Business Electricity Quotes UK — Compare Suppliers

How business electricity contracts work

Business electricity is more complex than domestic supply. Contracts are typically longer, pricing structures include several components beyond just the unit rate, and the type of meter you have can significantly affect both the tariffs available and how your usage is measured.

Contract length

Business electricity contracts typically run for one to five years. Longer contracts may offer different unit rates compared to shorter ones. Consider your business plans, premises stability, and risk appetite when choosing a contract length.

Fixed contracts

Most small to medium businesses use fixed-price contracts, where the unit rate is agreed at signing and held for the duration. This provides cost certainty, which is useful for budgeting. However, you are locked into that rate for the contract period — if wholesale prices fall significantly, you will not benefit.

Notice periods and out-of-contract rates

Notice rules depend on the contract. Many fixed-term business contracts ask for written notice before the end date, and some renew automatically, often for another 12 months and sometimes at a higher rate, if you do nothing. Microbusinesses get extra protection from Ofgem: the supplier must give renewal prices before the contract ends, and on rolling (evergreen) contracts the termination notice period can be no longer than 30 days. If no new deal is arranged before the contract ends, you will move onto your supplier’s out-of-contract rates — which are typically higher than contracted rates. Check your contract for the exact notice requirement and act early.

Half-hourly meters explained

Under the electricity industry’s settlement rules, sites with a maximum demand above 100kW need a half-hourly (HH) meter. These meters record consumption every 30 minutes and automatically send the data to your supplier. This means your bills are based on your actual consumption profile rather than estimates, and your costs are directly linked to when you use electricity — not just how much.

Businesses below the 100kW threshold may still choose to have a half-hourly meter, and Ofgem’s market-wide half-hourly settlement reform is moving smaller supplies onto half-hourly settlement using smart meter data. Profile class meters (PC 1–4) are standard for lower-consumption businesses and use estimated or periodic reads.

What UK businesses are paying for electricity right now

The Department for Energy Security and Net Zero surveys suppliers every quarter and publishes the average price actually paid by non-domestic customers, split by how much electricity a site buys in a year. In the second quarter of 2026 (April to June, provisional) the all-customer average was 24.51p per kWh, including the Climate Change Levy and excluding VAT, up 2.0% from 24.03p a year earlier and below the peak of 28.39p in the fourth quarter of 2023. Smaller users typically pay more per unit: the very small band (under 20,000 kWh a year) averaged 38.36p per kWh. Same-quarter comparisons avoid seasonal effects; on that basis prices were higher than a year earlier in the very small, very large and extra large bands, lower in the small, medium and large bands and unchanged in the small/medium band.

Source: Department for Energy Security and Net Zero, Prices of fuels purchased by non-domestic consumers in the UK (Quarterly Energy Prices tables 3.4.1 and 3.4.2), published 29 September 2026. Q2 2026 figures are provisional; next update 17 December 2026. Prices are fully delivered averages including the Climate Change Levy and all other elements except VAT, so standing charges are already spread across the units. Averages across every UK business in a band, not quotes, and not comparable with a supplier’s unit rate.

For a rough monthly benchmark, take the annual kWh from your bill, find your band and multiply: 15,000 kWh a year at 38.36p is about £5,750 a year, or roughly £480 a month before VAT. These are averages across every business in a band, not quotes; your contracted rate depends on when you fixed, for how long, your meter type and your credit profile.

What makes up your business electricity bill

Several components contribute to your total electricity cost beyond the unit rate:

• Unit rate – the price per kWh of electricity consumed, typically fixed for the contract duration.
• Standing charge – a fixed daily charge for maintaining your supply connection.
• Network charges – fees for using the transmission and distribution networks to deliver electricity to your premises. These are often passed through by suppliers as part of the unit rate.
• Climate Change Levy (CCL) – a government environmental tax applied to business electricity consumption, set by HMRC and reviewed periodically.
• Renewables Obligation (RO) and other levies – costs associated with government energy policy that suppliers pass through to business customers.
• Availability charge – a charge based on the maximum capacity (kVA) of your supply. Exceeding your agreed capacity can result in additional charges.
• Meter operator charges – fees for maintaining and reading your electricity meter.

Your MPAN — what it is and where to find it

Your MPAN (Meter Point Administration Number) identifies your business electricity supply point, not the physical meter. The full MPAN printed on a bill has 21 digits; the last 13, the core MPAN, are the unique reference suppliers ask for. It is printed on your electricity bill, typically near the meter details section. It is not your account number and stays the same regardless of your supplier. You will need your MPAN to get accurate business electricity quotes.

Climate Change Levy — what businesses should know

The Climate Change Levy (CCL) is a UK government tax on the use of energy in industry, commerce and the public sector. It applies to electricity, gas, and certain other fuels used by business customers. The rates are set by HMRC and are reviewed periodically. Energy for domestic use or for a charity’s non-business activities is outside the levy, and businesses in energy-intensive sectors with a Climate Change Agreement pay a reduced rate. Buying a renewable or green tariff does not remove the levy: the renewable exemption only covers electricity generated before 1 August 2015. Check your eligibility with HMRC or your supplier when comparing contracts.

When to start comparing

It is worth getting business electricity quotes three to six months before your current contract ends. This gives you time to review what is available, understand the full cost over the contract period, serve your required notice, and arrange a new deal without defaulting to out-of-contract rates.

Checklist before you compare

• Know your contract end date and required notice period
• Have your MPAN available
• Gather 12 months of consumption data in kWh
• Know whether you have a standard or half-hourly meter
• Understand your current unit rate, standing charge and availability charge
• Check whether quoted prices include or exclude CCL and other levies
• Compare total costs over the full contract period, not just the unit rate
• Review termination notice requirements before signing