Compare business electricity prices and switch supplier

Business electricity costs about 22p to 30p per kWh in 2026 for most small and medium businesses, plus a standing charge of about 45p to 65p a day. What you pay depends on how much electricity you use, where your premises are, your meter, your contract length and your credit profile, so compare business electricity prices before you agree a new contract.

Green Light Consultancy Group (GLCG) compares business electricity prices from leading UK suppliers, explains your options in plain English and handles the switch for you. Fill in the short form for a free quote.

Last updated: October 2026

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Business electricity prices at a glance

23.97pAverage price UK businesses paid per kWh, April to June 2026
22p to 30pTypical unit rate on a new contract for small and medium businesses
45p to 65pTypical daily standing charge for small and medium businesses
2% higherAverage price compared with a year earlier

Sources: Department for Energy Security and Net Zero (DESNZ), Quarterly Energy Prices, published 29 September 2026, excluding VAT and the Climate Change Levy. Typical rates on new contracts: GLCG, 2026.

What are business electricity rates in the UK?

Business electricity rates in the UK are typically 22p to 30p per kWh in 2026, with a daily standing charge of about 45p to 65p for most small and medium businesses. The latest government figures put the average price paid by UK businesses at 23.97p per kWh in April to June 2026, and the smallest users pay the most.

Every business electricity tariff has two parts: a unit rate, which is the price of each kWh you use, and a standing charge, which is a fixed daily fee for keeping your supply connected.

Average business electricity prices by size of business, April to June 2026
Size of business Annual usage Price per kWh (excluding CCL) Price per kWh (including CCL) Change in a year
Very small Up to 20 MWh 37.67p 38.36p Up 3.5%
Small 20 to 499 MWh 27.87p 28.59p Down 0.2%
Small to medium 500 to 1,999 MWh 27.09p 27.67p No change
Medium 2,000 to 19,999 MWh 24.61p 25.17p Down 2.6%
Large 20,000 to 69,999 MWh 23.85p 24.42p Down 0.6%
Very large 70,000 to 150,000 MWh 22.25p 22.70p Up 4.0%
Extra large Over 150,000 MWh 21.78p 22.25p Up 6.1%
UK average All sizes 23.97p 24.51p Up 2.0%

Source: Department for Energy Security and Net Zero, Quarterly Energy Prices, tables 3.4.1 and 3.4.2, published 29 September 2026. Figures for April to June 2026 are provisional. Prices are the average paid across all contracts, include standing charges and exclude VAT. Change is against April to June 2025, excluding CCL. 1 MWh is 1,000 kWh.

These are averages of what businesses actually paid, with standing charges included, so they will not match the unit rate on a new quote exactly. Rates also move with the wholesale market, so a price quoted today may not be available next week. For where prices are heading next, read our business electricity price forecast.

How business electricity prices have changed

Business electricity prices are far higher than before the energy crisis, but below their peak. The UK average rose from 11.06p per kWh at the start of 2018 to a peak of 27.90p at the end of 2023. It was 23.97p in April to June 2026, about 14% below that peak and 2% higher than a year earlier.

The smallest businesses have seen the biggest increase over that time. Those using up to 20,000 kWh a year paid an average of 37.67p per kWh in April to June 2026, compared with 14.64p at the start of 2018.

Line chart of average UK business electricity prices per kWh from 2018 to April to June 2026 for very small, small and extra large businesses and the UK average
Average price paid per kWh, by quarter, 2018 to April to June 2026. Source: DESNZ Quarterly Energy Prices, published 29 September 2026.

The government figures include standing charges. The table below shows the unit rates currently available from our supplier panel on a new fixed contract.

Unit rates on a new contract from our supplier panel, by business size
Business size Typical annual usage Unit rate (per kWh)
Micro business 5,000 to 15,000 kWh 21p to 23p
Small business 15,000 to 25,000 kWh 21p to 23p
Medium business 25,000 to 55,000 kWh 20p to 23p
Large business 55,000 kWh or more 19p to 23p

Source: GLCG supplier panel quotes, October 2026. Rates are for new fixed contracts, exclude VAT and the Climate Change Levy, and are a guide only. Your quote depends on your usage, location, meter type and contract length.

Small business electricity rates

Small and micro businesses usually pay the most per kWh, because they use the least electricity. Official figures show the smallest users paying 37.67p per kWh on average, compared with 23.97p across all businesses. The standing charge also makes up a bigger share of a small bill, so it matters as much as the unit rate.

