Business and Commercial Electricity Prices
Our industry leading market knowledge enables us to procure the maximum savings on your electricity bills. If your renewal notice proposes large price increases, then let us save you money.
Simply enter your details into our online quoting system to receive all options available today. In 60 seconds, you can compare all business electricity prices and select the tariff that’s right for your company.
Businesselectricityprices.org.uk helps thousands of businesses each year to reduce their energy bills. Our free impartial service ensures you obtain the most competitive tariff in the market.
All customers using our services are guaranteed a quote that’s lower than any published renewal notices that have been notified from existing suppliers. The calculator used to determine quotes is accredited by the Utilities Intermediaries Association, so you’ll receive a fair and unbiased assessment of your needs.
Access the panel of suppliers using our online tools or discuss your requirements with an advisor by calling 0800 690 6008.
What are Average Unit Costs and Daily Charges?
With wholesale prices stable for the past few years, the average retail price has also remained largely unchanged. Direct unit charges today are similar to those from three years ago. Every contract established comprises elements of a cost per unit used and a daily standing charge. As the consumption rises the fixed charges increase, but unit costs reduce.
The graph below highlights the trends over the past few years. Note that the standing charges (SC) are climbing whilst unit costs/kWh are flat or slightly reducing. Several years ago the average SC was 21.96p whereas today it has risen to 23.11p per day. Unit rates are averaging 10.08p/kWh, which is a 13.9% increase from early 2011.
Advice on Switching to the Best Direct Deals
Overall Tips and Information
All energy contracts for commercial customers are for fixed rates for a fixed time period. These normally cover a one-year duration, although two and three year longer term agreements are also available to mitigate fluctuations from wholesale supplies.
95% of the market is controlled by just six suppliers, namely, British Gas, Npower, EDF, EON, Southern Electric and Scottishpower. Alternatives available now include CNG, Gazprom, Opus & Haven Power. There are wide variations in pricing so a comparison between all providers is always good practice.
How do You Ensure Your Rates are Competitive?
The market for commercial and industrial premises works in a similar manner to residential switching services. Changing providers or plans is an efficient and automated process driven by your supply contract. Whether you’re moving, operating a change of tenancy or renewing on reduced terms, your new contract can only start when your existing arrangement expires.
By following the best practice guidelines set out below, you’ll ensure you take advantage of the competitive nature of this industry and circumnavigate potential pitfalls.
- Avoid rollover contracts: If you receive a renewal notice from your current supplier do not accept the automatic extension offer. These are known as “rollover contracts” and charges are generally 70%-100% higher than you’re currently paying.
- Terminate your current agreement: It’s essential you formally terminate your current agreement by email or post before the date outlined in your terms and conditions. If you don’t, you’re unable to change to a new contract.
- Shop around for the best deals: Use our comparison tools to research all available options open to you. Over 61% of companies elect rollover contracts each year and sacrifice combined potential savings of £1.8 billion.
- Out of contract and deemed rates: Ensure you formally sign a new term otherwise you’ll be placed on so-called “out of contract” rates. These charges are at least double what you are paying today and come into force when your contract expires.
What about Half Hour Meters and Multi-Site Businesses?
If you’re one of the 120,000 organisations in the UK operating under a half hourly metered provision, then specialist solutions are necessary to manage the negotiation and submission process. This profile class requires your details to be directly submitted to the energy suppliers to receive bespoke quotes and follow a prescribed tendering process.
Our dedicated brokering team has helped many hundreds of HH customers to reduce their invoiced costs, but also improve efficiency through management software.
Multi-site operations are managed differently from individual quotes because of the volume of meters involved. We’ll gather all your data and request a group procurement offer for all of your sites.
What Management and Efficiency Measures Can I Adopt?
Companies can lower expenses by reducing consumption and introducing energy efficiency products. New innovations together with industry leading desktop software helps manage usage and maintain visibility via analysis and reporting.
The Carbon Trust estimates that by investing in efficiency annual savings of between 10% and 20% are achievable throughout the organisation.
Here’s the latest news updates on current products and services.
- The wholesale market trends graphic now contains 2014 numbers
- You can estimate your bills based on your consumption data
- New unit prices per kWh and standing charges have been added to our database
Stay up to date with market trends by subscribing to our Google+ or Twitter pages below.
What Further Information is Available?
There are other websites that can help you with efficiency measures, market research and supplier complaints.
Ofgem is the industry regulator for the UK market and provides resolution management services. The services of DECC can help with government related schemes. Consumer Focus has pages of excellent advice and support for saving energy and Utility Week report on the industry as a whole. Telephone us for free on 0800 690 6008 for quotes and advice. UK companies pay VAT at the current rate with nonprofit and charities at a reduced rate.