Business electricity, explained
Whether you run a café, a warehouse or a busy office, electricity is likely to be one of your largest overheads. Unlike domestic energy, business electricity isn't covered by the Ofgem price cap, which means the price you pay depends on the contract you agree. Comparing quotes before you renew can make a real difference to your costs.
Business Energy Experts makes comparing simple. Tell us a little about your business and we'll pass your enquiry to the partners listed on our Our Partners page, who will contact you with business electricity quotes. We're a free comparison and introduction service — we don't supply energy ourselves.
Fixed vs variable contracts
A fixed-price contract locks in your unit rate (the price per kWh) and standing charge (the daily fee) for the length of your agreement, typically one to five years. Your bills still rise and fall with how much energy you use, but the price you pay per unit stays the same. That makes budgeting simpler and protects you if wholesale prices climb.
A variable or flexible contract tracks the market more closely. Prices can fall as well as rise, which may suit larger businesses with the appetite and expertise to manage risk. For most small and medium-sized businesses, a fixed-price contract offers welcome certainty.
Why your contract end date matters
Business energy contracts don't usually have a cooling-off period, and many renew automatically if you don't act. Your contract end date is when your current agreement finishes. Most suppliers will let you agree a new contract well before that date — often up to 12 months in advance — so you can secure a price early and switch seamlessly when your current deal ends.
If your contract ends without a new one in place, you may be moved onto out-of-contract or deemed rates. These are typically much higher than fixed contract prices. Knowing your end date means you can compare in good time and avoid paying more than you need to.
What affects business energy prices?
Business energy is priced individually rather than from a published price cap, so quotes vary from business to business. Common factors include:
- Wholesale market prices at the time you agree your contract
- How much energy you use each year, and when you use it
- Your location and the network costs for your region
- Your business's credit rating and trading history
- The length of contract you choose
- Your meter type (for example half-hourly or smart meters)
- Government levies and network charges, which are passed through by suppliers
Understanding your electricity meter
Smaller businesses usually have a standard or smart meter, while larger users may have a half-hourly meter that records consumption every 30 minutes. Your meter type can affect the tariffs available to you. If you have a smart meter, suppliers can bill you on actual usage rather than estimates.
Your electricity supply is identified by an MPAN (Meter Point Administration Number), shown on your bill. Having it handy can speed up your quotes.
Tips for finding your contract end date
If you're not sure when your contract ends, try the following:
- Look at a recent bill — the end date is often shown on the first or second page
- Check your original contract or the renewal letter your supplier sent you
- Log into your supplier's online account or app
- Call your supplier and ask; have your account number ready
- Not sure? You can still request quotes — the contract end date is optional on our form
Ready to compare?
It takes about two minutes to tell us about your business. There's no charge and no obligation to accept any quote. Use the form to get started.