Abdullah Shoaib
Managing Director
4 min read
Last Updated September 01, 2025
How to compare energy tariffs for small businesses in the UK
Comparing energy tariffs can feel overwhelming for many small business owners, but getting it right is key to keeping costs under control. With so many suppliers and pricing options on the market, understanding what’s best for your business can save you both time and money.
In this guide, we’ll explain how to compare energy tariffs effectively and what to look out for. By making informed choices, your business can benefit from smarter energy management and long-term savings.
How to compare energy tariffs
When comparing energy tariffs for your small business, it’s important to keep things simple and focus on the basics. Start by understanding your energy usage, as this will guide which type of tariff is most suitable.
From there, consider the main features of each tariff and how they align with your business needs. This could include factors such as cost, contract terms, or whether the supplier offers sustainable options. By looking at these elements at a high level, you can quickly identify which tariffs are likely to deliver the best value.
Here are some insights into how those factors can vary between tariffs.
Fixed vs variable tariffs
Fixed tariffs give small businesses price stability, protecting against market fluctuations and making budgeting easier. Variable tariffs, however, can be cheaper when wholesale prices drop but carry the risk of sudden increases. Choosing the right option depends on balancing cost certainty with flexibility to maximise savings and efficiency.
Unit rates
Unit rates are the price you pay for each unit of energy your business uses, and they play a major role in the overall cost of your tariff. Even small differences in unit rates can add up significantly over time, making them a crucial factor when comparing suppliers.
Standing charge
Standing charges are the fixed daily fees you pay to keep your business connected to the energy supply, regardless of usage. While they may seem small, these charges add up over the year and can greatly impact your total costs, making them an important element when comparing tariffs. Some tariffs offer no standing charge, though these deals usually have a higher unit rate.
Top tip! If your business only operates seasonally, a tariff with no standing charges may be the better option. This way, you won’t be stuck paying a daily fee even during quieter periods when energy use is low, helping you to cut unnecessary costs.
Exit fees and additional charges
Exit fees and additional charges can reduce the cost-effectiveness of a business energy tariff. These fees apply if you leave a contract early or make changes, potentially outweighing any savings from a cheaper rate. Always check the terms carefully to avoid unexpected costs and ensure long-term value
Supplier reviews
Supplier reviews can be an important factor when choosing a business energy tariff. Beyond price, they give insight into customer service, billing accuracy and problem resolution. A cheaper tariff may not be worth it if service is poor, so checking reviews helps to ensure reliability and a smoother experience.
Sustainability
Many suppliers now offer renewable or green energy options, allowing businesses to lower their carbon footprint. By selecting a sustainable tariff, companies can support environmental goals while also strengthening brand reputation. This commitment to greener energy can also attract eco-conscious customers and set your business apart in the market.
Comparing small business energy tariffs
When it comes to business energy tariffs, there’s no one-size-fits-all solution. By weighing these elements together, businesses can secure a tariff that balances cost, flexibility, quality of service and long-term value. In practice, that might mean:
- Gathering your energy bills – Reviewing recent bills to understand average usage and peak demand.
- Identifying your business needs – Considering whether cost savings, flexibility or sustainability is most important.
- Comparing unit rates and standing charges – Looking at both together as the biggest drivers of cost.
- Checking contract terms – Noting the contract length, renewal options and any exit fees.
- Reviewing supplier reputation – Reading customer reviews and assessing service reliability.
- Considering green options – Deciding if renewable tariffs align with your business goals.
- Seeking expert advice – Simplifying comparisons to secure competitive deals.
At the end of the day, choosing a business energy tariff is an important decision, and not one that should be rushed. To make it easier, give yourself plenty of time to research your options so you can be sure you’re making the best choice for your business.