Business and Commercial Electricity Prices

light bulbOur industry leading energy market knowledge enables us to procure the maximum savings on your energy bills. If you’ve just received your renewal letter with large price increases then let us save you money.

Simply enter your details into our online quoting system to receive the cheapest available deals today. In 60 seconds you can compare 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.

Current British Gas (BG) customers receive our UIA (Utilities Intermediaries Association) accredited broker system that covers the top 10 direct suppliers. This approach actually lowers your costs against any current renewal letters. Other customers receive BG quotes which are the most competitive for small and medium sized businesses.

You can either use our online quoting tools to enter your information or telephone our energy team for free on 0800 690 6008.

Average Unit Costs and Daily Charges

With wholesale prices stable for the past few years the average retail price has also remained largely unchanged. Unit costs today are similar to those from three years ago. Every contract contains an element of a cost per unit of energy used and a daily standing charge. As 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’s risen to 23.11p per day. Unit rates are averaging 10.08p/kWh a 13.9% increase from early 2011.

average prices 2011 - 2013

Advice on Switching to the Best Direct Deals

Overall Tips and Information

Energy contracts for businesses are for fixed rates for a fixed time period. These normally run for one year but two and three year longer term agreements are also available.

95% of the market is controlled by just six suppliers, namely, British Gas, Npower, EDF, EON, Southern Electric and Scottish Power. Alternatives include CNG, GazProm, Opus & Haven Power.

There are wide variations in pricing so a comparison between all providers is good practice.

How do You Ensure Your Rates are Competitive?

save money
The market for commercial and industrial premises works in a similar manner to residential switching services. The process is regulated by Ofgem to ensure fair play. Changing providers or tariffs is an automated process driven by your supply contract. Whether you are moving or renewing on reduced terms your new contract can only start when your existing one expires.

Commercial energy plans and policies differ from the domestic home market and you should ensure you follow best practice as outlined below:

  • Avoid rollover contracts: If you receive a renewal letter from your current supplier do not accept the automatic extension offer. These are known as “rollover contracts” and the unit rates are generally 70%-100% higher than you are currently paying.
  • Terminate your current agreement: It’s essential you formally terminate your current agreement by email or post before the date in your renewal letter. If you don’t you are unable to move to a new contract.
  • Shop around for the best deals: Use our price comparison tools to check the best deals available today. Once selected you can change over and lower your annual energy bills. 61% of companies forgo potential savings of £1.8 billion each year by electing rollover contracts.
  • Out of contract and deemed rates: Ensure you sign a new contract otherwise you will 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.

Half Hour Meters and Multi-Site Businesses

If you are one of the 120,000 organisations in the UK operating under a half hourly metered agreement then you require specialist solutions. This (00) profile class requires your details to be directly submitted to the energy suppliers to receive bespoke quotes.

Our dedicated brokering team have helped hundreds of HH customers not only save on their bills but help with efficiency through management software.

Multi-site operations are managed differently from individual quotes. We’ll gather all your data and request a group procurement deal for all your sites. Call our dedicated half hourly and multi-site team on 0800 690 6008 for more information.

Management and Efficiency Measures

management and conservationCompanies can also reduce their bills by consuming less and reducing consumption. Businesselectricityprices help with industry leading software to manage consumption on a regular basis.

The Carbon Trust estimate that by investing in efficiency annual savings of between 10% and 20% are achievable throughout the organisation.

online rates

Further Information for Businesses

There are other websites that can help you with efficiency measures and if you have any issues with your supplier.

Ofgem are the industry regulators for the UK energy market and provide 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.