Electricity prices, plans and contracts explained

July 21st, 2020
Electricity prices, plans and contracts explained

Are you paying above average for your business electricity? In 2019 businesses paid on average 11.66 p/kWh. If your business is paying over 13 p/kWh it could be time to switch. At Free Price Compare we’ll help you compare business electricity with quotes from the Big 6 and independent suppliers. We’re honest and transparent about the information we provide, helping you to get the best deal for your business.

When it comes to business electricity prices, there are two different charges. The rate you pay will depend on the size of your business and your electricity usage:

  • Electricity unit rate: This is the price you pay for the amount of electricity you use and makes up the bulk of your bill. The price is given in pence per kWh.
  • Standing Charge: This is the price your business pays to access electricity priced in pence per day.

It’s important to compare both the unit rate and standing charge when you switch providers. A lower unit rate with a higher standing charge could end up costing you more in the long run. Whatever size your business, when you make a business electricity comparison, you’ll be offered two tariffs:

Electricity fixed rate

By fixing your electricity price you’ll protect your business from market fluctuations and make it easier to cover your monthly outgoings. But prices won’t go down if the wholesale price drops.

Electricity flexible rate

A flexible price plan means that the amount you pay responds to the wholesale market. Good news if the price falls but not so great when the wholesale price rises. Some flexible tariffs let you switch with as little as 30 days’ notice.

As a business, you won’t be offered a dual fuel option.

Because no two businesses are ever alike, no two contracts are ever the same. But avoid these contracts that can cost you more than the charges you’re currently paying, locking you into higher prices for up to 5 years:

Electricity deemed contract

Moved into new premises? Let your current contract end without switching? Then you’ll be put on a deemed contract with business electricity rates typically 80% higher than a negotiated contract.

Electricity rollover contract

Received a new offer from your business energy suppliers and can’t be bothered to switch? You could be paying 70-100% more for your electricity on a rollover contract.

At Free Price Compare we can get you the best deal on your next business electricity contract in just a few simple steps.

Business electricity price factors and how they are calculated

There are various factors looked at when calculation business electricity unit price and daily standing charges, such as:

  • Businesses existing electricity plan
  • Current electricity supplier name
  • Business monthly average electricity spend
  • Daily standing charge for your current plan
  • Business meter type and MPAN no (if applicable)
  • Annual electricity usage in kWh (kilowatt-hour)

Business electricity price breakdown and quotes

  • Day time unit rate in kWh
  • Night time unit rate
  • Daily supplier standing charges

If you compare your business electricity unit prices with Free Price Compare, we will also show following contractual information’s:

  • Monthly estimated electricity bills
  • Annual estimated electricity bills and usage you may use
  • Electricity contract length
  • Electricity fixed term contract or variable contract

Other factors which may affect your business electricity contract and prices

  • Business electricity meter types and profile class
  • Business premises location
  • Business energy consumptions
  • Business size

Business electricity prices for 3 year contract

Energy supplierStanding ChargeUnit Price kWh 
Octopus Energy27.3813.67Compare Now
BGLite28.1413.12Compare Now
Dual Energy 26.1913.20Compare Now
SSE30.2213.58Compare Now
British Gas33.2113.38Compare Now
Scotish Power 31.1413.16Compare Now
TotalGP 34.5513.92Compare Now
Gazprom34.5813.61Compare Now
Opus 31.0013.72Compare Now
EDF25.0014.50Compare Now
Npower 24.0914.00Compare Now
EON30.0013.28Compare Now

The average Standing charge based on a 3 year contract is at 27.24 pence. The average unit rate based on a 3 year contract is at 13.94 pence.

Energy supplier prices correct as of 17/03/2020 and based on a business electricity meter type

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