How business electricity works
Business electricity is bought on a contract between your business and a supplier. Unlike household energy, there is no price cap, so every quote is priced for you based on how much you use, the type of meter you have, where you are and how long you want to fix for.
That is good news if you compare at the right time, because suppliers compete for your business. It is bad news if you let a contract run out, because you can end up on a much more expensive default rate.
How to compare business electricity quotes
Comparing business electricity is simple once you know what to look at:
- Find your contract end date. It is on your contract or renewal letter, and sometimes on your bill.
- Check your annual usage in kWh. Your bill shows it, or your supplier can tell you.
- Get quotes for the same contract length. A one year price and a three year price are not directly comparable.
- Compare the unit rate and standing charge together. A low unit rate with a high standing charge can cost more overall for a small user.
- Read the terms. Check notice periods, rollover rules and how the broker is paid.
With EnergyJump you share these details once and a trusted UK broker does the comparing across their supplier panel.
What affects the price you are quoted
| Factor | Why it matters |
|---|---|
| Annual usage | Higher users can often secure a lower unit rate, while low users are more affected by the standing charge. |
| Meter type | Standard, two rate (day and night), half hourly and smart meters are all priced differently. |
| Location | Network costs vary by region, so the same usage can cost more in one area than another. |
| Contract length | Longer fixes give certainty. Shorter fixes keep you flexible if prices fall. |
| When you buy | Prices follow the wholesale market, so timing your renewal matters. |
| Business credit | Some suppliers ask for a deposit or offer different prices based on credit checks. |
Fixed, flexible and out of contract tariffs
| Tariff type | How it works | Best for |
|---|---|---|
| Fixed rate | Your unit rate and standing charge are fixed for the contract. | Most micro and small businesses that want predictable bills. |
| Flexible or variable | Prices can move with the market during the contract. | Larger users who can manage risk. |
| Out of contract | Applied when a fixed contract ends and you have not renewed. | Nobody, as rates are usually high. |
| Deemed | Applied when you move into premises and use energy without a contract. | A short stop gap until you agree a contract. |
When to switch business electricity supplier
The best time to compare is several months before your contract ends. This gives a broker time to watch the market and secure a price before you are moved onto a rollover or out of contract rate. If you have moved into new premises, compare straight away, because deemed rates are usually expensive.
How to find cheap business electricity
The cheapest business electricity deal is the one that costs your business the least over the whole contract, not the one with the lowest headline rate. To keep costs down:
- Compare well before your end date rather than in the final week.
- Make sure the quote matches your real usage, not an estimate.
- Ask whether a smart or half hourly meter could suit how you use energy.
- Check that the broker fee is shown clearly in the contract.
- Avoid long notice periods that can lock you into a renewal.
Renewable business electricity
Many suppliers offer renewable electricity backed by certificates, and some customers want this for their sustainability goals or tenders. Ask the broker to include renewable options so you can see whether there is any price difference.
Ready to compare? Use the form at the top of this page, or read our guide to business electricity rates to understand what you are paying for.