Business electricity prices
Business electricity is priced individually for each meter, so there is no single price list. The benchmarks below show what UK businesses of different sizes typically pay, and give you a reference point before you compare quotes.
Average electricity rates by business size
| Business size | Annual usage | Unit rate | Standing charge | Typical annual cost |
|---|---|---|---|---|
| Micro business | Up to 5,000 kWh | 29.4p | 68p/day | £1,720 |
| Small business | 5,000 – 15,000 kWh | 27.8p | 74p/day | £3,450 |
| Small/medium | 15,000 – 30,000 kWh | 26.5p | 81p/day | £6,250 |
| Medium business | 30,000 – 65,000 kWh | 25.1p | 96p/day | £12,300 |
| Large business | 65,000 – 150,000 kWh | 24.0p | £1.40/day | £26,400 |
Market benchmarks, September 2026. Excludes VAT. Rates include the Climate Change Levy where applicable.
Electricity prices by region
Network charges vary across the fourteen GB distribution regions, so two identical businesses in different areas can be quoted different rates.
What makes up your bill
- Unit rate for every kWh you consume
- Daily standing charge covering network and metering costs
- Climate Change Levy of 0.847p per kWh
- VAT, usually 20% (5% for low usage or qualifying premises)
What you need to compare
- Your postcode and business type
- A recent bill showing annual kWh or monthly spend
- Your MPAN (found on your electricity bill)
- Your current contract end date
See quotes for your meter
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Compare nowBusiness electricity prices explained
Business electricity is priced per meter using a unit rate in pence per kWh plus a daily standing charge. Rates vary by region, by how much your business uses and by the length of contract you fix for. The tables above show indicative UK averages so you can sanity-check a renewal quote before you accept it.
Unit rates and standing charges
The unit rate covers the electricity your business consumes. The standing charge covers network and metering costs and is payable every day, even when your premises are closed. A low unit rate paired with a high standing charge can cost a low-usage business more overall.
Levies and VAT on business electricity
Most business electricity bills include the Climate Change Levy and VAT at 20%. Businesses using very little electricity, or charities and non-profits, may qualify for the reduced 5% rate and a levy exemption.
Fixed versus flexible contracts
A fixed contract locks your unit rate for the term and makes budgeting predictable. Flexible or pass-through contracts track wholesale movements and suit larger consumers who can manage price risk.
Business energy questions we are asked most
- What is a good business electricity rate?
- It depends on your region, consumption and contract length. Compare any renewal offer against the indicative averages above before accepting it.
- What are out-of-contract rates?
- If a business contract ends and nothing is agreed, the supply moves to out-of-contract or deemed rates, which are usually far higher than an agreed fixed price.
- Can I compare with multiple meters or sites?
- Yes. Tell us about each site when you enquire and we will look at your portfolio together.