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What is business
electricity?
Business electricity is electricity that is supplied to commercial and industrial premises. It is generated and sold under different contracts and tariffs than domestic electricity, even though it comes from the same sources. This means that business electricity cannot be used to power your home.
At London Gas and Power, we offer a wider range of tariffs and services than domestic suppliers. This is because businesses have more complex energy needs.
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A guide to business electricity tariffs!
With a fixed-rate tariff, your business will pay the same price for electricity for a certain period of time, usually one year. This is often the cheapest and most popular option, because you know exactly how much you’ll be paying for electricity each month.
If you want your business to be more environmentally friendly, you can choose to buy electricity from renewable sources like solar or wind. It’s getting cheaper to buy renewable energy, so it’s a good option for businesses that want to be sustainable.
A pass-through tariff is a type of electricity bill that has two parts: a fixed price for the electricity itself and a variable price for other costs, such as delivery and taxes. The variable price can change several times per year. Pass-through tariffs are best suited for businesses that are closely watching their energy costs and can switch to a different tariff if the price gets too high.
With a variable rate business electricity tariff, your bill can go up or down depending on the market price of electricity. You may be able to save money if the price goes down, but you may also have to pay more if the price goes up. Variable rate tariffs are usually more expensive than fixed rate tariffs, but they are also more flexible.
If you don’t switch business electricity suppliers before your current contract ends, your current supplier may automatically put you on a new contract. This contract will be for a fixed period (usually one year), and you will have to pay the rates that the supplier sets. The rates on rollover contracts are often higher than the rates on new contracts, so you may miss out on cheaper deals.
It is important to compare business electricity rates before your current contract ends to make sure you are getting the best deal. You can use a comparison website to compare rates from different suppliers.
If you have recently moved into a new business premises and do not have an electricity contract, you may be automatically put on a contract with the previous tenant or owner’s supplier. This contract is called a “deemed tariff” contract, and the rates are often higher than the rates on new contracts. You should switch to a new supplier as soon as possible to save money.
It is important to note that deemed tariff contracts are usually rolling contracts, which means that you can cancel them at any time with 30 days’ notice. However, you should still compare rates from different suppliers before switching to a new contract to make sure you are getting the best deal.
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How much does it cost per unit of electricity
for a business customer in the UK?
The average price of business electricity per kWh in the UK in 2023 is 31.3 pence. However, the actual price can vary depending on a number of factors, such as the size of your business, your energy usage, and the time of year.
To get an accurate estimate of how much you will pay for business electricity, you should contact us. You can also use our website to compare rates.
Average electricity kWh Prices by business size
|
Business size
|
Annual usage
|
Unit price (per kWh)
|
Daily standing charge (pence)
|
Annual cost
|
|---|---|---|---|---|
|
Micro business
|
1,000 to 5,000 kWH
|
11.2p
|
30.0p
|
£1,508 (based on annual usage of 8,000 kWh)
|
|
Small business
|
5,000 to 10,000 kWh
|
15.3p
|
60.0p
|
£3,000 (based on annual usage of 12,000 kWh)
|
|
Medium business
|
10,000 to 30,000 kWh
|
21.1p
|
90.0p
|
£6,000 (based on annual usage of 17,000 kWh)
|
|
Large business
|
More than 50,000 kWh
|
28.0p
|
140p
|
£10,500 (based on annual usage of 25,000 kWh)
|
Disclaimer: Electricity prices can change every hour, so the prices you are quoted may be different from the average prices you see online. The prices may also vary depending on the type of meter you have and where your business is located. This information is from June 2023, so it may not be up-to-date.
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Discount Scheme for Businesses' Energy Bills
The Energy Bill Discount Scheme (EBDS) is a government scheme that provides a discount on energy bills for eligible businesses in the UK. The scheme was launched in April 2023 and is due to run for 12 months.
Click here to find out more about the Energy Bill Discount Scheme.
|
Business size
|
Wholesale Price Threshold
|
Maximum Discount
|
|---|---|---|
|
Non electricity-intensive industries
|
20.5p/kWh
|
1.961p/kWh
|
|
Electricity Intensive Industries
|
12.5p/kWh
|
8.9p/kWh
|
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The Benefits of Comparing Business Electricity Options with LGP
Comparing business electricity options is a great way to save money, get the right tariff for your needs, improve your sustainability, and get better customer service.
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Best electricity quote today
the right tariff for your needs.
Frequently Asked
Questions
There are two main types of business electricity tariffs: fixed-price tariffs and variable-price tariffs. With a fixed-price tariff, you will pay the same price per unit of electricity for the duration of your contract. This can be a good option if you want to budget your energy costs. With a variable-price tariff, the price per unit of electricity can change at any time. This can be a good option if you are comfortable with taking on some risk, as you could potentially save money if the price of electricity falls.
A half-hourly meter is a type of electricity meter that records your electricity consumption every half hour. This information can be used to calculate your business electricity bill more accurately, and it can also help you to identify areas where you can save energy. For example, you may find that you are using a lot of energy during certain times of the day, such as during peak hours. You can then take steps to reduce your energy consumption during these times, such as by turning off unnecessary appliances or equipment.
There are a number of things you can do to save money on your business electricity bill, such as:
- Turning off lights and appliances when you are not using them
- Insulating your premises
- Installing energy-efficient appliances and equipment
- Switching to a more energy-efficient business electricity tariff
- Monitoring your energy consumption and identifying areas where you can save energy
If you have a power cut, you should contact your electricity supplier immediately. They will be able to tell you when the power is expected to be restored. In the meantime, you should take steps to protect your business, such as turning off all appliances and equipment that are not essential.
You can get more information about business electricity from your electricity supplier, from the Energy Saving Trust, and from the UK government website.
A business electricity supplier is a company that sells electricity directly to businesses. A business energy broker is a company that helps businesses to compare and switch energy suppliers. Business energy brokers can also provide businesses with advice on their energy contracts and help them to reduce their energy costs.
To switch business electricity suppliers, you will need to provide your new supplier with some basic information about your business, such as your MPAN (Meter Point Administration Number) and your current energy supplier. You can also choose to switch your gas supplier at the same time. Your new supplier will then take care of the rest, and you should not experience any disruption to your energy supply.
As a business electricity customer, you have a number of rights, including the right to:
- Choose your own electricity supplier
- Switch electricity suppliers at any time without penalty
- Receive a clear and accurate energy bill
- Be compensated if you experience a prolonged power cut
- Complain to your energy supplier if you are unhappy with their service