Small business energy

When comparing small business energy plans, it is important to know what your own business is actually classed as in terms of size. The smallest category of business is referred to as a microbusiness. To be considered a microbusiness, you must have a maximum of 9 employees.

The common definition of small and medium-sized enterprises (SMEs) is that of 250 employees or less. Because of such classifications, it can be difficult to suggest typical business energy rates. That’s because of the mega difference in size and energy usage.

On top of the size of your business, there are other considerations that an energy supplier must take into account before giving you a quote. This includes what type of business you operate, where you are located, and when you require your electricity and gas.

Small business energy providers are now able to offer a variety of contracts and tariffs that specifically cater to the needs of small UK businesses.

All business energy deals are designed to meet the exact needs of your business. The rates you're offered by business gas suppliers will depend upon a number of things, including the amount of gas you use each year, as well as how and when you use it. Suppliers will also look at the location of your business and its size.

To give you an idea of the rates you could be offered, here are the average gas rates for microbusinesses and small businesses.

^{Note: Prices are correct as of May 2024. Rates and bill size may vary according to your meter type and business location. The prices you’re quoted may be different from the averages shown. The figures shown are the average unit rates and standing charges quoted by Bionic per business size from May 1 to May 7, 2024.}

As with gas rates, small business electricity rates will depend on a variety of factors. Again, to be first classed as an SME, you must first prove that you have less than 250 employees.

Once this has been confirmed, you will then need to provide details including your location and how much energy you have used annually in previous years. Once the energy supplier has this information, they are then able to calculate and provide a much more accurate quote.

Electricity rates are calculated in predominantly the same way as gas rates are, there being a unit price and a daily standing charge. Here are the rates that microbusinesses and small businesses can expect to be offered:

^{Note: Prices are correct as of May 2024. Rates and bill size may vary according to your meter type and business location. The prices you’re quoted may be different from the averages shown. The figures shown are the average unit rates and standing charges quoted by Bionic per business size from May 1 to May 7, 2024.} 

As shown, a micro business and a small business are classed as being different because of the number of employees they have. However, in terms of the actual contracts offered to both types of business, there are also differences that you should be aware of. For example, unlike small businesses, microbusinesses can terminate their energy contract at any time – making it much easier to switch energy suppliers and get cheaper, more favourable deals. Small businesses are only able to switch energy suppliers once they have entered their end of contract window – often up to six months before your actual contract ends.

If you run your business from your home and wish to enter a commercial business energy deal, there are certain criteria that you must first meet. One of these is that roughly 50% of your total energy consumption is for business needs.

Whilst this may seem a lot, even the use of lighting and heating in your home for business purposes will contribute to this figure, making it much easier to achieve than you may perhaps first think.

To find the best energy deal for your business, whether you work from home or another business premises, give our switching team a call now on 0800 188 4930.