Compare Business Electricity

Easily compare business electricity rates from a range of UK suppliers, and you could save up to 40% on your electricity bill*


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As a UK SME, you can expect to pay £1,000’s a year for your business electricity. It can be a huge outgoing, but without electricity, your business can’t operate; you must find the best business electricity deal, so you don’t pay over the odds.

Switching business electricity suppliers may sound daunting and time-consuming, but that really isn’t the case if you know where to look for the best deals.

Here at Capalona, we have partnered with Love Energy Savings, who will help find you the best commercial electricity deals from a wide range of UK suppliers.

Use our service to find and compare electricity deals and tariffs effortlessly, sit back, grab a cuppa and fill in the form to get started.


Get a business electricity quote.

How much does business electricity cost? Types of business electricity tariffs How to switch business electricity supplier How business electricity prices are calculated Are business electricity rates cheaper than domestic? What is the VAT rate on business electricity bills? Can I claim back VAT on business electricity? Who is the cheapest business electricity supplier? Can I cancel a business electricity contract within 14 days? How long does it take to switch a business electricity supplier? What is an MPAN number, and where do I find it? How can I reduce my business electricity bill? Can I get an online quote for business electricity?

How much does business electricity cost?

The average SME in the UK spends around £3,000 a year on business electricity. However, many factors can affect costs, such as your business's size can dramatically change the cost of the unit price you pay.

To help get an understanding of average pricing by size, the Department of Business, Energy and Industrial Strategy (BEIS) have presented non-domestic electricity usage by bands of consumption:

Business electricity prices by band size


Small business electricity rates

According to recent BEIS statistics, in the first quarter of 2020, it was reported that a ‘very small business’ using less than 20,000 kWh per year, paid an average of 16.74 pence per kWh.

For example, if a business consumed 20,000 kWh in a year, they would expect to pay around £3,348, excluding Climate Change Levy (CCL).

Large business electricity rates

A ‘large business’ consuming 20,000,000 kWh would expect to pay 13.04 pence per kWh on average, which would equate to 2,608,000 a year excluding Climate Change Levy (CCL), according to the BEIS report.

Basically, the bigger your business and the more you consume, the less per kWh you pay.

Ready to find the cheapest commercial electricity supplier for your business? GET A QUOTE


Types of business electricity tariffs

Just as with anything business-related, you want to minimise expenditure to maximise savings. The best way to do this is by understanding how you currently use electricity in your business and then find the most suitable tariff.

There may be five available tariffs for you to choose from, including fixed rate, variable rate, no standing charge, multi rate and green energy. Read more about each option below.

Fixed rate tariff

As you’d imagine, with a fixed rate tariff, your rates remain consistent for the length of your contract. This option is great for businesses who want predictability when it comes to electricity bills. Remember, your bills will still differ depending on the amount of energy you use.

Variable rate tariff

Unlike a fixed rate, a variable rate tariff is subject to change – for better or worse. For example, let’s say your electricity supplier reduced its prices, you’d pay a lower rate, but pricing can also increase.

No standing charge tariff

If you don’t want to pay a daily fee to your electricity supplier, then a no standing charge tariff is the option for you. What does this mean? It means you’ll only pay for the electricity you use, perfect for seasonal businesses who don’t use electricity all-year-round. Please note that unit rates can be costly on this kind of tariff.

Multi rate tariff

This tariff enables you to pay different rates during off-peak and on-peak hours of the day. If you operate a 9-5 office, you might not want to pay the same rates through the night as you do in the day, or vice versa if you own a bar. A multi rate tariff means that your rates will be lower after 5 pm, for example, but bear in mind that you will pay more during peak hours for the privilege.

Green energy tariff

If you want to embrace a greener way of doing business, a renewable energy tariff or a green energy tariff could be the right choice. As the name might suggest, this tariff is greener; your supplier matches some or all of the electricity you use with renewable energy, such as wind farms.

Know which tariff would suit you best? Compare suppliers now.

How to switch business electricity supplier

It’s effortless to switch your business electricity supplier; in fact, it’s just three simple steps.

Step 1 - Enter your company postcode and a few details about your business and current electricity usage.

Step 2 - Our partner sifts through suppliers to find the best rates on offer and contacts you directly to discuss.

Step 3 - Want to switch suppliers? No worries, they’ll handle everything for you.

It’s as straightforward as that.

Get your business electricity quote.

