to know.
Business energy is exactly what it sounds like - an energy supply with tariffs and benefits designed specifically for business needs.
It can encompass electricity, gas, or both, and these days often has a focus on renewable energy sources, sustainability and lower, or at least more manageable, carbon emissions.
Business energy packages also usually have tariffs geared towards benefiting businesses of all sizes, such as lower energy costs outside of office hours. Although these benefits tend to vary between suppliers, so it's always worth doing your homework.
For more information on business energy tariffs, be sure to have a look at our comprehensive guide.
Gas and electricity rates for business customers are often much cheaper than domestic rates. However, it's worth bearing in mind that businesses tend to use a lot more energy than the average household, and will usually end up with much higher monthly bills, despite those lower rates.
It's also worth bearing in mind that business energy rates can vary depending on the size of the business. Large businesses can expect to pay less per unit of energy, while very small businesses should see tariffs very much inline with domestic rates.
The Energy Price Cap does not apply to businesses; it is only applicable to domestic energy rates.
The Energy Price Cap, introduced by regulator Ofgem on 1st January 2019, aims to limit what households pay on variable tariffs and sets a maximum daily standing charge. As of 1st January 2025, the Price Cap has risen by 1% to £1738 per year for a typical home, paying by Direct Debit.
But the Price Cap still only applies to a supplier's standard and default tariffs, and does not apply to business rates.
Energy prices have always trended upward, in line with inflation, but in the past few years rates have seen a significant surge. This is due to a number of global factors, perhaps most significantly the war in Ukraine, which continues to put pressure on European energy supplies.
Business energy prices are no different, which is why it's more important than ever to be conscious of energy expenditure and to find the best deal available for your business.
The tables below give an indication of just how much energy prices have risen for business customers over the past 10 years.
|
Cost by Business Size (pence per kWh) |
||||
|
Year |
Very Small |
Small |
Medium |
Large |
|
2013 |
12.99 |
11.28 |
9.17 |
9.14 |
|
2015 |
13.38 |
12.22 |
10.04 |
9.78 |
|
2017 |
14.00 |
12.60 |
10.49 |
10.44 |
|
2019 |
16.71 |
14.89 |
12.56 |
11.86 |
|
2021 |
17.99 |
16.25 |
14.30 |
14.08 |
|
2022 |
23.84 |
20.09 |
20.21 |
19.30 |
|
2023 |
32.28 |
32.76 |
29.04 |
27.07 |
Source: Gas and electricity prices in the non-domestic sector (gov.uk, December 2024)
|
Cost by Business Size (pence per kWh) |
||||
|
Year |
Very Small |
Small |
Medium |
Large |
|
2013 |
4.23 |
3.25 |
3.01 |
2.65 |
|
2015 |
4.30 |
2.89 |
2.57 |
2.08 |
|
2017 |
3.96 |
2.24 |
2.08 |
1.63 |
|
2019 |
4.52 |
2.70 |
2.43 |
1.91 |
|
2021 |
4.84 |
3.01 |
3.05 |
2.49 |
|
2022 |
7.42 |
4.61 |
4.83 |
4.81 |
|
2023 |
6.38 |
5.62 |
5.37 |
5.36 |
Source: Gas and electricity prices in the non-domestic sector (gov.uk, December 2024)
Energy suppliers often have some great deals on their services for business customers, just as they do for their domestic customers.
It's always worth checking what deals are out there if your contract term is almost up. Bear in mind though that, like residential energy contracts, you may be subject to exit fees if you choose to switch suppliers mid-contract.
If you're looking for ways to reduce your business energy costs, without necessarily having to switch suppliers, check out our guide for some top tips.
A number of suppliers offer great deals on business energy, and it's always worth comparing the rates that are currently available before making a decision. Here's a roundup of the biggest business energy suppliers right now.
EDF is an established name in the energy sector, and has a lot of experience supplying energy to business customers. They pride themselves on their customer service and account management, and claim to be Britain's biggest generator of zero carbon electricity.
They also offer fixed tariffs specifically for business customers. Have a look at our comprehensive EDF business energy review for more details.
Octopus is a newer player in the business energy market, but is making waves with a range of interesting, innovative schemes. Of particular note are Electric Match, which pairs businesses directly with renewable energy sources, and Shape Shifters, which offers a smart, time-of-use tariff aimed at saving businesses money.
With a focus on renewable energy and a wealth of options in terms of tariffs and energy management, Octopus could be ideal for businesses that want to be more hands-on with their energy usage.
For more details, check out our Octopus business energy review.
SSE is another energy giant with a long history and a lot of experience with business customers. They also have a heavy focus on renewable energy, with 100% renewable tariffs available, supplied by SSE's own UK-based wind and hydro assets.
Take a look at our SSE business energy review for more information.
One of the biggest energy suppliers in the UK, British Gas has a heavy focus on helping businesses reduce their carbon footprint and meet sustainability targets. They provide zero carbon electricity as standard with any new or renewed contracts.
They also offer additional benefits to business customers, like smart meters and expert advice on saving both energy and money.
Finding a great deal is, first and foremost, about doing your research. Make sure to get a Bionic quote through our website for a rundown of the latest deals from a range of the biggest suppliers of business energy.
You can also call 0330 165 6688 to get advice from someone directly, and talk through your options.
Talk to our team and secure a great business energy tariff today.
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