Large business and commercial electricity rates

Larger commercial users generally pay less per kWh, and the very largest averaged 21.78p in April to June 2026. Sites with a half-hourly meter are priced individually on their usage pattern, so averages are less useful and a tailored quote matters more. See business electricity meters explained.

Compare business electricity prices

How much does business electricity cost per kWh?

Most UK businesses pay between 22p and 30p per kWh on a new contract in 2026. With standing charges included, the average price paid across all UK businesses was 23.97p per kWh in April to June 2026, or 24.51p with the Climate Change Levy.

The unit rate is only part of the cost, so the fair way to compare business electricity prices per kWh is to work out the full annual cost of each quote.

Worked example: a small business using 20,000 kWh a year

  • Unit rate: 26p per kWh × 20,000 kWh = £5,200
  • Standing charge: 55p a day × 365 days = £200.75
  • Estimated annual cost: £5,400.75, before VAT and the Climate Change Levy

This is an illustration using mid-range 2026 figures. It is not a quote.

A quote with a lower unit rate can still cost more over the year if its standing charge is high. We compare both parts across suppliers, so you see the total annual cost before you decide.

  • Very smallUp to 20 MWh 37.67p
  • Small20 to 499 MWh 27.87p
  • Small to medium500 to 1,999 MWh 27.09p
  • Medium2,000 to 19,999 MWh 24.61p
  • Large20,000 to 69,999 MWh 23.85p
  • Very large70,000 to 150,000 MWh 22.25p
  • Extra largeOver 150,000 MWh 21.78p
  • UK averageAll sizes 23.97p
Average price per kWh by size of business, April to June 2026, excluding VAT and CCL. Source: DESNZ.

What is a standing charge on business electricity?

A standing charge is a fixed daily fee you pay for your electricity supply, however much or little you use. For most small and medium businesses it is about 45p to 65p a day in 2026, and it is higher for larger sites with more capacity.

It covers the cost of keeping your premises connected, including metering and network costs. The less electricity you use, the more it matters: at 55p a day it is about 13% of the bill for a site using 5,000 kWh a year, but only 2% at 50,000 kWh.

GLCG offers some business electricity tariffs with a 0p standing charge. These usually come with a higher unit rate, so they tend to suit low-usage sites, seasonal businesses and premises that sit empty for part of the year.

As a rough guide, a 55p daily standing charge adds about £200 a year. For a site using 5,000 kWh a year, that is the same as around 4p on every kWh. If a 0p standing charge tariff adds less than that to your unit rate, it is likely to be cheaper overall. Ask us to run the numbers for your usage.

 Standing charge Electricity used

5,000 kWh a year13% standing charge

  

20,000 kWh a year4% standing charge

  

50,000 kWh a year2% standing charge

  
Illustration at 26p per kWh and 55p a day, before VAT and the Climate Change Levy.

What makes up a business electricity bill?

A business electricity bill is made up of wholesale energy, network charges, government policy costs, supplier costs, the Climate Change Levy and VAT. The electricity itself is only part of the total: non-energy costs make up around 64% of a typical business electricity bill.

01

Wholesale energy

The cost of the electricity your supplier buys for you. This is the part that moves with the market.

02

Network charges

The cost of carrying electricity to your premises: TNUoS for the national grid and DUoS for your local network. TNUoS charges rose sharply in April 2026. Read our guide to TNUoS charges in 2026.

03

Policy costs

Government schemes that support low-carbon generation and security of supply, such as the Renewables Obligation and Contracts for Difference.

04

Supplier costs and margin

Metering, billing, customer service and the supplier’s profit.

05

Climate Change Levy (CCL)

A government tax on business energy use. It is 0.801p per kWh on electricity from 1 April 2026.

06

VAT

Usually 20%. Sites using no more than 33 kWh a day and charities using electricity for non-business purposes pay a reduced rate. That rate is normally 5%, and it is temporarily 0% in Great Britain from 1 October 2026 to 31 March 2027. Check whether your business qualifies for 0% VAT on electricity.

For the longer explanation, read why business electricity is so expensive.

Business electricity contract types explained

The main business electricity contract types are fixed-rate, variable-rate, deemed or out-of-contract, green, and flexible or pass-through. Most small and medium businesses choose a fixed-rate contract, because it makes bills predictable.

01

Fixed-rate

Your unit rate and standing charge are set for the contract term, usually one to five years. You are protected if prices rise, but you will not benefit if they fall, and there is normally a fee for leaving early. Check whether the contract is fully fixed or whether some charges can be passed through.

02

Variable-rate

Your rates can go up or down with the market, usually at short notice. You get more flexibility and less certainty, and variable rates are often higher than a fixed deal.