Small business switched electricity supplier and saved

How business electricity prices are calculated

Without knowing how your bills are calculated, how will you find the best deals when switching? When calculating your small business electricity costs, there are two main costs to be mindful of: the unit rate and standing charge.

Unit rate - this is the price you pay and is measured in kilowatt-hours (kWh)

Standing charge - this is a daily flat fee regardless of how much electricity you use daily. The fee varies depending on the supplier.

You can estimate how much commercial electricity costs with a simple equation:

Energy Use x Unit Price per kWh + Daily Standing Charge = Total Electricity Cost

Other factors that can affect the cost of your business electricity:

Energy consumption - you will pay more the more electricity you use in a given period.

Postcode - your geographical location can dictate different rates for businesses.

VAT - if you’re a small business, you have to pay 20% VAT, but charities and not-for-profits can pay just 5% VAT.

Direct debit discounts - if you pay via direct debit, some suppliers will offer you a discount. This is something to consider.

Period of billing - depending on your contract, you could pay monthly or quarterly for your electricity.

Climate Change Levy (CCL) - businesses are charged an additional green tax such as the Climate Change Levy (CCL)

Are business electricity rates cheaper than domestic?

The quick answer is yes. Business rates are usually lower than domestic rates. This is due to factors including the volume of electricity used and the business's size - for example, the larger the business, the lower the unit rate.

Business electricity vs domestic kWh

The BEIS reported that large businesses paid 13.04 pence per kWh, and very small businesses pay 16.24 kWh in Q1 2020, but, according to Bulb, a domestic address in north England would pay 17.04 pence per kWh. Just looking at these figures, you can see domestic rates are higher than business rates.

The cost of your business electricity will, of course, differ depending on the size of your business, and these figures are just a guide.

What is the VAT rate on business electricity bills?

Business energy VAT is charged at 20% for most businesses. But if you’re a charity or not-for-profit company, you can pay just 5% VAT. Some business electricity customers can also qualify for a VAT rate of 5%.

Did you know? If your business uses less than 1000 kWh a month (33 kWh a day) in electricity, you will be considered a ‘low’ energy user. This means you might be eligible for VAT discount on your commercial electricity.

Can I claim back VAT on business electricity?

VAT is automatically added to your business electricity bill and cannot be claimed back even though it is classed as a business-to-business purchase.

Who is the cheapest business electricity supplier?

There is no single cheapest business electricity supplier. What you pay for electricity will depend on your business and how much electricity you use.

Find out which supplier can offer you the best electricity rates, easily compare suppliers now.

Can I cancel a business electricity contract within 14 days?

No, there is no “cooling off” period. Once you have chosen a business electricity supplier and confirmed your contract, whether over the phone, online or signing documentation, you cannot cancel your contract, regardless of whether the contract has begun or not.

Remember: You may be liable to pay exit fees if you want to leave your business electricity contract early. Always read through your supplier’s terms and conditions before agreeing to any contract.

How long does it take to switch a business electricity supplier?

Switching your electricity supplier may take around 4-6 weeks to complete. It may take longer, especially if you haven’t provided all the relevant information to your new supplier.

Supplying all the information as quickly as possible can speed up the process.

What is an MPAN number, and where do I find it?

When you compare business electricity, you will be asked to provide your MPAN. This stands for Meter Point Administration Number and is your unique Supply Number or “S” number used to identify your property. You can find your MPAN on your latest electricity bill displayed in a box with a big “S” at the start.

How can I reduce my business electricity bill?

Reduce your business electricity bill by comparing suppliers. You might think switching suppliers is a headache, but it doesn't have to be. Use our quick and easy comparison tool to find the best commercial electricity supplier.

More ways to save: Switching business electricity suppliers is a great way to start saving money. Reduce your bill even further by reading our top 10 ways your business can reduce its business energy costs.

Using a comparison site like Capalona means you do not have to contact multiple suppliers to compare electricity rates and offers, we do all the leg work for you. And the best bit? Our comparison site is 100% free for you to use.

We’ve helped thousands of businesses save on their business energy costs, start saving on your electricity bills today, GET A QUOTE


Can I get an online quote for business electricity?

Yes. It’s quick and straightforward, too. Simply fill in the online quote form and let us find you the best business electricity supplier deals to choose from.

We’re a broker, which means our sole purpose is to find you the best supplier deals and save you money, so you can offload the admin to us and just concentrate on running your business.

Get your online quote.

*40% average saving can be achieved when compared to your energy suppliers standard out-of-contract deemed rate.