How to compare business energy prices

Commercial energy prices are tailored to the nature of your business. To get a better idea of how your business uses energy, providers will ask you lots of questions to assess your needs, they’ll take into account:

• How big your business is
• The nature of your business and where it’s located
• How much energy you use annually
• Whether you’re after gas, electricity, or both
• The type of contract you’re looking for – for example, fixed or variable
• Who currently supplies you and when your contract ends
• How long you want your energy deal to last

Some factors that influence the price of energy can’t be controlled by you or your energy provider – such as the wholesale price of gas and electricity, taxes and environmental levies. Businesses that call for at least 70kW of energy in a half-hour period, can potentially save even more money by installing an HH (or half-hourly) meter.

HH meters send an energy reading to your provider every 30 minutes which provides them with much more accurate data about your energy consumption. The information can help you become more energy efficient as well as ensure you get a precise quote in the first place.

Businesses with very high energy demands (calling for at least 100kW of energy within a half hour period) will need an HH meter by law.

No two business energy deals are ever the same so the best way to compare value for money is to look at:

• The unit cost of gas – the amount you pay per kWh (kilowatt hour)
• The standing charge – this is charged daily to cover the cost of delivering gas to your premises.

But because there are no off-the-shelf solutions, it can be tricky to compare like-for-like gas rates. To give you an idea, here’s what your business can expect to pay depending on its size:

Business size	Annual usage	Price per kWh	Standing charge	Avg. annual cost
Micro business	5,000 - 15,000	18.6p	66.6p	£2,103 (based on annual usage of 10,000kWh)
Small business	15,000 - 30,000	13.1p	134.2p	£3,438 (based on annual usage of 22,500kWh)
Medium business	30,000 - 65,000	16.2p	179.6p	£8,350 (based on annual usage of 47,500kWh)
Large business	65,000 +	10.2p	278.1p	£7,645 (based on annual usage of 65,000kWh)

^{Note: Bill size may vary according to your meter type and business location. Figures don't include the Energy Bill Relied Scheme discount. Current market volatility may also mean that the prices you’re quoted are different from the averages shown. The figures shown are the average unit rates and standing charges quoted by Bionic per business size from January 3 to January 6, 2023. Rates do not include any Energy Bill Relief Scheme discount.}

Just like business gas, looking at the unit cost and standing charge of your business electricity can help you compare value between providers – here are some typical business electricity rates:

Business size	Annual usage	Price per kWh	Standing charge	Avg. annual cost
Micro business	5,000 - 15,000	44.9p	95.0p	£4,837 (based on annual usage of 10,000kWh)
Small business	15,000 - 25,000	40.7p	116.5p	£8,565 (based on annual usage of 20,000kWh)
Medium business	25,000 - 50,000	34.6p	102.5p	£14,124 (based on annual usage of 40,000kWh)
Large business	50,000 +	36.1p	138.3p	£20,359 (based on annual usage of 55,000kWh)

^{Note: Bill size may vary according to your meter type and business location. Figures don't include the Energy Bill Relied Scheme discount. Current market volatility may also mean that the prices you’re quoted are different from the averages shown. The figures shown are the average unit rates and standing charges quoted by Bionic per business size from January 3 to January 6, 2023. Rates do not include any Energy Bill Relief Scheme discount.}

Your last energy bill will have all the information you need to start comparing and saving on your business energy so it’s good to have this handy – you’ll need to know: - The MPAN (metering point administration number) if you’re looking for electricity (sometimes known as the ‘S’ or ‘supply’ number - The MPRN (metering point reference number) if you’re looking for business gas (sometimes known as the ‘M’ number. - The date your current contract ends - How much energy your business uses (in either kWh or pounds)

It’s best to start looking for new energy deals when your switching window opens – this usually happens towards the end of your existing contract. How long your window’s open for depends on your provider and it can be anything from one month to four but you’ll be notified when this is. Missing the opportunity to move energy supplier means you could end up locked into an expensive ‘rollover tariff’ so it’s well worth your while taking the time to switch.

As a business owner looking for the best deal, cost is likely to be at the top of your priority list. But it’s also worth thinking about what else makes a good supplier – reliability, customer satisfaction and problem resolution are all factors to consider. So, while choosing the cheapest quote might tick the box when it comes to price, having an unreliable supplier with a poor reputation for service may cost you more in time, money and effort. 

You can make a more informed choice of commercial energy provider by taking a look at our supplier pages or call us on 0800 188 4930 to see how we can help save you money and boost your bottom line.