Business Electricity Rates 2026: Compare & Switch to Save
Get direct access to the latest UK business energy market price. From micro-businesses to large industrial half-hourly users, we provide transparent pricing and bespoke procurement strategies to reduce your overheads significantly.
Current Business Electricity Prices 2026
To help you benchmark your spend, the table below shows the average unit rates ($p/kWh$) and standing charges based on business size.
| Business Type | Annual Usage (kWh) | Unit Rate (p/kWh) | Standing Charge (p/day) | Avg. Annual Cost |
|---|---|---|---|---|
| Micro Business | 0 – 5,000 | 30.8p | 40.9p | £919 |
| Small Business | 5,000 – 15,000 | 27.8p | 46.3p | £2,949 |
| Medium Business | 15,000 – 25,000 | 27.4p | 67.4p | £5,726 |
| Large Business | 25,000 – 50,000+ | 27.6p | 159.5p | £10,932+ |
Note: These figures represent market averages. Rates vary based on region, credit score, and contract length.
Why Choose Energy Solutions for Business Electricity Comparison?
The UK energy market is highly competitive. Many businesses unknowingly overpay simply because they haven’t reviewed their electricity contract recently. We provide a managed service that secures wholesale rates usually reserved for the UK’s largest corporations.
Understanding Your Business Electricity Bill
Your business electricity costs consist of two main components that determine your final bill.
1. Unit Rate (Price per kWh)
The unit rate is what you pay for each kilowatt-hour of electricity consumed. In 2026, this typically ranges from 24p to 31p depending on your supplier and contract length. This accounts for roughly 40-50% of your bill.
2. Standing Charge
This is a fixed daily fee (ranging from 25p to 160p) charged regardless of use. It covers the cost of maintaining your connection to the National Grid.
3. Non-Commodity Charges (NCCs)
- Climate Change Levy (CCL): A tax on business energy (currently $0.775p/kWh$).
- VAT: Usually 20%, though some charities may qualify for the 5% reduced rate.
- DUoS & TNUoS: Costs for moving electricity through regional and national wires.
Types of Business Electricity Tariffs
Understanding different tariff types helps you choose the best deal for your operations.
Fixed-Rate Contracts:
Lock your rates for 1–4 years. With prices stabilizing in 2026, this is the most popular choice for budget certainty.
Variable-Rate Contracts:
Rates fluctuate with the market. While flexible, you are exposed to price spikes.
Deemed Rate Tariffs:
If you move premises without a contract, you pay “Deemed Rates” often 100% higher than negotiated rates. Switching to a fixed contract can instantly halve these costs.
Renewable Energy Tariffs:
Many suppliers now offer 100% green electricity at prices comparable to standard options.
How to Compare & Switch Business Electricity Effectively
Finding the best deal requires a strategic four-step approach:
- Gather Information: Have your recent bill, MPAN number, and annual usage ready.
- Use Comparison Tools: Online tools show live prices from 15+ suppliers in about 20 seconds.
- Evaluate Total Costs: A low unit rate means nothing if the standing charge is excessive. Always calculate the total annual cost.
- Check Contract Terms: Review contract length (1–4 years), auto-renewal terms, and early termination fees.
The Switching Timeline:
Most switches complete within 5 working days. There is no meter change required and zero disruption to your supply.
Business Electricity FAQs
What are current business electricity rates?
Current rates average between 24p–31p per kWh in 2026. Small businesses typically see rates around 27.8p, while large industrial users can secure bespoke quotes closer to 24p.
Is business electricity cheaper than residential?
Unit rates are often lower due to high volume, but businesses pay 20% VAT (vs 5% for homes) and the CCL tax, which can make the final bill higher.
Which is the best electricity supplier for a small business?
It depends on your priority: Scottish Power often has the lowest rates, EDF Energy is known for service, and SmartestEnergy is the leader in renewable options.
How much electricity does a business use?
The average business in the UK uses approximately 10,000 kWh annually, though this varies significantly by sector and business size.
A micro business like a small shop might use 2,500-5,000 kWh yearly, while a small business such as a café typically uses 5,000-15,000 kWh. Medium businesses consume 15,000-25,000 kWh, and large business operations often exceed 50,000 kWh.
Your electricity usage depends on factors like operating hours, equipment, heating/cooling needs, and industry type. Check your current electricity bill to find your exact consumption figures.
How to get the best commercial electricity deal in the UK?
Compare 5+ suppliers via brokers, negotiate based on actual usage, renew 6-12 months early during low wholesale rates. Fixed contracts offer budget certainty; avoid auto-renewals charging premium prices.
Should I choose a fixed or variable business electricity contract?
A fixed business electricity contract offers price stability by locking in your unit rate for the duration of the agreement, helping businesses budget accurately and avoid sudden market price increases. This option is popular among small and medium businesses looking for predictable electricity costs.
A variable business electricity tariff fluctuates with wholesale electricity prices, meaning your rates can rise or fall over time. While variable contracts may offer savings when market prices drop, they also carry higher risk. Comparing fixed and variable business electricity rates based on your usage and risk tolerance helps you choose the most suitable commercial electricity contract.
How can a business reduce electricity costs?
Businesses can reduce electricity costs by regularly comparing business electricity suppliers, switching to a competitive tariff, and selecting the right contract length. Securing a lower unit rate through a business electricity comparison can significantly reduce annual energy bills.
Additional savings can be achieved by upgrading to energy-efficient lighting and equipment, monitoring electricity usage, and adjusting operating hours where possible. Reviewing your electricity consumption and comparing commercial electricity prices ensures you’re always on the best business electricity deal for your needs.