03

Deemed / out-of-contract

The default rates a supplier charges when you have no agreed contract. They are usually the most expensive way to buy electricity, so treat them as a stopgap.

04

Green tariffs

Electricity matched to renewable generation, usually backed by Renewable Energy Guarantees of Origin (REGO) certificates. Green tariffs do not always cost more than standard ones, so ask us to show both.

05

Flexible / pass-through

For larger users. Flexible contracts let you buy energy in blocks over time, not all at once. Pass-through contracts fix the energy cost and pass network and policy charges on at cost. Both need more management and usually suit high-usage sites with half-hourly meters.

Not sure which fits? Our guide to business energy contract types has more detail, or ask us and we will recommend a contract for your usage.

Talk to our team

Deemed and out-of-contract rates, and how to avoid them

Deemed and out-of-contract rates are the default prices you pay when you have no agreed contract with your supplier. They are usually far higher than a fixed deal, often 40p or more per kWh, so it pays to avoid them.

  • Deemed rates apply when you move into new premises and start using electricity before you have agreed a contract.
  • Out-of-contract rates apply when your fixed contract ends and you have not agreed a new one. Some suppliers move you to a rollover or variable tariff instead.

How to avoid deemed and out-of-contract rates

  • Find your contract end date. It is on your bill or in your contract.
  • Start comparing early. You can usually agree a new contract well before your current one ends.
  • Give notice if your contract requires it, so you are not rolled over.
  • Moving premises? Arrange a contract as soon as you take on the property. You can leave a deemed contract at any time without an exit fee.
  • Already on these rates? Ask us for quotes. You are not tied in, so you can usually move to a fixed contract quickly.

Who is the cheapest business electricity supplier?

There is no single cheapest business electricity supplier. Each supplier prices every quote on your usage, location, meter type, contract length and credit profile, so the cheapest supplier for one business can be among the most expensive for another.

Prices also change daily with the wholesale market, so any supplier price table, including the one below, is a snapshot of one day and one type of business.

To find cheap business electricity for your own premises:

  • Compare the total annual cost, not just the unit rate.
  • Compare like for like: the same contract length, start date and payment method.
  • Check what is fixed and what can change during the contract.
  • Look at the supplier’s service and billing record as well as its price.

We compare our panel of 22 suppliers and show you the best business electricity rates available for your business on the day.

Example business electricity rates by supplier

Example unit rates and standing charges from our supplier panel
Supplier Unit rate (per kWh) Standing charge (per day)
British Gas 23p 45p
EDF 23p 60p
E.ON 25p 30p
Scottish Power 25.90p 290.58p
SSE 23.85p 582p
TotalEnergies 23p 60p
Utilita 27.99p 74.793p

Source: GLCG panel quotes for a business using 30,000 to 50,000 kWh a year on a 24 or 36 month contract, October 2026. Prices exclude VAT and the Climate Change Levy. They change daily and depend on your business, so treat them as a snapshot, not a quotation.

How to compare business electricity suppliers

To compare business electricity suppliers, gather your usage details, get quotes from several suppliers for the same contract length, then compare the total annual cost and the contract terms side by side. A broker such as GLCG does this for you in one go.

We compare quotes from leading UK business electricity suppliers, including British Gas, EDF, E.ON, Scottish Power, SSE, TotalEnergies and Utilita.

When we compare, we look at:

  • The unit rate and standing charge, and the total annual cost of both.
  • Contract length, and what each term does to the price.
  • What is included, and whether network and policy charges are fixed or passed through.
  • Exit and renewal terms: notice periods, rollover terms and early exit fees.
  • Payment terms, including Direct Debit discounts, deposits and credit checks.
  • Green options, and the supplier’s record on billing and service.

Should I use a broker or a comparison site?

Both compare business electricity prices for you. A business electricity comparison site shows prices from its panel online. A broker also checks your current contract, explains the terms and manages the switch. Whichever you use, ask how many suppliers are on the panel and how the service is paid for.

GLCG has helped more than 15,000 businesses with their energy. We are a member of the Dispute Resolution Ombudsman and an official energy partner of Norwich City FC and West Bromwich Albion.

How to switch business electricity supplier

Switching business electricity supplier takes three steps, and we manage it from start to finish. Your supply is not interrupted, because the electricity comes through the same cables and meter. Only the company that bills you changes.

1
We search
Tell us about your business in the short form. We search our supplier panel for business electricity quotes that match your usage.
→
2
We compare
We weigh up unit rates, standing charges, contract terms and green options, then talk you through the best quotes.
→
3
You save
You choose the contract you want. We handle the paperwork and the switch, with no disruption to your supply.
→
Get business electricity quotes

When to renew your business electricity contract

The best time to compare is before your current contract ends, not after. Suppliers will usually agree a new contract up to 12 months before it starts, so you can fix a price when the market suits you.

For more on timing, read 4 questions to ask before your business energy contract renewal.

  • 6 months or more before your end date. Check your end date, notice period and annual usage.
  • 3 to 4 months before. Get quotes and compare contract lengths.
  • 1 to 2 months before. Agree your new contract, and give notice to your current supplier if it is needed.
  • On your end date. Your new rates start, with no gap in supply.

Ways to cut your business electricity costs

The quickest way to cut your business electricity costs is to get onto a competitive contract, then reduce how much you use and when you use it. Start here.

  • Never roll onto out-of-contract rates. Put your contract end date in the diary and compare before it arrives. See the questions to ask before you renew.
  • Compare the whole cost. Check the standing charge as well as the unit rate. The rates tables on this page show what is typical.
  • Check you have the right meter. A smart or half-hourly meter gives accurate bills and can open up better tariffs. See business electricity meters explained.
  • Use more electricity off-peak. If you have a multi-rate meter, moving some usage to cheaper periods lowers your average rate.
  • Check your VAT and CCL. Low-usage sites and charities may qualify for reduced VAT. Find out if you qualify for 0% VAT.
  • Understand your network charges. They are a growing share of the bill. Read about TNUoS charges.
  • Choose the right contract and term. A longer fix gives certainty, and a shorter one gives flexibility. Compare contract types.
  • Cut waste. LED lighting, timers and switching equipment off overnight are low-cost ways to use less.

Business electricity FAQs

There is no single cheapest business electricity supplier in the UK. Quotes are priced on your usage, location, meter and contract length, and they change daily. The only reliable way to find your cheapest option is to compare quotes for your own business.

Business electricity costs about 22p to 30p per kWh on a new contract in 2026 for most small and medium businesses, plus a daily standing charge of about 45p to 65p. Across all UK businesses, the average price paid was 23.97p per kWh in April to June 2026, with standing charges included.

No, there is no price cap on business electricity. The Ofgem energy price cap only covers households. Business rates are set by the contract you agree, which is why it pays to compare before you sign.

Not at the moment. The average UK business electricity price was 23.97p per kWh in April to June 2026, 2% higher than a year earlier, although it is about 14% below the peak of 27.90p at the end of 2023. Prices are still 86% higher than in the same months of 2021, and network charges rose in April 2026. Nobody can reliably predict the market, so a fixed contract is the usual way to get certainty. See our business electricity price forecast for what is expected next.

Yes, a VAT-registered business can usually reclaim the VAT on electricity used for business purposes through its VAT return. Most businesses pay 20% VAT on electricity, while low-usage sites and some charities pay a reduced rate. See who qualifies for 0% VAT on electricity.

Usually not without a cost. Business electricity contracts do not normally have a cooling-off period, and most fixed contracts charge an exit fee if you leave before the end date. Deemed and out-of-contract rates are much easier to leave. Send us your contract and we will check your options.

Not always. Larger businesses often pay a lower unit rate than households because they buy in volume, but small businesses can pay more. Businesses also usually pay 20% VAT and the Climate Change Levy, and they are not covered by the energy price cap.

Yes. The smallest businesses paid an average of 37.67p per kWh in April to June 2026, compared with 21.78p for the largest users. Suppliers offer lower prices for higher volumes, and standing charges weigh more on a small bill. A small business can still cut its costs by comparing fixed tariffs and checking the standing charge.

Yes, some business electricity tariffs have no standing charge, including some of the tariffs GLCG offers. They usually have a higher unit rate, so they suit low-usage and seasonal sites best.

You need your business name and address, your current supplier, your contract end date and your annual usage in kWh. A recent bill has all of this, along with your MPAN, which is the supply number for your meter. If you do not have a bill to hand, tell us what you can and we will help with the rest.

The time it takes to switch business electricity supplier depends on your current contract and your new supplier. Most switches are timed so that your new rates start the day your current contract ends.

No, your electricity supply is not interrupted when you switch. The same cables and meter supply your premises, and only the company that sends the bill changes.

Compare the best business electricity rates

Comparing is the only way to know you are paying a fair price for your business electricity. Tell us a few details and we will compare business electricity deals from our supplier panel, explain your options and handle the switch. It is free, and there is no obligation to go ahead.

Compare business electricity prices

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